Metall Zug Secures CHF 220 Million Financing for Tech Cluster Zug Expansion
Metall Zug has secured substantial financing to advance development of the Tech Cluster Zug, supporting multiple real estate projects that combine industrial innovation with sustainable urban development in Switzerland's growing technology hub.
Metall Zug Group has finalized a significant financing arrangement to support the continued expansion of the Tech Cluster Zug (TCZ), securing a syndicated loan agreement for CHF 220 million with an additional increase option of CHF 50 million. The financing, arranged with a consortium of banks led by Zürcher Kantonalbank, will cover development costs for the upcoming four years with a one-year extension option available. This substantial capital injection addresses the group's increasing financing requirements as the TCZ development progresses, refinancing existing bank loans while securing funding for upcoming real estate initiatives.
The loan structure includes mortgage collateral with an agreed maximum loan-to-value ratio of 45%, providing financial stability for the ambitious development plans. The financing arrangement comes as multiple real estate projects within the technology cluster demonstrate significant progress, highlighting the strategic importance of this funding for maintaining development momentum. The TCZ represents a key component of Metall Zug's infrastructure and technology cluster business unit, positioning the company at the forefront of Switzerland's evolving industrial landscape.
Current project advancements include the SHL project, where the building shell is scheduled for completion by the end of 2025, with handover of the combined production and office building planned for mid-2026. This project demonstrates the feasibility of industrial production in urban contexts, located directly adjacent to V-ZUG facilities. The long-term lease agreement associated with this development ensures stable cash flows for the Metall Zug Group, contributing to financial predictability amid substantial capital investments.
The CreaTower I project has reached a critical milestone with the granting of building permits and commencement of groundbreaking activities. Completion of the building shell is targeted for 2028, featuring innovative RFS ceiling systems that reduce mass compared to conventional alternatives, resulting in approximately 46% reduction in CO2 emissions. The planned sale of the building to VZ Depository Bank in 2028 is expected to generate appreciation gains, as the associated land remains recorded at historical acquisition costs, potentially enhancing shareholder value.
Project Pi continues as a core element in the sustainable development strategy for TCZ, focusing on creating affordable housing within walking distance of the technology cluster. The project emphasizes innovative high-rise living concepts within vertical communities and architecture specifically tailored to the Zug location. Despite an administrative complaint filed in March 2025, Metall Zug maintains its commitment to both Project Pi and the GIBZ development plan, underscoring the company's long-term vision for integrated urban and industrial development. Further information about Metall Zug's corporate activities and announcements is available at https://metallzug.ch/en/media.