immo!nvest – Die Plattform für Standorte und Immobilien

Category: Business

  • Study on the role of spatial planning in rising housing costs

    Study on the role of spatial planning in rising housing costs

    The study “Causes of rising housing costs in Switzerland with a focus on spatial planning” makes it clear that spatial planning plays a moderating role in the real estate market: it has an impact on construction activity and thus influences housing costs. The increase in demand for housing, on the other hand, is a driving factor in rising housing costs. Among other things, the downsizing of households, population growth and rising individual housing consumption play a role here.

    Spatial planning can have an influence here. It limits the availability of building land and zoning capacities. In this way, it controls how flexibly the supply of housing can adapt to changing demand. If spatial planning is too strict, the supply can react less flexibly to the strong increase in demand. This can lead to higher housing costs in the long run.

    Internal development as a solution

    However, one of the tasks of spatial planning is to limit urban sprawl and protect the landscape. The study identifies inner development as an instrument that allows both the protection of the landscape and an increase in the supply of housing. The study also shows that rezonings have a price-dampening effect in areas where the utilisation of building zones is already high. Upzoning is defined as the expansion of possible uses within a building zone. This is therefore an effective means and, if used in a targeted manner, can have an optimal effect. The study results also suggest a connection between high housing costs and high planning and process costs. Lengthy approval and objection procedures also contribute to increased costs.

    Conference on housing and spatial development

    As part of the Swiss Housing Days 2023, which will take place from 3 to 7 November 2023 in Biel, a panel of experts will discuss on 6 November how internal development can be shaped so that more affordable housing is created in the process. More details and registration at www.bwo.admin.ch.

  • Admicasa establishes fund management company and launches its own real estate fund

    Admicasa establishes fund management company and launches its own real estate fund

    The management plans to launch another real estate fund by the beginning of 2024. This is aimed at municipalities that are involved in the construction of public facilities such as schools, hospitals and homes and aim to build affordable housing.

    With this step, the Admicasa Group is broadening its horizons: Admicasa develops, realises and manages real estate, with the management segment targeting institutional investors in particular. With the fund management segment, Admicasa is now also targeting a wider circle of investors.

    Beat Langenbach will take over as Chairman of the Board of Directors of Admicasa Fondsleitung AG. The accomplished entrepreneur is the founder of a successful brokerage company and former Chairman of the Admicasa Group.

    Beat Langenbach will be assisted by three high-calibre members of the Board of Directors: Professor Michael Trübestein is head of the Real Estate Management course at the University of Lucerne and holds various directorships in the real estate industry. Thomas Bergmann has many years of experience as an entrepreneur in the real estate industry

    In the real estate industry. And Walter Keller brings two decades of experience in the fund industry, including as Head of Custodian Bank at BNP Paribas.

    With Peter Csoport, Admicasa was able to gain a proven investment and real estate specialist who will lead the operational business of the fund management as CEO.

    The Swiss financial centre now has 53 licensed fund management companies. A majority of these are large banks and insurance companies. The new Admicasa Fondsleitung AG belongs to the exclusive group of medium-sized and independent fund management companies. “Now a broad range of investors can participate in the added value we create in the real estate industry with creative solutions,” says Serge Aerne, Chairman of the Board of Directors of the Admicasa Group. “We want to shake up the market.”

  • Mobiliar invests in heat reduction in Bern neighbourhood

    Mobiliar invests in heat reduction in Bern neighbourhood

    Mobiliar is contributing CHF 450,000 to a climate adaptation and upgrading project in the Breitenrain district of Bern. According to climate measurements by the University of Bern, this neighbourhood is hotter than average. According to a statement by the insurance company, the municipal council has approved a loan of 1.3 million francs for a corresponding redesign of Optingenstrasse. “With Mobiliar’s financial contribution, we can do more on Optingenstrasse than if the city had to finance the project alone,” municipal councillor Marieke Kruit is quoted as saying.

    The plan is to plant 20 trees to combat heat accumulation and to unseal street and parking areas so that rainwater can seep away and cool the air through evaporation. To further enhance the neighbourhood, green or marl areas are to be created with bicycle stands or seating. The city is carrying out these climate adaptations as part of the renovation work of the energy supplier Energie Wasser Bern, which is planned for 2024 anyway.

    “Our approach to natural hazards is not limited to paying for damage – we are also increasingly involved in prevention,” Thomas Trachsler of Mobiliar is quoted as saying. Belinda Walther Weger, Head of Public Affairs & Sustainability at the insurance company, emphasises that sponge city projects go beyond mere hazard prevention: “They help to ensure that the quality of life in densely populated areas remains high.” For this reason, Mobiliar from the cooperative will participate in further sponge city projects in Swiss cities as part of its support for climate protection projects. “With our commitment, we want to make an important contribution to a sustainable and positive future.”

  • Venture Kick supports Borobotics with 150,000 Swiss francs

    Venture Kick supports Borobotics with 150,000 Swiss francs

    Borobotics from Winterthur has received 150,000 Swiss francs from Venture Kick for the further development of its innovative drilling robot after reaching the third stage of the programme. In response to the problem of the previously energy-intensive and expensive drilling of holes for geothermal probes, Borobotics is revolutionising geothermal heating processes with a drilling robot that can work in up to 90 per cent less space and at significantly lower cost, according to a media release.

    In addition to the high costs and large space requirements, previous methods bring disadvantages such as energy intensity, inaccuracy, noise pollution and landscape destruction, according to the release. Borobotics describes its development as “an earthworm-like robot that moves vertically into the earth” without a rig or drill pipe. It is intended to enable a much wider spread of geothermal heating.

    Borobotics emerged from a research project at the Zurich University of Applied Sciences, according to the release. The start-up wants to invest the 150,000 Swiss francs in several drilling tests of its robot in order to be able to present a functioning prototype at the geothermal energy trade fair GeoTHERM 2024 in Offenburg during demonstration drillings on 29 February and 1 March 2024.

  • Einschätzung des Zinsmarktes durch Avobis

    Einschätzung des Zinsmarktes durch Avobis

    Die aktuellen Daten zur Inflation zeigen eine Kerninflation von 1,50%, was als positives Zeichen gesehen wird. Miet- und Energiekosten tragen wesentlich zu den jüngsten monatlichen Anstiegen bei, wobei Mieten sowohl im Quartals- als auch im Jahresvergleich gestiegen sind. Zukünftige Auswirkungen von Mietpreisanpassungen, die durch den im Juni 2023 aktualisierten hypothekarischen Referenzzinssatz verursacht wurden, werden ab November sichtbar sein.

    Das Bundesamt für Wohnungswesen hat bestätigt, dass der Referenzzinssatz im September bei 1,50% bleibt. Dennoch könnte eine Erhöhung des Durchschnittszinssatzes auf über 1,625% im Dezember zu weiteren Mietpreisanstiegen und damit zu Inflationsspitzen im kommenden Jahr führen.

    Die verzögerten Auswirkungen der Geldpolitik werden zunehmend spürbar, insbesondere auf dem Arbeitsmarkt der Schweiz, wo die Arbeitslosigkeit allmählich ansteigt und die Zahl der offenen Stellen abnimmt.

    Die Quartalsdaten für das zweite Quartal zeigen im Vergleich zum starken ersten Quartal (+0,90%) nur ein geringes Wachstum von 0,02%. Die SECO erwartet dennoch ein positives Wirtschaftswachstum für das Jahr 2023 und einen kontinuierlichen Rückgang der Inflation. Diese Trends untermauern die Erwartung, dass keine weiteren Zinsanpassungen durch die SNB erforderlich sind.

    Die Swapkurve hat sich im Vergleich zum letzten Monat abgeflacht und zeigt weiterhin eine gewölbte Struktur. Die kurzfristigen Swapsätze deuten auf eine geringe Chance für eine Zinserhöhung im September hin.

    Prognose von Avobis
    Es erscheint sehr wahrscheinlich, dass die SNB den Leitzins in der kommenden Sitzung am 21. September unverändert lassen wird. Der Einfluss von Mietpreissteigerungen auf die Inflation bleibt eine Variable, die genau beobachtet werden sollte. Falls bis zum Jahresende keine besorgniserregenden Inflationsanstiege festgestellt werden, könnte die Zinskurve eine inverse Struktur annehmen.

  • Burkhalter Group completes capital increase

    Burkhalter Group completes capital increase

    Burkhalter Group has successfully completed a capital increase for the acquisition of Solothurn-based Riggenbach AG, Lüftungs- und Klimatechnik, the Zurich-based specialist for building technology announced in a press release. Specifically, 148,774 new registered shares with a nominal value of 4 centimes each were issued from the existing capital band. The seller of Riggenbach AG will receive the new shares as part of the purchase price and has undertaken to hold two thirds of the registered shares for at least two years.

    With the capital increase, Burkhalter’s share capital has risen to just under CHF 425,000. It consists of a total of 10,622,130 registered shares with a nominal value of 4 centimes each. The new registered shares can be traded on the SIX Swiss Exchange as of 30 August.

    The acquisition of Riggenbach AG is intended to give Burkhalter additional market share. The company, which is headquartered in Olten and has branches in Solothurn and Brugg AG, generates annual sales of around CHF 40 million. In its strategy, Burkhalter reserves the right to acquire other building technology companies in order to expand its market share.

  • Price increases support growth at dormakaba

    Price increases support growth at dormakaba

    According to a statement from dormakaba, the globally active locking technology company from Glattal generated sales totalling CHF 2.85 billion in the 2022/23 financial year that ended on 30 June 2023. This corresponds to year-on-year growth of 3.3 percent. Organic growth is put at 8.4 per cent in the press release. It was mainly generated by price increases, explains dormakaba.

    The adjusted operating result at EBITDA level was 3.4 percent higher than in the previous year at CHF 384.8 million. The corresponding margin was kept constant at 13.5 percent. At CHF 88.5 million, net profit was almost CHF 50 million higher than in the previous year. The profit in the reporting year was burdened by goodwill amortisation of 59.5 million francs. The background to this is a changeover to the revised standard of the Swiss Accounting and Reporting Recommendations for Consolidated Financial Statements (Swiss GAAP FER 30).

    “This good result demonstrates how the effective implementation of our strategy and transformation enables us to sequentially improve our performance,” dormakaba CEO Jim-Heng Lee is quoted as saying in the release. “We exceeded our growth targets and our increased profitability in the second half of FY2022/23 was in line with our expectations.” For the current financial year, dormakaba expects revenue growth between 3 and 5 per cent and sequential improvements in profitability.

  • Duravit strengthens top management: Jutta Langer becomes “President Europe Plus

    Duravit strengthens top management: Jutta Langer becomes “President Europe Plus

    Duravit AG is strengthening its top management: Jutta Langer will start as “President Europe Plus” on 01.09.2023. In this role, she will report directly to CEO Stephan Tahy and assume strategic, organisational and P&L responsibility for the markets in Europe and Africa. Jutta Langer has more than 20 years of leadership experience in companies such as Procter & Gamble and L’Oréal and was Managing Director in the Werhahn Group. Most recently, as Global Vice President Consulting, she built up the strategic consulting division for GfK, a leading global consumer intelligence company.

    As part of the new appointment, the Europe Plus region with its core market Germany will be structurally strengthened: in future, a separate marketing organisation will focus even more intensively on the special requirements and needs of the German trade and customers in Europe. In addition to design, the key competitive advantages include functionality and sustainability. The e-commerce activities will also be bundled within the new structure.

    “With Jutta Langer, we are gaining an internationally experienced and successful executive for the central sales region Europe Plus with our home market Germany,” comments Stephan Tahy, CEO of Duravit AG. “With her broad B2B and B2C background and her experience in the strategic development of business models and organisations, she will continue Duravit’s successful course.”

    “I am very much looking forward to bringing my experience to Duravit and, together with the team, to further

    Duravit’s market position,” says Jutta Langer. “The brand’s charisma is excellent and appreciated worldwide. In line with the Duravit mission ‘Upgrade your everyday’, I will work intensively with my team to make our customers’ lives a little bit better every day.”

    Duravit AG, based in Hornberg, Germany, is one of the leading international manufacturers of designer bathrooms and is active in over 130 countries worldwide. The product portfolio of the complete bathroom supplier includes sanitary ceramics, bathroom furniture, shower trays and bathtubs, wellness systems, shower toilets, fittings and accessories as well as installation systems of the highest quality. In addition to its in-house design expertise, Duravit AG cooperates closely in product development with an international network of designers such as Cecilie Manz, Philippe Starck, Christian Werner or Sebastian Herkner and Bertrand Lejoly as well as talented newcomers. Through the interplay of pioneering designs, uncompromising product excellence, a keen sense of human needs and responsible entrepreneurship, Duravit AG works ambitiously to make the lives of its stakeholders a little better every day. A key measure in this is the overarching mission to act in a climate-neutral manner without exception by 2045.

  • BlackRock’s investment and Switzerland as an emerging blockchain hub

    BlackRock’s investment and Switzerland as an emerging blockchain hub

    Switzerland, already known as a leading blockchain hub and home to major players in blockchain and cryptocurrencies, also recognises the potential that these technologies offer. Switzerland has an open attitude towards digital assets and blockchain technology in general. This could help establish the country as a preferred destination for companies looking for new locations to benefit from the emerging industry.

    In light of recent challenges in the crypto space, such as the collapse of the crypto exchange FTX in the US, many companies are considering alternative locations. Here, Switzerland offers a promising opportunity by positioning itself as a safe and attractive location for the crypto industry. However, other countries, most notably France, are already actively attracting crypto companies and developing regulatory solutions to provide them with an optimal environment.

    Switzerland, as a respected blockchain hub, should not underestimate the competition in this dynamic sector. It is crucial that Switzerland continues to build on its pioneering role in order to position itself optimally for digital financial products and blockchain technology in the future. In the coming months, the Swiss Blockchain Federation will continue to work to raise awareness of these developments among policymakers, regulators, the media and other key players.

  • CEO Esther Denzler leaves WWZ

    CEO Esther Denzler leaves WWZ

    As CEO of the WWZ Group, Esther Denzler has driven the consistent focus on sustainability, but also the improvement of internal processes and systems with great commitment over the past one and a half years. Different ideas regarding the management of the company have now led to the joint decision to part company, which is being taken by mutual agreement. The Board of Directors would like to thank

    Esther Denzler for her valuable contribution to WWZ and wishes her all the best for her personal and professional future all the best for her personal and professional future.

    Andreas Ronchetti elected as new CEO
    The Board of Directors has elected the current Chief Financial Officer, Andreas Ronchetti, as the new CEO. With this election, the Board of Directors is counting on continuity and stability in the company. Andreas Ronchetti has a long track record in the strategic financial management of medium-sized, industry-related companies, since 2019 as CFO of

    WWZ. Under the leadership of the new CEO, the implementation of the strategy will be consistently pursued. Andreas Ronchetti will take over the new function with immediate effect.

  • Supply rents rise

    Supply rents rise

    The monthly rental index compiled by the digital real estate marketplace Homegate in cooperation with Zürcher Kantonalbank closed at 122.4 points in July. Compared to the previous month, the index increased by 0.6 points or 0.5 percent, SMG Swiss Marketplace Group AG informed in a press release. Compared to the previous year, asking rents rose by 4 per cent across Switzerland. There is a pause in the increase in the canton and city of Zurich. However, both show increases compared to the previous year.

    In July, asking rents rose the most in the cantons of Basel-Stadt, St.Gallen and Vaud, by 0.8 per cent each. There was no increase of more than 1 per cent in any canton. Asking rents in the canton of Zurich were below the national figure with an increase of 0.2 per cent.

    Only six cantons showed a decrease in asking rents, led by the cantons of Schwyz (1.9 per cent) and Graubünden (1.3 per cent). Compared to the previous year, however, asking rents have risen across the board, including in Zurich by 6.1 per cent. And the canton of Schwyz also shows a clear increase over the last year (6.4 per cent).

    The Swiss cities surveyed show that asking rents for the city of Zurich did not change in July. Nevertheless, they have risen significantly by 10.1 per cent compared to the previous year. The other cities also show increases in asking rents of between 2.2 per cent in Lucerne and 7.8 per cent in Lugano compared to July 2022. In July, asking rents rose everywhere except in the city of Zurich, with the largest increases in Lucerne (1.7 per cent) and St.Gallen (1.2 per cent).

    The next Homegate rent index is expected to be published on 14 September.

  • PostFinance and GLKB join CredEx

    PostFinance and GLKB join CredEx

    Credit Exchange AG has gained two new shareholders, PostFinance and GLKB, according to a press release. The two banks will also sit on the company’s board of directors. Mobiliar and Swisscom from Berne, Vaudoise Insurance from Lausanne and Bank Avera from Wetzikon ZH are already represented on the board. Mobiliar and Vaudoise Versicherungen will also participate in the current capital increase.

    The new shareholders want to help expand the mortgage marketplace CredEx. To this end, PostFinance will also contribute its comparison and closing platform Valuu to CredEx. Specifically, Valuu is to be transferred to the joint venture CredEx, as PostFinance explains in a statement. CredEx will then bundle the brokerage business under the Valuu brand and continue to operate the brokerage business.

    GLKB is already a long-standing partner of CredEx. “Over the years, a unique settlement ecosystem has been developed together with GLKB, which has greatly contributed to CredEx’s success,” Andrea Canonica, CXO of Credit Exchange AG, was quoted as saying in the statement. “With GLKB’s rich experience in the fintech sector, I am convinced that we will also achieve similar milestones together on the financing side,” Canonica added.

  • SAEKI Robotics receives $2.3 million in funding

    SAEKI Robotics receives $2.3 million in funding

    SAEKI Robotics has received $2.3 million from investors. The early financing round of the spin-off from the Swiss Federal Institute of Technology Zurich(ETH), founded in 2022, was led by the Zurich-based investment firm Wingman Ventures. In addition, the two venture capital firms Vento from Turin and GETTY from New York as well as angel investors participated.

    According to a SAEKI announcement on LinkedIn, the funding will “support our mission to build a network of decentralised automated factories that combine digital manufacturing and robotics to produce large parts at the speed of light”, such as wind turbine blades, components for concrete building parts or aircraft and car parts.

    According to a Techcrunch article linked by SAEKI in the release, the three founders are focusing on building fully automated factories with independent robotic cells that can be booked by customers. “What we hear over and over again from people and companies is the desire for faster and more sustainable solutions for their parts,” co-founder Andrea Perissinotto is quoted as saying there. “The mere offer of savings from a multi-million dollar machine that requires a lot of space and additional resources, including hiring people who know new processes and materials, is not attractive to them.”

    The company also reportedly plans to collaborate with the composites industry for lightweight but strong parts in aircraft, cars and bicycles. SAEKI’s technology is expected to eliminate the time-consuming and expensive production of complex moulds from metal or composites, and thus a bottleneck for companies.

  • Raiffeisen has bad news

    Raiffeisen has bad news

    The increase in rents in Switzerland is likely to continue to gain momentum. The increases following the hike in the reference interest rate at the beginning of June will take effect at the beginning of October. But that was just the beginning, according to a study by Raiffeisen on Thursday.

    There is “fire in the roof” for rents, the real estate experts write. The next increases in the reference interest rate are already in sight. “The reference interest rate is expected to rise to 1.75 per cent in December. This would mean that the majority of Swiss tenants would be threatened with another rent increase on 1 April 2024. According to the interest rate scenario, a further increase would then only be possible at the end of 2024 or beginning of 2025.

    Two-thirds affected in second round
    While in the current round of increases, it is estimated that just under half of all tenants are potentially affected, after the second reference interest rate increase, there should be potential for increases in around two-thirds of all tenancies, it continues.

    And the increases will be clearly above the planned 3 per cent. The landlords also pass on part of the accumulated inflation to the tenants and claim the general cost increases. An exact forecast is fraught with great uncertainty in the absence of experience with such a situation. But the experts expect that in the course of the next year, with the second increase in the reference interest rate, the rent increase throughout Switzerland is likely to climb to 8 per cent at times.

    But it is not only the increases that are driving rents. The prerequisite for landlords being able to push them through at all is above all the continued high demand and the scarce supply. “The demand for rental flats continues to increase strongly in rapid steps due to dynamically growing immigration,” the study states.

    Recordnetimmigration
    The experts believe it is possible that net immigration this year will even break the previous recordbalance of2008. “By May 2023, the net migration of the foreign resident population in Switzerland was a quarter higher than in the comparable period of the previous year.” And this does not include the Ukrainian refugees in the country, who are often supported by the municipalities in their search for housing on the open market.

    In addition, there are other effects, such as a high number of new households or the influence of the trend towards home offices. This increases the demands on the housing situation.

    No improvement in supply in sight
    The rental housing market is increasingly drying up. Vacancy rates are low, especially in urban centres, and asking rents are rising.

    There are hardly any signs of supply-side relief of the housing shortage. Although the number of building applications submitted for flats has at least stabilised in recent quarters, the urgently needed construction offensive is still a long time coming. “The thin project pipeline is far from sufficient to satisfy the current strong additional demand for housing.

    Subsidies for housing construction or individual subsidies
    In this context, the Raiffeisen experts also take a critical look at the demands for stronger subsidies for non-profit housing construction. This also costs a lot of money, they say, and needy tenants do not always live in municipal or cooperative housing. According to the authors of the study, about half of the residents of cooperative flats have such a high income that they do not need the subsidies.

    The strong reduction in the price of these flats leads to certain false incentives. Households that benefit from these low rents have little interest in leaving this flat later, even if their living conditions change. Raiffeisen writes that the question is whether subject-specific support – i.e. direct support for households in need – would not ultimately achieve more desirable results.

  • Home ownership is becoming more expensive

    Home ownership is becoming more expensive

    Prices for residential property continued to rise in the second quarter of 2023, theFederal Statistical Office(FSO) informs in a statement. The residential property price index it collects rose by 1.2 per cent quarter-on-quarter and currently stands at 115.9 points. In a year-on-year comparison, the experts at the FSO observed an increase of 2.4 per cent. The base of the index was fixed at 100 points in the fourth quarter of 2019.

    Prices of condominiums increased by 1.6 per cent quarter-on-quarter and by 2.1 per cent year-on-year. Single-family homes saw a 0.7 per cent quarter-on-quarter and 2.7 per cent year-on-year increase. The property price index for single-family homes closed the quarter at 117.4 points. Its counterpart for condominiums was slightly lower at 114.6 points.

    In the quarter under review, prices for single-family houses rose most strongly in urban communities outside conurbations or in a small conurbation, at 3.4 per cent. In contrast, prices in urban municipalities of large agglomerations and in intermediate municipalities remained largely unchanged compared to the previous quarter. In the case of owner-occupied flats, the FSO experts observed rising prices in all municipality types in a quarterly comparison. The strongest increase, 2.4 per cent, was for condominiums in urban municipalities of a medium-sized agglomeration.

  • Crowdlending, a new source of real estate financing

    Crowdlending, a new source of real estate financing

    Investors benefit from fixed interest rates in Swiss francs. Unlike traditional savings accounts, which often offer negligible returns, real estate crowdfunding offers attractive returns and is therefore an interesting alternative for those who want to maximise their income. In addition, the minimum investment required is affordable. This widens the circle of investors and allows them to diversify their real estate portfolios by investing in different short- and medium-term projects while avoiding the volatility of the equity markets.

    Optimise financing structures
    Real estate crowdfunding is not a substitute for banks, but complements the equity of real estate developers. The loans granted by investors are subordinated and secured by real estate, which provides security in case of default. This approach allows developers to focus on developing existing and new projects without tying up a large part of their capital in ongoing projects. This allows them to complete their financing quickly and avoid diluting future profits from their businesses by using external financing partners.

    Property owners now have access to an additional source of financing to add value to their assets. They can use the funds received for renovations and improvements to their properties and thus optimise the financial structure of their property portfolios. This financial flexibility is a great advantage for owners who want to increase the value of their properties while maximising returns.

    Apart from the individual benefits, real estate crowdlending also contributes to Switzerland’s economic and social dynamism. By encouraging the creation of new housing and the renovation of existing assets, it meets the housing needs of the local population. The increasing demand for housing in Switzerland, especially in urban areas, requires high investments in the real estate sector. Real estate crowdfunding offers an innovative solution for financing these projects and thus contributes to the country’s economic growth. Furthermore, by supporting real estate projects, real estate crowdlending creates employment opportunities in the construction industry and related service sectors.

    Conclusion
    In summary, real estate crowdlending is an innovative source of financing for the real estate sector in Switzerland. With undeniable benefits for investors, developers and property owners, it opens up new perspectives and appeals to a growing number of people in Switzerland with a
    growth of over 400% in six years and a volume of CHF 142 million1 by 2022. This model offers an interesting alternative to traditional investments and contributes to the democratisation of real estate investments in Switzerland.

  • Home prices rise by 1.2% in Q2 2023

    Home prices rise by 1.2% in Q2 2023

    In Q2 2023, both the prices of single-family houses (+0.7%) and those of owner-occupied flats (+1.6%) rose across Switzerland compared with the previous quarter. In the case of single-family houses, prices rose the most in the urban municipalities of a small conurbation or outside a conurbation (+3.4%), while prices in the urban municipalities of a large conurbation and in the intermediate municipalities remained stable. The condominium market segment shows higher prices than in Q1 2023 in all municipality types. The strongest price increase took place in the category of urban municipalities of an intermediate agglomeration (+2.4%). Further information at www.bfs.admin.ch/bfs/de/home/aktuell

  • Schweizer Konjunktur harzt – Verarbeitendes Gewerbe im Abschwung

    Schweizer Konjunktur harzt – Verarbeitendes Gewerbe im Abschwung

    In der Mehrzahl der befragten Wirtschaftsbereiche trübt sich die Geschäftslage im Juli ein – im Verarbeitenden Gewerbe bereits den sechsten Monat nacheinander. Dieser Wirtschaftsbereich befindet sich im Abschwung. Zum ersten Mal seit Januar 2021 kommt der Indikator für die Geschäftslage dieser Branche wieder im negativen Bereich zu liegen. Besonders deutlich ist die Abwärtstendenz bei den exportorientierten Firmen.

    Einen Dämpfer erhält auch der Dienstleistungssektor. Überdies geht der Geschäftslageindikator in den Branchen Finanz-​ und Versicherungsdienstleistungen, Baugewerbe und Projektierung etwas zurück. Eine positive Entwicklung nehmen im Juli dagegen die Konsumbereiche Detailhandel und Gastgewerbe.

    Inflationserwartungen geben nach – Bauhauptgewerbe rechnet mit sinkenden Preisen
    Der Preisauftrieb nimmt in nahezu allen Wirtschaftsbereichen weiter ab. Vergleichsweise häufig sind Preisanhebungen im Gastgewerbe und bei den wirtschaftlichen Dienstleistungen geplant. In den anderen Wirtschaftsbereichen dürfte die Dynamik bei den Preisen in der nächsten Zeit gering sein. Das Bauhauptgewerbe rechnet sogar mit eher sinkenden Preisen für seine Leistungen. Die Erwartungen der Unternehmen über die eigene Preissetzung hinaus für die Entwicklung des Konsumentenpreisindex sind geringfügig weniger hoch als bisher. Die Unternehmen erwarten nun einen Anstieg der Konsumentenpreise in den nächsten zwölf Monaten um 2.5%. Im April gingen sie von 2.6% aus. Für die Inflation in fünf Jahren liegen die Erwartungen momentan bei 2.3% nach 2.5% im April.

    Arbeitskräftemangel bleibt ein Problem, verliert aber an Schärfe
    Die Unternehmen in der Schweiz suchen zwar insgesamt weiterhin zusätzliches Personal, allerdings sind die Einstellungspläne nicht mehr ganz so expansiv wie bislang. Dementsprechend ist der Arbeitskräftemangel in den Augen der Unternehmen weiterhin ein sehr dringendes Problem, es verliert aber im Verarbeitenden Gewerbe, im Baugewerbe und im Grosshandel im Vergleich zu bisher an Schärfe. Im Verarbeitenden Gewerbe und im Grosshandel sind die Sorgen über eine schwache Nachfrage derzeit drängender als die über fehlendes Personal.

  • Energiedienst Group grows profitably

    Energiedienst Group grows profitably

    Energiedienst Holding AG generated operating income of CHF 973 million in the first half of 2023. In a year-on-year comparison, this corresponds to growth of around 30 per cent, the Swiss-German public limited company informs in a statement. Positive sales development and increased electricity prices are cited there as the background for the positive development.

    At 81.6 million euros, the operating result at EBIT level was close to the previous year’s figure. In the first half of 2022, the company had recorded a positive valuation effect from the personnel provision in the amount of 48 million euros here. Adjusted for this effect, an increase of 34.3 million euros to 77.3 million euros was realised, writes the Energiedienst Group. The net profit of 68.7 million euros was 16.8 million euros lower than in the previous year. For the year as a whole, the company expects an adjusted EBIT of around 100 million euros.

    All of the Group’s business areas contributed to the increase in turnover and adjusted operating profit. In the Customer-Oriented Energy Solutions segment, the contribution to EBIT was 1.4 million euros higher than in the previous year at 3.4 million. The end customer business of photovoltaics in Switzerland proved to be the main growth driver here.

    In the largest business division, Renewable Generation Infrastructure, the contribution to EBIT increased from CHF 21.4 million to CHF 65.4 million. Here, the Group attributes the good development to an overall improvement in electricity production from hydropower and the increased marketing level of generation.

  • Pension funds: Out of bounds with real estate

    Pension funds: Out of bounds with real estate

    Everything is relative: for pension fund managers, the quote attributed to Nobel Prize winner Albert Einstein may have a special ring at the moment. Their investments in shares and bonds have lost a lot of value in the past year. Positions in real estate, on the other hand, suffered less. As a result, these have – relatively speaking – often gained significantly in weight in the investment portfolio of the pension funds. This has not only theoretical but also tangible consequences.

    At the end of last year, market observers warned that a quarter of the pension funds in Switzerland would have to sell or devalue real estate investments because their weight exceeded the requirements of the Ordinance on Retirement, Survivors’ and Disability Pension Plans (BVV2). The ordinances prescribe a fixed quota for real estate investments that may not exceed 30 per cent.

    “A few pension funds had bandwidth violations“
    Heinz Rothacher, CEO of the well-known St.Gallen pension fund consulting firm Complementa, now tells finews.ch that the quota violations at the end of 2022 turned out to be even more extensive than feared. “More than a third of the pension funds have reported a real estate quota of over 30 percent,” says the market expert (see chart below). And he notes, “There are a few pension funds that had a bandwidth violation due to the increase in ratios.”

    In fact, the OOB2 ordinance allows certain bandwidths in the portfolio shares according to which the pension funds can design their investment strategy. But even this leeway has limits. When the edge of the bands is touched, there are therefore two tactics: Sit it out or correct it.

    Maintain quota for now
    The pension funds have apparently opted for the former as a first step. “Since it is a passive violation of the bands, they tolerated it and decided to maintain the existing quota,” Rothacher reports. The same applies to violations of the BVV2 limit of 30 percent, he adds.

    Complementa has asked a good 150 decision-makers in occupational pension schemes specifically about the problem; the CEO therefore knows pretty well in which direction the industry is heading. As of the end of 2022, the real estate ratio averaged 24.1 percent, 3 percentage points higher than the previous year.

    The wait-and-see approach has not worked badly for the pension funds so far. The real estate quota has been reduced again this year due to the positive performance of the stock markets, Rothacher reports. As a result, “the breach of the bandwidths has been partially remedied.”

    Current surveys by Credit Suisse show that the Swiss pension funds generated an average investment return of 3.86 percent by the end of last June; the major bank UBS comes to an average performance after deduction of fees of 3.51 percent in its measurements. This means that the funds have already exceeded the statutory minimum distribution of 1 per cent per year.

    The crux with illiquidity
    Nevertheless, the problem has not disappeared, and the pension funds must be concerned about keeping within the defined bandwidths in the medium term due to their investment strategy. Another sticking point arises: Due to the illiquidity of the asset class – for example, directly held properties or investment foundations – it is difficult to adjust the ratio in the short term.

    Accordingly, the funds have to tackle where liquidity is most likely to be available: in listed real estate investments. As Rothacher from Complementa reports, there is now movement to be seen there. “37 percent of the funds that participated in the survey are planning to reduce listed real estate funds,” explains the financial professional. As many as 11 per cent of the respondents are also thinking about reducing non-listed vessels.

    Redemption fees increased
    As it turns out, the prices of Swiss real estate funds have already fallen sharply in 2022. The relevant SIX Real Estate Funds Broad Index (SWIIT) lost more than 15 percent of its value last year. This year, the counter stagnated. Meanwhile, a lower demand for additional investments is noticeable among the non-listed investment groups, explains Rothacher.

    Various real estate funds have also received significantly fewer commitments than planned for capital increases. “Not long ago, oversubscriptions were the norm,” he recalls.

    The Complementa CEO does not expect major sales of such vehicles. On the other hand, he knows of individual investment groups that have already increased redemption fees this year – also with the reference to wanting to protect existing investors. This can have a deterrent effect on sellers. “The redemption fees for the various investment vehicles vary greatly and can sometimes account for a large part of an annual performance,” Rothacher knows.

    When do appraisers resort to red pencils?
    But even those who stubbornly hold on to their real estate positions may have to let down their guard. This is the case if there are valuation corrections because the real estate appraisers would be forced to raise the discount rates due to further interest rate steps.

    At least on the Swiss market, the current low level of construction activity, immigration and rising rents make such measures appear premature. However, further interest rate hikes by the Swiss National Bank could still lead the appraisers to apply the red pencil.

    Local pension funds often have a pronounced “home bias” in their real estate investments and would probably be sensitive to a decline in valuations.

  • SBV erwartet das Zinserhöhung ein Prozent Umsatz jährlich kostet

    SBV erwartet das Zinserhöhung ein Prozent Umsatz jährlich kostet

    Am 22. Juni 2023 hat die Schweizerische Nationalbank (SNB) den Leitzins auf 1.75 Prozent erhöht. Damit nicht genug, die SNB dürfte den Zins im Laufe des Jahres weiter erhöhen, weil sich die Inflation hartnäckiger hält als bisher angenommen. Die Inflation wird in der nächsten Zeit etwa von den steigenden Wohnungsmietpreisen und höheren Stromkosten getrieben. Sowohl im 2023, aber auch in den nächsten beiden Jahren dürfte die Inflation gemäss der SNB-​eigenen Prognose bei etwas über 2 Prozent liegen, was über dem Zielkorridor der SNB liegt.

    Mittels fünf Schritten sind die Zinsen von -0.75 auf nun 1.75 Prozent gestiegen. Weitere Erhöhungen bis Jahresende sind absehbar. Da sich die Schweizer Konjunktur dieses Jahr abkühlt und die Wirtschaft nur noch schwach wächst, darf die SNB jedoch nicht über das eigentliche Ziel hinausschiessen. Daher sei an dieser Stelle davon ausgegangen, dass der Zins bis zum Jahresende noch zwei Mal um jeweils 0.25 Prozentpunkte angehoben wird. Es wird ausserdem angenommen, dass ab 2024 keine weiteren Schritte folgen, der Zins also mittelfristig bei 2.25 Prozent stabil bleibt.

    Bis zu 1.4% tieferes Umsatzwachstum im Jahr
    Ein Rechenmodell des Schweizerischen Baumeisterverbands SBV zeigt, wie stark ein Zinsanstieg die Bautätigkeit negativ beeinflusst. Die Beeinträchtigung dehnt sich langsam und über die Zeit aus. In den ersten beiden Jahren wird das Umsatzwachstum am stärksten beeinträchtigt, aber selbst im fünften Jahr nach den Zinserhöhungen sind noch leichte, negative Auswirkungen spürbar. Die Aussagen beschreiben, wie sich der Umsatz entwickelt im Vergleich zu einer Welt, wenn die Zinsen nicht gestiegen wären.

    In den nächsten fünf Jahren dürfte der Umsatz im Bauhauptgewerbe deswegen kumuliert um 4.65% langsamer wachsen als wenn die Zinsen nicht gestiegen wären. Die grössten realen Umsatzeinbussen sind in den Jahren 2024 (-1.39%) und 2025 (-1.22%) zu erwarten.

    Positive Gegenkräfte könnten Umsatz wachsen lassen
    Die anhaltend starke Zuwanderung, der Nachholbedarf im Tiefbau sowie die Unterstützungsgelder für klimafreundliche Umbauten sind Faktoren, welche den Einbussen durch die Zinsen entgegenstehen und zumindest mittelfristig den Umsatz doch noch positiv wachsen lassen könnten.

    Insgesamt lässt sich also festhalten, dass sich die Leitzinserhöhungen auf den Geschäftsgang der Baufirmen auswirken, auch wenn die Auswirkungen insgesamt begrenzt sind. Das Bauhauptgewerbe bleibt unabhängig vom Zinsniveau eine wichtige Stütze der Schweizer Wirtschaft.

  • Zinsupdate Juni 2023

    Zinsupdate Juni 2023

    Nach turbulenten Zeiten im Bankensektor, die eine aussergewöhnliche Volatilität bei den Hypothekarzinsen mit sich brachten, zeigen sich die vergangenen Monate als eine relativ ruhige Periode. Inzwischen hat sich die Kurve der Hypothekarzinsen gänzlich abgeflacht, wobei die SARON-Hypothek immer noch günstiger ausfällt als eine Festhypothek. Die Hypothekarzinsen bleiben gegenüber dem jeweiligen Referenzzinssatz weiterhin hoch. Das liegt am erhöhten Risiko am Finanzmarkt und an der restriktiven Kreditvergabe der Banken.

    Entwicklung der Hypothekarzinsen
    Nach den turbulenten Zeiten im Bankensektor, die eine aussergewöhnliche Volatilität mit sich brachten, haben wir in den vergangenen Monaten eine Periode relativer Ruhe erlebt. Inzwischen hat sich die Kurve der Hypothekenzinsen gänzlich abgeflacht, wobei eine SARON-Hypothek immer noch günstiger ausfällt als eine Festhypothek. Des Weiteren bleiben die Hypothekarzinsen gegenüber dem jeweiligen Referenzzinssatz weiterhin hoch, was auf das erhöhte Risiko am Finanzmarkt und auf die restriktive Kreditvergabe der Banken zurückzuführen ist.

    Prognose SARON-Hypothek
    Wir verorten weiterhin einen Höhepunkt für den Leitzins bei 2.0% und erwarten eine weitere Erhöhung um 25 Bps in der nächsten Sitzung im September. Dies hätte zur Folge, dass eine SARON-Hypothek temporär kostspieliger als eine Festhypothek sein könnte. Zudem schliessen wir jegliche Zinssenkungen bis ins erste Quartal des kommenden Jahres aus.

    Prognose langfristige Festhypotheken
    Der Entscheid der SNB, nur um 25 Bps zu erhöhen, wirkt entgegen der marktimplizierten Entwicklung am Zinsmarkt wie auch den Erwartungen – was einen leichten Anstieg der langfristigen Zinsen zur Folge haben könnte, da der Markt auf ein energischeres Vorgehen der SNB gesetzt hatte. Dennoch dürften sich mit der abnehmenden Inflation auch die langfristigen Referenzzinssätze umkehren. Allerdings ist zu beachten, dass sich diese Entwicklung nicht zwangsläufig auf die festen Zinssätze längerfristiger Festhypotheken auswirkt, da die Risikoprämien aufgrund der wirtschaftlichen Unsicherheit höher ausfallen. Daher rechnen wir damit, dass die langfristigen Festhypothekenzinssätze auf dem derzeitigen Niveau verbleiben werden.

    Empfehlungen von Property Captain
    Die Sitzung hat einmal mehr verdeutlicht, dass die SNB mit stoischer Haltung ihrem Kampf gegen die Inflation nachgeht und nicht zögert, weiter an den geldpolitischen Stellschrauben zu drehen. Die Folgen der Bankenkrise lassen sich weiterhin auf dem Zinsmarkt ausmachen und manifestieren sich in hohen Margen bei Hypothekarkrediten. In dieser Situation ist es von entscheidender Bedeutung, die eigenen Optionen und Risiken genau zu kennen. Property Captain kann Ihnen dabei zur Seite stehen, eine umfassende und transparente Grundlage für Ihre Finanzierungsentscheidungen zu erstellen. Wir helfen Ihnen dabei, den Überblick zu behalten und die richtigen Entscheidungen zu treffen.

  • Private banks in Switzerland successful thanks to interest business

    Private banks in Switzerland successful thanks to interest business

    An increase in interest income saved many banks from losses or from being classified as underperforming banks. However, the cost/income ratio and return on equity RoE of the underperforming banks remain at a very high 97% and 0.1%, respectively. They have so far been able to avoid an exit from the market, but probably not for much longer. The assets under management of private banks in Switzerland fell by CHF 361 billion in 2022, from around CHF 3.3 trillion to around CHF 2.9 trillion (-11.1%) after the record year of 2021. The reasons for this are declining net new assets and, above all, the negative performance on the financial markets as a result of increased geopolitical and macroeconomic uncertainties. The ‘Big 8’ lost 12.7% of their assets under management compared to the previous year, medium-sized institutions 4.9% and smaller banks 6.9%.

    Different picture for net new assets depending on bank size
    After a strong 2021, net new assets were significantly weaker in 2022 at CHF 45 bn, which was due to a 78% drop in net new assets at the Big 8 banks (previous year: CHF 131 bn). The group of small banks was a positive surprise: although they hold only 6% of the industry’s assets under management, they generated 17% of the industry’s net new money last year. The reason for this is likely to be that the small banks have used the last few years to build on their own strengths by further refining their boutique business model and maintaining client confidence despite market and geopolitical turmoil.

    Flourishing interest business provides breather for weak banks
    Private bank revenues increased from CHF 19.7 bn to CHF 19.9 bn in 2022 compared to the previous year, primarily due to significantly higher interest income, which increased by over 50% year-on-year. Gross profit in 2022 fell only slightly year-on-year by 3.4% from around CHF 5.9 bn to just under CHF 5.7 bn. What is surprising is the significant increase in gross profit at the medium-sized (+17%) and small private banks (+28%).

    “Especially the institutions at the lower end of profitability were able to take a breather thanks to rising interest rates. However, this should not hide the fact that the challenges for this group remain great,” explains Philipp Rickert, Head of Financial Services at KPMG Switzerland. “Efficiency improvements and investments in digitalisation remain top priorities to improve profitability.”

    M&A activity: independent asset managers in focus
    Even though the difficult market environment would have argued for further consolidation, mergers and acquisitions remained at a modest level in 2022 due to the positive interest rate environment, with transactions involving domestic independent asset managers (UVVs) increasing significantly. EIAs were involved in seven out of a total of 15 transactions. “The relatively high level of M&A activity in the UVV industry comes as little surprise given the increased regulatory requirements and an ageing advisor base nearing retirement,” said study leader Christian Hintermann, Partner Financial Services at KPMG Switzerland.

    The number of private banks in Switzerland has fallen from 92 at the end of 2021 to 89 at the end of March 2023. Hintermann expects further consolidation, as there are still numerous underperforming banks despite the breather.

    Outlook
    “Looking ahead, the challenge is to grow profitably,” says Christian Hintermann. This is not an easy task given the decline in assets under management, relatively weak net new money, limited M&A opportunities and stagnating cost-income ratios at many banks. In addition, private banks in Switzerland have to cope with the costs and complexity of cross-border business, a shortage of talent and increasing digitalisation and regulation.

    In contrast to the large and small private banks, the medium-sized institutions are in a challenging situation in that they do not benefit significantly from economies of scale or clear niche positioning. “This group of medium-sized private banks is particularly challenged to sharpen their business model,” says Philipp Rickert.

    Methodology
    In the annual study “Clarity on Swiss Private Banks”, KPMG and the University of St. Gallen (HSG) examined a total of 73 private banks operating in Switzerland and assessed the performance of these institutions as well as the most important industry trends.

  • Rise in Swiss asking rents continues

    Rise in Swiss asking rents continues

    The Homegate rent index for asking rents is compiled by the real estate marketplace Homegate in cooperation with Zürcher Kantonalbank (ZKB). It measures the monthly, quality-adjusted change in rents for new and re-let flats based on current market offers. Compared to the previous month, the index increased by 0.5 points in May and now stands at 121.2 points (plus 0.4 percent). Compared to the previous year, asking rents rose by 3.1 per cent across Switzerland.

    Change in the cantons
    With the exception of the canton of Fribourg (minus 0.2%), asking rents also rose everywhere at the cantonal level. However, the canton of Fribourg recorded a new high in April and March this year, which puts the slight decline in May into perspective. In the remaining cantons, asking rents rose by up to 3.6 per cent in the canton of Schwyz, which clearly reached a new high. The coming months will show to what extent this is a temporary effect. In the cantons of Uri (2.6 per cent), Nidwalden (2 per cent) and Zug (1.9 per cent), asking rents also rose significantly last month. At the same time, the canton of Zug was the only canton to record a negative development compared to the previous year (minus 1 per cent), which can primarily be explained by the comparatively strong fluctuations in asking rents in this canton. The strongest increases in asking rents over the last twelve months were in Uri (7.8 per cent) and Schwyz (6.9 per cent). This is accompanied by fluctuating, but nevertheless rising prices.

    Change in the cities
    A similar picture emerges at the level of the cities surveyed. With the exception of the city of Bern (minus 0.3 per cent), prices for advertised rental flats have risen between 0.5 per cent (Basel) and 1.6 per cent (Zurich). Compared to May last year, asking rents have risen by more than one per cent in all eight cities surveyed, led by Zurich (10 per cent) and Lugano (7.7 per cent). When looking at the asking rents in the cities, it is also noticeable that most of them rose more strongly in May than in the corresponding cantons. The only exceptions are Bern (with falling asking rents in May at city level) and Lucerne (cantonal prices rose by around twice the city prices). This indicates that urban demand remains high.

    Quality adjustment method
    The development of asking rents in Switzerland is adjusted for the different quality, location and size of the flats. The advantage of this so-called hedonic method is that the real rental price development for new and re-let flats is shown on Homegate. The Homegate rent index is the oldest quality-adjusted rent index in Switzerland and is considered a reference source for real estate professionals for determining the price of rental properties.

    The data for all cantons and cities since the start of the survey can be found in the latest release in the news section of SMG Swiss Marketplace Group AG. The next Homegate Rental Index is expected to be published on 18 July 2023.

  • Swiss Prime Site plans to issue a convertible loan in the amount of CHF 250 million maturing in 2030

    Swiss Prime Site plans to issue a convertible loan in the amount of CHF 250 million maturing in 2030

    Swiss Prime Site AG (“Swiss Prime Site”), rated by Moody’s as an “A3” issuer, plans to issue an unsubordinated, unsecured convertible loan in the amount of CHF 250 million due in 2030 (the “SPS Convertible Loan”) to finance real estate projects and refinance current debt. The Bonds are convertible into newly issued or existing registered shares (the “Shares”) of Swiss Prime Site (or equivalent compensation in cash, or equivalent combination in cash and shares, at the option of Swiss Prime Site) and serve as collateral for an exchangeable bond to be issued simultaneously by a financing company to investors.

    Swiss Prime Site plans to issue the SPS Convertible Loan to be issued to ELM B.V. (“ELM”) and held by ELM, or an agent of ELM on its behalf. ELM is a finance company (a so-called “repackaging vehicle”) held through a trust and domiciled in the Netherlands. ELM, in turn, intends to issue a 7-year exchangeable bond (the “ELM Exchangeable Bond”) secured by the SPS Convertible Loan. Holders of the ELM Exchangeable Bonds will have the right to exchange the ELM Exchangeable Bonds for Swiss Prime Site Shares (or equivalent cash compensation, or equivalent combination of cash and shares, at the option of Swiss Prime Site) based on the relevant terms of the SPS Convertible Loan. All payments as well as the delivery of the Shares to the holders of the ELM Exchangeable Bonds will be made provided that ELM, as holder of the SPS Convertible Loan, receives the payment or delivery of the Shares under the SPS Convertible Loan.

    The SPS Convertible Loan is a non-subordinated, unsecured convertible loan from Swiss Prime Site and is expected to bear interest at a fixed rate of between 1.125% and 1.625% per annum, payable annually in arrears. The SPS convertible loan will be repaid at its nominal value on or about 31 May 2030. Under certain circumstances, Swiss Prime Site may repay the convertible loan early in cash. Holders of the SPS Convertible Loan are entitled to demand repayment of the SPS Convertible Loan after 4 years (and in certain other circumstances customary in the market) at its nominal value plus accrued interest.

    Under its terms, the SPS Convertible Loan is convertible by the holders thereof into Swiss Prime Site Shares at an initial Conversion Price which is expected to be fixed at a premium between 10% and 15% above the volume weighted average price of the Shares on the SIX Swiss Exchange AG between the Commencement Date and the pricing of the Offer on 23 May 2023. The conversion price may be adjusted under certain circumstances. Swiss Prime Site has the right to settle the conversion right in shares or cash (or an equivalent combination thereof).

    The net proceeds received from the issuance of the SPS Convertible Loan will be used for projects under Swiss Prime Site’s Green Finance Framework. The ELM Exchangeable Bond is not itself classified as a Green Bond.

    As part of the issuance of the SPS Convertible Loan, Swiss Prime Site has committed to a lock-up period of 90 days after the issue date with respect to the issuance of shares (or equity-like financing instruments), subject to customary exceptions. The pricing of the ELM Exchangeable Bonds (and the SPS Convertible Loan) will take place today in an accelerated bookbuilding process. The final terms of the ELM Exchangeable Bonds and the SPS Convertible Loan are expected to be announced today. The payout is expected on or around 31 May 2023.

    The offering of the ELM Exchangeable Bonds will be made as a private placement to professional investors in and outside Switzerland. Advance subscription rights of Swiss Prime Site shareholders will be excluded. It is planned to apply for admission of the ELM Exchangeable Bonds to trading on the Regulated Unofficial Market of the Frankfurt Stock Exchange. Neither the ELM Exchangeable Bonds nor the SPS Convertible Loan will have a rating. This press release is only a summary of the terms of the ELM Exchangeable Bonds and the SPS Convertible Loan. Please refer to the full terms and conditions of the ELM Exchangeable Bonds and the SPS Convertible Loan.

  • Rents in large cities stable to declining – only Zurich with significant increase

    Rents in large cities stable to declining – only Zurich with significant increase

    The Homegate rent index for asking rents is compiled by the real estate marketplace Homegate in cooperation with Zürcher Kantonalbank (ZKB). It measures the monthly, quality-adjusted change in rents for new and re-let flats based on current market offers. Compared to the previous month, the index increased by 0.5 points in March and now stands at 120.7 points (plus 0.4 percent). Compared to the previous year, asking rents rose by 2.8 per cent across Switzerland.

    Change in the cities
    Of the eight Swiss cities surveyed, only Zurich saw a significant increase in asking rents in April: Here, advertised rents rose by 1.8 per cent, which is significantly more than the 0.6 per cent increase in the canton of Zurich. In most of the other cities surveyed, however, asking rents remained relatively stable within a range of plus 0.3 per cent in St. Gallen and minus 0.3 per cent in Lausanne. In contrast, asking rents declined significantly in Bern (0.8 per cent) and Lucerne (1.4 per cent). However, the year-on-year comparison shows a positive trend without exception, led by the cities of Zurich (8.2 per cent) and Lugano (6.8 per cent). Only in Lausanne are asking rents unchanged compared to April 2022.

    Change in the cantons
    The picture is different at cantonal level. Here, all but two cantons show a neutral or positive development in asking rents in April. Only in Graubünden did the advertised rents decline by 1.2 per cent, in Lucerne the decline was 0.2 per cent. In all other cantons, advertised rents either remained unchanged or rose by up to 2.4 per cent (Schwyz) last month. In addition to Schwyz, the cantons of Nidwalden (1.4 per cent) and Uri (1.3 per cent) are among those with an above-average increase. While Uri has thus reached a new high since the beginning of the measurement period, the asking rents in Nidwalden were already higher once during a few months in 2022. Looking back over the year, however, there are clear plus signs for asking rents at the cantonal level. All cantons show an increase of between one and six per cent, led by Glarus (6 per cent), Uri (4.7 per cent), Valais (4.5 per cent) and Appenzell (4.3 per cent). But even in the canton of Graubünden, which was the only canton to record a marked decline in asking rents in April, they rose by 2 per cent compared to the previous year.

    Quality adjustment method
    The development of asking rents in Switzerland is corrected for the different quality, location and size of the flats. The advantage of this so-called hedonic method is that the real rental price development for new and re-let flats is shown on Homegate. The Homegate rent index is the oldest quality-adjusted rent index in Switzerland and is considered a reference source for real estate professionals for determining the price of rental properties.

  • The Swiss Bitcoin expert with a top international reputation in the Moneycast

    The Swiss Bitcoin expert with a top international reputation in the Moneycast

    It is a highly political question what our monetary system will look like, says Fabian Schär. The professor of financial market infrastructure is one of the most sought-after experts internationally when it comes to cryptocurrencies and blockchain technologies. He has even been invited to speak at the G-20 meetings, most recently at the invitation of the Indian Ministry of Economic Affairs.

    Bitcoin as a “store of value”
    For him, it was a tremendous experience, says Schär. “The atmosphere at such a meeting is very impressive This is also because the most powerful of the powerful come together there: The G-20 is a loose association of the most important economic nations in the world. At these meetings, international regulations are regularly discussed in advance, often behind closed doors.

    Currently a hot topic is Schär’s area of expertise: “FinTech”. This means everything that has to do with financial market infrastructure. For example, the question of how payments are processed. Cryptocurrencies are important drivers of innovation here: for example, payments with Bitcoin no longer need a central counterparty – the money can be sent directly from the buyer to the seller. This is not the case with standard bank transfers: in most cases, payments go through a third party, often a bank.

    So will Bitcoin become established as a new currency? Schär is very cautious about making predictions. He says: “If everything develops the way the original idea was, then Bitcoin can possibly become a store of value in the future.” Bitcoin, on the other hand, is unlikely to establish itself as a means of payment.

    “I was extremely sceptical”
    Nevertheless, Schär says he finds the innovations of cryptocurrencies extremely exciting. One reason for this lies in the hobby of his youth: back then, he spent a lot of time playing video games and thus developed an interest in computer science. Later, when he was studying economics, he began to look into cryptocurrencies.

    “At first I was extremely sceptical,” says Schär, “but the more I looked into it, the more it fascinated me.” Bitcoin is highly exciting, he says today, a fantastic innovation. “The system is incredibly well thought out.” But Schär also warns of the risks: “The high fluctuations in value are a problem.” One should be careful when investing in cryptocurrencies, he says. He recommends rather investing in one’s own education and in a better understanding of cryptocurrencies.

    What will banks do in the future?
    Schär does the same in his role as a professor for cryptocurrencies. What he likes most about his job is the versatility. As a professor, he can exchange ideas with many exciting people from politics and the private sector and pass on input from his research. This also involves the financial infrastructure of the future and the role of intermediaries such as banks. Much is still unclear, says Schär, but one thing can already be said: “The roles will change

    Source: www.swissinfo.ch

  • Core statements of the research paper “Sustainability in the mortgage business

    Core statements of the research paper “Sustainability in the mortgage business

    The importance of mortgages to achieve the 2050 climate targets

    1. The building sector is a major contributor to energy consumption and CO2 emissions, so sustainable retrofits and energy-efficient design are necessary to achieve the 2050 climate targets.
    1. Mortgages are crucial for energy retrofits and efficiency improvements of buildings. By aligning mortgage terms with sustainability goals, banks and lenders can incentivise owners to green their properties and thus contribute to achieving climate goals.
    1. Within the framework of self-regulation, banks undertake to create better incentives for more sustainability in the areas of loan-to-value, affordability, amortisation and interest rates, especially for private owners. A large proportion of mortgages are granted to private owners.

    The role of private owners

    1. Private owners are fundamentally worse off in terms of sustainability compared to institutional owners, although for a long time the problem was at the level of “will”. Increased energy prices and interest costs, as well as increased regulation and public interest, have likely increased willingness.
    1. Cognitive barriers need to be broken down through comprehensive advice in order to increase the renovation rate among private owners. Many owners do not realise that sustainability can be financially rewarding as it can lead to higher occupancy rates, rental income, lower operating costs, higher liquidity and lower risk premiums, which in turn increases the value of the property.
    1. Financial barriers need to be removed to increase the rate of renovation among private owners. Attractive mortgage conditions can ultimately persuade them to act after readiness and education.

    Offering green mortgages

    1. Mortgage financing that financially rewards and encourages sustainable behaviour already exists and is integrated into the product offerings of many lenders. There is currently no standard taxonomy and various certificates are used to classify sustainability.
    1. Green mortgages include advantageous terms but can be criticised for inefficiencies and potential greenwashing. In addition, positions and environmental impacts are rarely communicated externally.
    1. Lenders that are actually engaged can finance their lending of green mortgages by issuing green bonds and thus be more efficient and transparent. In doing so, they also increase their competitiveness and enhance their credibility.

    What should be expected as a private owner?

    1. Owners should be aware that green practices can increase property values in different ways, while less sustainable buildings risk becoming stranded assets due to future regulatory measures and market changes.
    1. In the future, an improved database and more accurate tools may allow for a more precise recording of CO2 emissions and grey energy of real estate, which would lead to more efficient and symmetrical pricing in lending. This would allow green properties to be financed at more favourable conditions, while non-green properties might receive less favourable conditions.

    More detailed info at www.avobis.ch/wp-content/uploads/esg-im-hypothekargeschaeft_final.pdf

  • Annual General Meeting approves a distribution of CHF 7.00 per share

    Annual General Meeting approves a distribution of CHF 7.00 per share

    In addition to approving the 2022 financial statements, the Annual General Meeting also approved a distribution of a total of CHF 7.00 per registered share. This will take place on 27 April 2023 and will consist of an ordinary dividend of CHF 3.50 (gross) per registered share (CHF 2.275 net after deduction of withholding tax) and a distribution of reserves from capital contributions of CHF 3.50 per registered share (ex-date 25 April 2023).

    The shareholders also re-elected Ralph-Thomas Honegger as Chairman of the Board of Directors. With Philipp Gmür, Andrea Sieber, Peter Spuhler, Olivier Steimer, Thomas Stenz, Jürg Stöckli and Anja Wyden Guelpa, the Annual General Meeting also confirmed the re-election of all other members of the Board.

    The General Assembly also approved the amendments to the Articles of Association proposed by the Board of Directors, with the exception of agenda item 6.2. The shareholders thus rejected, among other things, the possibility of holding a virtual General Assembly.

    The 25th Annual General Meeting of Allreal Holding AG will take place on 19 April 2024 in Zurich.

    www.allreal.ch

  • Selling a condominium? Top in the agglomeration, patience in the countryside

    Selling a condominium? Top in the agglomeration, patience in the countryside

    The latest edition of the Online Home Market Analysis by the real estate portals Homegate and ImmoScout24 in collaboration with the Swiss Real Estate Institute (SwissREI) analyses the listing data for condominiums for the year 2022. The listings analysed come from several large real estate portals in Switzerland and thus comprise the majority of all online listings for the period under review.

    Number and duration of listings declines
    While the listing duration of condominiums remained above 80 days during the Covid19 pandemic, it has now declined again by eight days to 77 days nationwide for 2022. At the same time, there was a five-percent decrease in supply to a good 70,000 properties. The combination of these two values shows that, viewed across Switzerland as a whole, demand for condominiums has increased in 2022.

    For Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group, the results of the current analysis show the robustness of the Swiss real estate market: “Home ownership is and will remain a sought-after but limited commodity in Switzerland. For despite significantly higher financing costs, condominiums sold faster again last year than in the previous year”. With the exception of the regions of Ticino and Geneva, the length of time for which condominiums are held has shortened, in some cases significantly, in the majority of the regions surveyed. “On the one hand, this shows the continuing and even increased demand for condominiums. On the other hand, real estate platforms such as Homegate and ImmoScout24 are the best possible way to avoid missing out on offers in a highly competitive market and to maintain an often time-critical lead,” Waeber continues.

    Listing times in the regions are levelling out – except in Ticino
    Looking at the individual regions of Switzerland, the range in listing times has narrowed over the past year. In other words, the Swiss real estate market is becoming more balanced in terms of condominium sales. Condominiums continued to sell fastest in the Zurich region, namely within 43 days. This value remained unchanged compared to 2021. In six other regions, the time it took to put an apartment up for sale fell by between five and 17 per cent. The situation is different in Geneva, where the average listing time increased slightly by just under two per cent. Ticino continues to be decoupled from the other regions. Here, the already longest duration of listings increased by another seven per cent last year.

    Almost nationwide increase in demand for condominiums
    The combination of changes in the duration of listings and the number of listings allows conclusions to be drawn about demand in Switzerland as a whole and in the individual regions. In the Zurich region, for example, a 13-percent increase in the number of advertisements was registered compared to the previous year. Since, despite this increase in supply, the duration of listings in Zurich did not increase to the same extent – but on the contrary remained unchanged between 2021 and 2022 – an increased demand for condominiums in this region can be deduced from this.

    With one exception – Ticino – the same picture emerges for the remaining regions of Switzerland: for 2022, they all record a combination of housing duration and number of units, which places them in the area of increasing demand. In Ticino, on the other hand, condominiums had to be advertised for nine days longer last year with an almost unchanged supply until sale. It can therefore be concluded that demand is decreasing in this region.

    Agglomerations clearly stronger in trend than rural communities
    Differences in the demand for condominiums are not only evident with regard to the regions, but a clear picture also emerges when comparing the types of communities: while in the communities in the first agglomeration belt (“suburban communities”) seven of the eight regions examined show an increased demand for residential property, in contrast, a weakening demand was frequently observed in the “rural commuter communities”. The rural communities in the regions of Espace Mittelland and Ticino suffered a particularly strong decline in demand. On the other hand, demand only increased in Zurich and central Switzerland. The situation is completely different in the suburban municipalities: here it is only Ticino where demand declined slightly, even in the agglomeration.

    For Peter Ilg, head of the Swiss Real Estate Institute, it is astonishing how quickly the real estate markets have developed “back to normal” after the Covid19 pandemic: “During the pandemic it was often claimed that an irreversible trend towards a new world of work had begun. Just one year later, we see that this is hardly the case. Home office is already being significantly reduced again in most, especially smaller, companies. This is also reflected in the change in demand for condominiums: rural communities are once again less in demand, while those around the centres are once again much more in demand.”

    Source: https://swissmarketplace.group/de/