Investment real estate under construction

Investment real estate under construction as at 30 June 2019

LocationProperty Acquisition/
project start
Area of
property
in m2 
Register of
suspected
contaminated
sites 
Market value  
CHF million [1] 
Estimated
investment
volume
CHF million [2] 
Target rental
income
on
completion
p.a.
CHF million
Expected completion 
ZürichGrünhof-Areal2002/20187 088yes47.780.24.32020
ZürichHardstrasse 3012002/20181 988yes26.037.32.32020
 

[1] As per 30.06.2019 valuation
[2] Building and land costs

Investment real estate under construction as at 30 June 2019

PropertyGrünhof-Areal
Acquisition/project start2002/2018
Area of property in m27 088
Register of suspected 
contaminated sites
yes
Minergieyes
Market value CHF million [1]47.7
Estimated investment
volume CHF million [2]
80.2
Target rental income on 
completion p.a. CHF million
4.3
Expected completion2020
PropertyHardstrasse 301
Acquisition/project start2002/2018
Area of property in m21 988
Register of suspected 
contaminated sites
yes
Minergieyes
Market value CHF million [1]26.0
Estimated investment
volume CHF million [2]
37.3
Target rental income on 
completion p.a. CHF million
2.3
Expected completion2020
Market value CHF million [1]73.7
Estimated investment 
volume CHF million [2]
117.5
Target rental income on 
completion p.a. CHF million
6.6

[1] As per 30.06.2019 valuation
[2] Building and land costs

Grünhof site, Zurich
New-build six-floor apartment building with 80 rental apartments in the inner courtyard (previously used for commercial purposes) plus realisation of a replacement new-build containing eight rental apartments in addition to office and commercial space on Badenerstrasse. The rentable residential, office and commercial area in the new-builds on the 7,870 square metre plot in Zurich Aussersihl is 8,022 square metres in total. The project is being built by the Projects & Development division and, upon completion in 2020 /2021, will be reported in the portfolio of yield-producing properties. For the market valuation as at the balance sheet cut-off date, nominal discount and capitalisation rates of 3.80/4.00% and 3.30/3.50% were applied (31.12.2018: 3.90 /4.10% and 3.40 /3.60%).

 

Hardstrasse 301, Zurich
New-build six-floor commercial building with lettable floor space of 5,800 square metres, comprising 4,900 square metres of office space on the upper floors, 580 square metres of commercial space on the ground floor, 320 square metres of storage area in the basement as well as an underground garage with 21 parking spaces. The project is being built by the Projects & Development division and, upon completion in 2020, will be reported in the portfolio of yield-producing properties. For the market valuation as at the balance sheet cut-off date, nominal discount and capitalisation rates of 4.30% and 3.80%, respectively, were applied (31.12.2018: 4.40% and 3.90%).

 

The two investment real estate properties under construction are 100% solely owned by Allreal.

Recognised at fair value as at 30 June 2019, yield-producing properties (CHF 4,163.8 million) and investment real estate under construction (CHF 73.7 million) qualify as category 3 fair values. No adjustments were made to valuation techniques or processes during the period under review.

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