Successfully implement complex renovations

The figures speak for themselves: In Switzerland, buildings are responsible for more than 40 percent of energy consumption and almost a third of all CO₂ emissions. Energy-efficient renovations are key to keeping properties up to date and maintaining or increasing their value. But renovation projects are often complex and the benefits not always obvious. The cooperation between UBS and the real estate service provider Wincasa offers clear advantages, making the project of renovating an investment property easier and more seamless. An energy-efficient renovation ideally benefits not just the owners but also the tenants and, of course, the environment.

There is no question that renovations can have a big impact. In some cases, improved insulation can help to cut heating needs by more than half, for example. And by switching from fossil-fuel-based heating to renewable energies, it is possible to reduce CO₂ emissions from operations to almost zero. So where’s the catch? “Renovation projects are usually complex, and the benefits are not always obvious,” says Andreas Fandl, Product Owner, Corporate Sustainable Lending at UBS. But according to him, the effort and expense are worthwhile in multiple ways: “Not only can energy-efficient renovations reduce energy consumption and the associated greenhouse gas emissions; they can also increase the property’s quality, the quality of life it offers and its value.”

In addition, there are tax deductions and government subsidies as financial incentives. “These are intended to promote energy-efficient renovations of real estate, but must be considered carefully as they are often local and complex in nature,” Fandl says. He knows from experience that the focus on long-term value preservation and growth can easily fall under the radar amid all the challenges. As a result, expertise is required in multiple areas, he says.

This is precisely what the partnership between UBS and the Swiss real estate service provider Wincasa, an Implenia company, aims to address. As part of the service package Papilio Property Solutions, which is offered jointly by UBS and Wincasa throughout Switzerland, clients can benefit from advisory and financing services from a single source. The offering is geared toward investment properties. On request, Papilio clients can also obtain professional support with the realization of renovation projects. Renovations of investment properties are easier and more seamless to implement thanks to the new, modular solution.

The process is very simple. During the consultation with UBS or Wincasa, the specific needs of clients, all of whom are owners of investment properties with value enhancement targets, are discussed and the offer is put together in a modular way. The clients thus receive advisory, construction coordination and financing services that are tailored to their precise requirements. The modules include technical and energy analyses, an evaluation of the property’s risks and opportunities, and a renovation recommendation from Wincasa. A renovation plan is then jointly drawn up showing which specific renewal and modernization steps should be taken. At the same time, real estate experts from UBS are on hand to assess whether the project can be financed. With your support, they define the budget that is required for the renovations and explore possible financial options, taking into account the aspect of profitability. An indicative calculation of subsidies and tax deductions is also included in this.

If the clients ultimately decide in favor of a renovation, Wincasa can also coordinate the planning and construction process as part of the next step. This includes client representation, obtaining quotes from planners and building contractors, and assisting with the planning permission process. If required, the Wincasa experts will also monitor the progress of the renovation project through to its completion. “It goes without saying that clients remain free in their choice of implementation partner,” Fandl stresses. “They can bring in the partners themselves or use Wincasa’s extensive network.” The goal is to unleash the property’s potential and increase its value in a sustainable manner.

“We are delighted to be able to offer this comprehensive advisory solution on the Swiss market together with Wincasa,” said Stephan Stotz, Head of Construction and Real Estate at UBS Switzerland AG, when Papilio Property Solutions was launched in April of this year. “With this new offering, we want to inject additional momentum into energy-efficient renovations in the real estate sector.”

Jens Vollmar, Chairman of the Board of Directors of Wincasa and Head of the Buildings Division at Implenia, added: “Wincasa and Implenia have extensive expertise and experience in advising, planning and implementing renovation projects, in particular in the energy-efficient renovation of older existing properties. We will bring this expertise into the new offering and with that create added value for UBS’s clients.”