Explosive development: the Corporation rejected the mass eviction

It’s now clear why the owners decided against evicting all the tenants from the four Hertizentrum high-rise buildings. The residents no longer have to fear either being forced to move out or facing unaffordable rents.
 

The four Hertizentrum high-rise buildings that are in need of renovation, comprising 68 flats, will not – as originally planned – be vacated through mass lease terminations. This was announced last Friday by Zug government councillor (Regierungsrat) Heinz Tännler on behalf of the owners, the Zug Pension Fund (PK) and WWZ AG (we reported at the time).

But the reasons behind the change of heart were not initially made clear, however. There was talk of “miscommunication” and an awareness of “social responsibility” on the part of the Zug Pension Fund. It appeared as though Heinz Tännler did not wish to embarrass the project managers of the owners.

As research by the Zuger Zeitung newspaper has shown, there was in fact another factor at play: there was opposition from the owner of the land on which the Hertizentrum towers stand – the Corporation of Zug.

“I was very surprised when I read about the planned mass eviction in the newspaper. It had never been mentioned before,” says Urban Keiser, President of the Corporation. The institution, which is located close to the Hertizentrum, knows from direct experience that renovation and vertical extension works are also feasible while buildings remain occupied. This was the approach taken at the Herti Retirement Centre and the associated sheltered housing (Alterswohnungen).

The planned mass termination of leases in four Hertizentrum high-rise buildings has been shelved. 
Urban Keiser, President of the Zug Corporation, here at the 1st August Speech in Zug in 2025.     Photos: Matthias Jurt
Heinz Tännler explains that the current tenants will still be able to afford the rent even after the refurbishment.     Photo: Stefan Kaiser
 

Support from Heinz Tännler
According to Urban Keiser, he made it clear to the Zug Pension Fund and WWZ AG that he would refuse to sign off on the project if the planned lease terminations were not withdrawn. The landowner’s signature is required for all building applications and for amendments to the existing building lease agreement. He subsequently met with Heinz Tännler, President of the influential investment committee of the Zug Pension Fund, who supported the Corporation’s position.

Heinz Tännler confirmed the meeting when contacted by the Zuger Zeitung newspaper. He stated that, after reviewing the documents, he had reservations as to whether the proposed course of action complied with the building lease agreement. He therefore convened a meeting of the investment committee and subsequently informed the Corporation of its decision: a mass eviction was out of the question. He reiterated what he had already said in the article of 28th February: “The refurbishment will be carried out with tenants remaining in place, and people will be able to continue living in the Hertizentrum.”

“No one will have to pay a ‘market rent’”
Addressing residents’ concerns about potential rent increases following the refurbishment, Tännler was unequivocal: “I can reassure everyone. We are sticking to the financing model developed for the original plans. I promise that none of the current residents will have to pay a 'market rent' after the refurbishment if they cannot afford it. This means that the new rent will be capped at a maximum of 30% of income.”

Asked what this would mean for pensioners – who naturally have lower incomes and might therefore end up paying less than they do today – Heinz Tännler replied: “Of course, no one will pay less than they do at present.” He added that, following news of the reversal, he had received several emails from tenants who do not even live in properties owned by the Zug Pension Fund. The general tone, he said, was appreciation for his commitment regarding the Hertizentrum.

“The Corporation will never support mass evictions”
Corporation President Urban Keiser has also been contacted about the matter. After the owners’ eviction plans became public, he received several calls from concerned Hertizentrum residents. “I told people not to worry. The Corporation will never support mass evictions on its land.”

In his view, the situation shows that those responsible on the owners’ side no longer have an understanding of the local situation. “The Herti neighbourhood functions like a village. People know one another and help one another. Neighbourhoods like this are important for a town,” says Keiser. He adds that he cannot understand the way the matter was handled be the owners, or how residents of the Hertizentrum were treated.