2.4Investment property
in CHF mn | Land | Buildings, installations and ancillary facilities | Technical equipment and machinery | Advance payments and assets under construction | Total |
Historical cost | |||||
As of 1 January 2025 | - | - | - | - | - |
Additions of consolidated companies | - | - | - | - | - |
Additions | - | - | - | 3.8 | 3.8 |
Disposals | - | - | - | - | - |
Transfers | 18.4 | 30.8 | - | 4.1 | 53.3 |
Currency effects | - | - | - | - | - |
As of December 2025 | 18.4 | 30.8 | - | 7.8 | 57.1 |
Accumulated depreciation and impairment | |||||
As of 1 January 2025 | - | - | - | - | - |
Depreciation | - | 0.5 | - | - | 0.5 |
Disposals | - | - | - | - | - |
Transfers | - | 15.9 | - | - | 15.9 |
Currency effects | - | - | - | - | - |
As of 31 December 2025 | - | 16.4 | - | - | 16.4 |
Net carrying value | |||||
As of 1 January 2025 | - | - | - | - | - |
As of 31 December 2025 | 18.4 | 14.4 | - | 7.8 | 40.7 |
Two development properties are now reported as investment properties. The new-build project for the property at Werdstrasse 25 in Zurich (W25) started in October 2025. The conversion project for the former printing centre in Bussigny (CIL) is still in the development phase and construction is expected to start in 2028. Advance payments and assets under construction include costs that can be capitalised in relation to the conversion project at the Werdareal site in Zurich.
The fair value (before deferred taxes) of the two properties as at the balance sheet date amounted to CHF 99.6 million (previous year: n/a). The corresponding values were determined by an external expert using the discounted cash flow method (level 3 – valuation based on models that use input parameters with a significant impact on fair value and that are not based on observable market data), while adjusted level 2 input parameters are also applied (e.g. market rents, operating/maintenance costs, discount/capitalisation rates). The net income per property is discounted individually, depending on the respective opportunities and risks, in line with market rates and risk-adjusted. The construction costs incurred until completion are deducted accordingly. This calculation is based on an inflation rate of 1%, a discount rate between 2.65% and 3.40% and a long-term vacancy rate between 4% and 5%.
Contractual obligations of CHF 30.1 million arose in connection with the planned construction project, and were not recognised as liabilities as of the balance sheet date.
For the purpose of valuation, current fair value is defined as the estimated amount for which a real estate asset would be exchanged on the valuation date between a willing seller and a willing buyer, after a reasonable marketing period, in the normal course of business, with each party acting knowledgeably, prudently and without coercion. The current fair value of a property is determined by the total of all future expected net earnings before taxes, interest payments, depreciation and amortisation, discounted to present value, without taking into account any taxes (with the exception of property tax) or other costs or commissions incurred on the sale of the property. The valuation factors used to determine the current fair value are estimated by the independent external appraiser in line with market requirements and adjusted to the property to the best of their knowledge and belief. The determination of valuation factors requires a degree of discretion and is subject to uncertainties.
Investment properties comprise development properties and real estate that is held on a long-term basis for the purpose of earning rental income or an increase in value. Development properties consist of building plots and sites held with the intention of developing them under a project and making them usable as investment properties. This also includes replacement buildings for existing investment properties.
These are valued on the basis of their acquisition or production cost. They are subsequently valued at acquisition or production cost less depreciation and, where applicable, less impairments. In the case of projects, the costs incurred are billed upon commissioning and allocated to the relevant investment property categories. The assets are then depreciated according to their individual useful lives. The useful life of the individual categories is as follows:
- Buildings: 40 years
- Installations and ancillary facilities: 3 to 25 years
- Technical equipment and machinery: 3 to 25 years