Curated News
By: NewsRamp Editorial Staff
October 27, 2025
Metall Zug Secures CHF 220M for Tech Cluster Zug Expansion
TLDR
- Metall Zug secured a CHF 220 million loan with expansion options, providing financial leverage to accelerate Tech Cluster Zug development and generate stable cash flows.
- Metall Zug arranged a four-year syndicated loan with a one-year extension option, secured by mortgage collateral at a maximum 45% loan-to-value ratio.
- Tech Cluster Zug's development includes affordable housing, innovative high-rise communities, and CO2-reducing construction methods that create sustainable urban living environments.
- The CreaTower I project uses innovative RFS ceilings that reduce CO2 emissions by 46% while creating vertical communities in central Zug.
Impact - Why it Matters
This financing and development initiative represents a significant advancement in sustainable urban planning that integrates industrial production, commercial space, and residential living within walking distance. The projects demonstrate how industrial companies can operate successfully in urban environments while reducing environmental impact through innovative construction techniques like the RFS ceilings that cut CO2 emissions by 46%. The creation of affordable housing through Project Pi addresses critical urban housing shortages while the mixed-use development model provides a blueprint for other cities facing similar challenges of balancing industrial activity, commercial growth, and residential needs. For investors, the stable cash flows from long-term leases and anticipated appreciation gains from property sales create compelling financial returns, while the community benefits from job creation, reduced commuting needs, and sustainable development practices.
Summary
Metall Zug AG, the Swiss industrial group headquartered in Zug, has successfully secured substantial financing for the continued development of the Tech Cluster Zug (TCZ) through a major syndicated loan agreement. The company, in partnership with its fully owned subsidiary Urban Assets Zug AG, has arranged a CHF 220 million facility with Zürcher Kantonalbank leading a banking consortium, featuring an additional CHF 50 million increase option. This financing package, secured by mortgage collateral with a maximum 45% loan-to-value ratio, provides four-year funding with a one-year extension option to support the ambitious real estate projects transforming the TCZ site into a dynamic technological and residential hub.
The development projects showcase impressive progress across multiple fronts. The SHL project is advancing rapidly with building shell completion expected by end of 2025 and handover of the combined production and office facility scheduled for mid-2026, demonstrating the viability of industrial production in urban settings while generating stable cash flows through long-term leasing. Meanwhile, CreaTower I has broken ground with building shell completion targeted for 2028, featuring innovative RFS ceiling technology that reduces CO2 emissions by approximately 46% compared to conventional systems. The project's eventual sale to VZ Depository Bank is expected to yield significant appreciation gains given the land's historical cost basis.
Perhaps most notably, Project Pi represents a cornerstone initiative focused on creating sustainable, affordable housing within walking distance of the Tech Cluster, featuring innovative high-rise living concepts in vertical communities. Despite administrative challenges, Metall Zug remains committed to this vision through the GIBZ development plan. The Metall Zug Group, which employs approximately 1,000 people across its medical devices, technology cluster, and investment divisions, maintains significant stakes in V-ZUG Holding AG, Komax Holding AG, and SteelcoBelimed AG. The original release on www.newmediawire.com highlights how these coordinated developments position TCZ as a model for integrated urban-industrial development.
Source Statement
This curated news summary relied on content disributed by NewMediaWire. Read the original source here, Metall Zug Secures CHF 220M for Tech Cluster Zug Expansion
