As we step into 2025, I want to take a moment to reflect on 2024, a year marked by exceptional progress and achievement for Paragon. Thanks to the dedication of our team, the trust of our partners, and the execution of our strategy, we have continued to grow and diversify, solidifying our position as an expert in both property and private equity.
Expanding Our Horizons
This past year, we grew our business both locally and internationally. In Canada and France, we continued to expand our commercial lending business, strengthening our footprint in these markets. Closer to home, we completed the ParaBox Pro property in Chavannes – artisanal workshops with office mezzanines that were fully leased within six months of completion. Additionally, we added to our Swiss portfolio with the acquisition of a 15-year Migros sale-and-leaseback property in Canton Neuchâtel and we are finalizing the acquisition of an asset in the Lausanne region, setting the stage for a dynamic start to 2025.
Diversification and Innovation
Our push into private equity continues to bear fruit. The acquisition of Pépinières Genevoises has added a welcome touch of “green” to our portfolio, while the opening of the ParaBox Self Storage flagship at Geneva’s central train station represents an exciting step into a new operating business. Furthermore, we celebrated the ten-year anniversary of our investment in the construction company Piretti, and we’re proud to continue contributing blue-collar job opportunities to our local community. We will continue to look for opportunistic PE deals linked to the real estate industry and will pursue them when they align with our strategy.
Engaging with Our Community
The annualParagon Cup and the Paragon After-Work Raclette events were once again fabulous opportunities to bring together industry colleagues, partners, and friends in an informal and relaxed atmosphere. These events provide meaningful moments where we can have fun and connect with like-minded people.
Building a Stronger Team
In 2024, we continued to invest in our greatest asset: our people. We’ve strengthened our team and are actively recruiting to further enhance our capabilities. Our culture of purpose, fun, excellence, and balance remains a cornerstone of our competitive edge. Competent candidates who are looking to join an exciting team, invest in deals, and feel like part of an extended family should send us their CVs.
Management Buyouts
Many SMEs (small and medium enterprises) in Switzerland are leaders in their respective industries, and are often managed by their founders. Despite their attractive profitability, these entities are difficult to sell because the management teams are often as close to retirement-age as the owners themselves. Moreover, many industrial business owners have encouraged their children to pursue liberal or corporate professions such as law, medicine, marketing, or similar, leaving no successors to take over. We are interested in supporting these companies by helping competent management teams negotiate leveraged buyouts, especially when a real estate asset is involved, or the activity is related to real estate.
Sale-and-Leasebacks
Paragon has developed expertise in helping companies generate liquidity while remaining in their premises through sale-and-leaseback transactions. See our Paragon Stories to learn about a few examples of how this has benefited select SMEs in Switzerland. We believe that the introduction of Basel III in 2025 will make access to debt more challenging to come by and could present opportunities for alternative sources of capital raising, for example sale-and leasebacks.
Looking Ahead
While geopolitical uncertainties and trade dynamics continue to present challenges, we are confident in our ability to navigate these complexities. The ongoing crises in the Middle East and in Ukraine, combined with inflationary pressures in the US and around the globe will continue to drive stronger demand for the Swiss Franc, which obliges the Swiss National Bank to maintain or even lower interest rates. We may see a return to zero or even negative rates if these trends persist.
Switzerland’s stable environment and sustained low interest rates provide a solid foundation for our operations. However, the strong Swiss Franc poses challenges for local SMEs in exporting goods, and the implementation of Basel III – aimed at strengthening financial stability and banks’ resilience to crises – may significantly impact access to financing, particularly for SMEs and investors. Diversifying funding sources – particularly private debt – and presenting robust projects will be key to adapting to this new banking environment. Moreover, benefiting from our strong Swiss franc to diversify internationally continues to be of strategic importance to us.
As we prepare for the opportunities and challenges of 2025, we are committed to building on our successes and continuing to execute our strategy with discipline and creativity. From expanding our portfolio to fostering deeper connections within our community, we are focused on creating lasting value for our stakeholders.
Thank you for being part of our journey. Together, we are shaping a future defined by growth, resilience, and purpose. Here’s to an exciting year ahead!
Read about Paragon’s 2024 transactions:
