Press release, 9 May 2025
NOVAVEST Real Estate AG - Process for the sustainable conversion of the Paracelsus site Novavest Real Estate AG («NOVAVEST», SIX Swiss Exchange: NREN) has launched a new process for the subsequent use of the Paracelsus site in Richterswil. After numerous discussions with potential operators in the medical and nursing sectors remained unsuccessful, NOVAVEST is now focusing on a sustainable conversion of the site. As owner of the property, NOVAVEST is aware that the Paracelsus site is of great importance to the municipality of Richterswil due to its location and history.The coronavirus crisis had a severe impact on the former Paracelsus Hospital in Richterswil (PSR), forcing it to file for a debt-restructuring moratorium in October 2020, to subsequently close the hospital and file for bankruptcy in February 2021. In recent years, the previous owner of the PSR properties, SenioResidenz AG, which merged with Novavest Real Estate AG in June 2024, had been intensively seeking a long-term solution in the medical or nursing sectors. During this time, a comprehensive dossier was created for the Paracelsus property and a large number of contacts were established in the medical/therapeutic fields.
Despite various discussions, it ultimately proved impossible to find a long-term interested new tenant from the healthcare industry. Further use of the site as a hospital or care institution is therefore no longer feasible from today's perspective. Reasons for this include the changed hospital landscape, the decentralised location in the Canton of Zurich, the location away from a train station and the high price of land.
To avoid leaving the site empty for a long period of time, an agreement was signed with the Canton of Zurich in May 2022 for the interim use of the buildings as a cantonal transit centre for refugees from Ukraine. The centre currently houses asylum seekers from various countries. The corresponding rental agreement with the Canton of Zurich was extended in 2024 with a minimum term until the end of 2025 followed by an open-ended tenancy, in order to be able to continue the ongoing search for a follow-up solution.
Sustainable conversion in planningThe process for the conversion of the Paracelsus site is in progress. Clarifications are currently being carried out at the planning level and with various authorities. The focus at the moment is on residential use. This could provide a sustainable long-term solution for the historic site and create added value for the municipality of Richterswil. Since the Paracelsus site is located in the zone for public buildings and facilities, this would require a rezoning. In addition, a quality-assuring development plan could be useful. At least the rezoning and possibly also the development plan would have to be approved by the Richterswil municipal assembly. Such a vote would probably take place in the second half of 2026.
As soon as the ongoing clarifications regarding the long-term conversion of the Paracelsus site have led to further specific results, Novavest Real Estate AG will provide the relevant information.
Contacts:Peter Mettler, CEO / Fabio Gmür, CFO Novavest Real Estate AG Feldeggstrasse 26
8008 Zurich
+41 (0)44 276 40 40
info@novavest.ch https://www.novavest.ch
NOVAVEST Real Estate AG
https://www.novavest.ch
NOVAVEST Real Estate AG is a Swiss real estate company based in Zurich. It focuses its activities on the management and development of properties used exclusively for residential purposes (rental apartments) and living space for the elderly generation (senior residences, care facilities), and properties for office and commercial use as well as new building projects in all these segments. The share of rental income from residential use shall strategically account for at least 50% of total target rental income. The real estate portfolio comprises properties throughout Switzerland that are, in terms of purely residential properties, located in cities or conurbation areas and/or with good public transport links and easy access by private motor vehicles. For senior residences and care facilities, the properties can be located either in urban or in rural regions of Switzerland. The registered shares of the company are listed on the SIX Swiss Exchange (Ticker NREN, Valor 21218624, ISIN CH0212186248).
This media release serves information purposes only. It does not constitute a prospectus within the meaning of the Swiss Financial Services Act (FIDLEG) or the listing rules of the SIX Swiss Exchange. It does not constitute an offer or invitation to buy or sell shares in NOVAVEST Real Estate AG or to purchase or sell other financial instruments or services. This media release may contain certain forward-looking statements, e.g. statements using words such as "believe", "assume", "expect", "plan" or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual events, financial condition, development or performance of the Company and those expressed or implied by such forward-looking statements. Against the background of these uncertainties, readers should not rely on such forward-looking statements. The Company assumes no responsibility to update forward-looking statements or to adapt them to future events or developments. This media release and the information contained herein may not be distributed or transmitted into the United States of America (USA) or distributed or transmitted to US persons (including legal entities) or to publications with a general circulation in the USA. Shares in NOVAVEST Real Estate AG are not being offered for sale in the USA or to US persons.