Plazza clearly in the plus
In the first half of the year, the real estate company Plazza significantly increased its real estate income as well as its operating result and profit.
According to Plazza, real estate income increased by 39% to CHF 12.2 million compared to the same period last year due to rising rental income - in particular following the first-time occupancy of the Im Glattgarten residential property in Wallisellen. Operating income before depreciation and revaluation increased by 50% to CHF 9.2 million. According to Plazza, this also includes initial income and expenses from real estate developments in connection with a school building project in Crissier.
Income from revaluation amounted to 9.7 million compared with 9.1 million in the previous year and thus made a major contribution to the profit increase of 23%. Profit climbed from 11.5 to 14.2 million.
For the full year 2019, the real estate company expects an increase in property income of around 15%. Profit before revaluation is expected to increase by at least 10%.
The residential portion of the total portfolio value since the completion of the Wallisellen property is 69%, and over 75% of the rental income comes from residential uses.
The fact that vacancy rates are rising in various regions of Switzerland and yet new construction continues could lead to an easing of the housing shortage in central locations in the medium term,
but also increase the vacancy risk in regions outside the economic metropolises, according to the real estate company. However, Plazza's residential properties are in the mid-price segment and in central locations and have thus remained in strong demand to date. As of the reporting date, no apartment in the portfolio was vacant, Plazza said.
Site developments in Crissier and Regensdorf
Planning for the development site in Crissier near Lausanne began at the beginning of the year; the investment sum is estimated at up to 300 million. A contract has been concluded with the municipality of Crissier for the construction of a primary school building, and a long-term building lease agreement has also been signed with a state-supported foundation for the construction of a nursing home with around 60 beds.
This reduces the usable rental space for Plazza from around 55,000 to 48,000 sqm. The real estate company says it is considering involving other third-party investors in the project. The building application is to be submitted in 2020, and construction could begin at the end of 2021 at the earliest.
The realization of the project in Regensdorf can be expected in four to seven years at the earliest, Plazza added. A new quarter is to be built on the former industrial area north of the train station. Plazza owns development areas for housing and services on one of the sub-areas. At the beginning of this year, initial clarifications on feasibility and market positioning were initiated, he said. (ah)
