Dual focus on market and asset classes
UBM is clearly positioned – the focus is on project development in the three core markets Germany, Austria, Poland, as well as on the three asset classes – Hotel, Office and Residential. UBM invests in markets that offer in the medium and long term optimum value added in the balance between profitability and risk profile. The dual approach of a development portfolio which is diversified in terms of both regions and asset classes, while still being focused, guarantees sustainable value creation.
Realising of economies of scale in the three asset classes
The focus on the three asset classes differs significantly from the prevailing opportunistic approach in industry.
Alongside hotel development, UBMhotels bundles hotel lease, which generates additional long-term cash flows. The focus is on the three-to-four-star segment in excellent urban locations.
In the office segment UBM primarily undertakes developments in central locations and in business parks at sites with good links to public transport.
Project development in the residential sector currently focuses on Germany and Austria. The projects are offered to both owner-occupiers and private investors in the form of freehold flats and to institutional investors in the course of block deals.
A strong local network and in-depth market expertise allow UBM to recognise and realise carefully evaluted market opportunities in a timely manner in order to safeguard the future pipeline. Longstanding contacts and cooperation with institutional and private market participants and decisions-makers create significant competitive advantages as well.
Concentration on high-margin development
In the value chain it is property development that offers the greatest potential for value added.
Higher deal security and risk mitigation
In forward deals UBM fixes a price today for properties that will only be completed in the future. This leads to greater deal security and mitigates the future market risk.
Efficiency enhancement and streamlining processes
In 2017 UBM promoted the Group-wide efficiency programme “Next Level”. The goal of this programme is sustainably increasing efficiency. Operating excellence and steamlined cost structures not only increase financial leeway, but also strengthen the competitive ability of UBM.
Continuity-based dividend policy
With its dividend policy, UBM is committed to continuity and to the company´s strong earnings power that is expected to continue in the future. UBM is among the top dividend-bearing securities on the Vienna Stock Exchange and a leader among its industry peers.
Strategy and Success Factors
UBM concentrates on pure real estate development and covers the entire value chain from repurposing and planning permits to design, marketing and construction management, right through to sales. The focus is on the three home markets of Austria, Germany and Poland and the three asset classes Residential, Hotel and Office. The internal technical and commercial expertise across the entire value chain facilitates direct cost control and greater profitability.
The continuous project development and consistent sale of these property projects creates an ongoing cycle of reinvestment. Diversification by country and asset class provides a stable basis for sustainable, solid growth and facilitates a balanced risk spread. The business model is complemented by an asset-light approach, which involves entering into joint ventures and the rapid turnover of projects right through to sales.
UBM has a highly experienced and dedicated management team with an excellent performance record. Local networks and expertise facilitate the acquisition and realisation of attractive projects. A central transaction team with international contacts allows UBM to pinpoint suitable buyers.
UBM was founded on 3rd March 1873 with the name ‟Union-Baumaterialiengesellschaft”. Today UBM is the leading hotel developer in Europe with more than 750 employees in 10 countries.
Founded: 3 March 1873
Second largest brickmaker in the Austrian monarchy
10 brick-making facilities with over 2,000 employees
Market share of around 30% of the Viennese brick market
1912: Porr acquires majority shareholding in UBM
Withdrawal from brick manufacturing (sold to present-day Wienerberger AG)
Focus on the real estate development sector in Austria, primarily the Greater Vienna area
Consolidating activities in project development and project management
1997: Renamed as UBM Realitätenentwicklung AG
Internationalisation of UBM: various European market entries such as the Czech Republic in 1992, Poland in 1993, Germany in 1999, France in 2001 and the Netherlands in 2010
Spin-off and merger of UBM with Strauss & Partner Development GmbH (via PIAG Immobilien AG)
Renaming to UBM Development AG
Capital incresase with increase in free float
Thomas G. Winkler is appointed as new CEO/CFO
Shares move to prime market – the top segment of the Vienna Stock Exchange
New functional Management Board since 1st July 2017
Patric Thate takes over mandate of the CFO
Thomas G. Winkler concentrates on his CEO role
Martin Löcker leads the operating business as COO