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.
