Immo-Flash

More information about the planned capital increase is available here.

The two directly invested real estate investment products generated convincingly robust annual results as at 30 June 2020. UBS Direct Urban increased its distribution while UBS Direct Residential held its distribution at the previous year’s level.

The ex-date of the distribution is 6 October 2020 and the value date is 8 October 2020.

UBS Direct Urban saw an impressive continuation in its positive growth in the 2019/2020 financial year despite enormous uncertainties in relation to COVID-19. Thanks to the successful completion of attractive new building projects, the acquisition of three properties in prime urban locations and value appreciation within the portfolio, the market value increased by about 15% to CHF 487.4 million. Rental income stood at CHF 15.7 million, up CHF 1.5 million on the previous year. The fact that the distribution has been increased by 10% to CHF 0.33 per unit reflects just how strongly the Fund’s profitability has grown. The investment return comes in at a solid 3.0%. With a buoyant stock market performance of 14.2%, the Fund comfortably outperformed the market (SXI Real Estate Funds TR 5.1%).

UBS Direct Residential further expanded its profitability in the 2019/2020 business year. Rental income stood at CHF 32.8 million, up CHF 2.4 million on the previous year, which also correlates to the reduction in the rent default rate of around 24%. Thanks to successful renovation and new building projects as well as appreciation in the buildings held, the property portfolio’s value rose by CHF 32 million to around CHF 733 million. The Fund saw its inventory value per unit rise by 1.2% and achieved a stable investment return of 4.4%.

UBS «Anfos» acquired two properties as of 1 September 2020 – Lenzenholdstr. 2, 4, 6 in Moosseedorf (BE) and Löwenmattweg 39, 41 in Münsingen (BE). These properties, acquired as consolidations to existing properties, comprise a total of 38 apartments and have a gross income of CHF 590,000 per year. Thanks to these two purchases in attractive municipalities just outside of Bern, the regional diversification of UBS «Anfos» has been strengthened, opening up additional potential for future renovation and/or densification activities.

In our new section ‘Did you already know that?’ we share exciting and interesting facts from everyday life and the archive of Real Estate Switzerland, which is over 70 years old.

As of 1 October 2020, UBS AST-IS will acquire two apartment buildings in Arlesheim BL, one of the most popular residential municipalities on the edge of Basel. These two attractive properties, which are neat and well maintained, contain 38 apartments. The eight-storey buildings are part of an overall development with a total of eight identical building shells. The underground car park is situated beneath the generous, park-like open spaces. Thanks to this acquisition with its above-average location quality and an investment volume of around CHF 17 million, the investment group is continuing to grow in line with its strategy.

So far, the new normality appears to be nothing but business as usual in the Swiss real estate investment market. The continuation of the rather low interest rate environment keeps driving investors towards rental property acquisitions, which fuels the transaction activity and leads to further cap rate compression. Multifamily property investments are particularly favored due to their resilient nature in these very uncertain times.

1 UBS «Anfos» = UBS (CH) Property Fund - Swiss Residential «Anfos», UBS «Foncipars» = UBS (CH) Property Fund - Léman Residential «Foncipars», UBS «Sima» = UBS (CH) Property Fund - Swiss Mixed «Sima», UBS «Swissreal» = UBS (CH) Property Fund - Swiss Commercial «Swissreal», UBS Direct Residential = UBS (CH) Property Fund – Direct Residential, UBS Direct Urban = UBS (CH) Property Fund – Direct Urban, UBS AST-IS = UBS AST Real Estate Switzerland, UBS AST-KIS = UBS AST Commercial Real Estate Switzerland, UBS (CH) Property Fund – Europe = UBS PF Europe