UBM Development AG has completed an initial phase of portfolio realignment following the announcement of an expanded corporate strategy, which responds to changing market needs in the housing sector. A partial portfolio from the so-called "Package 6" was sold, generating proceeds of EUR 34.8 million. UBM Development AG holds a 50 per cent stake in the seller, Ekazent Realitätengesellschaft m.b.H..
UBM's attributable share of the proceeds will be invested directly into the strategic realignment favouring the "Affordable Housing" segment. This area is experiencing significant demand pressure that is currently not sufficiently met and is expected to increase in the future.
Strategic Realignment
UBM pursues a two-product strategy, encompassing "Affordable" and "Premium". While the Premium segment continues to focus on timber-hybrid construction in metropolitan regions, the company is committed to technological openness in the "Affordable Housing" segment and a geographically precise expansion beyond core metropolitan areas, aligned with demand.
The divested portfolio includes local supply locations in Vienna and Schwechat. These comprise leasehold rights, a "Superädifikat" (building on another's land without being a fixture) and a building right. The detailed properties are:
- —Wientalstraße 45 (Hotel), 1140 Vienna
- —EKZ Elterleinplatz 11–13, 1170 Vienna
- —Ada-Christengasse / Hanson-Center, 1100 Vienna
- —B7 Brünner Straße 219–221, 1210 Vienna
- —Zentrum Schwechat Wiener Straße 12–16, 2320 Schwechat
- —Nahversorgungszentrum Sibeliusstraße 2a, 1100 Vienna (Superädifikat)
- —Wiener Straße 12–16, 2320 Schwechat (Building Right)
Franz Panwinkler, Managing Director of UBM Development Österreich GmbH, stated that this sale represents a further consistent step in rebalancing the portfolio and strengthens the focus on UBM's strategic core areas. He emphasised that the successful completion of the transaction demonstrates the continued demand for structured real estate portfolios in established locations.
Buyer's Perspective and Transaction Background
The acquisition is also viewed positively by the buyer. Peter Schaider explained that the acquired locations have long-established uses and are situated in grown Viennese district and urban structures. This acquisition represents a solid addition to the existing portfolio – Auhofcenter and Riverside. The properties are to be managed and developed long-term. The seller, Ekazent Realitätengesellschaft m.b.H., is equally owned by UBM Development AG and FERRIS WHEEL Zwei GmbH, which is managed by Kollitsch Invest. The so-called "Package 6" was acquired in November 2016, and partial portfolios from it have already been divested in the past.
