These fields have been fuelled by negative interest rates (for construction) and by the high investments in research in the past four years.
Pension funds and investment funds are investing in Swiss real estate because they need to find returns in Swiss francs. Currently, bank deposits in Swiss francs are being charged a negative interest rate of -0.75%, which is harming returns. In addition, pension funds cannot invest more than a limited percentage of their assets in shares. Because the assets under management of these funds are growing, there are not many other possibilities than investment in real estate.
Research is booming in Switzerland. There are 1,000 patents filed yearly for 1 million residents, which brings Switzerland to the first place worldwide in this classification. In addition, half of the researchers in Switzerland are foreigners and can thus easily bring worldwide attention to their research. Finally, pharmaceutical companies are expanding quickly their research facilities (for example, Lonza and Sanofi are currently investing more than 1 billion in a biotech facility in Valais to produce vaccines). As a result, there is a lot of M&A and investment activity in the technology field. Considering the worldwide use of this technology and the origins of the researchers, international aspects of the transactions have to be systematically taken into effect in these transactions. Thanks to one of our partners who was in charge of negotiating international tax treaties and to our uncommitted connections with foreign law firms, we are in a position to determine the best set-up for each situation.