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Tag: UBS

  • Steiner converts and expands Basel’s ex-UBS building

    Steiner converts and expands Basel’s ex-UBS building

    The former UBS building at Aeschenplatz 6 in Basel will be further developed into a “versatile urban building block”. Steiner AG announced this in a message on LinkedIn. Through conversions and extensions, it will in future offer attractive space for living, working and relaxing for people of all ages and population groups.

    “Located in the pulsating heart of Basel, at the entrance to the city centre, within walking distance of the railway station and close to the St. Alban and Gellert quarters, this site represents an exciting challenge for us,” says the Zurich-based real estate service provider, which also has a location at this very Basel address.

    According to the information provided, the project focuses on the efficient and careful use of resources. The planned preservation of the existing building will make a significant contribution to optimising the ecological footprint. The added new construction is intended to exploit previously unused potential and provide attractive, new living space.

    During the development process, Steiner will provide continuous online updates on the project. Construction is scheduled to begin in 2028, with completion planned for 2030.

  • UBS sees holiday flats at a turning point

    UBS sees holiday flats at a turning point

    The prices for holiday flats in Switzerland have risen by an average of 7 per cent year-on-year in 2022, UBS informs in a press release on its current “UBS Alpine Property Focus“. The real estate experts of the big bank have identified the biggest jumps with increases of 15 to 20 percent in the destinations of Arosa, Hoch-Ybrig, Flims/Laax and Engelberg. With prices of around 20,500 Swiss francs per square metre, the Engadin/St.Moritz destination currently leads the ranking of the most expensive second homes in the upscale segment.

    Since autumn 2022, however, experts have observed a slowdown in the price increase. According to Maciej Skoczek, real estate economist at UBS CIO GWM and lead author of the study, it will continue in the coming quarters. “A period of stagnating prices is on the horizon,” Skoczek predicts.

    According to UBS’s findings, the demand drivers from the pandemic years have now lost their power. “Hybrid working, coupled with a relocation of the primary residence to the Alpine region” was only used during the pandemic, and the holidays shifted to the home country will be replaced by trips abroad again when the restrictions are lifted.

    The pandemic left behind around 20 per cent higher prices for two-flats, UBS writes. According to their surveys, the total cost of buying an average flat has also risen to twice the cost of 2019 due to higher interest rates. “Some holiday home owners will consider selling to realise capital gains while escaping the increased costs,” Skoczek says.

  • UBS sees holiday flats at a turning point

    UBS sees holiday flats at a turning point

    The prices for holiday flats in Switzerland have risen by an average of 7 per cent year-on-year in 2022, UBS informs in a press release on its current “UBS Alpine Property Focus“. The real estate experts of the big bank have identified the biggest jumps with increases of 15 to 20 percent in the destinations of Arosa, Hoch-Ybrig, Flims/Laax and Engelberg. With prices of around 20,500 Swiss francs per square metre, the Engadin/St.Moritz destination currently leads the ranking of the most expensive second homes in the upscale segment.

    Since autumn 2022, however, experts have observed a slowdown in the price increase. According to Maciej Skoczek, real estate economist at UBS CIO GWM and lead author of the study, it will continue in the coming quarters. “A period of stagnating prices is on the horizon,” Skoczek predicts.

    According to UBS’s findings, the demand drivers from the pandemic years have now lost their power. “Hybrid working, coupled with a relocation of the primary residence to the Alpine region” was only used during the pandemic, and the holidays shifted to the home country will be replaced by trips abroad again when the restrictions are lifted.

    The pandemic left behind around 20 per cent higher prices for two-flats, UBS writes. According to their surveys, the total cost of buying an average flat has also risen to twice the cost of 2019 due to higher interest rates. “Some holiday home owners will consider selling to realise capital gains while escaping the increased costs,” Skoczek says.

  • Merger of Credit Suisse and UBS

    Merger of Credit Suisse and UBS

    Credit Suisse and UBS entered into a merger agreement on Sunday under which UBS will be the continuing entity. Following the negotiations that took place over the weekend and led to the signing of the merger agreement, UBS and Credit Suisse have concluded that a merger is in the best interests of their shareholders and stakeholders. The Federal Department of Finance, the Swiss National Bank and FINMA had previously required the two companies to complete this transaction in order to restore the necessary confidence in the stability of the Swiss economy and the Swiss financial centre.

    The merger is subject to the following material conditions:

    • All Credit Suisse shareholders will receive 1 UBS share for 22.48 Credit Suisse shares in exchange for the merger. This exchange ratio corresponds to an acquisition price of CHF 3 billion for all Credit Suisse shares.
    • The merger is subject to customary closing conditions. Both parties are confident that all conditions can be fulfilled. The merger is expected to be completed, if possible, by the end of 2023.
    • The Swiss National Bank will provide Credit Suisse with access to facilities through which it will receive substantial additional liquidity.
    • It is expected that, in order to ensure a smooth integration of Credit Suisse into UBS, UBS will appoint employees to key positions at Credit Suisse as soon as legally possible.
    • Credit Suisse will continue its business as usual and implement its restructuring measures in cooperation with UBS.
    • UBS has expressed confidence that Credit Suisse employees can continue to be employed.

    Credit Suisse was informed on Sunday by FINMA of its decision that Credit Suisse’s Additional Tier 1 capital (arising from the issuance of Tier 1 capital notes) in the aggregate principal amount of approximately CHF 16 billion will be written down to zero.

    Taking into account the special circumstances affecting the Swiss economy as a whole, the Federal Council issues an emergency ordinance tailored to this specific transaction. It should be noted that the merger is being carried out without the otherwise required approval of the shareholders of UBS and Credit Suisse in order to increase transaction security.

    Axel P. Lehmann, Chairman of the Board of Directors of Credit Suisse, said: “The announced merger represents the best possible outcome given the extraordinary and unprecedented circumstances. Credit Suisse has been through an extremely difficult period. Although the team has worked tirelessly to clean up many significant legacy issues and implement the new strategy, today we are forced to adopt a solution that will deliver a sustainable outcome.”

  • UBS pension fund joins Halter project

    UBS pension fund joins Halter project

    As the new landowner of the Attisholz core area, the UBS pension fund is participating in the Attisholz development project in Riedholz. According to a media release by Halter AG , this core area covers an area of 73,000 square meters. The remaining area of 420,000 square meters will remain in the possession of Halter. The Schlierem-based real estate company will transform the area step by step over the coming years and will implement various construction projects in the process. “By the time it is completed, this part of the site will offer space for around 740 apartments with 1,250 residents. At the same time, several hundred new jobs will be created,” says the project’s goals.

    A cooperation agreement between the canton of Solothurn, the municipality of Riedholz and Halter AG was originally concluded for the project. This has now been expanded to include the UBS pension fund. “The entry of the UBS pension fund immediately after the usage plan came into force is a strong commitment to the Attisholz area and thus also to the Solothurn region as an attractive place to live, work and live,” says Andreas Campi, Managing Director of Halter Developments.

    The municipality and canton are also pleased about the entry of the UBS pension fund. Sandra Morstein, Mayor of Riedholz, sees the “trustworthy and constant cooperation” of all partners strengthened. “For the Canton of Solothurn, the sustainable and future-oriented development of the Attisholz area is a central concern,” says Government Councilor Birgit Wyss. “The investment by the UBS pension fund is an important signal for the canton of Solothurn as an investment location.”

  • Second home prices soar

    Second home prices soar

    In a press release , the major Zurich bank UBS informed about an increase in the price of holiday apartments in the Alpine region. With a price increase of almost 10 percent, residential real estate has reached its highest level in the past twelve years. Arosa GR, Engelberg OW, Flims/Laax GR and the Jungfrau Region, where prices have risen by 15 percent, are most affected.

    Based on the findings of the Alpine Property Focus study, UBS explains the price increase, among other things, with a decline in supply and increasing demand. As a result of the corona pandemic, working from anywhere has become attractive. Many working people have moved their desk and primary residence to the holiday regions.

    Furthermore, held back sales have led to the tense supply situation on the residential real estate market. According to this, many owners would have refrained from a planned sale of the holiday apartment because of their own needs for their home office.

    The Second Homes Act, which has been in force since 2012, has also had an unfavorable effect, ordering a de facto freeze on the construction of second homes in tourist regions. However, the stable value of residential real estate is said to be unaffected by the lack of new housing construction.

    As a result of the high capital costs when buying a holiday home and rising interest rates at the same time, the demand for holiday homes is likely to fall again, according to experts. The real estate economist at UBS, Maciej Skocz, quoted in the study, also includes the increased energy costs and expects “a good third higher usage costs” for an “average holiday home” for 2023 compared to the “beginning of the second home boom in 2020”. In the medium term, the expected increase in the supply of second homes will regulate the current price explosion again.

  • UBS sells stake in real estate company in Japan

    UBS sells stake in real estate company in Japan

    UBS Asset Management and Mitsubishi Corporation have agreed to sell their Mitsubishi Corp.-UBS Realty Inc. (MC-UBSR) joint venture to American private equity firm KKR & Co. Inc. , UBS Group AG and UBS AG announce in a press release. The transaction, which is still subject to the approval of the relevant authorities, is expected to be completed in the coming month. The sale has “no impact on UBS’s asset management, wealth management and investment banking business in Japan,” explains the major Zurich bank.

    The sale marks the end of a 20-year success story for the joint venture. According to her, MC-UBSR has developed into one of Japan’s largest asset managers in the real estate sector. “We believe KKR is well positioned to continue to grow the business,” Suni Harford, President of UBS Asset Management, said in the statement. For UBS, the sale is expected to generate a gain in asset management and an increase in core capital (CET1) of around $0.9 billion.

    “The Japanese market remains a cornerstone of our Real Estate & Private Markets business in Asia Pacific going forward,” said Harford. Real estate investments in Japan are to be offered to clients through the UBS Japan Advisors unit.

  • The risk of bubbles in homes in Zurich is high

    The risk of bubbles in homes in Zurich is high

    The global bubble risk for homes rose by 6 percent on average in the major cities analyzed last year. In all of the cities analyzed except Milan, Paris, New York and San Francisco, home prices have risen, in five cities even by double digits. The potential extent of a price correction has also increased. This is shown by the UBS Global Real Estate Bubble Index 2021 . This annual study is prepared by the Chief Investment Office of UBS Global Wealth Management .

    The current risk of the real estate bubble bursting is highest in Frankfurt, Toronto and Hong Kong. According to a comprehensive media release , there are also high risks in Munich and Zurich. Vancouver, Stockholm, Amsterdam and Paris are just as overrated, as are all five cities from the USA examined. UBS also sees major imbalances in Geneva, Tokyo, Sydney, London, Moscow, Tel Aviv and Singapore.

    Madrid, Milan and Warsaw, on the other hand, are still rated fairly. UBS names Dubai as the only undervalued market. He’s also the only one to be classified in a lower category than last year.

    According to UBS, the reasons for the global price increase lie in addition to the corona pandemic in the further improved financing conditions. In some cases, even the lending standards for homebuyers have been relaxed. In addition, higher savings rates and growing stock markets have released additional equity.

    At the same time, households would have to take out ever larger loans in order to keep up with rising prices. Even so, debt levels and credit growth are still well below their historical highs in many countries. UBS therefore does not expect any major disruptions on the global financial markets for the time being. The shift in demand towards non-urban areas, however, makes “a long dry spell for the urban housing markets” more likely.

  • UBS warns of overheating in the home market

    UBS warns of overheating in the home market

    According to a release from UBS , the UBS Swiss Real Estate Bubble Index, which is compiled every quarter by the Zurich-based bank, rose from 1.78 to 1.90 points in the second quarter of 2021 compared to the previous quarter. It remains in the risk zone between 1.0 and 2.0 points, explain the analysts of the Zurich big bank in the announcement. As drivers, they have seen sustained high price increases for home prices and accelerated growth in household debt for home purchase.

    Specifically, house prices in the quarter under review were an average of 5.4 percent higher than in the same period of the previous year. Mortgage volumes rose by almost 3 percent over the same period. Here an acceleration of the increase "should be interpreted as a clear warning signal", the analysts write.

    In contrast, the analysts recorded a year-on-year decline of 3.2 percent in asking rents. According to them, the unbroken high demand for residential property for the purpose of renting is primarily due to the expectation of further increases in prices on the residential property market. In individual regions in the cantons of Geneva and Zurich, the analysts have already identified a risk of overheating.

    In general, "the imbalances in the home market" are likely to be "significantly higher than before the crisis" after the effects of the pandemic have been overcome, they predict in the press release. At the same time, they assume that the economic recovery will prevent the index from rising into the bubble zone starting at 2 points.

  • Luxury real estate is on the rise

    Luxury real estate is on the rise

    According to UBS , the pandemic has sparked a sharp surge in demand for luxury real estate. As their recently published study “ UBS Luxury Property Focus 2021 ” shows, demand rose by more than half compared to the previous year. This is about three times as high as the five-year mean. As a result, prices also rose above average: "The excess demand caused prices in the luxury segment to skyrocket by 9 percent in 2020 – significantly more than the 4.4 percent in the average Swiss home market," said UBS real estate expert Katharina Hofer in a press release quoted.

    UBS is making a “gold rush” on Lake Geneva. The municipality of Cologny remains the most expensive luxury real estate market in Switzerland. In the luxury communities near Geneva, prices rose by an average of around 16 percent over the course of a year. The highest-priced properties in Gstaad can be found on the second home market. In the Upper Engadin, the luxury segment begins just below the purchase prices there. Luxury properties in mountain communities were also 10 percent more expensive. In contrast, the price increases in the Lake Zurich region and in Central Switzerland were more moderate with an average of 6 percent.

    The UBS report cites the positive development of the financial markets as the reasons for the high demand. In addition, the long-term intrinsic value was particularly attractive in view of the uncertain economic development. In addition, the study notes an increased interest from abroad. "Because the local measures to contain the pandemic were far less restrictive than, for example, in France, Italy or Great Britain." A large part of the foreign demand comes from these countries. UBS also cites the low risk of higher taxes in this country for top earners and the good health system as motives.

    UBS expects that current demand drivers will also remain in effect in the second half of the year. Accordingly, an above-average number of transactions and local price increases can still be expected. And the trend should continue beyond the year, so Hofer: "Anyone looking for a place with stable institutions and established luxury locations in global luxury markets should increasingly focus on Switzerland."

  • UBS and Baloise create an ecosystem for real estate

    UBS and Baloise create an ecosystem for real estate

    The major bank UBS and the Baloise insurer from Basel are entering into a strategic partnership. According to almost identical media releases, both are planning to merge their respective solutions and services for property owners.

    The joint ecosystem Home & Living is to emerge from the Atrium and key4 mortgage platforms from UBS and Home from Baloise, which broadly covers the living and everyday needs of its customers. In addition, the partners intend to include existing and possible company holdings of both companies. In addition, they also express their intention to integrate the offers of various start-up companies.

    "Baloise has in recent years greatly in expanding its ecosystem Home invested", is Yannick Hasler, Head of Retail Banking Baloise Switzerland, cited . "With the cooperation and investments in innovative Swiss start-ups such as Houzy , Devis , MOVU , Bubble Box or Batmaid , the foundation stone was laid for a service network that makes our customers' everyday lives easier."

    With Atrium and key4, UBS laid the foundation for its platform business in Switzerland, says Sabine Magri, COO of UBS Switzerland AG. “The continuous expansion through partnerships with and investments in innovative start-ups and intermediaries is central to the further development of our ecosystem. The planned strategic partnership with Baloise is complementary, we can complement each other perfectly. "

  • UBS joins forces with Invesco

    UBS joins forces with Invesco

    UBS and the American Invesco Real Estate have agreed on a cooperation. Together, they offer UBS clients access to Invesco's global real estate mandates. This will make it more efficient for UBS Global Wealth Management's private customers to include this asset class in their portfolios, according to a media release from the major Zurich bank.

    The new offer will primarily invest in Invesco's direct real estate strategies, but also in listed real estate stocks, co-investments and direct real estate. With assets under management of 63.3 billion dollars in direct real estate investments and 19.9 billion dollars in listed real estate values, as well as more than 580 real estate professionals worldwide, Invesco is "the only manager with comparable strategies in the USA, Europe and Asia", so UBS.

    "This offer was specially structured for UBS and its clients in order to offer them stable and attractive regular income over the long term," said Marty Flanagan, President and CEO of Invesco, quoted in the press release. According to Bruno Marxer, Head of Global Investment Management at UBS, this partnership underscores the bank's commitment to providing its clients with exclusive access to solutions from leading partners.

  • UBS relies on Implenia

    UBS relies on Implenia

    UBS has selected Implenia as the general contractor for the renovation of its listed building on Paradeplatz in Zurich, the construction and real estate company from Dietlikon informs in a message . According to her, the award of the contract was preceded by a year-long overall performance competition. The notification does not provide any information about competitors or the volume of orders.

    The start of construction work is planned for the end of next year, Implenia informs. During the renovation, Roland Rohn's historic character is to be restored “in a contemporary way,” explains Pierre de Meuron, Founding Partner of the Herzog & de Meuron architecture firm, in the press release. In addition to new office space, spaces with hybrid and partly public use are planned. Implenia also plans to open the building to Paradeplatz and Bärengasse. The renovation work should meet the LEED Platinum sustainability standard for ecological building.

    "We rely on efficient and effective processes as well as the latest methods from Lean Construction to ensure optimal quality, deadlines and good communication in the planning and execution of the complex project across all phases," says Jens Vollmar, Head of the Buildings Division at Implenia, in the communication quoted. "We also work with a proven team that has already worked for UBS on other projects."

  • UBS takes over real estate fund Residentia

    UBS takes over real estate fund Residentia

    As of the beginning of February 2021, UBS Fund Management (Switzerland) AG will take over the management of the Swiss real estate fund Residentia, UBS informs in a message . The listed fund mainly holds residential properties in the canton of Ticino. The announcement puts the total assets of Residentia's portfolio at around CHF 275 million.

    With the takeover of Residentia, the Zurich-based bank wants to strengthen its asset management in the real estate sector in southern Switzerland. "We believe in the Ticino real estate market," Daniel Brüllmann, Head of Real Estate DACH at UBS Asset Management, is quoted in the press release. He sees his company "ideally positioned for this takeover".

    UBS Switzerland AG will act as a deposit bank for Residentia, is further explained in the announcement. The Pagani Real Estate SA of Residentia co-founder Matteo Pagani is to support the fund management company in Ticino as a “local presence”.

  • UBS real estate platform integrates FinanceScout24

    UBS real estate platform integrates FinanceScout24

    The key4 open real estate platform is intended to provide customers with all the services they need to purchase and manage their own home, explains UBS in a press release . Key4 offers, among other things, a management of the mortgages, where you can choose from the offers of different lenders for each tranche. This is "unique in Switzerland", writes UBS.

    The big bank wants to expand its platform through strategic partnerships. The digital one-stop shop for finance and insurance topics , FinanceScout24, was the first financing broker to be won, UBS informs in the press release. "The partnership with FinanceScout24 is the next logical step in expanding our ecosystem and part of our long-term strategy to become the market leader in the platform business", Martha Böckenfeld, Head of Digital Platforms & Marketplaces, is quoted there.

    In return, FinanceScout24 customers can use the full range of key4 products. "Through the cooperation with key4, we are expanding our portfolio with a strong partner and are now offering our users an even larger range of suitable financing solutions for their personal dream home", Jan Hinrichs, Managing Director of FinanceScout24, is quoted in the press release. The company is part of Scout24 Schweiz AG . Ringier AG and Mobiliar each hold half of the network of online marketplaces.

  • Zurich moves into the bubble zone

    Zurich moves into the bubble zone

    UBS explains in a press release on the current edition of the UBS Global Real Estate Bubble Index that the euro area has the most overvalued housing markets of the 25 cities observed around the world. For Munich, Frankfurt, Toronto, Hong Kong, Paris, Amsterdam and Zurich, the analysts even identify a bubble risk. Overvaluations of residential real estate are attested in the cities of Vancouver, London, Tokyo, Los Angeles, Stockholm, Geneva, San Francisco, Tel Aviv, Sydney, Moscow and New York.

    This year, Zurich has risen to the bubble risk category for the first time, the analysts explain in the press release. You have also observed the strongest price increase of all Swiss economic regions for the metropolis. The supply on the housing market grew relatively quickly in the reporting period. If, according to the announcement, the market for owner-occupied properties has dried up, the majority of the newly built apartments will ultimately be rented out.

    The analysts put Geneva at a lower price level and a lower index value than Zurich. However, the city made up for its losses from 2013 to 2016 in the wake of the recent price hike. Despite the overvalued housing market, the city can benefit from its international orientation and its attraction to foreign nationals.

    Compared to last year's Bubble Index, prices in many European metropolises have risen by more than 5 percent, the press release explains. "At this point in time it is impossible to say to what extent higher unemployment and a bleak outlook for household incomes will affect house prices," said Mark Haefele, chief investment officer at UBS Global Wealth Management, quoted there. "It is clear, however, that the current acceleration is not sustainable in the short term."

  • Houzy expands into western Switzerland

    Houzy expands into western Switzerland

    The Zurich-based start-up company Houzy operates a platform that intelligently links data and uses it to derive recommendations for homeowners. For example, it can be calculated there when the heating is to be renovated and how much money should be put aside for it. A property valuation is also part of the Houzy offer.

    In the first two years since it was founded, the company focused primarily on product development, Houzy said in a press release. The company has already successfully established itself in German-speaking Switzerland and has increased the number of its users to more than 18,000. In addition, UBS only joined Houzy in July. The Zurich big bank operates its own digital real estate platform with key4 , on which mortgages for real estate buyers are brokered.

    The next step for Houzy was the expansion into French-speaking Switzerland, the message continues. To this end, the company is now making all the services and functions of the platform available in French. The integration of Italian-speaking Switzerland is planned for the first quarter of next year.

  • UBS and iptiQ launch new insurance

    UBS and iptiQ launch new insurance

    UBS joins forces with iptiQ , a subsidiary of reinsurer Swiss Re . Together they are testing a new insurance solution specially designed for UBS's mortgage customers in Switzerland. The offer is accessible via the iptiQ digital platform, according to a communication . Initially, it will be tested for around six months from July 15. Then it should be optimized based on feedback.

    "Protecting yourself against unforeseen events is of central importance for every homeowner," says UBS Switzerland boss Axel Lehmann. "We are pleased to be able to offer our mortgage customers, in cooperation with the Swiss Re subsidiary iptiQ, an innovative offer with which they can cover personal risks quickly and easily."

    Cooperations between banks and insurance companies are already successful in many countries, UBS states in its announcement. In Switzerland, the bank still sees untapped potential in this area.

  • WIPO Limmattal will not take place again until 2021

    WIPO Limmattal will not take place again until 2021

    The Organizing Committee (OC) of the Limmattal Economic Podium has decided to cancel the next event planned for November 2020, according to a media release. The reasons are the "uncertain development of the coronavirus pandemic, the lack of planning security and concern for the health of the participants". The decision was made together with the main sponsors AXA , UBS Switzerland AG , energie360 ° , maneth stiefel AG and the Umwelt Arena Schweiz .

    “We ran through all the scenarios. The decision was anything but easy for us, "OC President Fredi Pahr is quoted in the message. In it, WIPO also informs that the organizers had consulted with the sponsors and partners and that the majority of those questioned were in favor of rejection. “WIPO lives from networking – keeping your distance is difficult. We very much regret the cancellation, but the health of our participants has top priority, ”says Pahr.

    The next WIPO event will therefore take place in November 2021. The exact date should be set in the coming days. The program planned for 2020 and with it the topic of "Limitless" will remain topical in the coming year. “We hope that we can win Federal Councilor Guy Parmelin again for the keynote. The clarifications are in progress ”, informs the WIPO, which was founded and is being carried out by the three patronage associations IHV Industrie- und Handelsverein Dietikon , Schlieren Chamber of Commerce ( WKS ) and the Association for Industry, Services and Trade Spreitenbach ( IDH ).