Information on the real estate portfolio

Residential real estate

Residential real estate as at 31 December 2016

Ownership
status1

Year
acquired

Year of
con­struction

Reno-
vation2

Area of
property
in m2

Register of
suspected
contami-
nated sites

Minergie

Area of
property
in m2

1–11/2-
room ­
apart-
ments

2–21/2-
room ­
apart-
ments

3–31/2-
room ­
apart-
ments

4–41/2-
room ­
apart-
ments

≥ 5-
room ­
apart-
ments

Total
apart-
ments

Other
uses
in m2

Target
rental
income
in CHF
million
for 2016

Vacancy
rate
in %3

Discount/
capitali-
sation
rate
in %4

CO7

2004

2014

2 651

no

yes

6 087

0

17

27

6

1

51

0

2.6

9.1

3.80/3.30

CoO5

2003

1996

6 970

no

no

4 670

5

7

15

17

4

48

1 799

1.4

0.5

3.90/3.40

SO

1999

1984

903

no

no

2 747

4

36

0

0

0

40

212

0.8

0.8

3.60/3.10

SO

1993

2013

4 291

yes

yes

4 640

0

0

14

21

5

40

0

1.5

1.3

3.80/3.30

SO

2010

2016

1610

no

yes

2 333

0

3

16

3

1

23

1 002

0.9

12.4

3.90/3.40

SO

2008

1984

1 445

no

no

1 637

2

2

4

4

2

14

165

0.6

0.2

3.50/3.00

17 870

22 114

11

65

76

51

13

216

3 178

7.8

4.7

SO

2005

2011

13 901

no

yes

13 299

0

27

62

38

10

137

350

3.7

0.4

3.80/3.30

SO

1999

1979

2013 TR

8 412

no

no

3 850

0

9

16

18

6

49

50

1.0

2.0

4.00/3.90

SO

2003

2008

23 691

no

no

14 903

0

20

41

56

22

139

2 392

4.0

2.0

4.10/3.60

SO

1999

1990

29 639

no

no

14 654

18

30

71

41

0

160

659

3.1

1.2

3.90/3.40

SO

2001

1992

3 643

no

no

2 090

0

4

0

10

4

18

200

0.5

0.0

3.90/3.40

SO

2003

1974

2006/
2007 PR

2 028

no

no

2 479

0

17

17

0

0

34

9

0.5

0.4

4.00/3.50

SO

1999

1984

8 907

no

no

5 100

0

18

24

12

0

54

286

0.9

0.9

3.80/3.30

CO7

2002

1988

2 543

no

no

3 332

0

0

24

16

0

40

354

0.8

3.8

3.90/3.40

SO

1999

1968

2002/
2003 TR

20 110

no

no

12 236

0

0

48

60

40

148

110

2.4

0.4

3.90/3.40

SO

2002

2014

8 242

no

yes

13 856

1

18

75

22

2

118

1 208

4.0

3.6

3.90/3.40

121 116

85 799

19

143

378

273

84

897

5 618

20.9

1.6

SO

1999

1989

2010 PR

6 260

no

no

4 015

0

7

20

20

0

47

490

1.0

3.8

4.10/3.60

SO

2006

1969

2009 TR

2 420

no

no

5 954

28

24

28

24

0

104

1 040

1.6

1.1

3.90/3.40

SO

2006

1995

2 067

no

no

3 022

5

19

11

8

0

43

47

0.9

3.9

4.00/3.50

SO

2011

2014

1 173

no

yes

4 981

1

21

29

9

5

65

0

1.6

0.0

4.20/3.70

11 920

17 972

34

71

88

61

5

259

1 577

5.1

1.8

150 906

125 885

64

279

542

385

102

1 372

10 373

33.8

2.4

1 SO = sole ownership; CoO = co­-ownership; CO = condominium ownership

2 TR = total renovation; PR = part renovation

3 Cumulative vacancy rate as a percentage of target rental income for 2016

4 As per 31.12.2016 valuation (nominal rates)

5 60% co-ownership Allreal

6 Rental income from 01.06.2016

7 Condominium property owned 100% by Allreal

Commercial real estate

Commercial real estate as at 31 December 2016

Owner-
ship
status1

Year
acquired

Year of
con­struction

Reno-
vation2

Area of
property
in m2

Register
of suspec-
ted conta-
minated
sites

Minergie

Floor
space
in m2

Percent-
age of
office
space

Percent-
age of
retail
space

Percent-
age of
residen-
tial
space

Percent-
age of
other
uses

Target
rental
income
in CHF
million
for 2016

Vacancy
rate
in %3

Discount/
capitali-
sation
rate
in %4

 

SO

2005

1995

9 254

no

no

18 642

90.8

0.0

0.0

9.2

7.0

0.0

4.50/4.00

SO

2004

1986

2016/2017 TR

2 316

no

no

3 078

94.7

0.0

0.0

5.3

1.5

62.3

4.50/4.00

SO

2004

1974

2009/2010 PR

10 494

no

no

11 950

73.6

0.0

0.0

26.4

5.7

0.3

4.30/3.80

SO

2005

2001

11 712

no

no

26 139

7.8

54.6

32.7

4.9

7.0

3.8

4.40/3.90

SO

2000

1983

2007/2008 TR

1 254

no

no

4 743

74.5

3.0

10.5

12.0

1.4

2.2

4.40/3.90

SO

2001

1992

2013 PR

1 402

no

no

4 856

33.8

0.0

19.3

46.9

2.1

22.1

4.30/3.80

SO

2007

1977/2014

24 477

yes

yes

87 004

87.2

0.0

12.8

0.0

21.0

2.8

4.20/3.80

SO

2002

1925

2006/2007 PR

7 870

yes

no

12 847

16.5

7.6

32.8

43.1

3.3

4.2

4.14/3.64

SO

2002

1945/2010

2015 PR

40 350

yes

no

50 432

32.3

0.0

0.0

67.7

10.3

0.9

–/–

SO

2010

2014

4 027

no

yes

11 256

95.8

0.0

0.0

4.2

3.6

28.3

4.50/4.00

SO

2001

1986

2006/2012 TR

2 894

no

no

10 190

91.0

0.0

0.0

9.0

4.3

0.0

4.70/4.20

SO

2000

1976

2014/2015 TR

3 101

no

no

6 244

45.8

0.0

6.0

48.2

1.6

0.6

4.70/4.20

LO

2004

2006

3 333

no

no

1 628

95.7

0.0

0.0

4.3

1.0

0.0

4.20/3.70

SO

1999

1966

2001 PR

1 389

no

no

1 729

77.1

0.0

0.0

22.9

0.5

0.1

4.60/4.10

SO

2002

2005

12 295

no

yes

36 311

95.1

0.0

0.0

4.9

11.5

0.1

4.60/4.10

SO

1996

1995

1 482

no

no

3 277

33.5

0.0

55.3

11.2

0.9

13.8

4.20/3.70

SO

2008

1984

2007 PR

3 371

no

no

2 777

81.7

0.0

0.0

18.3

1.3

0.0

4.50/4.00

SO

1993/2006

1997

2016 PR

4 201

no

no

10 703

57.0

3.3

29.8

9.9

4.1

4.7

4.30/3.80

145 222

303 806

66.2

5.2

9.7

18.9

87.8

4.4

1 SO = sole ownership; LO = leasehold owned 100% by Allreal

2 TR = total renovation; PR = part renovation

3 Cumulative vacancy rate as a percentage of target rental income for 2016

4 As per 31.12.2016 valuation (nominal rates)

5 Valuation as at 31.12.2016 according to IFRS 13

Commercial real estate as at 31 December 2016

Owner-
ship
status1

Year
acquired

Year of
cons­truction

Reno-
vation2

Area of
property
in m2

Register
of suspec-
ted conta-
minated
sites

Minergie

Floor
space
in m2

Percent-
age of
office
space

Percent-
age of
retail
space

Percent-
age of
residen-
tial
space

Percent-
age of
other
uses

Target rental
income in
CHF million
for 2016

Vacancy
rate
in %3

Discount/
capitali-
sation
rate
in % 4

SO

2008

1988

2001 PR

6 004

no

no

12 586

55.9

0.0

0.0

44.1

1.8

21.7

5.90/5.00

SO

2015

1974

2006 PR

16 621

no

no

26 006

25.9

1.5

0.5

72.1

2.5

0.0

4.90/4.40

SO

1997

1969

1995 PR

4 086

no

no

7 417

9.0

74.7

0.0

16.3

1.8

19.9

5.40/4.90

SO

2001

1992

4 000

no

no

4 343

97.5

0.0

0.0

2.5

0.9

0.8

5.00/4.90

SO

2007

2014

5 167

no

yes

13 414

93.2

0.0

0.0

6.8

3.8

0.0

4.81/4.31

SO

1987

2007

5 241

no

yes

13 314

90.8

0.0

0.0

9.2

4.4

22.3

4.80/4.30

SO

2003

2003

7 089

no

no

10 193

88.2

0.0

0.0

11.8

2.0

6.3

4.80/4.30

SO

2002

1988

2012 TR

4 724

no

no

2 705

35.5

43.1

0.0

21.4

0.9

0.0

5.20/4.70

SO

2000

1993

4 667

yes

no

9 456

74.1

0.0

0.0

25.9

1.7

44.2

5.90/5.40

SO

2002

2013

13 078

no

yes

50 819

74.7

12.9

0.0

12.4

13.5

2.4

4.70/4.20

SO

2002

2014

16 875

no

yes

25 525

77.8

16.1

0.0

6.1

9.7

5.7

4.70/4.20

SO

2002

1928/53/86

18 386

no

no

24 319

82.1

0.0

0.0

17.9

5.3

10.1

4.78/4.28

105 938

200 097

68.8

8.9

0.1

22.1

48.4

8.0

SO

2002

1981

17 960

no

no

10 112

76.4

0.0

0.0

23.6

2.8

15.1

4.80/4.30

SO

1999

1972

2014 TR

1 811

no

no

3 985

81.8

0.0

8.0

10.2

1.2

0.3

4.60/4.10

SO

2007

1972

2014 TR

1 658

no

no

2 829

71.9

0.0

3.4

24.7

0.6

0.3

4.60/4.10

SO

1999

1982

2012/2013 PR

718

no

no

4 292

37.5

27.8

30.3

4.4

1.5

3.2

4.90/4.00

SO

2009

1998

5 454

no

no

20 213

61.8

20.2

0.0

18.0

5.4

1.3

4.80/4.10

SO

2011

2004

8 442

no

no

5 498

92.8

0.0

0.0

7.2

3.2

16.3

4.70/4.20

2008

2010

yes

37 460

52 445

71.1

10.1

3.3

15.6

16.9

6.3

288 620

556 348

67.6

7.0

5.6

19.7

153.1

5.7

1 SO = sole ownership

2 TR = total renovation; PR = part renovation

3 Cumulative vacancy rate as a percentage of target rental income for 2016

4 As per 31.12.2015 valuation (nominal rates)

5 Lightcube office building and co-ownership rights to the TMC Galleria car park

6 Allianz office building with retail space in Konradhof and Escherhof

7 UPC Cablecom office building with retail space and peripheral plots

8 Three properties

Disposals of yield-producing properties

Type1

Year of
construction

Transfer
of ownership

     

CP

1954

01.03.2016

CP

1954

01.04.2016

CP

1954

01.03.2016

CP

1954

01.03.2016

1 CP = commercial property, RP = residential property

2 Leasehold

Leasehold properties

Length of agreement

   

20 October 2086

Allreal is the ground lessee of this yield producing property, but no ground rent is due.

Future ground rents will be due as follows:

 

2016

 

2015

     
 

0.0

 

−0.1

 

0.0

 

−0.2

 

0.0

 

–3.5

 

0.0

 

–3.8

Largest tenants, commercial real estate

Share in total rental income from commercial real estate:

  

2016

 

2015

     
 

18%

 

19%

 

8%

 

8%

 

7%

 

7%

 

6%

 

6%

 

6%

 

5%

 

45%

 

45%

The five largest tenants’ share of total rental income from all yield-producing properties (residential and commercial) in 2016 amounted to around 37% (canton Zurich 15%, Allianz Suisse Insurance Company Ltd 7%, MAN Diesel & Turbo Switzerland Ltd 5%, IBM Switzerland Ltd 5% and UPC Switzerland GmbH 5%).

Profile of terms

The weighted remaining term of fixed-term rental contracts is 7.1 years (31.12.2015: 7.8 years).

Future income from fixed-term contracts

As a result of fixed-term rental contracts on yield-producing properties, the following nominal rental income will accrue in future:

 

2016

 

2015

    
 

1.6

 

1.3

 

5.6

 

4.7

 

1.9

 

2.4

 

9.1

 

8.4

    
 

127.8

 

127.3

 

436.1

 

458.7

 

282.1

 

290.0

 

846.0

 

876.0

 

855.1

 

884.4

84.6% of all rental income for commercial space is indexed, i.e. rents are adjusted for inflation in accordance with the Swiss Consumer Price Index (CPI) (2015: 87.2%)

95.4% of rental contracts for residential space are for an unlimited term (2015: 96.0%). The weighted remaining term of fixed-term rental contracts for residential property is 4.7 years (31.12.2015: 5.5 years). Rental prices are based, among other factors, on the development of the mortgage reference rate calculated quarterly by the Swiss National Bank and last published on 2 June 2015, when it was reduced to 1.75%.

As at 31 December 2016, 69.2% of all rental contracts contained index clauses corresponding to a target rental income of CHF 128.3 million (2015: 72.1%, CHF 129.0 million).

Investment real estate under construction as at 31 December 2016

Location

Property

Acquisition/
project start

Site area
in m2

Register of
suspected
contaminated
sites

Minergie

Market value
CHF million1

Estimated
investment
volume
CHF million2

Target rental
income on
completion p.a.
CHF million

Expected
completion

          

2011

11 250

yes

yes

9.9

38.5

2.0

2018

2002/2014

11 180

yes

yes

59.6

74.5

4.7

2017

  

69.5

113.0

6.7

 

1 As per 31.12.2016 valuation

2 Building and land costs

Schiffbauplatz, Zurich

New-build five- to six-floor commercial building to Minergie standard with lettable floor space of 13 100 square metres. The project comprises 10 700 square metres of office space on the first to fifth floors, 1800 square metres of space for catering and commercial businesses on the ground floor, 600 square metres of storage space and 36 parking spaces in the underground car park. Ten-year rental contracts have been concluded for the whole of the office space and part of the storage space. The project is being built by the Projects & Development division and, upon completion in the second half of 2017, will be reported under the portfolio of yield-producing properties. For the market valuation as at the balance sheet cut-off date, nominal discount and capitalisation rates of 4.60% and 4.10% were applied (31.12.2015: 4.50% and 4.00%).

Fangletenstrasse, Bülach ZH

Four new-build apartment buildings with a total of 76 rental apartments to Minergie-Eco standard on the 11 250-square-metre plot on Fangletenstrasse in Bülach-Nord. The rentable area is 7387 square metres. The project is being built by the Projects & Development division and, upon completion in 2018, will be reported under the portfolio of yield-producing properties. For the first-time market valuation as at the balance sheet cut-off date, nominal discount and capitalisation rates of 4.40% and 3.90% were applied.

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

Yield-producing properties (CHF 3505.0 million) and investment real estate under construction (CHF 69.5 million) are recognised as at 31 December 2016 at fair values according to category 3. No adjustments were made to valu­ation techniques or processes during the period under review.

Development real estate as at 31 December 2016

Location

Property

Acquisition /
project start

Site area
in m2

Register of
suspected
contaminated
sites

Book value
CHF million

Estimated
investment
volume
CHF million1

Project status

Expected
completion

       

2008

6 000

no

3.72

15.0

in planning

open

2011

44 084

yes

44.62

270.0

in planning

open

2013

46 419

no

35.32

175.0

in planning

open

1987

30 278

yes

16.02

100.0

in planning

open

2016

11 582

no

2.03

55.0

in planning

open

   

101.6

615.0

  
       

2011

3 948

no

8.3

16.0

under completion

2018

   

8.3

16.0

  
       

20144

  

13.9

   

20164

  

7.8

   

20164

  

1.6

   

20164

  

32.5

   
   

55.8

   
   

165.7

631.0

  

1 Land and building costs

2 Book value includes acquisition costs for the land 100% owned by Allreal and accrued project costs of third parties

3 Book value includes acquisition costs for prepayments made for land and accrued project costs of third parties (transfer of ownership for land pending)

4 Completion

Kirschblütenweg, Basel

New-build complex of 12 freehold row houses and 24 garage parking spaces to Minergie standard with lettable floor space (100% residential) of 1967 square metres. It is being built by Allreal Generalunternehmung AG and is scheduled for completion in 2018. As at 31 December 2016, all residential units had been sold, 0 of which with transfer of ownership.

Lerchenbergstrasse, Erlenbach ZH

Five new-build semi-detached houses and three new-build apartment buildings with a total of 39 residential units and 93 underground parking spaces to Minergie standard with lettable floor space (100% residential) of 7730 square metres. The project was built by Allreal Generalunternehmung AG and completed in 2014. As at 31 December 2016, 35 out of 39 residential units had been sold, 33 of which with transfer of ownership. 4 apartments were still for sale.

Pfruendmatt, Mettmenstetten ZH

New-build complex of 35 terraced houses and 72 parking spaces to Minergie standard with lettable floor space (100% residential) of 5578 square metres. The project was built by Allreal Generalunternehmung AG and completed in 2016. As at 31 December 2016, all 35 residential units had been sold, 28 of which with transfer of ownership.

Stauffacher, Steinen SZ

Two new-build apartment buildings with a total of 18 condominiums and 30 garage parking spaces to Minergie standard with lettable floor space (100% residential) of 2249 square metres. The project was built by Hammer Retex AG and completed in 2016. As at 31 December 2016, 17 out of 18 residential units had been sold, 16 of which with transfer of ownership. 1 apartment was still for sale.

Guggach, Zurich

Four new-build apartment buildings with a total of 197 condominiums and 219 underground parking spaces to Minergie standard with lettable floor space (100% residential) of 25 919 square metres. The project was built by Allreal Generalunternehmung AG and completed in 2016. As at 31 December 2016, 189 out of 197 residential units had been sold, 174 of which with transfer of ownership. 8 apartments were still for sale.