Typically, real estate companies listed on the SIX Swiss Exchange rarely make headlines that attract interest beyond their shareholder base. Novavest Real Estate, a real estate company based in Zurich, is the exception that proves the rule.

According to the company's statement, Caceis (Switzerland) SA — a member of the Crédit Agricole and Santander banking group that offers asset servicing, including for real estate funds, and operates in Zurich and Nyon in Switzerland — is calling for an extraordinary general meeting on behalf of the MV Immoxtra Switzerland Fund.

The aim of the move by the largest shareholder, holding a 15,24 percent stake, is to dismiss three of the five members of the board of directors: Thomas Sojak, Stefan Hiestand, and Daniel Ménard. Sojak would also be removed as board chairman and Ménard as a member of the compensation committee.

Board of Directors Remains Tight-Lipped

The proposed new board members are Cyrill Schneuwly (also as chairman), Ueli Kehl (also for the compensation committee), and Roland Vögele. Additionally, amendments to the capital band as per Article 3a of the statutes have been requested.

The main reason for this unusual request is also stated in the ad hoc announcement: «Caceis (Switzerland) justifies its request primarily with the unsatisfactory share price performance of Novavest Real Estate.» The board of directors will now review the shareholder demand, respond at the appropriate time, and provide information on the next steps.

Unsatisfactory Share Price Performance

Currently, the shares are trading around 34 francs and have only slightly decreased since the beginning of the year. However, in 2022, they were trading above 45 francs.

Board Chairman Thomas Sojak has been with the Cantonal Hospital of St. Gallen since 2005, where he leads the Real Estate & Operations Department and is a member of the executive management. He was also the board chairman of SenioResidenz AG, which was listed on the BX Swiss and merged with Novavest Real Estate in June 2024.

Four Decades of Financial Expertise

Stefan Hiestand is better known in financial circles, with more than four decades of relevant experience. His career includes positions at NatWest in Zurich and London, Citicorp Investment Bank, J. Henry Schroder Bank, and Jefferies, where he founded the Swiss subsidiary. As Country Head Switzerland, he built the Convertible Asset Management for Jefferies, which he led until 2007 as an international board member, CEO, and chairman of the board in Switzerland.

Since March 2020, Hiestand has been a member of the board (vice chairman) of Credit Suisse Investment Partners (Switzerland), which was formed in 2020 through the merger of AgaNola (where he was majority shareholder and chairman) and Credit Suisse Asset Management (Switzerland).

Loss of Confidence in Management

Daniel Ménard founded mépp ménard partner projekte ag (mépp) in Zurich in 2008 and serves as partner and board chairman of this architectural firm.

On its website, MV Invest, an advisory firm specializing in indirect real estate investments and manager of the MV Immoxtra Switzerland Fund, provides a more detailed rationale for the request. In addition to the disappointing share price performance, it cites a loss of confidence in management. The board is accused of prioritizing growth above other risk factors, such as debt.

Inadequate Corporate Governance?

The merger with SenioResidenz is also criticized, with concerns about the risk that «the current board may carry out capital increases despite the low share price, significantly diluting existing shareholders.» The proposed amendment to the capital band aims to protect shareholders from such dilution.

MV Invest also criticizes insufficient corporate governance, highlighting «interconnected interests and the close ties among all parties within Novavest's current leadership structure.» It aims to strengthen the board with «experienced, recognized real estate experts and a representative of investors.»

Extensive Real Estate Experience

The proposed candidates are also no strangers in financial and real estate circles. Cyrill Schneuwly served as CEO of Intershop Holding until autumn 2023, where he had been employed since 1998. Previously, he worked in auditing and consulting for many years, including as an audit manager at Arthur Andersen in Zurich. This year, he also joined the board of Peach Property Group.

Ueli Kehl has over 35 years of experience in the real estate industry. Since 2004, he has been the CEO and owner of the real estate trust firm Neue Immo AG in Aarau. He was part of the management and deputy fund manager of the Sima and Swissreal real estate funds of UBS. Previously, he built the real estate company AKB Immo for the Aargauische Kantonalbank, which he rebranded as Neue Immo through a management buy-out.

Roland Vögele is the founder and owner of MV Invest. Since 2013, he has organized IMMO, the Swiss real estate fair for investors.