Latest news from Residentia

Residentia is pleased to announce the closing of several real estate transactions

Residentia is pleased to announce the closing of several real estate transactions, which took place at the end of 2020 and the beginning of 2021. These transactions aim to realign the fund's real estate portfolio in line with changing market conditions and the attractiveness of certain locations, thereby freeing up funds for acquisitions.

In February 2021, two larger properties in Montecarasso and Pazzallo were sold for a total gross amount of around CHF 38 million. In Montecarasso, only the existing building was sold, while the fund remains owner of an adjoining piece of land of 3,000m2 with a construction permit for a new building of about 2,200m2 GFA.

In response to the divestments made, the Fund acquired two strategically located properties:

  • Bellinzona: a mixed-use building only a few meters away from the station consisting of 15 apartments, 5 office and 4 retail spaces. The property offers 18 parking spaces (exterior and interior). This building, constructed in the mid-fifties, is still in good condition. It generates a current gross yield of 5.5% for a purchase price of CHF 6.5 million.
  • Paradiso: residential building located above the city center of Lugano, which is within walking distance. The property can easily be reached by all types of transportation (highway and railway). The property with 15 apartments and 8 parking spaces was built in the sixties. It offers a current gross yield of 5.8% for a purchase price of CHF 3.3 million.

The two newly acquired properties will increase the fund's exposure to central urban areas where there is less pressure on vacancies. Furthermore, the Fund has greater financial flexibility due to the lowered leverage ratio (currently approx. 25%). Residentia continues to monitor the market and remains attentive to opportunities that may arise in the coming months.

Residentia publishes its annual report as at 31.12.2020

As at 1 February 2021, UBS Fund Management (Switzerland) AG took over the fund management of the listed Swiss real estate fund Residentia. The direct invested real estate fund focuses on investments in residential properties across southern Switzerland.

Residentia has just published its annual report as at 31.12.2020, which was prepared under the responsibility of the previous fund management company FidFund Management SA. Despite the challenging environment, the fund achieved solid results. The distribution will be increased to CHF 3.00.

Further details can be found in the annual report.

The Residentia Team is happy to start the new year by announcing the conclusion of important real estate transactions that took place between the two current fiscal years.

In mid-December the sale of our property in Vacallo has been finalized. Object purchased in 2013 for CHF 12.3Mio and resold for CHF 15Mio. This sale allows the Fund to generate an important profit of more than CHF 1Mio compared to the last value in the balance sheet and to liquidate an asset no longer strategic for the Fund, which had a constant and high vacancy rate due also to the micro-regional situation of Chiasso.

The proceeds of this sale were immediately reinvested for the purchase of an equivalent property in Locarno, in a residential area close to the city center and the lakefront. The building, built in the first half of the '70s, is composed of 50 apartments of different types (1.5 rooms up to 5.5 rooms) and 37 parking lots (indoor and outdoor).

The object, in addition of offering an excellent location, enjoys a good general state of maintenance and will ensure a gross annual income of approx. CHF 670'000 that at the purchase price of CHF 13.3Mio represent an excellent 5%.

The activities undertaken in recent months do not end with this transaction, we hope to be able to give you confirmation of other important news in the coming weeks.

Wishing you all a year full of satisfaction, our most sincere greetings.
Residentia Team

Starting on February 1st 2021, UBS Fund Management (Switzerland) AG will take over Fidfund Management AG as Fund Management and UBS Switzerland AG as Custodian Bank.

Dear Friends and Esteemed Investors,

with a mixture of pride and excitement, our team is pleased to announce that more than 10 years after its creation, the Residentia Fund is ready to take a new and important step on the path to growth and success in the domestic real estate market. Starting on February 1st 2021, UBS Fund Management (Switzerland) AG will take over Fidfund Management AG as Fund Management and UBS Switzerland AG as Custodian Bank. In a period characterized by uncertainties and fears for the future, this new collaboration demonstrates Residentia's willingness to strive for the best for its investors and the excellence it has achieved so far. We would like to take this opportunity to thank Fidfund Management SA and Corner Banca SA for what they have achieved together and wish them every possible success.

A special thanks to Banca dello Stato del Cantone Ticino for the special cooperation during these years.

The Residentia Team is of course at your complete disposal for any questions or additional information you may have as a result of this important and decisive change.

Press release UBS Fund Management (Switzerland) SA

Publication modification
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Purchase of residential property in Bellinzona

The Residentia Team is pleased to announce the purchase of a large property in Ticino.

The property was built at the end of the 1960s and enjoys an enviable position in close proximity to the pedestrian area of Bellinzona. It offers 45 beautiful apartments that have been maintained in an excellent condition by the previous owner. The spacious apartments of varying sizes ensure that all the types of accommodation demanded by the market are offered, in addition to 19 internal and 15 external parking spaces, providing ample parking possibilities for residents.

The property currently generates a gross revenue of more than CHF 450,000, which compared to the outlay of slightly less than CHF 9.4 million for its purchase, guarantees an annual income of 4.8%. In addition to the excellent condition of the property and its superb location, the presence of a significant and unjustified vacancy rate will enable the generation of annual returns exceeding CHF 600,000 once the property is full.

With this acquisition, the Residentia Fund, completes its wealth optimisation programme, which during the course of the upcoming year should guarantee a perfect income balance.

10th anniversary Residentia

This summer, which marks the fiftieth anniversary of the Apollo 11 mission and the first man on the moon, we’d like to take a moment to celebrate ten years of a project that, although somewhat less ambitious, is equally as visionary and successful.

In June 2009, after years of work and preparation, we finally launched the Residentia Fund, the first and only real estate fund in the Italian-speaking area of Switzerland.

Following on from the financially turbulent, uncertain and troubled period of the 2008 financial crisis, we developed what is still the only dependable and nationally recognised financial tool for investing in Ticino’s real estate sector.
A vehicle that has always had strong ties to the local area, building firm foundations for long-lasting, prosperous development, which still looks to the future and the new challenges it holds for us.

Over the last ten years, Residentia has demonstrated great ability and forward-thinking in its actions, with both these qualities enabling it to grow on a constant and consistent basis. From an initial figure of 40 million CHF, the fund has pursued a course of expert and steady growth, so that it now manages a real estate portfolio worth more than 240 million CHF subdivided into twenty-two properties. However, this growth has taken place without overlooking fundamental principles such as the soundness of the selected properties, the high revenue generated by purchases, ongoing maintenance and investments in its assets, and care and respect for its tenants.

Thanks to our proven solidity and our partners who have always assisted and backed us, Residentia and its team are ready to take on the new decade that awaits us, confident that we will never be lacking in the commitment, enthusiasm and expertise that have enabled us to reach this goal: “one small step for mankind, one giant leap for Residentia!”

We’d like to thank you all for the belief you have always shown in us.

 

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UBS Fund Management (Switzerland) AG
Aeschenplatz 6
CH-4052 Basel

Pagani Real Estate SA
Corso Pestalozzi 3
CH-6901 Lugano

UBS Switzerland AG
Bahnhofstrasse 45
CH-8001 Zürich