The Development department manages projects for Allreal’s own portfolio and for third parties with a potential construction volume of around CHF 1.9 billion. Because the acquisition of new land and sites is making business activity more difficult owing to the high prices, all the more weight should be given to the acquisition of development properties in western Switzerland in the period under review to the value of around CHF 270 million. These development projects have an investment volume of over CHF 700 million and will ensure long-term growth potential for Allreal.
In western Switzerland, Allreal is developing a new residential and commercial quarter with high sustainability standards in Chavannes-près-Renens on a plot of 33 111 square metres. The usage plan – which is currently being worked on – is likely to be published publicly in 2022 and will form the basis of the planning application once it takes legal effect. Construction is expected to start in the next two to three years.
There are also development projects in the canton of Geneva, including in Veyrier at Route du Pas-de-l'Echelle, where Allreal is planning a residential construction project with around 80 subsidised apartments on a plot of 13 288 square metres. The development plan procedure is ongoing. Allreal is developing another project in Geneva at Chemin Mestrezat, where the development plan procedure is ongoing. The residential complex will comprise 57 units in total.
Allreal is planning a residential complex with 63 condominiums to be sold to third parties and 43 rental apartments for a private owner on Spiserstrasse in Zurich Albisrieden. A judging panel decided in favour of the project submitted by ADP Architektur Design Planung AG for the competition to develop the 4,600-square-metre site. The planning application will be submitted in the first quarter of 2022. Construction is scheduled to start at the end of 2022. The investment volume amounts to about CHF 75 million.
A replacement new-build project has been launched at Renggerstrasse in Zurich Wollishofen. The commercial property has been owned by Allreal and part of its portfolio of yield-producing properties since 1999. A new residential property with 21 units will be built on the land, which covers 1,389 square metres. The property will remain in Allreal’s portfolio once completed. The investment volume amounts to about CHF 12 million. It is envisaged that construction will start in autumn 2022 and that the property will be occupied from the second half of 2024.
In the financial year 2021, the volume of projects completed by the Realisation department amounted to CHF 343.2 million, compared with CHF 363.4 million in 2020. This represents a fall of 5.6 percent, year on year. Owing to inefficiencies in the construction process and the declining order volumes, the gross margin for the planning and realisation of third-party projects fell to 9.1 percent (2020: 12.0%).
Of the total volume of projects completed, third-party projects accounted for CHF 269.6 million (or 78.6%), down from 280.4 million (or 77.2%) in 2020. The share of in-house projects came to CHF 40.2 million (or 11.7%), down from CHF 62.9 million (or 17.3%) in 2020. In the case of development projects for sale to third parties, the share amounted to CHF 33.4 million (or 9.7%), up from CHF 20.1 million (or 5.5%) in 2020.
New-build projects made up CHF 215.2 million (or 62.7%) of the total volume of projects completed in the period under review, compared with CHF 219.3 million (or 60.3%) in the previous year. The share of renovation and conversion projects stood at CHF 128.0 million (or 37.3%), down from CHF 144.1 million (or 39.7%) in 2020.
The secured order backlog as at the cut-off date amounted to around CHF 694 million, corresponding to capacity utilisation for around two years.