Utilita presents first results

The Utilita Investment Foundation was established in spring 2017 and carried out an initial offering in fall 2018, during which it received investment funds of CHF 68.7 million. Investors are exclusively Swiss pension funds and pension plans.

Three properties were acquired in the course of the first financial year 2018: in Vevey, Appenzell and Neuchâtel. According to Utilita, these are mainly rental properties with 3- to 4.5-room apartments. The market value of the properties was approximately 35 million as of Sept. 30, 2018. Although the acquisitions were not recognized in income over the entire fiscal year from its inception in 2017 to September 2018), Utilita thus achieved a performance of 2.25%, the foundation says.

Two projects in the Geneva area

To expand the portfolio, two new buildings are currently being built with a total investment of around 48 million. A construction project Jardins de Rozon in Bardonnex, a suburb of Geneva, will create 39 affordable rental apartments, in a conurbation where affordable housing is extremely scarce, says Utilita. The project is located in a zone in so-called controlled housing, with subsidized and discounted rents. 50% of the apartments will be released from controlled housing after ten years, 25% after 25 years and another 25% after 50 years.

The construction site was opened in mid-March, and the apartments are scheduled to be rented out in spring 2021. In addition to its non-profit status, the project stands out due to its unusually high energy efficiency: The targeted Très Haute Performance Energétique THPE label exceeds the requirements of Minergie, says Utilita managing director Jürg Capol.

The investment foundation's second new construction project is located in Vernier, also in the Geneva agglomeration. The plan is to build 40 new apartments in the affordable, controlled rent segment. With the Haute Performance Energétique label, the aim here is also to achieve a high energy standard. Construction work began in February, with completion scheduled for March 2021.

Personnel expansion and new issue

In 2019, Utilita plans to expand its portfolio and launch its first own project developments. To this end, the foundation is also expanding its personnel: On April 1, Adrian Achermann will move to Utilita, where he will be responsible for acquisition and development. He was previously deputy managing director at Wohnen Schweiz, an umbrella organization for non-profit housing in Switzerland.

With the investments, the investment foundation is aiming for a share of around 60% with purely residential uses, according to its own information. In addition, residential properties with services offered by third parties - such as apartments for the elderly or students, or residential buildings operated by non-profit companies or the public sector - could also be considered. Cooperation with the public sector and other non-profit developers is important, says the investment foundation.

To finance growth, the Board of Trustees is considering another issue for the current fiscal year. Managing Director Capol believes that a solid total return of 3.5% to 4.5% is realistic in the longer term. (ah)