Purchase and leaseback between MCH Group and canton of Basel-Stadt
On 1 January 2020, MCH Group sold its Exhibition Hall 3 to the Canton of Basel-Stadt. The canton intends to create new residential space at this location in the medium term. As the development of a concrete project takes time, Exhibition Hall 3 was leased back to the MCH Group at the same time as the purchase so that it can continue to use the hall. The rent for leasing Hall 3 back to MCH Group is in proportion to the purchase price and amounts to CHF 100,000 per year. At the same time, MCH Group assumes all the risks as well as insurance and maintenance costs.
Temporary lease by Basler Verkehrs-Betriebe
MCH Group subsequently complied with the request of Basler Verkehrs-Betriebe (public transport services, BVB) and the canton for use of Exhibition Hall 3 as a temporary depot for the electric bus fleet until the end of 2025, while the new depot “Garage Rank” is being built. In spring 2022, the agreed amount of the annual hall rent of 1.05 million Swiss francs caused discussions. The focus of this discussion was the question of compensation for loss of use, since MCH Group cannot rent the hall to third parties or generate any income due to BVB’s permanent lease.
Arbitrator’s report: Price per square metre as a benchmark
The canton, MCH Group and BVB subsequently agreed to clarify the question of the amount of compensation by means of an independent arbitration report. The arbitration report by the real estate expert commissioned set the total compensation at CHF 727,480 per year. The total compensation is based solely on a customary rent per square metre. This is based on the key figures for commercial properties for the municipality of Basel. The canton, MCH Group and BVB accept the arbitrator’s report. The corresponding contracts between MCH Group and BVB have been signed.