Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

ZURICH-Jelmoli Holding, the listed Swiss department-store group that recently split out foreign assets, has reached an agreement with Zurich-based listed peer real estate firm Swiss Prime Site to recommend an SPS exchange offer which has been raised to 8.1 SPS shares for one Jelmoli share from a prior 7.7.

Jelmoli said its board now feels able to recommend the offer to shareholders, including extended protection for Jelmoli employees, and the continuation and development of the House of Brands department store on the Bahnhofstrasse in Zurich at least until end-2010.

But the group added: "Jelmoli intends to work closely with SPS on the subject of financing while retaining the right to withdraw its recommendation if by the time of publication of the offer prospectus it has not obtained satisfactory comfort that the financing of existing financial indebtedness is assured."