Business model and strategy

Allreal combines a stable-income real estate portfolio with the activities of a general contractor (development and realisation). 

Underpinned by this proven and successful business model, Allreal is able to cover the entire value chain of a property ? from development and realisation all the way through to profitable long-term property investments. This integrated approach also generates numerous synergies that benefit clients and the company alike. 

Allreal does not operate in the main or secondary construction industries, nor does it have any participating interests in these sectors. This means that our company’s independence and transparency as regards contract placement are always guaranteed. Contracts are awarded solely on the basis of objective and economic criteria. 

Allreal defines its most important operating and financial target values as follows:

 

Return on equity excl. revaluation effect5% p.a.
Share of residential properties of total rental income20%
Equity ratio35%
Net gearing / ratio of net financial debt to equity150%
Interest coverage ratio     2.0
Share of debt for portfolio and development properties 70%
Dividend policy100% of net profit (excl. revaluation effect)

 

Real Estate division
Active management and continuous expansion of the portfolio of residential and commercial properties secure stable and long-term value creation. Individual properties and entire real estate portfolios are acquired, held or sold depending on market conditions and the opportunities they generate. 

Allreal operates its own facility management organisation that manages a substantial part of the yield-producing properties. Furthermore, Allreal collaborates with companies that have strong local roots. 

Allreal’s investment properties are located mainly in the Zurich metropolitan area and other Swiss business centres. Residential properties account for at least 20% of total rental income. 

Allreal holds the third-largest real estate portfolio of all listed Swiss real estate companies. 

 

Projects & Development division
The Projects & Development division provides services in the development and the realisation of real estate. The division’s offer comprises all services connected with the development and realisation of new buildings and the conversion or renovation of buildings aimed at delivering fair market returns and optimal added value. The implementation of the buildings is economically and ecologically balanced. 

The Projects & Development division provides these services for third parties, for its own account (resale), or for the account of the Real Estate division. 

Allreal handles various additional activities, including sales of residential property developed and realised by ourselves for the account of the Projects & Development division, and providing advice on real estate transactions for private individuals, companies and institutional investors. 

With branches in Bern, Cham and Zurich, the Projects & Development division is one of the largest suppliers in German-speaking Switzerland.

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