Immo-Flash

UBS Fund Management (Switzerland) AG plans to carry out a capital increase with subscription rights amounting to roughly CHF 132 million for UBS «Foncipars» (sec. no.: 1442085) at the end of April/beginning of May 2021. The proceeds from the capital increase will primarily be used to acquire properties, finance refurbishments and construction projects, and to repay debt. The detailed terms and conditions of the planned capital increase will be published at the beginning of April 2021. The fund management company reserves the right to postpone this capital increase depending on market developments.

UBS «Foncipars» invests predominantly in residential properties, exclusively in western Switzerland concentrating on the cities of Geneva and Lausanne and their agglomeration. On 30. June 2020, the half-yearly reporting date, the UBS «Foncipars» portfolio counted 128 properties and a portfolio volume of around CHF 1.5 billion. In past months, the fund has completed a number of attractive acquisitions and planned various renovation projects.

In the fourth quarter of 2020, UBS «Swissreal» acquired a centrally located business property in Dietikon (ZH) into its portfolio. The transaction took place on 18. December 2020. Intended for commercial purposes, the property comprises three plots, on which two separate commercial properties are situated which count roughly 16,000 m² of rentable space. Both properties are fully leased on a long-term basis to two highly creditworthy tenants, thereby providing the fund with stable cash flow projections over the coming years. Moreover, the excellent macro- and micro-location, alongside the dynamic growth of Dietikon, will enable development potential in the future.

Despite exceptional circumstances, 2020 proved to be a very robust year for the Swiss real estate market. The rather dynamic year of property transactions and the total volume of completed capital market transactions reached, according to Safra Sarasin, a record level of approximately CHF 5 billion. The course of the global COVID-19 pandemic remains unclear for now. That in mind, underpinning factors are likely to prevail over the uncertainties in the Swiss real estate market. The macroeconomic prospects currently argue in favor of a continuation of the low interest rates policy, likely to support real estate values across all sectors. Alongside which the initiation of the vaccination campaign points to a gradual easing of lockdown measures over the medium term, which should in future benefit the occupier market for commercial properties. In consideration of this, investors are likely to remain focused on real estate investments in the new year, as can be observed from the average premium in the Swiss real estate market of over 40% at the end of 2020.

BIM (Building Information Modeling) is a process based on 3D modeling, providing construction planners and the executing companies with information for efficient planning and construction of buildings and infrastructure. This digital twin of the actual building allows detailed building information to be modeled prior to construction.

BIM has been implemented for the construction of the «Claraturm» in Basel, with the main objective to reduce the frequency of errors in the planning process. Thanks to BIM, highly efficient, calculated planning can be initially created, in particular in regards to building services coordination. The building process can thereby be optimized and potential coordination errors can be analyzed and eliminated.

While BIM is not a solution to every problem, it does nonetheless assist those involved in the construction including the investor and helps avoid errors that can be resolved early on and thus minimize unwanted expenses. In future, the digital twin will also be able to assist with operational administration. We are currently working on this with our partner administrations to generate high operational added value, particularly with high-rise buildings.

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