RUAG Real Estate on the way to the future
The unbundling of the RUAG Group meant that the Real Estate Strategy had to be adjusted. The extensive adjustment work was completed in 2022 and the strategic positioning and development of RUAG Real Estate over the next ten years have now been defined.
The heterogeneous real estate portfolio, which has developed over the years, includes around 380 individual properties at 21 locations in Switzerland. The average age of the buildings is 66 years, i.e. the majority of the properties are in the last third of their life cycle. In the past, only very few major renovations were carried out. The skimming strategy pursued since the foundation of RUAG in 1999 left the entire real estate area with a considerable backlog of refurbishment work.
The strategic mandate of RUAG Real Estate includes, firstly, providing cost-optimized and efficient corporate real estate in a timely manner as well as creating optimal room conditions for the core business, developing future-oriented room concepts and operating infrastructures in all situations. Secondly, the earning power shall be strengthened by means of investment properties. Substantial financial contributions from the investment subportfolio will be used to modernize the real estate portfolio and create added value for RUAG. Thirdly, in addition to the transparent and measurable representation of the value flows of the subportfolios, the real estate values shall be increased through active valueorientedv portfolio management.
In the coming years, the real estate portfolio will be modernized and the accumulated refurbishment backlog will be reduced step by step taking into account sustainable construction methods. By sorting similar properties into corresponding sub-portfolios, it is possible to define a value- and use-orientated approach to management and further development for each subportfolio. The funding model is based on a ten-year plan, lists the necessary investments and defines the use and priorities. Planning is carried out dynamically and in line with stationing, strategic orientation and business development and it is reviewed and adjusted at regular intervals.
Two projects from this plan are already being executed and are about to be commissioned: the new EMC hall and the new gear unit test facility in Thun. Both replace important inspection and testing infrastructures with the latest technology in sustainable corporate properties.