Category Archives: Property

Listed Swiss Property Fund List – Overview

For a client I recently compiled the following list of Swiss Property Funds;

Available as XLS and Immofonds PDF for download.

Name ISIN Marktkapit. In Mio. CHF * Ausschüttungs-rendite (%) Anlagefonds Agio Grundbesitz Kurs 30.04.17
UBS Swiss Sima CH0014420878 7’787.00 2.9 Gemischt 30.4 Indirekt 112
CS 1A Immo PK CH0008443035 3’959.00 3.5 Gemischt 24.9 Direkt 1500
CS Ref Siat CH0012913700 3’163.40 2.6 Wohnen 44.6 Indirekt 204.9
CS Ref Livingplus CH0031069328 2’857.00 2.4 Wohnen 32.7 Direkt 137
Cs Ref International CH0019685111 2’535.50 3.6 Ausland 16.9 Indirekt 1200
UBS Swiss Anfos CH0014420829 2’313.90 2.6 Wohnen 32.5 Indirekt 69.5
CS Ref Green Property CH0100778445 2’257.80 2.8 Nachhaltigk. 21.2 Direkt 132.9
CS Ref Interswiss CH0002769351 1’696.00 4.0 Geschäft 10.6 Indirekt 204.5
Swisscanto IFCA CH0037430946 1’527.90 2.4 Wohnen 41.8 Indirekt 144.9
Immofonds CH0009778769 1’529.00 2.8 Wohnen 57.9 Indirekt 475
UBS Sw Swissreal CH0014420886 1’561.50 3.9 Geschäft 13.7 Indirekt 68.25
La Fonciere CH0002782263 1’379.40 1.9 Wohnen 54.3 Gemischt 1115
Schroder Immoplus CH0007251413 1’323.80 2.5 Geschäft 33.0 Indirekt 1379
UBS Foncipars CH0014420852 1’230.00 2.7 Wohnen 33.7 Indirekt 95.9
FIR CH0014586710 1’247.00 2.0 Wohnen 48.6 Gemischt 193.8
Solvalor 61 CH0002785456 1’216.60 1.9 Wohnen 42.4 Direkt 270
Immo Helvetic CH0002770102 980.00 2.7 Wohnen 48.8 Indirekt 245
Rothschild Re Swiss CH0124238004 939.60 2.2 Wohnen 27.3 Direkt 140.6
Swissinvest Real CH0026168846 877.20 2.5 Wohnen 40.3 Direkt 181
Bonhote Immobilier CH0026725611 890.50 2.1 Wohnen 29.8 Indirekt 149.5
Realstone CH0039415010 849.10 2.5 Wohnen 27.2 Direkt 154
CS Ref Hospitality CH0118768057 824.20 3.2 Hospitality -2.0 Direkt 94.15
Procimmo CH0033624211 846.00 3.0 Geschäft 34.7 Direkt 175.2
Patrimonium CH0034995214 638.90 1.9 Wohnen 23.3 Direkt 155
UBS Direct Residential CH0026465366 604.10 2.2 Wohnen 40.9 Direkt 18.2
SF Sustainable Property CH0120791253 523.10 2.6 Wohnen 32.8 Direkt 148
Swisscanto Commercial CH0111959190 453.30 2.6 Gemischt 24.1 Direkt 126.5
UBS Direct Urban CH0192940390 378.70 1.9 Gemischt 17.2 Direkt 13.15
CS Ref Logisticsplus 2 CH0245633950 348.00 3.3 Logistik 13.4 Direkt 116
Polymen Fonds CH0107006550 337.80 2.2 Wohnen 27.2 Direkt 151
CS Ref Global CH0139851676 214.40 3.6 Ausland -1.6 Indirekt 92.8
Streetbox CH0037237630 183.10 2.9 Self Storage 76.6 Direkt 447.5
Residentia CH0100612339 160.90 2.3 Wohnen 18.5 Direkt 1347
SXI Real Estate Funds CH0009947406 40’393.70 2.7        

Swiss Real Estate Investment Funds – List 2015

Investors looking for a bargain in the Swiss Real Estate market will have trouble finding value. Currently the premium paid is close to 20% (the long term average is 7%). The agios for real estate funds have reached new absoulte highs of over 35%. That’s more than double the historic agio of 16%.

Only when compared, this is the key, to the zero yield government bonds or cash markets are they attractive, even now. However if interest rates don’t go even lower or there’s a strong economic upturn, further price increases for exchange traded Swiss Real Estate funds will be hard to justify.

If you’re interested in investing in the Swiss property market, the following funds are available to investors seeking exposure to Swiss Real Estate via listed equities.

# Swiss Real Estate Investment Funds
1 Bonhote – Immobilier
2 Credit Suisse Real Estate Fund Green Property
3 Credit Suisse Real Estate Fund Hospitality
4 Credit Suisse Real Estate Fund Interswiss
5 Credit Suisse Real Estate Fund LivingPlus
6 Credit Suisse Real Estate Fund LivingPlus Anrecht
7 Credit Suisse Real Estate Fund PropertyPlus
8 Credit Suisse Real Estate Fund Siat
9 Edmond de Rothschild Real Estate SICAV Class -A-
10 Edmond de Rothschild Real Estate SICAV Class -A- CHF
11 Fond Immobilier Romand FIR
12 Immo Helvetic
13 Immo Helvetic Anrecht
14 Immofonds Schweizerischer Immobilien-Anlagenfonds
15 Immofonds Schweizerischer Immobilien-Anlagenfonds Anrecht
16 La Foncière Fonds Suisse de Placements Immobiliers
17 Patrimonium Swiss Real Estate Fund
18 Procimmo Swiss Commercial Fund
19 Procimmo Swiss Commercial Fund Anrecht
20 Residentia Fund
21 Schroder ImmoPlus
22 Solvalor 61 Fonds de placement Immobilier
23 Solvalor 61 Fonds de placement Immobilier Anrecht
24 Swisscanto (CH) Real Estate Fund IFCA
25 Swissinvest Real Estate Investment Fund
26 Swissinvest Real Estate Investment Fund Anrecht
27 UBS (CH) Property Fund – Direct Residential
28 UBS (CH) Property Fund – Leman Residential „Foncipars“
29 UBS (CH) Property Fund – Swiss Commercial „Swissreal“ Anrecht
30 UBS (CH) Property Fund – Swiss Commercial „Swissreal“
31 UBS (CH) Property Fund – Swiss Mixed „Sima“
32 UBS (CH) Property Fund – Swiss Residential „Anfos“
33 UBS (CH) Property Fund – Swiss Residential „Anfos“ Anrecht

Züblin Immobilien (ZUBN) – A play on ECB QE for 2015-2016

Züblin Immoblien has a large part of its property portfolio in France, Holland and Germany (next to Switzerland).

As the company has announced it wants to sell the commercial properties in France, which are in somewhat of a slump, it can be expected that ECB QE will lead to more liquidity and therefor a higher probability of being able to sell the properties.

As it’s currently not clear where the NAV of Züblin stands (last publicly available data was around 1.70-1.80 in October 2014), but the portfolio was valued then, and since further pressure on prices in France should have subdued, it could be an interesting play – at these depressed levels around CHF 1.10 – to bounce, to move back to its NAV.

Last data available from INSEE show that the property market in January ’15 was already on the mend. The last news in 2014 regarding the commercial office rental market around Paris had been negative.

There’s also a trend of property developers to buy unused commercial rent properies and turn them into appartements or hotels. This has been rising according to this report by keops.fr (page 7). Also the same report shows that asset mangers and funds have been becoming more active with purchases.

***

March 24th Update:

“ECB President Mario Draghi says he’s already seen the benefits from the QE program, with borrowing costs for businesses and households coming down and new investment projects becoming more attractive. Purchasing managers index for the eurozone for March out on Tuesday also confirmed that the dark clouds are evaporating from the region.” source marketwatch.com

Second Homes Initiative and Ermatingen

Here’s some background by Credit Suisse research on the theme Second Homes Initiative (PDF), which is also published on the website of the Swiss Tourism Association:

Ermatingen had 1240 flats according to RFP2000 data of which 84% (1046) are in use all the time, 9% (119) some of the time and 6% (75) none of time.

As of 31.12.2011 the number of flats has increased to 1557 of which 82% (1269) are in use all time. So as of recently Ermatingen was just above the threshold which allows for construction of second homes.

year # in use part in use not in use
2000 1240 1046 119 75
2011 1557 1269 - -

Ermatingen is one of the most advantageous municipalities regarding taxation in the canton of Thurgovia, beaten just by Bottighofen (also near Kreuzlingen). You can use this website of the federal administration to calculate the specific level: Tax Calculation Website by the ESTV (Federal Government of Switzerland).

UBS: Swiss Office Space Index – Supply exceeding Demand

Today I came across this article this article in the bi-weekly magazine “Bilanz Homes”.

Interesting to note that both large banks – Credit Suisse and UBS (Office-Investment-Index-DE) – come to the conclusion that the market is showing supply diverging away from demand.

UBS notes that the increase of 40-50’000 jobs contrasts the office space coming to market for close to 70’000 jobs.

This oversupply situation fits with anecdotal evidence I received 10 days ago when a lawyer sent me an investment prospectus for a project that would block investors money for 6 years and is structured as a loan to the property developer. A second anecdotal indicator: When driving along the route Ermatingen – Fruhtwilen the number of ‘for sale’ signs has increased and appartments are still being constructed.

Here’s a graph from the September UBS report:

ubs-office-space-investment-index

 

 

Mortgage Rates in Switzerland Accelerating Up

According to the chart below, published by comparis.ch today, mortgage rates are spiking upwards. In the last 6 months the rates for 10-year mortgages in Switzerland have moved up 0,5%. The pace has been accelerating in the past 2 months which saw 0,3% or 60% of the 6 month move. If the pace continues, rates could be at 4% by end 2014, beginning 2015 (also check 2nd chart).

Anecdotal evidence I’ve seen suggest that many high-end properties and large appartements have seen interest fall since spring.  Villas with asking prices 50% above fair value estimates aren’t being scooped up the way they were in 2012.

mortgage-rates-switzerland

To give some more perspective here’s the longer term chart:

mortgage-rates-switzerland-historic

Elsewhere at the same time:

Marketwatch reports: U.S. sales of new homes rose 2.1% in May, the fastest rate since mid-2008, and the Case-Shiller April home-price index jumped 2.5% in April, the largest monthly growth on record.

 

Housing Bubble in Norway?

These remarks out from S&P late on Friday regarding Norway caught my eye:

A possible short-term risk is the vulnerability of households’ debt-servicing capacity to increased interest rates or a correction in house prices. Average house prices have increased by more than 50% since 2005, and by 8% on average over the past three years. Prices are now 190% of the 1992-2012 average, substantially higher than Nordic peers. Household debt is about 200% of disposable income (165% in 2004) but this ratio is not evenly distributed. About one quarter of households have debt exceeding their disposable income by three times. These households also tend to own fewer financial assets than those with lower leverage, exacerbating their vulnerability to adverse economic developments.

I hope to find some numbers to be able to compare with the situation in Switzerland. One must assume that the vulnerability of households to an interest rate hike, however unlikely it currently seems, is a major factor for concern in both countries in the mid- to long-term.

The paragraph below taken from the S&P report also reminds me strongly of issues and mechanics we are facing in Switzerland, namely twin effects of strong exchange rate and high wage levels. The latter could be further exasterbated by the looming “Mindestlohninitiative” / minimum wage vote.

The economy also faces some longer-term challenges. First, the non-oil sector risks a further loss of external competitiveness, over time, through the twin effects of a strong exchange rate and high wage levels. This, combined with the increasing dependence of the Norwegian economy on the petroleum sector, will increase Norway’s vulnerability to a sustained oil price shock. We believe that these factors will become increasingly relevant once petroleum production starts to decline.

The bright spot for Switzerland: Thanks to pharma, banking, biotech and other sectors we are not exposed to a particular sector the way Norway is. Considering how large the fines imposed on the swiss banking sector were and how many jobs were axed in investment banks and how the banking secrecy laws have been compromised, the net effect on the economy has hardly been felt.