Confidential offering memorandum · working draft · 07/2026
6815 Melide · Canton Ticino · Switzerland
Notices
This document is provided on a strictly confidential basis, for the sole purpose of allowing the recipient to assess a potential interest in acquiring the property described. It is neither a public offer nor a solicitation to invest. The recipient undertakes not to pass it to third parties without the owner's written consent. Access to the data room requires a signed non-disclosure agreement.
The building is under renovation and is not let. No tenancy agreements are in place. All forward-looking figures in this document — rents, yields, exit values — are estimates built on assumptions stated next to the numbers, and are no guarantee of results.
Owner's documentation (property description, sale and rental price tables, profitability calculation); floor-area calculation by Porettibanci Architetti (11.2023); UBS Real Estate Local Fact Sheet Melide 12/2025; Raiffeisen Colline del Ceresio valuation; IAZI/CIFI Location Report Melide Q1 2022.
Summary
En-bloc sale of a residential building on the shore of Lake Lugano, currently under renovation, with an approved building permit for 13 parking spaces.
| Metric | Scenario A | Scenario B |
|---|---|---|
| Total potential rent, CHF/year | 355,800 | 393,360 |
| of which apartments | 319,920 | 348,720 |
| of which hobby rooms | 12,480 | 16,560 |
| of which parking | 23,400 | 28,080 |
| Net yield on the CHF 7,500,000 cost basis | 4.74% | 5.24% |
| Return on equity at 75% leverage, 1.5% rate (assumptions p. 17) | 14.48% | 16.48% |
| Estimated break-up (unit-sale) value, CHF | 10,320,550 | 11,506,250 |
| Spread over the cost basis | +37.6% | +53.4% |
The asset. Twelve apartments of 2.5 to 4.5 rooms (Swiss room count) totalling 1,250.50 m² of gross living area (SUC), plus 4 hobby rooms and 13 outdoor parking spaces. Units 11 and 12 are duplex penthouses with an attic level and a terrace of roughly 40 m². The two ground-floor apartments have private gardens of 158 and 120 m². From floor 3 upwards the lake view is unobstructed.
The condition. Renovation is under way. The buyer takes over a building “as is”, with no tenancies in place, and is therefore free to choose the strategy: hold for income, sell the units individually, or combine the two.
The context. Vacancy in Melide fell to 1.1% in 2025, new housing production runs at 0.5% of the stock per year, and only 5.3% of the building zone remains undeveloped. Competing supply is structurally thin.
Scenarios A and B are the owner's two post-renovation pricing assumptions. Financing assumptions are stated on page 17; the building is not let at the date of this document.
Investment highlights
The property
A residential building on a slope running down towards the lake. Two apartments per floor around a central stairwell; the two attic levels on floor 6 belong to duplex penthouses 11 and 12. Design and floor-area calculation by Porettibanci Architetti, Paradiso (November 2023). Renovation in progress.
| Unit | Floor | Rooms | SUC m² | Extras | Lake view |
|---|---|---|---|---|---|
| Apt 01 | 0 | 2.5 | 72.0 | garden 158 m² | partial |
| Apt 02 | 0 | 2.5 | 71.5 | garden 120 m² | partial |
| Apt 03 | 1 | 3.5 | 86.0 | — | partial |
| Apt 04 | 1 | 3.5 | 86.0 | — | partial |
| Apt 05 | 2 | 4.5 | 102.5 | — | partial |
| Apt 06 | 2 | 4.5 | 102.0 | — | partial |
| Apt 07 | 3 | 4.5 | 102.5 | — | full |
| Apt 08 | 3 | 4.5 | 102.0 | — | full |
| Apt 09 | 4 | 4.5 | 102.5 | — | full |
| Apt 10 | 4 | 4.5 | 102.0 | — | full |
| Apt 11 · duplex penthouse | 5+6 | 4.5+ | 102.5 + 58.5 | terrace 40.66 m² | full |
| Apt 12 · duplex penthouse | 5+6 | 4.5+ | 102.0 + 58.5 | terrace 40.44 m² | full |
| Total apartments | 1,250.50 | ||||
Hobby rooms: 20 and 16 m² on floor 0, two of 16 m² on floor 1. Parking: 13 outdoor spaces with an approved permit, expandable to 26 or 39 (page 19). Room counts follow the Swiss convention.
The property
Private gardens at the base, a full lake view from floor 3, terraces at the top. The grading of the views explains the price ladder across floors.
The prevailing orientation of the area is east and south-east (IAZI): the lake-facing façades catch the morning sun. The building follows the slope; in the architectural numbering the levels correspond to −1, ground and 1st–4th.
The property
Three open perspectives from the property, across the lake, the surrounding mountains and the rooftops of Melide.
The property
The four façades from the architectural project. The building sits on a slope: the lake-facing front stands entirely above ground, while the uphill front is partly set into the hillside.
Lake front · continuous loggias on every floor and a glazed attic at the top
The property
The two side elevations show how the building meets the slope, and the profile of the pitched roof.
Opposite side elevation
Elevations from the architectural project by Porettibanci Architetti, Paradiso. The drawings are not dimensioned and are reproduced at reduced scale.
The property
The architect's unit plans, read from the top of the building down: the two duplex penthouses and their attic level, then the two floors with a full lake view.
Plans from the architectural project by Porettibanci Architetti, Paradiso. Colour coding and unit numbering are the architect's; the drawings are not dimensioned and are reproduced at reduced scale.
The property
The mid and lower floors, down to the two ground-floor apartments, each with its own private garden.
Ground-floor gardens: 158 m² (apt 01) and 120 m² (apt 02). Plans by Porettibanci Architetti, Paradiso — not dimensioned, reduced scale.
The property
Exterior visualisations of the building after renovation, from the aerial massing to the street-level elevations.
Architectural renderings — indicative images; colours, materials and landscaping are illustrative and not contractual.
The property
Further evening views showing the building in its hillside setting.
Architectural renderings — indicative images; colours, materials and landscaping are illustrative and not contractual.
Location and market
The municipality. Melide is a lakeside municipality in the District of Lugano, linked to the Lugano–Chiasso–Milan axis by the causeway across the lake. Second homes exceed 20% of the housing stock. Average taxable income is CHF 79,265 (Ticino: 74,000) and the share of foreign residents approaches 38%.
Supply. The building zone covers 31.3 hectares; only 5.3% remains undeveloped. Between 2018 and 2022 roughly 6 new apartments were built per year, 0.5% of the stock against a Swiss average of 1.1% (Raiffeisen). Land prices in the upper segment rose 12.5% in one year, to CHF 2,368/m².
Demand. Municipal vacancy fell from 2.0% in 2020 to 1.1% in 2025. Melide's price-to-rent ratio (31.6) remains below the Swiss average (33.0). Listings of owner-occupied apartments dropped from 104 to 85 per quarter between 2023 and 2025.
Context map Lugano–Melide–Chiasso and micro-location rating (1–5 scale, IMBAS/FPRE):
Price positioning
The average per-square-metre value of the two scenarios, set against the price distributions reported by three independent sources for owner-occupied apartments in Melide.
| Source | 10th | 30th | 50th | 70th | 90th |
|---|---|---|---|---|---|
| UBS Real Estate Local Fact Sheet, Q3 2025 (CHF/m²) | 6,196 | 8,046 | 9,444 | 11,216 | 13,210 |
| Raiffeisen, 4-room condominiums (CHF/m²) | 6,280 | 8,260 | 9,720 | 11,100 | 13,100 |
The average condominium price recorded by Raiffeisen in Melide is CHF 9,920/m², 29.8% above the national average. For transparency: UBS quantiles show a one-year change of −0.5% to −2.4%, so average values are easing. Even so, the entry point stays below the 30th–40th percentile.
Potential rents by unit · rent roll
| Unit | Rooms | SUC m² | A · CHF/mo | A · CHF/yr | B · CHF/mo | B · CHF/yr |
|---|---|---|---|---|---|---|
| Apt 01 · F0 + garden | 2.5 | 72.0 | 1,390 | 16,680 | 1,490 | 17,880 |
| Apt 02 · F0 + garden | 2.5 | 71.5 | 1,390 | 16,680 | 1,490 | 17,880 |
| Apt 03 · F1 | 3.5 | 86.0 | 1,790 | 21,480 | 1,890 | 22,680 |
| Apt 04 · F1 | 3.5 | 86.0 | 1,790 | 21,480 | 1,890 | 22,680 |
| Apt 05 · F2 | 4.5 | 102.5 | 2,190 | 26,280 | 2,290 | 27,480 |
| Apt 06 · F2 | 4.5 | 102.0 | 2,190 | 26,280 | 2,290 | 27,480 |
| Apt 07 · F3 | 4.5 | 102.5 | 2,290 | 27,480 | 2,490 | 29,880 |
| Apt 08 · F3 | 4.5 | 102.0 | 2,290 | 27,480 | 2,490 | 29,880 |
| Apt 09 · F4 | 4.5 | 102.5 | 2,390 | 28,680 | 2,690 | 32,280 |
| Apt 10 · F4 | 4.5 | 102.0 | 2,390 | 28,680 | 2,690 | 32,280 |
| Apt 11 · penthouse incl. attic | 4.5+ | 161.0 | 3,280 | 39,360 | 3,680 | 44,160 |
| Apt 12 · penthouse incl. attic | 4.5+ | 160.5 | 3,280 | 39,360 | 3,680 | 44,160 |
| Hobby rooms (4) | — | 68.0 | 1,040 | 12,480 | 1,380 | 16,560 |
| Parking (13) | — | — | 150 each | 23,400 | 180 each | 28,080 |
| Total potential | 355,800 | 393,360 | ||||
Market check: the average apartment rent works out to about CHF 256/m²/year under scenario A and 279 under scenario B. The former falls between the UBS 50th and 70th percentiles (225–270); the latter just above the 70th, towards the 270–351 band. For newly renovated units IAZI recommends the upper band. Net rents, service charges excluded.
Financial analysis
| Metric | Definition | Scenario A | Scenario B |
|---|---|---|---|
| Net yield | annual rent ÷ cost basis (7.5 m) | 4.74% | 5.24% |
| Return on equity | (net rent − interest) ÷ equity | 14.48% | 16.48% |
| Rate | Interest CHF/yr | Scenario A | Scenario B |
|---|---|---|---|
| 1.5% (base case) | 84,375 | 14.48% | 16.48% |
| 2.0% | 112,500 | 12.98% | 14.98% |
| 2.5% | 140,625 | 11.48% | 13.48% |
| Unleveraged (100% equity) | — | 4.74% | 5.24% |
In the unleveraged row, equity equals the full cost of CHF 7,500,000 rather than the CHF 1,875,000 of the leveraged rows: the return on equity therefore matches the net yield.
Exit strategy
| Option 1 · letting | Option 2 · unit-by-unit sale | |
|---|---|---|
| Description | Hold the entire building for rental income | Establish condominium ownership (PPP) and sell the 12 units, hobby rooms and parking |
| Proceeds | CHF 355,800 – 393,360 per year (A/B) | CHF 10,320,550 – 11,506,250 one-off (A/B) |
| Return | Net yield 4.74 – 5.24%; return on equity 14.48 – 16.48% under the page-17 assumptions | +37.6% / +53.4% over the 7.5 m cost basis |
| Horizon | Long term, recurring cash flow | Medium term |
| Risks and costs | Vacancy, maintenance, management, interest rates | Conversion costs (notary, land registry), marketing, market risk during the sell-out |
An intermediate route. The two duplex penthouses are worth CHF 2.73–3.18 million together, between 26 and 28% of the total break-up value. Selling only the top units at a premium while holding the rest for income is a viable third path.
A multi-year DCF analysis of the options can be prepared with the investor's financial adviser.
Additional value
The approved building permit covers 13 outdoor spaces. With a car-stacker system, capacity can rise to 26 or 39 spaces, subject to a new permit application.
| Configuration | Spaces | Sale value A | Sale value B | Rent A /yr | Rent B /yr |
|---|---|---|---|---|---|
| Current (permit approved) | 13 | 439,400 | 504,400 | 23,400 | 28,080 |
| With car stacker, first stage | 26 | 878,800 | 1,008,800 | 46,800 | 56,160 |
| With car stacker, second stage | 39 | 1,318,200 | 1,513,200 | 70,200 | 84,240 |
Unit values: sale CHF 33,800 (A) / 38,800 (B) per space; rent CHF 150 (A) / 180 (B) per month. The 26- and 39-space rows are gross linear extrapolations: they include neither the cost of the stacker system nor permitting costs.
On the demand side: Melide is a lakeside municipality with over 20% second homes, commuter flows towards Lugano and 238 cross-border workers employed locally (UBS 2025). Parking availability is a recurring factor in local negotiations, for sales and lettings alike.
Appendix
Population 1,785 (2024, +0.1%) · foreign residents 37.8% · cross-border workers 238 · second homes above 20% of the stock · vacancy 2020→2025: 2.0%→1.1% · condominium listings: from 104 to 85 per quarter (2023→2025) · price-to-rent ratio 31.6 (CH 33.0) · condominium quantiles CHF/m²: 6,196 / 8,046 / 9,444 / 11,216 / 13,210 · rents CHF/m²/year: 171 / 197 / 225 / 270 / 351 (median one-year change +6.1%) · land: average 1,754, upper segment 2,368 CHF/m² (+12.5% in one year) · building zone 31.3 ha, undeveloped share 5.3% · corporate profit tax 15.15% · renovation investment in the municipality: CHF 4.5 m in 2023, against 1.3–1.6 m in prior years.
Average condominium price CHF 9,920/m² (+29.8% versus the Swiss average of 7,640) · percentiles for 4-room units: 6,280 / 8,260 / 9,720 / 11,100 / 13,100 · net asking rent 217 CHF/m²/year (CH 242) · rent percentiles: 172 / 198 / 225 / 256 / 334 · five-year average vacancy 1.6%, in line with Switzerland · 1,316 housing units, 62.3% rented · new production 2018–2022: about 6 apartments per year, 0.5% of the stock (CH 1.1%).
Population 1,830 (2020, +0.3% per year over five years) · tax burden 10.9% (TI 11.7%) · vacancy 1.4% (June 2021) · property prices +3.2% over five years (TI +7.6%) · median condominium price CHF 945,000 (district 904,000, TI 811,000) · condominium CHF/m², mid segment: 8,600 (2.5 rooms), 8,500 (3.5), 8,200 (4.5); upper segment 9,500–11,300 · net rents, above-average object: 280 / 240 / 220 CHF/m²/year for 2.5 / 3.5 / 4.5 rooms · stock of 1,313 apartments, 75 new in five years (5.7%) · prevailing orientation E/SE (41% and 54%), median summer sunshine 10.7 hours · average taxable income CHF 79,265.
Process and contacts
Offer format (binding or non-binding), deadlines for expressions of interest, data-room access, contact for site visits:
Full unit-by-unit price tables (scenarios A and B), floor-area calculation, parking permit, Raiffeisen valuation, IAZI and UBS reports.
Seller: private owner — direct sale, no agency intermediation.
Contact person: to be provided
Phone and email: to be provided
Direct negotiation with the owner: no brokerage commission payable by the buyer. Transaction structure (offer, data room, timing) defined directly with the owner.
The information in this document is provided in good faith on the basis of documentation made available by the owner and of third-party market sources (UBS, Raiffeisen, IAZI/CIFI) cited in the text. Accuracy and completeness are not guaranteed. This document is neither a public offer, nor investment advice, nor a valuation. Financial projections — potential rents, yields, exit values — are estimates based on the assumptions stated in the document and are no guarantee of results; the building is under renovation and not let at the date of writing. Investors must carry out independent legal, technical, tax and financial verifications before any decision. Confidential document: reproduction and distribution are prohibited without written consent. Errors and omissions excepted; data subject to change without notice.