Spectacular turnaround at the Hertizentrum

The owners of the four high-rise buildings in the Hertizentrum in the city of Zug have halted their plans – just four weeks after giving 68 tenants notice to vacate their apartments.
 

On the last Friday in January, the residents of the high-rise buildings Hertizentrum 2 to 5 received some bad news: the imminent termination of their leases. But there has now been a major turnaround on the last Friday in February: the building owners – the Zuger Pensionskasse (Zug pension fund) and energy giant WWZ AG – have now decided not to evict all 68 apartments in the four buildings at the same time. This is despite the fact that they still intend to go ahead with the announced renovation and conversion plans (see below).

"After reconsidering the current circumstances, we have come to the conclusion that evicting the Herti tenants is out of the question, and that a new study project should be developed. We are therefore examining alternatives, such as phased renovation while the building remains occupied, so that all tenants can stay in Herti," according to a quote in a press release issued by the Zug Pension Fund last Friday morning.

Residents can now hope to remain in the Hertizentrum buildings              Photo: Matthias Jurt
 

Decision-makers have recognized the “uncertainty”
The above quote is not attributed to a senior executive of the owners, however. Rather, it comes from Heinz Tännler (SVP – Swiss People’s party), who is the Finance Director in the Zug cantonal government (Regierungsrat) and whose secondary roles include being Vice president of the Zug Pension Fund and President of its Investment Commission. This commission is responsible for the management, strategy, and monitoring of the fund's investments.

What is the reason for the U-turn?
“The project has understandably caused some uncertainty among the tenants,” says Heinz Tännler. “Uncertainty” is certainly a euphemism for the state of mind of some of the residents. This was evident during the recent visit of the Zuger Zeitung newspaper to the Hertizentrum. It was more stress and fear that prevailed there.

Stress about having to suddenly find a new place to live. The fear of leaving their home environment, but also of being torn away from their familiar social circle. This is because there are hardly any vacant apartments in the city of Zug and because the ‘market rents’ exceed the financial means of some of the Hertizentrum residents.

“We take these concerns and our social responsibility seriously,” the statement said. But those responsible showed a very different attitude just four weeks ago.

The plans remain unchanged
The Zug Pension Fund, which owns three of the four buildings, and energy giant WWZ AG are sticking to their basic plans: to comprehensively renovate the Hertizentrum 2 to 5 high-rise buildings and create more apartments by redesigning the floor plans and adding two additional floors.

Hertizentrum 1, which is owned by the socially oriented Bürgergemeinde Zug (citizen’s community), is also to be expanded and renovated. In this case, however, it was always planned to carry out the renovation while the building remained occupied.

+++ Update to follow +++