UBM Development Sells 452 Apartments, Raises EUR90M for Modular Housing Strategy
UBM Development sold 452 apartments in 2025—220 in Austria, 200 in the Czech Republic and 30 in Germany and Poland—and sees German demand rising despite higher swap rates. It will raise EUR90 million via participation capital, selling Voco Den Hague and Kempinski Jochberg hotels to fund modular housing.
1. 2025 Apartment Sales Breakdown
UBM Development sold a total of 452 residential units in 2025, with 220 in Austria (primarily Vienna), 200 in the Czech Republic and 30 across Germany and Poland. This diverse geographic mix underpins the company’s bid to stabilize revenues amid varying regional economic conditions.
2. Market Outlook and Swap Rates
Management highlighted growing demand for affordable housing in Germany despite a rise in 10-year swap rates, driven by individual buyers rather than institutional investors. The ongoing Iran conflict adds uncertainty, but executives remain optimistic on Germany’s upside potential in 2026.
3. Participation Capital Issuance
UBM plans to issue EUR90 million of Genussrechtskapital, treated as equity under IFRS, to strengthen its capital structure. The fixed-rate instrument carries no step-up clause, offering long-term financing stability to back the company’s strategic pivot.
4. Asset Sales to Finance Modular Shift
To fund a move toward standardized, modular construction at EUR2,000 per square meter, UBM will sell its Voco Den Hague and Kempinski Jochberg hotels first. Office disposals are postponed until market conditions improve, and recent refinancing has provided additional runway.