«Institutional Demand for Swiss Real Estate Picks Up Again»
Interest rate shifts, volatile markets, stagnating development – the Swiss real estate sector is facing growing challenges. Christoph Jockers, CIO of the Akara Fund, explains how to generate stable returns in such an environment: with disciplined portfolio management, a long-term perspective, and a keen feel for market undercurrents. A conversation about quality over quantity – and why restraint can sometimes be the better path to growth.
We meet Christoph Jockers high above the rooftops of Zurich. From the top floor of the Prime Tower – home to one of Swiss Prime Site Solutions’ (SPSS) three Swiss offices – a sweeping view opens up across the city and, in the distance, Lake Zurich.
Jockers is in high spirits as he surveys the panorama. He played a key role in the strategic development of SPSS over recent years, and as of early 2025, he has taken over as Chief Investment Officer of the Akara Swiss Diversity Property Fund PK. The fund, acquired by Swiss Prime Site in 2022 and integrated into its asset management arm SPSS, now manages nearly 3 billion Swiss francs on behalf of pension funds and social security institutions.
Mr. Jockers, you’ve spent your entire career in real estate. What fascinates you about this sector?
I’ve been drawn to architecture and the built environment since I was a child. A key moment for me was studying in Rotterdam – a city largely destroyed during World War II and pragmatically rebuilt. Thanks to cooperation between investors, residents, and local authorities, it has since evolved into an innovative and sustainable urban space. That taught me what property owners can help shape. Being part of that process – and creating secure investment opportunities for our clients – is what drives me every day.
In Switzerland, real estate has been a safe haven for three decades. Will that continue?
«Forever» is a big word… But Switzerland has structural advantages that make its real estate market highly resilient: steady population growth, political stability, and a strong economy. That supports sustained demand for residential and commercial space. Of course, the market is still subject to economic cycles.
«These aren’t anonymous sums – this is the capital of people who’ve worked for decades.»
Recent years have tested the sector, especially in the wake of interest rate changes. Thanks to our high-quality portfolio and professional structures, we emerged even stronger. Being part of Swiss Prime Site certainly helped us along the way.
Other countries can develop huge greenfield real estate projects. Switzerland, in comparison, feels built to capacity.
That’s a major difference. I was recently in Vienna, where you can still build entire districts for 25,000 people – with subway access to the city center in ten minutes. In Switzerland, such plots just don’t exist. We have to manage what we have carefully and with foresight.
What about building higher?
That’s part of the solution, yes. But in practice, large projects quickly run into resistance. Just look at the stadium project in Zurich: widely supported in principle, but repeatedly delayed due to political opposition or individual interests. In Switzerland, everything is a compromise. That makes implementation more complex – and sometimes nearly impossible due to legal objections. But when a solution is found, it tends to be more sustainable in the long term.
The Akara Fund currently holds 158 properties. How has the portfolio changed since joining SPSS in 2022?
Interestingly, the number of properties has remained stable. What we’ve changed is the underlying structure. We analyzed the portfolio and focused on quality, efficiency, and resilience. We sold smaller properties with limited development potential and acquired larger ones with stronger returns. That allowed us to significantly increase the average property size – currently just under 20 million francs per asset.
In-house developments: Akara’s new project in Uitikon-Waldegg. (Image: Courtesy)
So you transformed a niche portfolio with small assets into a scalable institutional vehicle.
Exactly. Originally, the fund was positioned between private and institutional investors. Many of the early properties were residential buildings in the 5 to 10 million franc range – which today no longer make much operational sense.
«Each month, companies pay pension contributions for their employees – an estimated 4 to 6 billion francs of which flow into real estate.»
We sold these assets at favorable prices – mostly to family offices, which were more active than institutional investors over the past two years. This capital upcycling gave us room for new acquisitions and for our development pipeline.
What do you focus on when acquiring properties?
We buy strategically through our network – ideally off-market. We look for quality, income strength, and development potential. For example, in Plan-les-Ouates near Geneva, we acquired a site from a family office that includes a new building with 93 apartments and a long-term leased Tertianum property. These are the kinds of opportunities we target.
So the number of properties remained stable, but you significantly grew assets under management?
When SPSS took over the fund, it managed around 2.2 billion francs. We’re now close to 3 billion. Our approach was to grow deliberately – not just bigger, but better.
You were already at Swiss Prime Site when the Akara acquisition was planned. What was the trigger?
Our Group CEO René Zahnd laid out a clear strategy early on: Swiss Prime Site would focus on its core real estate business – moving away from adjacent holdings like Tertianum and Wincasa. At the same time, CEO Anastasius Tschopp sought to expand Swiss Prime Site Solutions. As part of that strategy, Akara emerged as a highly complementary acquisition.
What made Akara so attractive?
Akara was highly entrepreneurial – dynamic, pragmatic, fast-moving. The team had built strong capabilities in residential development, an area we wanted to expand at SPSS. That said, the setup lacked the scalable structures you need once you hit a certain size. That’s where we could contribute a lot of value.
You’ve been CIO of the Akara Fund since early 2025. How do you see your role?
I wear two hats. Externally, I engage with investors, gather feedback, and present our products. Internally, I work with the team to refine our strategy – not just for the next 12 months, but for the next five to ten years. The Akara Fund now provides a strong foundation with significant leverage potential. That requires foresight and clear priorities.
What regional focus do you apply to acquisitions?
We currently focus on the Zurich area, Northwestern Switzerland including Aargau, and the Lake Geneva region. We’ve particularly expanded our presence around Geneva and Lausanne.
«The Akara Fund was founded in 2016 with a clear mission: to offer a professional vehicle for pension and social security institutions.»
We also selectively scout along the A1 corridor between Geneva and Zurich – and even a bit further east – for commercial properties with good transport access.
What role does the development pipeline play?
A central one. The Akara Fund has a strong track record in development. We continue to deliver attractive value creation from these projects – for example, last year’s completions in Zurich-Wollishofen and the second phase in Uitikon-Waldegg. These drive returns through both top-line growth and revaluation effects.
New Akara Tower in Baden. (Image: Courtesy)
How are you approaching diversification of property use?
If we only completed the existing pipeline – without any new acquisitions or sales – the share of residential use would rise from 53 percent to around 60 percent. Our target is a balanced 55–60 percent residential, with the remainder in commercial. So we plan to selectively acquire more commercial assets going forward.
The Akara Fund has outperformed the KGAST mixed real estate index in recent years. Why?
We built on the strong foundation established before the SPSS acquisition. We’re systematically working on like-for-like rental growth, particularly with new leases – where we’ve sometimes achieved 10 to 20 percent above original projections.
«Our client relations team maintains close contact with investors and knows when capital calls make sense.»
Our Akara Tower in Baden and the Uitikon-Waldegg project are prime examples – both were true performance drivers. We’ve also improved financing: when we took over the fund, it was almost entirely short-term financed, which is costly in a rising interest rate environment. Today, about two-thirds of our mortgages are long-term fixed, though we still use some short-term leverage selectively.
How sensitive is the fund to interest rate changes today?
In three areas: investor demand, where sentiment is clearly improving after a cautious two years; financing costs, where our new structure helps; and asset prices, which are rising again – putting pressure on our acquisition network. The recent decline in the reference interest rate has also triggered some rent reduction requests, but inflation and market conditions often counterbalance these. On the whole, the fund is benefiting from a favorable rate environment.
In H1 2024, your investment return was 2.12 percent – well above the benchmark. Is that sustainable?
We believe it is. We don’t rely on one-off effects but on the portfolio itself. Our cash flow yield for the half-year was 1.49 percent – annualized that’s just under 3 percent. And that’s our goal: to sustainably reach a 3 percent return. Our 2025 plans and pipeline expansion support that outlook.
Where else are you working to improve performance?
We’re lowering ownership costs – for instance through operating efficiency. At a commercial site in Volketswil, we recently cut operating costs by 20 percent, benefiting both the fund and tenants. We’ll also continue our capital recycling strategy to further enhance quality and efficiency. These steps have a direct impact on returns – and directly benefit our investors.
Mid-term, you plan to grow the Akara Fund to 4.5 billion francs. How?
Our current development pipeline will play a major role – we expect around 600 million francs in additional construction volume by 2029 from projects already underway or in preparation. Beyond that, we’ll continue to make targeted acquisitions. Our next capital increase is scheduled for April 2025, and investor interest is already high.
You conduct two capital raises per year – around 40 to 45 million francs each in 2024. Why not raise half a billion at once?
Because we plan carefully and in line with investments. Many investors faced allocation challenges in recent years – for example, when falling equity markets caused real estate to exceed 30 percent of their portfolios. Due to internal guidelines, many simply couldn’t invest more – even if they liked our product. Now that’s easing – demand is picking up again.
So you're deliberately taking a gradual approach?
Yes, and it works well for capital increases. Our client relations team stays in close contact with investors and knows when the timing is right. We also want to make sure we can deploy the capital efficiently. A half-billion raise sounds appealing – but it wouldn’t be realistic. We aim for targeted, substance-driven growth.
Sustainable living spaces: Akara project in Uitikon. (Image: Courtesy)
What role do in-kind contributions from pension funds play?
An increasingly important one. Many pension funds still hold direct real estate investments – often dating back to the 1980s, when Swiss regulation BVV2 first allowed such holdings. Today, these portfolios are often in need of renovation and challenging to manage. That’s why we offer in-kind contribution models: the pension fund transfers its properties into our fund – we take over the management, and they gain diversification and relief.
Any examples?
Yes – in 2023 we took over a portfolio worth over 120 million francs from a pension fund. These are win-win solutions.
The Akara Fund is only open to tax-exempt pension institutions. Why that focus?
That was the founding idea. The fund was created in 2016 specifically for pension funds and tax-exempt social insurance institutions. These are long-term oriented and value stability, predictability, and transparency – and our fund is structured accordingly.
How does the Akara Fund differ from traditional investment foundations?
We’re a regulated investment fund under the Swiss Collective Investment Schemes Act – supervised by FINMA, not the Occupational Pension Supervisory Commission. That means stricter oversight, which builds trust. We’re also NAV-based – no premiums or discounts – and subscriptions during capital increases are priced at net asset value, which many investors appreciate.
«We work systematically on like-for-like rental growth, especially on new leases.»
Like investment foundations, we’re tax-exempt. We also pay distributions – which is a major advantage for many pension funds, allowing them to meet ongoing obligations without selling shares.
Why not open the fund to other qualified investors, such as wealthy individuals?
We’ve made a deliberate choice. There are over 2,000 tax-exempt pension institutions in Switzerland alone – and that’s the world we’re built for. Employer pension contributions, which often flow into real estate, total an estimated 4 to 6 billion francs annually. That’s our playing field. If we repositioned the fund, we would lose the tax-exempt status that’s essential for our current investors. So that’s off the table.
The former Akara Group also had a small club deal and private placement business. What’s become of it?
The vehicle still exists – there’s one ongoing development project under that structure. Going forward, SPSS will handle club deals and promotions through the former Fundamenta platforms, which we acquired last year. That unit is very strong in this space.
What do you enjoy most about your role?
It’s a privilege to work on this product with my team. It’s a position of great responsibility – especially because we manage pension assets. These are not anonymous sums – they’re the lifetime savings of working people. I take that responsibility seriously and approach each day with a sense of humility. If we can not only deliver stable returns to beneficiaries but also help shape Switzerland’s living spaces in a sustainable way, then we can be proud of what we do.
Christoph Jockers has been Chief Investment Officer of the Akara Swiss Diversity Property Fund PK since January 2025. Prior to this, he played a leading role in the fund’s strategic development as Head of Corporate Development at Swiss Prime Site Solutions, where he oversaw the acquisitions of Akara and Fundamenta. He began his career at KPMG in Real Estate Advisory and joined the Swiss Prime Site Group in 2020, quickly rising into senior positions. Jockers studied Accounting and Finance at the University of St. Gallen (HSG) and Strategic Management at the Rotterdam School of Management (RSM).
