Swiss
Edition |
Real Estate Switzerland | August
2020 | |
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Immo-Flash |
UBS Asset Management's Real
Estate Newsletter
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Highlights |
UBS
Direct Urban1 is planning a capital increase
totaling around CHF 86 million.
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For
the end of October/beginning of November 2020, the fund
management company UBS Fund Management (Switzerland) AG is
planning a capital increase with subscription rights with a
volume of around CHF 86 million for UBS Direct Urban
(Swiss Security Number 19294039). The objective of the capital
increase is to attract additional funds for the purchase of
properties, to finance renovation and construction projects,
and to repay external debt. The exact terms of the planned
capital increase will be announced at the end of September
2020. The fund management company reserves the right to
postpone the capital increase depending on market
developments. | |
News bullet |
Property investment products invested directly – smartly
packaged with a coherent structure
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With
UBS Direct Residential1 and UBS Direct
Urban, Asset Management’s Swiss real estate business has
two smart solutions for direct investments in property. This
provides investors with an advantage, especially in terms of
taxation: according to the Swiss Federal Act on Direct Federal
Taxation, income from direct property ownership is taxed at
the fund level itself and is therefore generally tax free for
the unit holder (assuming tax residency in Switzerland).
Likewise, capital gains from direct property ownership are
taxable only at the level of the property fund (assuming tax
residency in Switzerland).
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UBS
Direct Urban embodies direct investments in
residential buildings and commercial properties in urban
locations as well as a high-quality and diversified portfolio.
The focus is on sustainable construction.
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UBS
Direct Residential invests primarily in residential
buildings and properties with potential for development, where
investments focus on selected urban agglomerations in the
German-speaking area of Switzerland. The fund safeguards and
grows sustainable profitability by means of organic growth,
such as renovations and consolidating space in existing
structures, as well as targeted
acquisitions. | |
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UBS
Direct Residential and UBS Direct Urban are
suitable for long-term oriented investors who expect
attractive returns and are looking for opportunity in the
growth market. | |
UBS
Direct Residential acquires a portfolio with
two fully leased properties in Baden and Basel
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Effective
as of the beginning of August 2020, UBS Direct
Residential succeeded in adding two properties to its
portfolio at very good locations with an investment volume of
around CHF 31
million. | |
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The
property in Baden (Aargau) is situated on Bruggerstrasse and
comprises 44 apartments and 46 parking spaces. The residential
complex dating back to 1987 has undergone regular maintenance
and renovation work, which is reflected in its well-kept
appearance. The location is easily reached by public and
individual
transport. | |
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The
second property, a residential and commercial building dating
from 1953/54, is located in a mixed-use zone in Basel’s
up-and-coming “Klybeck” district, which offers a wide range of
amenities and facilities. The fully let property comprises 20
apartments, a retail area, an office area, three commercial
areas, and a total of 22 car parking spaces.
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Both
properties provide potential for rent increases, and the
property in Basel has unused capacities that can be exploited
over the medium to long term. The acquisition makes a
contribution to stability and increases the earnings base as
well as improving the quality in terms of location of UBS
Direct Residential’s overall
portfolio. | |
Long-term rental agreement extension for UBS
AST-KIS1 | |
In
2012, UBS AST-KIS succeeded in purchasing two
properties on Rührbergstrasse in Birsfelden as part of a “sale
and lease back” transaction. Since then, Legacy
Pharmaceuticals Switzerland GmbH has been one of the top five
largest tenants of the investment product. The many years of
working together have given rise to a well-established and
efficient collaborative arrangement. It now gives us great
pleasure to announce that this important partnership will
remain in place for the future, which means that both parties
will continue to benefit from this business opportunity. The
rental agreements for both properties were extended ahead of
the determined time frame by 20 years.
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Building permit for construction of the new building on Alte
Landstrasse in Kloten | |
UBS
«Anfos» is planning a replacement building in an in-demand
residential location on Alte Landstrasse to the north of
Kloten. Now that a legally binding building permit has been
issued, there is nothing standing in the way of the project
inception. Construction work is due to commence before the end
of 2021.
The
current complex with 52 apartments dates from 1963. Three new
buildings with 108 attractive 1.5–4.5 room apartments and a
two-storied parking garage with 123 parking spaces as well as
144 bicycle parking places are scheduled to be built on the
site between Alte Landstrasse, Chränzlerstrasse and
Weinbergstrasse by 2023. With the implementation of the
project, the sustainability objectives will be consistently
applied. The buildings with Minergie certification will have
geothermal probe heat pumps and photovoltaic systems. With the
aim to promote electromobility, the parking garages are
planned to include charging stations. Using a brownfield site
for the new replacement building in Zurich-Kloten is in line
with the strategy of inner growth pursued by UBS
«Anfos». | |
The anticipated resilience of the Swiss rental market has been
confirmed | |
The
rental market remained largely impervious to the consequences
of the COVID-19 pandemic on the property market in general. At
the height of the lockdown, residential properties suddenly
became a place of refuge where most daily activities took
place, which meant that there were no consequences for rent
payments in this sector. The pandemic had a multifaceted
impact on demand for rental apartments. Immigration to
Switzerland decreased in the first half of the year as a
consequence of the exceptional situation, but only minimally
by -5.7% in a year-on-year comparison. In contrast, the
concentration of emigration has decreased even more, which
means that net migration last June (26,000 persons) saw an
increase of 5.4% on the previous year. As migratory movements
will probably remain curbed over the second half of the year,
the growth in demand on the Swiss residential market is also
likely to fall
slightly. | |
Our approach to making a positive impact!
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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: | |
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We
need the support of collaborative partnerships to achieve our
sustainability targets. With this in mind, we work together
closely with existing partners who share our goals and values,
while also cultivating new partnerships to deliver additional
expertise. | |
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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.
Picture:
UNO | |
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A
new section of our homepage recently went live under the title
“In the media.” We will use this section to provide visitors
to the website with articles published by other parties on
Real Estate Switzerland and its properties, as well as
exciting interviews with our members of staff.
Feel
free to have a look at the reading material we have already
uploaded! | |
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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
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