Case Study –CHF11m Financing for a Prime Swiss Residential Acquisition

Property Value	CHF 11 million
Total Financing	CHF 11 million
Traditional Mortgage	60%
AUM-Backed Financing	40%
Location	Zurich Region

The Situation

Our client, a British national and senior investment professional, had relocated from London to Zurich and was looking to acquire a prime residential property in the Herrliberg area for CHF 11 million.

The client had substantial liquidity and marketable investments held across leading European private banks. His income comprised a senior CHF-denominated executive salary, bonus potential and significant rental income from a prime London residential property.

The Challenge

While the client’s overall financial position was particularly strong, the objective was to complete the CHF 11 million acquisition without unnecessarily deploying a significant proportion of his existing liquidity. The wider position also needed to be considered carefully. The client already held substantial investment assets, had relatively modest secured liabilities and benefited from highly competitive existing CHF borrowing, fixed at approximately 1% on an interest-only basis. This meant the transaction could not be approached as a standalone mortgage exercise. The client was also looking to establish a long-term relationship with a Swiss private bank, with the property acquisition forming part of a broader banking and investment strategy.

The Solution

We structured the acquisition through a combination of traditional Swiss mortgage lending and financing against assets under management. 60% of the purchase price was financed through a traditional CHF mortgage. The remaining 40% was financed through leverage against assets held with the private bank. Together, the facilities provided CHF 11 million of total financing, allowing the client to complete the acquisition while preserving existing liquidity. The structure also created the foundations for a wider private banking relationship, with scope for assets under management with the bank to develop progressively over time. Rather than considering the mortgage in isolation, the financing was structured around the client’s wider balance sheet, liquidity position and long-term banking objectives. For internationally mobile private clients with significant investment assets, this type of structure can provide an alternative to deploying substantial capital into a property acquisition, where appropriate and subject to the terms and risks associated with both property-backed and investment-backed borrowing. Client details have been anonymised. Lending and investment-backed facilities are subject to individual circumstances, lender criteria and availability. Borrowing against investment assets can introduce additional risks, including requirements to provide further collateral if asset values fall. Appropriate investment, tax and legal advice should be obtained where relevant.