Investing in attractive residential and living space

Public report

Focus on residential real estate
The direct-investing real estate fund UBS (CH) Property Fund - Direct Residential (UBS Direct Residential for short), with a portfolio volume of more than CHF 800 million, is characterized by a high-quality and broadly diversified residential real estate portfolio throughout Switzerland. The investments are concentrated in larger cities and selected conurbations.

Capital increase from 21 to 29 October 2021
UBS Direct Residential is continuously making acquisitions and launching construction projects. The funds from the planned capital increase of CHF 97 million will be used for acquisitions and construction projects in good locations in the Basel, Baden and Lausanne regions. These underline the steady growth of the portfolio and further improve its quality and diversification.

Sustainability in practice
For many years, the real estate fund has consistently implemented the holistic sustainability approach of Real Estate Switzerland. Not only economic, but also social and ecological aspects are taken into account in the decision-making process. For example, all new UBS Residential buildings are planned and constructed in accordance with recognized sustainability standards and certified accordingly. Through regular tenant surveys, the fund is in close contact with tenants and can thus respond to new needs in order to secure long-term tenancies.

Direct investment structure
The direct investment structure means that all properties are held directly by the fund and not via a real estate company. The distribution is tax-free and exempt from withholding tax for private individuals with their tax domicile in Switzerland, thus offering additional attractiveness.

Successful annual financial statements 2020/2021
In the past financial year, UBS Direct Residential continued on its growth path and strengthened its earnings power: thanks to successful renovation and new construction projects as well as acquisitions in urban locations, the value of the real estate portfolio increased by CHF 70 million to CHF 803 million. At CHF 34.5 million, rental income was CHF 1.7 million higher than in the previous year, which was also due to a significant reduction in the rent default rate by more than 20%**. The real estate fund achieved an attractive investment return of 4.9%** and an excellent performance of 32.5% (benchmark SXI® Real Estate Funds TR 20.2%)**.

* UBS does not provide tax advice.
** Calculation according to AMAS (Asset Management Association Switzerland)

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