Direct real estate funds: replacement new build in Uster

Every investment is preceded by strategic planning based on data and specific experience with the real estate. The aim is to increase the return, sustainability and ultimately the value of an existing real estate through targeted investments. The central source of value generation is the realisation of the highest possible rate of capacity utilisation. However, a change in the usage mix, the floor plans or the adjustment to market rents often also opens up significant value creation potential.

Real estate project ‘AMBRA’

Zürcher Kantonalbank's real estate team in the Asset Management division is currently realising the new AMBRA residential development in the heart of the Gschwader district in Uster for the Swisscanto real estate fund Responsible IFCA. The former development was built in 1962 and last renovated in the 1990s. Due to structural, technical and energy-related deficiencies, the property had reached the end of its useful life. In addition, the 69 apartments no longer met today's requirements for fire protection and accessibility (e.g. no lifts). A comprehensive renovation over the next few years would have been necessary.

New build is the most rational option

A feasibility study revealed considerable potential for utilisation of the approximately 7,900 m² site. According to the study, the number of apartments can be increased by around a third from 68 to 94 in the future by means of a denser construction method. At the same time, the rental area per unit will actually increase slightly. The economic viability of a new construction project is also attractive due to the good residential location in Uster. In 2021, it was decided to start planning work on a replacement building. This resulted in a building application as early as summer 2022. The approval procedure was completed without objections in spring 2023. In parallel with the approval procedure, the existing rental contracts were terminated so that demolition work could begin at the start of 2024. Completion is expected in spring 2026.

Realisation without delays

A period of just five years from the feasibility study to completion is unusual for an urban replacement building project of this magnitude. There are many factors that have contributed to the smooth progress of the project. Central to this are, on the one hand, the careful selection of experts and specialists and a trusting collaboration. On the other hand, the external stakeholders concerned should be involved in the planning phase at an early stage. In the case of AMBRA Uster, for example, a dialogue was sought with the local authorities and the immediate neighbours in advance in order to make the approval process as smooth as possible. The existing tenants were also informed at an early stage. The tenants were offered comparable alternative apartments and given a preferential right to the new apartments.

More living space, more ecology

Ambra Uster is a prime example of how a pioneering residential project with sophisticated architecture, good living quality and a high degree of sustainability can be realised in a short period of time. The orientation of the new buildings follows the contours of the terrain, creating new ecologically valuable open spaces. The attractive 1.5- to 5.5-room apartments will be positioned primarily in the market-standard rental price segment and are intended to appeal to singles and couples as well as families. The development will be certified to the «Nachhaltiges Bauen Schweiz» (SNBS) standard at the «Gold» level. The buildings have photovoltaic systems, electric charging stations, air heat pumps and are operated as CO2-neutrally as possible.

More information about the new buildings can be found here www.ambra-uster.ch (in German only).