Holding Period

The holding period is a crucial point of the exit strategy, for the following reasons:

  • Life cycle
    • Aging property portfolio
    • Change in tenant structure
    • Renovation obligation with re-letting and extension of the holding period for return on investment
    • Change in the category of buyers in the event of resale
  • The longer the holding period, the greater the risk
    • Change in tenant requirements
    • Potential negative development of the micro location
    • Building development
    • New environmental requirements for the buildings
  • Tax burden
    • Depending on the canton and tax system in some cases gradual decrease in the tax burden as the holding period increases
    • Tax rate rises
  • etc.
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