UBM begins strategic shift to affordable housing with €35m portfolio sale

UBM Development has kicked off its new strategic shift towards affordable housing by selling a portion of its "Package 6" real estate portfolio for approximately €35 mln. 

Franz Panwinkler (Managing Director UBM Development Austria), Peter Schaider, Norbert Pfundner (Managing Director EKAZENT Management)

This sale represents the first step in the timber construction developer's plan to rebalance its portfolio and adapt to changing residential market demands.

The funds generated from UBM's 50% share of the sale will be directly reinvested into its affordable housing strategy. UBM sees significant and growing demand in this segment, and is adopting a two-pronged approach: continuing its successful timber-hybrid construction for premium housing in metropolitan areas, while taking a technology-neutral and geographically broader approach (beyond major cities) for its affordable housing projects.

The divested assets include several retail and convenience properties in Vienna and Schwechat, such as locations at Wientalstraße 45, EKZ Elterleinplatz 11–13, Ada-Christengasse / Hanson Centre, B7 Brünner Straße 219–221, and Zentrum Schwechat. The transaction also involved the transfer of ownership of a superstructure at Nahversorgungszentrum Sibeliusstraße 2a and a building lease right at Wiener Straße 12–16, Schwechat.

The seller, Ekazent Realitätengesellschaft, is a joint venture between UBM Development AG (50%) and Ferris Wheel Zwei (50%), managed by Kollitsch Invest. The original "Package 6" was acquired in November 2016, with some assets having been sold in prior years.

Franz Panwinkler, managing director of UBM Development Österreich, commented: “With this sale, we are taking another consistent step in rebalancing our portfolio while further strengthening our focus on UBM’s strategic core business areas. The successful closing demonstrates that there is still strong demand for well-structured real estate portfolios in established locations.”

Peter Schaider added: “The acquired locations benefit from long-established uses and are situated within mature district and neighbourhood structures in Vienna. We see them as a solid addition to our existing portfolio (Auhof Centre and Riverside) and look forward to continuing and further developing these properties over the long term.”