Residentia is pleased to announce the release of its annual report.

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Residentia publishes its first annual financial statements following the management transfer to UBS Fund Management (Switzerland) AG in February 2021.

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On 1 February 2021, Real Estate Switzerland took over the fund management of the real estate fund Residentia, whose investments are focused in the south of Switzerland.
Mid-November, the fund team announced the successful acquisition of its first residential portfolio in Lugano and Caslano. The property in Lugano is small comprising five apartments. All apartments on the upper floors enjoy views of the lake. The property in Caslano holds 30 apartments, and 38 indoor and 11 outdoor parking spaces. It was connected 2018 to the district heating with its energy being provided by wood pellets. The acquisition of these two properties – totalling an investment volume of close to CHF 10 million – will boost the earnings power of the property portfolio and underpin the fund’s strategic focus (increasing the share of residential use).

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.

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.

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