9 Investment real estate
CHF million | 30.06.2020 | 31.12.20191 | ||
Residential real estate | 1 014.2 | 1 010.2 | ||
Commercial real estate | 3 243.1 | 3 232.2 | ||
Yield-producing properties | 4 257.3 | 4 242.4 | ||
Investment real estate under construction | 134.6 | 99.6 | ||
Investment real estate | 4 391.9 | 4 342.0 |
1 Previous year’s figures restated, see section 2
The changes in the first half of 2020 can be summarised as follows:
CHF million | Residential | Commercial | Total | Investment | Total | |||||
As at 01.01.2020 | 1 010.2 | 3 232.2 | 4 242.4 | 99.6 | 4 342.0 | |||||
Purchases | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||
Value-enhancing investments | 0.1 | 4.7 | 4.8 | 17.4 | 22.2 | |||||
Capitalised building loan interest | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 | |||||
Disposals | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||
Reclassifications | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||
Market value adjustments | 3.9 | 6.3 | 10.2 | 17.5 | 27.7 | |||||
Rent-free periods | 0.0 | –0.1 | –0.1 | 0.0 | –0.1 | |||||
As at 30.06.2020 | 1 014.2 | 3 243.1 | 4 257.3 | 134.6 | 4 391.9 | |||||
of which pledged or subject | 850.2 | 2 761.6 | 3 611.8 | 0.0 | 3 611.8 | |||||
to transfer restrictions | 83.8% | 85.2% | 84.8% | 0.0% | 82.2% |
The value-enhancing investments relate to the yield-producing properties Grüngasse 27–31 / Badenerstrasse 119–133, Zurich (CHF 2.0 million), Bellerivestrasse 36, Zurich (CHF 1.1 million), Zollstrasse / Josefstrasse 23–29 / Klingenstrasse 4, Zurich (CHF 0.7 million), the Escher-Wyss site, Zurich (CHF 0.7 million) and seven other properties (CHF 0.3 million).
Largest tenants, commercial real estate
Share in total rental income from commercial real estate:
30.06.2020 | 31.12.2019 | |||
Canton Zurich | 16% | 15% | ||
Generali Switzerland | 8% | 7% | ||
Allianz Suisse Insurance Company Ltd | 7% | 7% | ||
MAN Energy Solutions Switzerland Ltd | 6% | 6% | ||
Swiss Confederation | 6% | 6% | ||
Total | 43% | 41% |
In the first half of 2020, the five largest tenants’ share of total rental income from all yield-producing properties (commercial and residential) came to about 35%.
The weighted remaining term of fixed-term rental contracts for commercial real estate is 5.7 years (31.12.2019: 5.8 years).
Investment real estate under construction as at 30 June 2020
Location | Property | Acquisition/ | Area of | Register of | Minergie | Market value | Estimated | Target rental | Expected | |||||||||
Zurich | Grünhof site | 2002/2018 | 7 088 | yes | yes | 84.8 | 79.9 | 4.3 | 2020/2021 | |||||||||
Zurich | Hardstrasse 301 | 2002/2018 | 1 988 | yes | yes | 49.8 | 35.9 | 2.3 | 2020 | |||||||||
Total investment real estate under construction | 134.6 | 115.8 | 6.6 | |||||||||||||||
1 As per 30.06.2020 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 7,088 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 (prospectively as at 1 December 2020 and 1 February 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 3.3/3.5% and 2.8/3.0%, respectively, were applied (31.12.2019: 3.80/4.00% and 3.30/3.50%).
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 3.90% and 3.40%, respectively, were applied (31.12.2019: 4.30% and 3.80%).
The two investment real estate properties under construction are 100% solely owned by Allreal.