Portfolio 

Commentary on the Portfolio

Divestment from the German portfolio, the Group successfully completed in August 2017, allowed the company to concentrate in rebuilding the Swiss portfolio and capabilities. The Group renewed hiring, to rebuild the team and is on the way to set up an operating partnership with a market leader for property management.

As at reporting date the Groupʼs portfolio comprises of five investment properties in Switzerland. The overall value of the Swiss portfolio amounts to CHF 200.1 million as of 31 March 2018. This represents an increase of CHF 1.5 million compared with 31 March 2017, mainly derived from long term extension of bigger contracts in place, including with a major tenant, and prompt lease up of vacated premises. Enhanced sustainability of rental income resulted in lowering discount rates for some properties.

Annual rental income was CHF 8.1 million as of 31 March 2018. The vacancy rate for the Swiss portfolio improved slightly from 10.6% to 10.5% during the reporting period. Weighted average lease term (WALT) keeps stable at 5.2 years.

Market value of
overall portfolio increased
by CHF 1.5 million

Portfolio Overview

 

 

3/31/2018

31.3.2017

 

 

 

 

Market value in CHF million

 

200.1

198.5

Annual rental income in CHF million

 

8.1

8.1

Vacancy rate monetary in %

 

10.5

10.6

Major tenants

Tenant

Sector

Portfolio Switzerland

 

 

 

Baker & McKenzie, Zurich

Law firm

36.2%

Roland Berger, Zurich

Consulting

17.3%

BR Bauhandel AG, Bern

Distribution

4.7%

Logismata AG, Zurich

Information technology

2.7%

Globomedica AG, Egg

Pharma

2.5%

Total

 

63.4%

Overall portfolio
WALT 5.2 years

Lease contract analysis

Portfolio Details

 

 

Baden Rütistrasse 3/3a

Egg Gewerbestrasse 12/12a

Zürich Hardturmstrasse 76

Zürich Holbeinstrasse 22/30

Bern Morgenstrasse 136

Total

 

 

 

 

 

 

 

 

Investment category

 

Office

Office

Office

Office

Office

 

Date of acquisition

 

1.3.2000

1.4.2000

20.3.2000

1.7.2008

1.6.2000

 

Year of construction

 

1961

1982/87

1967

1961/72

1991

 

Year of rennovation

 

2012

2012

2010

2009/2010

2013

 

Plot size

sqm

1 172

4 894

1 100

1 660

2 740

11 566

Ownership

 

 

 

 

 

 

 

 

 

 

Annual rental income

CHF thousand

1 096

937

968

4 331

767

8 100

Vacancy rate

(CHF) %

0.0

10.0

0.0

0.0

52.6

10.5

Capitalisation rate

%

3.80

4.40

3.40

3.00

4.70

3.45

Discount rate (nominal)

%

4.30

4.90

3.90

3.50

5.20

3.95

 

 

 

 

 

 

 

 

Office

sqm

3 446

4 100

3 099

5 524

5 708

21 877

Retail

sqm

344

1 601

1 945

Storage

sqm

1 185

1 581

608

288

622

4 284

Total usable space

sqm

4 975

5 681

3 707

5 812

7 930

28 105

 

 

 

 

 

 

 

 

Vacancy

sqm

472

4 595

5 067

Vacancy rate

(sqm) %

0.0

8.3

0.0

0.0

57.9

18.0

 

 

 

 

 

 

 

 

No. of parking spaces

number

19

111

35

45

88

298

Ownership of 100%

Strategy

During the financial year 2015/16 Züblin launched a strategic development initiative: the return to core markets, stabilization of the financial and operational business and finally growth. In the year under review the company continued working on implementing the necessary measures to support the strategy.

With the sale of the German portfolio, Züblin took advantage of the favorable market conditions in Germany. 

The proceeds from the transaction enable the company to pursue its investment policy and grow through acquistions in Europeʼs stable German-speaking real estate markets.