Immo-Flash

The two directly invested real estate funds continue to impress and present their very solid annual financial statements as at 30 June 2021. The distributions will be held at previous year's level.

The ex-date of the distributions is 5 October 2021 and the value date is 7 October 2021.

UBS Direct Residential was able to further expand its profitability in the 2020/2021 financial year. At CHF 34.5 million, rental income was CHF 1.7 million higher than in the previous year, which is also due to a significant reduction in the rental loss rate of more than 20%. Thanks to successful renovation and new construction projects, acquisitions in urban locations and upgrades in existing buildings, the value of the property portfolio rose by CHF 70 million to around CHF 803 million. The fund was able to increase the net asset value per unit by 1.8% and achieved an attractive investment return of 4.9%.

UBS Direct Urban was able to expand its real estate portfolio in the 2020/2021 financial year and continue its selective growth in urban locations: the market value of the portfolio exceeded the half-billion CHF mark and rose to around CHF 528.4 million. The positive development of the fund is also reflected in the capital increase of CHF 86 million, which was successfully carried out in October 2020. Completed new construction projects, an aquisition and upgrades in the portfolio contributed to the increase in the portfolio volume. The associated strengthening of profitability is reflected in the increase of rental income by 13.0% to CHF 17.7 million, the increase in net asset value by 1.2% to CHF 11.72 and a pleasing investment return of 4.1%.

In the municipality of Aesch (BL), UBS «Sima»¹ is building the new Vivo quarter on an area of around 16 000 sqm. The project envisages a total of four building units: The 40-metre-high VivoTower marks the entrance to the municipality of Aesch and offers space for co-working (VivoWork), commercial space and the central TowerCafe. On the 3rd and 4th floor, 36 long-stay apartments are planned in the VivoLive. The upper floors 5 to 12 house 80 rental apartments. In the VivoHof, the ground floor offers space for neighborhood-friendly uses (for example sales areas, daycare for children) as well as studios for small businesses. On the three upper floors a total of 36 rental apartments are planned and in the middle of the building a quiet courtyard is being created. In the VivoKamm, 57 rental apartments with at least two-sided orientation and attractive south-facing terraces towards the park as well as a common room with connection to the central quarter square are being built. The VivoQube includes 55 rental apartments on 6 floors. The residential offer is characterized by duplex apartments on the ground floor and on the top floors. The four buildings, with a total of 228 apartments and around 4700 sqm of commercial and service space, are certified with a high-quality sustainability label and have innovative operating and maintenance concepts.

Constructio, which will start in autumn 2021, will take around three years. The investment volume amounts to around CHF 155 million.

We expect the economic recovery to progress in the coming quarters despite the resurgence of COVID-19 cases. At the same time, inflation dynamic is likely to remain modest and the Swiss Franc should show strength compared to the Euro. This speaks for a continuation of the negative interest rate policy led by the Swiss National Bank in a near-term outlook. From this background, we expect the macroeconomic environment to remain supportive of Swiss real estate investment attractiveness in the next months.

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