Immo-Flash

The capital increase for UBS «Sima», which ran from 11 to 19 June 2020, was successfully completed. All new units have been fully subscribed, providing the fund with new capital of around CHF 200 million. The activity seen over the last few months at outstanding locations in Basel, Vaud, Geneva and Zurich underscore the portfolio’s continuous development.

More information on the successful capital increase

UBS «Sima» invests in residential and commercial properties throughout Switzerland, with investments weighted towards large cities and their surrounding areas. The portfolio volume stands at around CHF 9.9 billion and currently comprises 357 properties. In addition to acquiring existing properties and new construction projects, the portfolio enjoys further growth through renovating and extending existing properties, in turn strengthening its earning power.

More information on UBS «Sima»

In June 2020, UBS Direct Urban acquired a commercial property in the quiet Englischviertel district in Zurich. The four-storey property dates from 1890 and was built in neo-baroque style. It stands out on account of its high, light-flooded rooms, which for the most part come with herringbone parquet flooring and stucco work. The property underwent comprehensive renovation in 1995 and further maintenance was carried out with the new lease in 2018. The investment volume amounts to around CHF 14.5 million.

This residential and office building is situated in the heart of Basel’s old town, a stone’s throw from Barfüsserplatz. Public transport, parking, restaurants, bars, shops and schools can all be found nearby. The property dates from 1871 and, though not itself listed, is located in the protected zone in which the outwardly visible historical composition must be preserved. It is fully leased and comprises 13 apartments, a restaurant and a hairdresser. The acquisition came into effect in early June 2020 and the investment volume rose to around CHF 8 million.

UBS Direct Residential also acquired a property in early June 2020, this time for an investment volume of around CHF 10 million. The three apartment blocks with a total of 23 apartments, 34 indoor parking spaces and six outdoor parking spaces was built in 1989 in the form of a small estate in a sunny, child-friendly district near the main road of Laupen in the canton of Zurich. A spacious green area can be found in the middle which serves as a recreational and play area. A further recreational space is situated within walking distance.

The outbreak of the COVID-19 pandemic has clouded the economic outlook. In 2020, Switzerland will see a sharp fall in GDP even with economic activity picking up slowly as the mild lockdown measures are gradually lifted. This situation favors an environment of ongoing and particularly low interest rates and contributes to the appeal of Swiss real estate investments.

We believe that long-term success is only possible if we incorporate not only economic but also social and environmental aspects into our decision-making. We adhere to the UN's 17 Sustainable Development Goals (SDGs), which came into force in 2016, focusing on eight selected goals in particular. One of these is the following:

We reduce water consumption at our properties thanks to low-flow fixtures and install only energy and water-efficient appliances as a standard.

Additional information on the topic of sustainability at RE-CH is available here. Further information on the SDGs can be found on the UN website.

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Real Estate Switzerland's perception of sustainability is comprehensive and takes environmental, economic and social factors into account. Tenant satisfaction is vital when it comes to social factors. By and large we focus on three aspects: quality of service, comfort and security.

Thus in early 2020, having already done so in 2017, Real Estate Switzerland carried out a large-scale tenant survey of . Of the roughly 7,800 residential tenants selected at random (equivalent to about a third of the entire portfolio), 3,540 tenants took part in the survey, giving us a high response rate of 45%. On a scale of 1 to 5, the residential tenants surveyed gave their satisfaction with property management an overall rating of 3.8. Caretaker services were rated slightly higher at 4.1. Residential conditions – layout, amenities, surroundings and sense of security – received a good rating of 3.8. The findings from our survey will help us guide the property management companies we commission and take the right decisions in terms of maintenance, investments and renovations.

In this year’s tenant survey, Real Estate Switzerland and Swiss Life created an online tenant survey tool via a special platform together with Livit AG and the Link market research institute. This new tool not only enables tenant satisfaction to be measured on individual property level within a portfolio but also makes it possible to assess the performance of the entire portfolio against a benchmark. The tenant survey is part of the GRESB* -ranking.

* As a global sustainability benchmark, GRESB (Global Real Estate Sustainability Benchmark) is an important real estate management indicator. These findings mean we can receive an independent determination on sustainability in our portfolio by location; moreover, GRESB highlights the successes of our sustainability strategy with respect to our investors.

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