More go Swiss but motives change

BlueCrest Capital, one of the UK's largest hedge funds, is moving a significant proportion of its operations to Geneva amid growing concerns about London's status as a centre for alternative asset managers. Founded in 2000 by former JP Morgan traders Bill Reeves and Mike Platt, the $15.5 billion firm is the third largest hedge fund manager in Europe. It is looking to relocate around 50 staff from its base at 40 Grosvenor Place, SW1.

The recurrent theme of firms moving / choosing overseas locations is posing concern for the capital, but are these moves purely down to the better tax treatment offered outside of the UK? Robert Mathieson, branch director of Geneva-based Key Real Estate consultants, thinks not. "Tax will play a minor part in decisions to come here", he says. Instead, Geneva's role as the centre of oil trading and private banking is likely to prove a much bigger draw. "Those companies trading in commodities come here to be with their industry in the bars and restaurants," he says.

The one drawback for firms though may be the difficulty in obtaining both commercial and private property. Commercial vacancy rates are 2.25% with average rents of £30 per sq ft and prime rents of £60 per sq ft. And for staff looking for accommodation, the Swiss housing market is constrained. Owner-occupiers amount for just 20% of the market, while the remainder is owned by third parties. Of that, up to 25% is institutionally owned while the rest is rented.

A foreign national is not allowed to buy unless they are in possession of a work permit, or the property has been allocated by the Swiss government for foreign sale.