Metall Zug (SIX: METN) announced on October 27, 2025, that it has secured financing for the further development of the Tech Cluster Zug (TCZ) through a syndicated loan agreement totaling CHF 220 million, with an option to increase by CHF 50 million. The loan, led by Zürcher Kantonalbank, has a four-year term with a one-year extension option and is secured by a mortgage with a maximum loan-to-value ratio of 45%. This financing is crucial for refinancing existing bank loans and securing funds for upcoming real estate projects within the TCZ, as the group's financing needs have grown alongside the cluster's expansion.
The Tech Cluster Zug is a key initiative for Metall Zug, demonstrating the feasibility of integrating industrial production within an urban environment. Several real estate projects on the site are making notable progress. The building shell of the SHL project is expected to be completed by the end of 2025, with handover of the combined production and office building planned for mid-2026. This project, situated directly adjacent to V-ZUG, showcases how industrial activities can coexist with urban living, and its long-term lease agreement ensures stable cash flows for the company.
Another major development is the CreaTower I project, which has received its building permit and has broken ground. Completion of the building shell is scheduled for 2028. Notably, the project uses innovative RFS ceilings that have significantly less mass than conventional systems, resulting in a saving of around 46% in CO2 emissions. The building is set to be sold to VZ Depository Bank in 2028, which will generate an appreciation gain as the associated land is recorded at historical acquisition costs.
Project Pi, a core element of the Tech Cluster's sustainable development, focuses on creating affordable housing in central Zug, within walking distance of the cluster. It aims to offer attractive, high-rise living within vertical communities, with architecture tailored to the location. Despite an administrative complaint filed in March 2025, the Tech Cluster remains committed to Project Pi and the GIBZ development plan, underscoring its dedication to long-term urban development.
This financing arrangement positions Metall Zug to continue its strategic development of the Tech Cluster Zug, which is expected to drive value for the company and contribute to sustainable urban industrial innovation in the region.
