What is an SPV?
A special purpose vehicle (SPV) is a legal entity that exists only to hold a certain asset (like a piece of real estate) and protect its owners from financial risk. In the context of Swiss property investment, SPVs let several investors pool their money to buy a building or a group of buildings. Each investor owns a share of the SPV instead of the actual property.
SPVs are set up so that the property asset is separate from the investors’ other assets. This makes things clearer, makes management easier, and opens up opportunities for fractional investment in high-end urban areas that would otherwise be out of reach.
SPVs allow private investors or institutional investors such as pension funds and family offices, to pool capital into targeted real estate projects while isolating risk, so that liabilities remain within the SPV and do not affect the parent company. Leading firms, such as Patrimonium, manage SPVs that oversee real estate portfolios worth over CHF 3.4 billion across Switzerland, while Helvetia operates SPV-style vehicles holding more than CHF 1.1 billion in residential and commercial properties. These structures make property investment more modular and scalable, enabling investors to channel funds into specific projects with greater efficiency and security. SPVs are increasingly shaping the Swiss property market by providing a professional, risk-managed framework for both large-scale and niche real estate investments.
Legal Structure of Swiss Real Estate SPVs
In Switzerland, SPVs are usually set up as one of the following:
- Private limited companies (GmbH/SARL) are good for small groups of investors.
- Public limited companies (AG/SA) are great for crowd-investing platforms or investments that are pooled together.
Important legal aspects of Swiss SPVs:
- Limited Liability
- Investors are usually responsible only for the amount they put in.
- Separate Accounting
- The SPV keeps its own financial records so that all shareholders can see them.
- Governance
Swiss directors (or a Swiss management company) are in charge of running the company so that it follows local laws and, for foreign investors, complies with the Federal Act on the Acquisition of Real Estate by Persons Abroad (Lex Koller).
The structure ensures that both domestic and foreign investors can legally participate in real estate deals – even in areas where direct property ownership might be limited.
How SPVs Make Swiss Real Estate Investing More Accessible to Everyone
SPVs let investors buy properties that would otherwise be too expensive for them to buy. Some of the main benefits are:
1. Less Money Needed
Investors can buy a fractional share of a CHF 5 million Zurich apartment building through an SPV instead of buying the whole thing. This approach makes it easier for everyone to get their hands on high-quality assets and spreads out financial risk.
2. Benefits of Co-Ownership
Investors in SPVs benefit from owning things together:
- Shared costs of maintenance and operation
- Professional management of property
- Joint decisions about upgrades and leasing strategies
- Exposure to several buildings possible
SPVs let smaller investors share ownership with larger institutional investors, giving them the same opportunity to achieve returns.
3. Liquidity Options
Some SPVs let you trade or redeem shares, which gives you a way to gain liquidity faster than you would have as a direct owner of a property. Crowd-investing sites like CapiWell make it easier for investors to buy and sell SPV shares on the secondary market. This way, positions can be changed or liquidated.
4. Aligning ESG and Renovation
SPVs can pool money for ESG-focused projects like renovations, energy efficiency upgrades, or modernizations. Investors all benefit from higher property values, more attractive tenants, and compliance with Swiss energy standards.
Real-Life Examples
Zurich: High-end apartment buildings
An SPV bought a multifamily building in Zurich West that has 20 apartments rented out to mid- and high-income tenants. Investors bought shares based on how much equity they had available. Fractional ownership lets them participate without having to handle management directly. Profits from rental income are paid out every three months, and each shareholder is positioned to benefit as the apartments’ values rise.
Geneva: A mix of business and residential areas
An SPV owns a property in Geneva that has both offices and apartments. Investors benefit from having different sources of cash flow: residential rents are stable, while office leases have the potential for higher yields. The professional SPV managers make sure that tenants are happy and that the company follows all relevant rules.
Lausanne: SPV for renovation
An SPV focuses on acquiring and upgrading older buildings in the center of Lausanne. The funds raised go toward improving the buildings’ exteriors, interiors, and energy efficiencies. Investors split both the costs and the profits. After a renovation is done, the property’s rental rates and value go up, showing how SPVs can be used to create value.
Risks and Rewards: Things To Consider
Investors should be aware of the risks that come with SPVs, even though they have many benefits:
- Market Risk
Economic or demographic changes can cause property values and rental incomes to go up or down. - Liquidity Limitations
Not all SPVs have shares that are easy to trade; some may have to be held for several years. - Management Risk
Returns depend on how well the leasing, maintenance, and ESG upgrades are managed by professionals. - Legal and Tax Issues
Investors need to know about Swiss corporate law, cantonal taxes, and what it means for them to own shares of a company in another country.
These risks are balanced by possible rewards:
- Access to high-quality Swiss urban assets
- Cost sharing
- Capital appreciation
- Portfolio diversification
- Lower entry costs
SPVs and the Future of Investing in Swiss Real Estate
The SPV model fits with new trends in Swiss real estate investment:
- Fractional Ownership Growth
More investors can now buy shares of properties in Zurich, Geneva, Basel, and Lausanne. - ESG Focus
Collective capital can pay for upgrades that are good for the environment, like energy-efficient retrofits, green building projects, and upgrades that are good for the climate. - Crowd Investing
Platforms like CapiWell let smaller investors pool their money and buy properties that are as good as those owned by institutions. - Regulatory Compliance
SPVs allow foreign ownership without breaking rules (Lex Koller and local cantonal ones)
Investors who know how SPV structures work can buy high-end Swiss real estate without having to pay for and manage entire properties.
Takeway
SPVs are changing the way people can buy Swiss real estate. SPVs make investing in Zurich, Geneva, Basel, and Lausanne more accessible by pooling resources, sharing costs, and letting people own a fractional interest in one or more properties. Investors get access to high-quality residential and commercial properties, opportunities to profit from upgrades in line with ESG standards, and professional management – all while lowering their own risk.
SPVs are an efficient, legal, and ever more popular way for investors to get access to high-end properties without having to buy a whole building. When used with crowd-investing sites like CapiWell, SPVs offer a clear, easy way to participate in Switzerland’s most desirable real estate markets.
