The Chedi Andermatt is a luxurious 5 star superior contemporary hotel and apartment development set in the natural beauty of the Swiss Alps. The project comprises of 50 hotel rooms and 119 residential units for sale of which 64 apartments, 42 residences, seven lofts and six penthouses. The one and two bedrooms apartments and residences come fully furnished and range from 110 to 306 square meters. Lofts and penthouses range from 221 to 655 square meters. All are impeccably presented and combine the traditionally alpine with contemporary design.
Freehold Ownership with no restrictions
The Chedi Andermatt provides an opportunity to buy residential property in Switzerland with no restrictions for international buyers. Swiss Federal law prevents foreigners from acquiring residential property in Switzerland without a permit. The December 21, 2007 decision of the Swiss Federal Council granted The Chedi Andermatt an exemption to the terms of the Lex Koller Act. Accordingly foreign and Swiss buyers were granted identical, unrestricted rights and obligations to buy residential units within the project.
The village of Andermatt sits 1444 meters above sea level, in the high Alpine valley of Urseren and is home to 1300 residents. It is centrally located in Switzerland and offers excellent connections to major airports such as Zurich (1.5h), Basel (2h) and Milan (2h). The cities of Lucerne, Lugano, Locarno and Ascona are all 1.5 hour away. There is also an airfield for private aircraft in Buochs, only 45 minutes from Andermatt.
The hotel features two gourmet dining facilities, a Japanese signature restaurant specialising in sushi, tempura and sashimi, and The Restaurant serving a selection of the best of Western including traditional dishes from Central Switzerland and Asian cuisine. In addition, there is a spacious lounge, wine and cigar libraries, an après-ski bar, a gym, an in- and outdoor pool. 68 fireplaces are spread out the common area of The Chedi Andermatt guaranteeing a relaxing ambience throughout the hotel.
Outstanding Personalized Service
The Chedi Andermatt stands for luxury quality and outstanding personalized service. The hotel features 24h room service, 24h concierge service, valet parking, free transport to the ski slopes and the village, an in-house ski center, dedicated ski butlers to ensure the most memorable alpine holidays and much more.
The Spa at The Chedi Andermatt is a peaceful retreat for relaxation and rejuvenation. State-of-the-art facilities include exquisite spa suites, a Tibetan-themed relaxation lounge, a Pilates/yoga studio and extensive hydrothermal facilities, including a Finnish sauna, steam rooms, an alpine petal bath and hot/cold plunge pools. Guests will be lulled into a state of bliss while enjoying the spa’s extensive range of oriental-inspired treatments while the in-house hair salon adds to the luxurious pampering.
The Chedi Andermatt is managed by General Hotel Management Ltd. based in Singapore, known for conceptualising, developing and operating an exclusive group of hotels and resorts. With an expansive portfolio and more projects in the pipeline, GHM prides itself in providing guests with a distinctive lifestyle experience that is unrivalled.
The project has been designed by star and award-winning architect Jean-Michel Gathy of Denniston International Architects and Planners Ltd. based in Kuala Lumpur, Malaysia. Denniston is specialized in luxury resorts worldwide and has developed resorts for renowned hotel brands such as The Aman Resorts, The Setai, The Chedi, Banyan Tree, One and Only Resorts, St Regis, and Park Hyatt.
The Andermatt ski facilities will be modernised and merged and connected with the neighbouring ski area of Sedrun, creating a first class Ski arena. This will create a well-serviced ski area with around 130 km of superb slopes, guaranteed to keep skiers content and challenged from morning to night.
The Andermatt New Resort
The Chedi Andermatt is the first landmark of the new Andermatt Swiss Alps Resort. The new resort will emerge over the next 10 years on 1.4 mio square meters including six 4- and 5-star hotels with 850 rooms and condominiums, 42 buildings with 500 apartments, 25 exclusive luxury villas, a shopping promenade with restaurants, an 18-hole championship golf course, a sports center with wellness services, concert and event facilities, and 1970 underground car parks. The construction of the entire resort will take place in phases and the initial opening is scheduled for 2014.
In the winter, the guaranteed snowfall in the region will prove to be popular for all types of winter sports. Experienced skiers will be thrilled with the challenge of Gemsstock, at almost 3,000 metres above sea level, while the sunny slopes of the Nätschen are attractive for families and pleasure skiers. In addition to Alpine skiing and snowboard, cross country skiing, snow-shoe hiking, ice skating, horse-sleighs rides and sledding can be experienced in the valley. The Andermatt ski facilities will be modernised and connected with the neighbouring ski area of Sedrun to create a first-class ski arena. The result will be an ultra-modern, well-serviced facility with more than 130 kilometres of superb slopes.
In the summer Andermatt, is the perfect location for hiking, climbing and mountain biking. Passionates of fishing, windsurfing, kitesurfing and sailing will find ideal conditions in this exceptional water rich environment. Excursions to surrounding cities or a ride on the historical mail coach are other attractive alternatives. A new 18-hole championship golf course is set to open in 2014. It was realized on a surface of 1.3 mio square metres, is south facing and will offer with its hilly terrain a special playing experience.
Swiss real estate market
Thanks to the country’s political and economic stability, Switzerland’s real estate market is one of the most stable in the world. The high quality of life, the ability to innovate, and the stable legal framework make Switzerland an attractive location. Access to a skilled work-force is a decisive advantage to business. The Swiss economy is a stable, characterized by low unemployment.
Swiss real estate prices have shown a positive trend for several years. This development is based on immigration of people from abroad. These are predominantly skilled workers from neighbouring countries such as Italy, Germany and former Yugoslavia. Switzerland’s attractiveness leads experts to anticipate continued high population growth which will impact positively on the Swiss real estate sector. Furthermore real estate’s character as a tangible asset provides investors excellent protection against a possible rise in inflation.
Investing in Swiss francs
As a consequence of the debt crisis and the uncertain economic and financial situation in Europe, the Swiss Franc is positioned as a strong currency. Switzerland is regarded as a stable financial centre with an intact political environment. Whilst inflation in Europe is rising, continued low inflation is expected in Switzerland. The strength of the Swiss Franc allows Swiss government bonds to be issued at very low interest rates and mortgage financing is also possible at favourable rates.
Arrangements have been made with leading Swiss banks to provide financing to qualified buyers at attractive interest rates. The typical loan to value ‘LTV’ is 50-60% of the purchase price, although the actual LTV is determined at the bank’s discretion.
Second Home initiative
The “second home initiative” was adopted by the Swiss electorate. This provides that holiday homes may not represent more than 20% of total residences in any single commune. If the current proportion in a community already exceeds this figure, no more building permits will be granted for second homes. The Chedi project is excluded from the scope of the second home initiative. Hence apartments in The Chedi Andermatt represent one of the last possible opportunities to acquire a holiday apartment.
Investing in The Chedi Andermatt
Swiss residential real estate has appreciated on a very steady basis since 2002 and even in 2008 and 2009 attesting to the safe nature of Swiss residential property. The case for investing in Andermatt is promising as prices are expected to reach the prices of other exclusive alpine destinations in Switzerland such as St Moritz, Gstaad, Zermatt, Verbier. In addition, the exemption to Lex Koller and the second home initiative are both important factors that will contribute to value creation over time. We expect units to generate 2% net yield before taxes and expect a yearly capital appreciation of 3 to 5% in the next seven years once the new Andermatt Resort will be completed and the Resort will have reached its full potential.
The acquisition of an apartment in The Chedi Andermatt is subject to a land registration duty of 0.2% on the purchase price, up to a maximum of CHF 10,000. Notary fees will amount to a maximum of 0.2% on the transaction price with a minimum of CHF 2,000.
Annual running costs
Owners will be responsible for a resort maintenance fee of approximately CHF 100 per square meters and utility charges of approximately CHF 37 per square meters (water, electricity, heating, telephone, TV, internet). The resort maintenance fee shall cover the charges, fees, cost and expenses payable for the maintenance, management, security, insurance, up-keep, renewal, repair and replacement of the common areas comprising also the common utility charges. It also includes the access to all public hotel facilities in the extent provided to hotel guests, excluding however any consumption of food and beverage, goods or services.
Transfer of Title
An official Swiss notary of the district will act on behalf of both, the buyer and the seller. The notary will draw up the deed of sale and all documents required for the transfer of the legal ownership and he has a duty to protect the interests of both parties. By signing a power of attorney, the buyer entrusts the appointed notary’s office with the duty of ensuring that all legal formalities are respected, particularly the registration of the deed in the Land Register and releasing the acquired property from any previous mortgage. The purchase of an apartment becomes valid once the owner is registered in the Land Registry.
The buyer will be able to participate in the rental program provided that the interior design and furniture of his/her unit will be according to the layout options and design proposed by the The Chedi Andermatt hotel. The unit owner will receive 50% of the actual net rental proceeds of his/her unit. The following costs will be deducted from the gross rental revenue: administration fee of 12%, costs for consumables of 2%, and small commissions. The net rental revenue will then be equally split and the home owner will receive 50% of which 2% of the gross rental revenue will be deducted for the FF&E Fund (interior renovations and furniture replacement). Participation in the rental program is not mandatory.
The buyer holding the unit directly will be subject to Andermatt income tax on the net rental income of the unit (rental income less maintenance cost, management fees and debt interest). The income tax rate, depending on the individual tax situation of the buyer, is currently approximately 27%. Annual net wealth tax on the unit, after deduction of debt, will be levied in Andermatt. The tax rate is currently approximately 0.2%. In addition, an annual tourist tax of CHF 14 per square meters net-living space will be levied annually, unless the buyer rents out the unit on a permanent basis to the The Chedi Andermatt hotel and only for short time self-uses the unit. The capital gain (difference between sales price and purchase price) will be subject to Swiss real estate capital gains tax of approximately 11% to 31% depending on the size of the gain and the holding period of the investment. The longer the real estate has been held, the lower the tax rate will be.
Home Owner Association
The Chedi Andermatt units are organized as a ‘Home Owner’s Association’ and each owner has a share of the whole building and an exclusive right to use their own property. All the property owners are bound together in the home owners association, which sets out the rules of the ‘house/resort’. The owners have complete control over the building, but at the annual meeting they will appoint an Administrator who will deal with the day to day running of the property. The annual meeting will also set the budget for the forthcoming year, vote on suggestions made by the Administrator and owners, and review any problems.
The purchase of real estate in Switzerland does not create the right for obtaining any residency permit. Non EU citizens of age of 55 or more are eligible to obtain a residence permit (‘pensioner permit’) if they fulfill certain criteria’s such as close relations to Switzerland, make Switzerland their main residence, not gainfully employed in Switzerland or abroad and have necessary financial means. Another way to obtain a residence permit is to open a business in Switzerland. Applications for work and residence permits for self-employed non-EU nationals are assessed on the basis of whether the relevant economic sector is already oversupplied and whether the new business will create jobs for Swiss citizens. Such applications need to be discussed beforehand with the cantonal authorities.
Depending on the nationality of the visitor, a Schengen visa may be required to enter Switzerland. Schengen visa normally are valid for stays for up to 90 days in a 180 days period. A multiple-entry visa can also be obtained and allows multiple stays in one or more Schengen countries, as long as the total length of the stays does not exceed 90 days in a given 180 days period from the date of the first entry. The stay may either be continuous or spread over several visits within the validity periods of the visa, but no more number than authorized by the visa. A multiple visa may be valid for 1 year.
To make a reservation for a Chedi Andermatt unit a potential buyer will be asked to complete and sign a reservation form at which point a reservation fee of 3% of the total purchase price is due. The reservation fee will be refundable within 8 weeks from signing the reservation form minus a handling fee of CHF 15,000.
50% of the purchase price minus the reservation payment made (first instalment), must be transferred to the seller upon the public registration of the Sale and Purchase Agreement. No interest is payable for this instalment. 50% of the purchase price (second instalment) is to be paid to the seller upon the transfer of title.