Mobimo expects vacancy rate to rise
Mobimo expects the vacancy rate to rise to around 5.5% in the first half of the year. The initial letting of commercial space is slowing down.
As the real estate company Mobimo reported in a business update, demand for commercial space is currently restrained as a result of the lockdown. By mid-year, this stagnation and the transfer of the properties in the Mattenhof quarter in Kriens to the investment portfolio are expected to lead to a vacancy rate in the region of 5.5%, the company forecasts. At the end of December 2019, the vacancy rate was still 3.8%.
In the residential market, on the other hand, the momentum has hardly slowed down; in the Aeschbach quarter, the beginning of
According to Mobimo, the last apartment was let in April. There was also no decline in demand for condominiums and in developments for third parties, it added. Construction work on the 30 condominiums in Meggen reportedly started in May. Of these, 40% of the apartments and 100% of the commercial space have already been reserved, it said.
Expected loss of rental income: "upper single-digit millions".
According to Mobimo, the loss of rental income due to Corona will probably amount to a sum in the upper single-digit millions. Only a small part of the amount comprises waivers that have already been finalised. It mainly includes future agreements that will be reached as part of ongoing negotiations, the company said.
The Real Estate Company's investment portfolio consists of 59 commercial properties, 41 residential properties and a market value of CHF 2.6 billion. Residential properties account for 47% of the value of the investment portfolio and contribute 39% to rental income. As the majority of the apartments are in the mid to lower price segment, Mobimo expects the residential portfolio to suffer little impact from the Corona crisis.
Rent reductions for restaurateurs and small businesses
Mobimo generates just over 20% of rental income from investment properties with types of use such as retail, hotel and gastronomy. According to the real estate company, the hotel and gastronomy sector in particular (10% of rental income) was severely affected by the lockdown. In the case of the retail trade use type (share of a good 11%), the lockdown had mainly affected non-food suppliers, which account for around 80% of the category. In the meantime, businesses have reopened almost everywhere.
Business tenants with a net rent of less than CHF 5,000 and a reopening date of 27 April 2020 will have their rent for April and May waived. Gastronomy providers in the large quarters would also be relieved with a two-month rent waiver, as would restaurants or cafés in other properties with a rent below CHF 5,000. Individual agreements would be negotiated with tenants of larger spaces.
Mobimo will publish its half-year results on 31 July. At that time, the company intends to make more comprehensive statements about the impact of the Corona crisis. The real estate company emphasises that it remains confident about the future thanks to its high-quality investment portfolio, broad-based development pipeline in terms of use, high level of digitalisation and solid balance sheet. (ah)
