A unique proposition in the Swiss real estate market
Capital Market Day
21 April 2020
Disclaimer
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The property valuations are based on reports of Ina Invest Holdings' valuation expert Wüest Partner as of 31 March 2020.
Currently, it is very difficult to provide a meaningful prediction on how the Swiss governmental action in response to the ongoing outbreak of a novel coronavirus disease (COVID-19) will affect the Group's operations and how long such measures will remain in place. The COVID-19 outbreak has caused, and may continue to cause, economic instability and a significant decrease of total economic output in the affected areas and globally. The impact of the COVID-19 outbreak on the general economic environment in the markets in which the Group operates remain uncertain and could be significant.
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Ina Invest • Capital Market Day • 1
Introduction
André Wyss, CEO Implenia
Introduction
Implenia - an integrated multinational leader in construction services
2019 revenue | Ø revenue growth rate p.a. | Order backlog |
CHF 4.431bn | + 7.7 % CAGR 2015-2019 | CHF 6.158bn |
Customer | Sustainability | |||
93% satisfaction | Industry leader in Sustainalytics rating and | |||
pioneer of "green" credit financing | ||||
6 | 4Divisions | |||
Home | ||||
~ 10,000 | markets | |||
total workforce1 | Development Buildings Civil Engineering Specialties | |||
1 Including temporary workforce. | Ina Invest • Capital Market Day • 3 |
Introduction
In February, we announced the spin-off of Ina Invest to accelerate our real estate business - strong support from the shareholders
Spin-off of ~50% of current development portfolio with a market value of CHF ~300mn1 into Ina Invest
- Expansion along the value chain to offer project, portfolio and real estate asset management services…
- … while offering development and realization capabilities at arm's length and continuing to identify new market opportunities for both Implenia and Ina Invest
-
New real estate investment company covering
the entire value chain (from initiation until realization as well as management and letting) - Accelerated growth through new equity and debt- financing and reinvestment capacity from existing and new shareholders
Recurring earnings as well as dividends as significant minority shareholder2
1 Based on indicative third-party valuation, 31 December 2019. Portfolio value of CHF 282mn as of 31 March 2020 according to Wüest Partner, see slide 30 for more information. 2 Implenia is expected to hold a significant minority stake of at least 40% in Ina Invest Ltd., see slide 55 for more information.
Ina Invest • Capital Market Day • 4
Introduction
Implenia and Ina Invest partnership to unlock incremental value
2 | 5 | ||
1 | New value creation through additional financing capacity | ||
(Ina Invest) while staying asset light (Implenia)... | |||
2 | … and higher utilization of Implenia's network to identify and seize | ||
new market opportunities for both companies | |||
3 | Accelerated value realization of Implenia's development portfolio and | ||
construction business | |||
1 | 1 | 4 | New recurring earnings for Implenia through Real Estate Services and |
shareholder participation as a >40% shareholder1 | |||
5 | Maximized efficiency gains and value delivery through integrated | ||
project collaboration and Implenia's expertise |
3 4
1 Implenia is expected to hold a significant minority stake of at least 40% in Ina Invest Ltd., see slide 55 for more information. | Ina Invest • Capital Market Day • 5 |
Introduction
Experienced real estate experts committed to the success of Ina Invest
Stefan Mächler
Designated Chairman of the Board of Directors
- Group CIO and Member of the Group Executive Board of Swiss Life
- Previously, Chairman of the Board of Directors of Swiss Prime Site Ltd. and CIO Asset Management of Mobiliar
- More than 20 years of real estate experience
- Lic. iur from the University of St. Gallen (HSG)
Marc Pointet
Designated Chief Executive Officer
- Until 2020, Head of Mobimo Suisse romande and Member of the Executive Board of Mobimo
- More than 15 years of real estate experience
- Certified Architect ETH, Executive MBA HSG
Adrian Wyss
Head Division Development at Implenia
- Member of the Implenia Executive Committee and Head Real Estate Services at Implenia
- Previously, Head of Modernisation and various other management roles within Implenia
- Degree in Architecture and Diploma in Corporate Management from the University of Applied Science, Bern
Ina Invest • Capital Market Day • 6
Today's agenda
- Investment highlights • Stefan Mächler
- Market overview • Marc Pointet
- Business model and strategy • Marc Pointet
- Portfolio and pipeline • Adrian Wyss
- Financials and financial outlook • Marc Pointet
- Corporate governance • Stefan Mächler
- Envisaged transaction • Credit Suisse
- Closing remarks • Stefan Mächler
- Q&A
- Appendix
1 Investment highlights
Investment highlights
Ina Invest - a unique proposition in the Swiss real estate industry
1 | Very attractive real estate portfolio at top locations across Switzerland |
2 | Proven development and execution expertise in long-term partnership with Implenia |
3 | Further acceleration of growth through land acquisitions utilizing Implenia competencies & network |
4 | Application of high sustainability standards for development and operation |
5 | Compelling financial profile with substantial expected valuation upside and above market return on capital |
Ina Invest • Capital Market Day • 9
Investment highlights | |
Very attractive real estate portfolio at top locations | 1 |
across Switzerland |
Prime locations and diversified use …
Allschwil
(Basel)
Arlesheim | Zurich | Winterthur |
Baar (Zug) | ||
Neuchâtel |
Préverenges
(Lausanne)
Onex (Geneva)
Other | ||
Hotel | 7% | |
11% | Office | |
By | ||
38% | ||
type1 | ||
Residential | ||
44% | ||
Northwestern | ||
Switzerland | ||
10% | Central | |
Zurich / | By | Switzerland |
Winterthur | region1 | 15% |
47% | ||
Western | ||
Switzerland | ||
28% |
- resulting in top scores by
Wüest Partner2
Good | III | II | I | ||
quality | |||||
VI | V | IV | |||
Object | |||||
Bad | IX | VIII | VII | ||
Bad | Good | ||||
Location quality
- 95% of portfolio3 in the top quadrant ("Top-Liegenschaften") based on location quality and property quality
- Analysis also considers macro and micro location quality, use, construction standard, condition and market attractiveness
Source: Wüest Partner valuation report as of 31 March 2020. 1 Based on floor space (excl. condominium)
2 Bubble sizes refer to current market values.
3 Based on current market values.
Ina Invest • Capital Market Day • 10
Investment highlights | |||||
Proven development and execution expertise | 2 | ||||
in long-term partnership with Implenia | |||||
Showcases (Implenia developments) | |||||
Broad range | >50 | ||||
of completed | |||||
development | |||||
projects | |||||
projects | |||||
incl. residential housing, | realised by Implenia over | ||||
hotels, offices and even | |||||
the last 10 years | |||||
schools | |||||
Sue&Til, Winterthur | Metropolitans, Zurich | ||||
84%1 | Timber | ||||
construction | |||||
of condominiums sold by | unique experience with | ||||
the end of construction | |||||
~1000 apartments under | |||||
over the last 5 years | |||||
development or already | |||||
built | |||||
Ensemble Quadro, Zurich | ZHAW library, Winterthur | ||||
Source: Company information.
1 Based on development projects between 2014 and 2019 (including not yet completed projects).
Ina Invest • Capital Market Day • 11
Investment highlights | |
Further acceleration of growth through land acquisitions | 3 |
utilizing Implenia competencies & network |
Acceleration of growth through acquisitions
- The value of Ina Invest's real estate portfolio is expected to grow by a factor of c. 5x to reach CHF 2bn by 2027E (incl. additional acquisitions)
-
This value increase is driven by the realization of the initial development portfolio as well as significant
additional acquisitions - Ina Invest targets an average acquisition volume of c. CHF 50mn per year, financed through diverse and attractive sources of financing
- Financing sources include the public capital markets as well as partially also the sale of condominiums
- In order to source its acquisition opportunities, Ina Invest will leverage the local expertise and wide-reaching network of Implenia
Selected investments and unique Implenia value-add
Sulzer Real Estate (Winterthur)
Value-add: Brownfield development
- Share deal for 230,000 sqm of land,
- Large parts resold straight away, other parts developed in meantime
- Assessment and handling of contaminated site was a decisive competitive advantage for Implenia
Schaffhauserstrasse (Zurich)
Value-add:Off-market acquisition
- Direct acquisition from a private individual
- Identified underutilization
- New development fully exploits potential
Les Tattes (Onex)
Value-add: Cross deal with the municipality
- In cooperation with the municipality, a new school was built on existing Implenia land and in return Implenia received the right to develop a residential building project on the school's old site
- As a result, the municipality was able to avoid an expensive renovation and Implenia also benefitted from the transparent cooperation
Source: Company information, Wüest Partner valuation report as of 31 March 2020.
.
Ina Invest • Capital Market Day • 12
Investment highlights | ||
Application of high sustainability standards for | 4 | |
development and operation | ||
Sustainability is part of Ina Invest's DNA … | … and creates tangible results (case study Lokstadt) |
- Ina Invest intends to operate one of Switzerland's most sustainable real estate portfolios
- All projects are expected to be certified according to national and international construction labels
- Strong focus on the use of renewable and healthy construction materials (e.g. timber construction)
- For this purpose, Ina Invest targets to receive certifications by the following two providers:
Greenhouse gas emissions of construction1
9.6 2 | -11% | 10.8 | ||
Lokstadt | Average |
Switzerland
Greenhouse gas emissions of operation1
3.4 2 | -90% | 33.8 | ||
- Sustainalytics, the leading global provider of ESG and corporate governance research and ratings
- GRESB, the recognized global ESG benchmark for real assets
Lokstadt | Average |
Switzerland |
Annual heating costs3
1.9 | 2 | -25% | 2.5 | ||
Lokstadt
Source: Company information.
1 In kg/m2 per year. Average greenhouse gas emissions of Switzerland 2010/2015 are based on SIA-documentation D 0258.
2 Company estimates based on current construction plans.
3 In CHF/m2 per year. Average annual heat consumption of Switzerland based on standard MuKEn 2008. Applied district heating price from Winterthur municipal utility as of January 2020.
Average
Switzerland
Ina Invest • Capital Market Day • 13
Investment highlights | |||
Compelling financial profile with substantial expected | 5 | ||
valuation upside and above market return on capital | |||
Growth phase (2020 - 2022) | Development phase (2023 onwards) | ||
Initial portfolio plus c. CHF 50mn land acquisitions per annum | ~2bn | |||||||
Gross asset value | ~1bn | |||||||
(in CHFmn) | ~300m | |||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |
Indicative return on | ~3% | 6-8% | ||||||
equity1 (average) | ||||||||
Dividend yield | Nominal dividend, no dividends paid out in 2020 | In line with broader Swiss real estate market | ||||||
LTV | Mainly financed by equity capital raised and | 55-65% (depending on future market situation) | ||||||
proceeds from condo unit sales | ||||||||
Projects are expected to be financed on a non-recourse basis; therefore repayment of the loan is tied to one project,
the lender cannot access any other assets of the borrower
Gross asset value development portfolio (incl. additional acquisitions) | Gross asset value investment properties | |
Note: Certain statements on this slide, including in particular the financial targets described immediately above, constitute forward-looking statements. These forward-looking statements are not guarantees of future financial performance and our actual results could differ materially from those expressed or implied by these forward-looking statements as a result of many factors. The Company can give no assurance that the targets described above will materialize or prove to be correct. Because these are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those described above.
1 Return on equity excluding transaction costs.
Ina Invest • Capital Market Day • 14
2 Market overview
Market overview
Favorable Swiss real estate development market
Real estate as a stable anchor during crisis
6.0% | |
5.0% | Spread over risk |
free | |
4.0% | |
• During economic downturns (recent COVID-19) stock market investors are looking for |
less volatile investment opportunities |
• The housing market (e.g. condominiums and rental apartments) is currently viewed as |
a stable anchor during crisis because of its stable cash flows compared to other types |
of assets |
• Negative effects of COVID-19 are expected primarily on the retail space market and |
the tourist hotel segment |
Spread over risk free rate at all-time high
- Negative interest rates are dominating the interest landscape. The COVID-19 crisis will likely further extend the negative interest rate period and therefore keep mortgage costs low, as well as real estate investments attractive for investors
- Investors are therefore looking for strategies and ways to generate a real positive return
- Hence, the spread over 10-year government bonds are well above the long-term average at 290 basis points
Stable immigration supports demand for apartments
- Demand for apartments has strengthened recently thanks to the stabilization of immigration
3.0%
2.0%
1.0%
0.0%
-1.0% | ||||||||
1995 | 1998 | 2001 | 2004 | 2007 | 2010 | 2013 | 2016 | 2019 |
125.0
115.0
105.0
95.0 | ||||||||
11.03.2019 | 11.06.2019 | 11.09.2019 | 11.12.2019 | 11.03.2020 | ||||
100'000 | 50% | |||||||
80'000 | 40% | |||||||
60'000 | 30% | |||||||
40'000 | 20% | |||||||
20'000 | 10% | |||||||
0 | 0% | |||||||
-20'000 | -10% | |||||||
-40'000 | -20% | |||||||
2011 | 2013 | 2015 | 2017 | 2019* |
Distribution yield Swiss real estate funds
Yield on 10 year Swiss government benchmark bond
Switzerland SXI Real Estate - Price
Switzerland SMI (PR) - Price
Net immigration
Yearly change
Source: Federal Statistical Office, State Secretariat for Migration, Credit Suisse; Bundesamt für Statistik; Docu Media;
1st graph: Credit Suisse Real Estate study 2020; 2nd graph: FactSet; 3rd graph: State Secretariat of Migration. * Preliminary figures.
Ina Invest • Capital Market Day • 16
Market overview
Condominiums - several factors support price level
Low interest rates continue to fuel demand while supply decreases due to the pronounced focus on rental apartment construction
- Appetite for owner-occupied housing remains high while low interest rates push mortgage costs further down
- Demand for condominiums has been picking up since mid-2018 with a steady increase in prices, however, the share of homeownership remains lower in Switzerland compared to other European countries
- The project pipeline for condominiums is rather weak due to the shift of investors towards rental apartments
- However, tight regulation of financial sustainability of borrowers remain a big hurdle for purchasing a home, especially for first- time buyers
Source: Baublatt, Wüest Partner, Credit Suisse; 1st Graph: Baublatt, Credit Suisse Real Estate study 2020 (12-month total); 2nd graph: Federal Office for Statistics, Documedia, Wüest Partner.
Planning applications and building permits (number of residential units)
25'000
20'000
15'000 | -33% | |||||||
10'000 | -47% | |||||||
5'000 | ||||||||
0 | ||||||||
2002 | 2004 | 2006 | 2008 | 2010 | 2012 | 2014 | 2016 | 2018 |
Applications rental | Applications condominiums | Permits rental | ||||||
Permits condominiums | Average permits rental | Average permits condominiums |
Condominium building applications (index 2010 = 100)
500
400
300
200
100
0
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||
Zurich | Winterthur | Zug | Upper Basel region | ||||||||||
Lausanne | Neuchâtel | Genève | |||||||||||
Ina Invest • Capital Market Day • 17
Market overview
Rental apartments - divergences between regional markets likely to increase
The new influx of rental apartments is likely to exceed the market's power of absorption in peripheral areas, however, supply is still scare in top locations and urban agglomerations
- New supply of rental apartments exceeds household formation mostly in peripheral regions
- Vacancy rates are likely to accelerate; however, this effect will be more visible in peripheral areas than in top locations and urban agglomerations
- Rents are expected to perform best in central locations like Zurich, Geneva and Basel Stadt, where scarcity of supply is still apparent
- Transaction yields have been falling in the last years. However, in a long-term perspective (in real terms and compared to government bond yields) there is still room for lower yields
- Location quality as well as small and well-structured floor plans mitigate vacancy risks significantly
Vacancies in function of urban typology in % of stock
2.5%
2.0%
1.5%
1.0%
0.5%
0%
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Top locations | Tourist locations | Urban agglomerations | ||||||||
Other agglomerations | Periphery | |||||||||
Vacancies in % of the target gross rental income depending on location quality
8%
6%
4%
2%
0%
Above average | Average | Below average | Total | |||
Macro location* | Public transport links | |||||
Source: REIDA, Swiss Federal Office for Area Development, Homegate, Raiffeisen, Fahrländer Partner, BFS;
1st Graph: Homegate, Fahrländer Partner (vacancy rate in % of residential stock); 2nd Graph: Credit Suisse Real Estate study 2020. * Macro location = Accessibility of the population with public transportation.
Ina Invest • Capital Market Day • 18
Market overview
Office space - growing gap between center and periphery
Recovery is interrupted, growing price and vacancy gap between center and periphery
- The volume of planned new office spaces is declining in the majority of large and mid-sized centers which further support the recovery of the office space market
- Demand is mainly focused in central locations and urban agglomerations with commuter-friendly transport links
- The gap between city center and peripheral office space markets is set to widen for both vacancies and rental price levels
- Thanks to the moderately planned expansion of office space (number of building permits down by 30%), the negative effects of COVID-19 on supply will develop rather gradually. Oversupply will be significantly greater in the outer office markets than in core cities, where the office space market has started to recover recently
- Co-workingproviders will be most affected by COVID-19
Hedonic rental price index: 2005 = 100
140
90
2005 | 2007 | 2009 | 2011 | 2013 | 2015 | 2017 | 2019 |
City of Zurich | City of Geneva | City of Lausanne | |||||
Basel region | Bern region | Rest of Switzerland | |||||
Number of building permit for office space
4'000
2'000
0
1995 | 1997 | 1999 | 2001 | 2003 | 2005 | 2007 | 2009 | 2011 | 2013 | 2015 | 2017 | 2019 |
New construction permits | New construction applications | |||||||||||
New construction permits, average |
Source: JLL, Credit Suisse, Federal Statistical Office; 1st & 2nd graph: Credit Suisse Real Estate study 2020.
Ina Invest • Capital Market Day • 19
3 Business model and strategy
Business model and strategy
Mission and values
Mission statement
Ina Invest is convinced that real estate can only be profitable in the long term if its development and operation are consistently tailored to the needs of present and future generations and follow high ecological principles.
Values
TransparentCollaborative
Environ-
mentallyExcellentVisionary aware
Ina Invest • Capital Market Day • 21
Business model and strategy
Ina Invest's strategy and focus areas are clearly defined
Project focus | • Focus on residential properties | |
• | Mixed-usebuildings including high quality office buildings as secondary priority | |
Location | • Focus on attractive urban regions as well as suburban areas with commuter-friendlytransport links | |
across Switzerland | ||
Sustainability | • Positioning as sustainability pioneer | |
• | Vision to operate one of Switzerland's most sustainable real estate portfolios | |
• Solid execution of growth strategy through development of existing portfolio and continuous acquisitions | ||
Strategy | • | Business expansion by leveraging local expertise and wide-reaching network of Implenia |
• Access to diverse and attractive sources of financing including public capital markets | ||
• Condominiums forward sale agreements support residential development model | ||
De-risking | • | Operational excellence and lean fixed cost base |
• | Diversification of portfolio | |
Ina Invest • Capital Market Day • 22
Business model and strategy
Comprehensive business model covering the entire value chain…
Project initiation | Project conception and | Marketing & Sales | Project realization | ||||
concretisation | |||||||
• | Market intelligence | • | Cost estimation and | • | Letting | • | Building construction |
• | Business planning and | budget control | • | Cash flow optimisation | • | Project management | |
due diligence | • | Approvals, licenses and | and risk reduction | • | Strict controlling of | ||
permits | |||||||
• | Negotiations and | • | Advertising and | costs, quality and | |||
acquisition of land | • | Managing architects, | communication | timeline | |||
engineers and interior | |||||||
designers |
Use
- Value creation through active asset management
- Renegotiation and successful renewals of anchor tenant leases
Strict controlling of the value chain
Diligent financial accounting and reporting
Source: Company information.
Ina Invest • Capital Market Day • 23
Business model and strategy
…in close cooperation with Implenia
Project initiation | Project conception |
and concretisation | |
Marketing & sales
Project realization | Use |
Implenia services
- Investment decisions (through Investment Committee with majority of members not related to Implenia)
- Financing decisions (on project on and group level)
- Sourcing of investment opportunities through Implenia's wide-reaching network
- Clear processes in place for allocation between Ina Invest and Implenia
- Definition of portfolio and project strategy
- Budget controlling
- Project development
- Definition of marketing strategy
- Selection of buyers and tenants
- Distribution through Implenia network / marketing services
-
Advertising and communication
Customary fee structure1
- Definition of construction model per project
- Controlling of costs, quality and timeline
- Project management
- Construction management
- Construction services (according to transparent and pre-defined terms)
- Definition of long-term strategy
- Financial planning and controlling
- Portfolio and asset management services
Other
- Accounting and reporting performed by KPMG
- Property valuation performed by Wüest Partner
Source: Company information.
1 Please see the appendix for an overview of the fee structure.
Ina Invest • Capital Market Day • 24
Business model and strategy
Partnership with Implenia as key to unlock additional value
2 | 5 | ||
1 | Acceleration of growth and greater value creation through | ||
additional sources of financing... | |||
2 | … and the utilization of Implenia's network to identify and | ||
seize new market opportunities | |||
3 | Accelerated value realization of Implenia's former | ||
development portfolio | |||
1 | 1 | 4 | Lean and scalable business model based on outsourcing and |
strict and efficient internal control | |||
5 | Maximized efficiency gains and value delivery through | ||
integrated project collaboration and Implenia's expertise in |
development and construction services
3 4
Ina Invest • Capital Market Day • 25
Business model and strategy
Ina Invest strives to be a sustainability leader
Sustainability is part of Ina Invest's DNA | Targeted certifications |
- Ina Invest intends to operate one of Switzerland's most sustainable real estate portfolios
- Sustainability goals are incorporated in the business and project strategy and associated targets used as key indicators for performance-related remuneration
- Systematic certification of each new project according to national and international construction labels
- Strong focus on the use of renewable and healthy construction materials (e.g. timber construction)
- Evaluation of investment opportunities based on the Implenia ESG-evaluation tool GeNaB© (minimum requirement of 9 out of 12 points)
- GeNaB© covers environmental, social and economic criteria
- GRESB is recognized as one of the leading global ESG benchmarks for real assets
- Based on the initial portfolio, Ina Invest is confident to be awarded a Green Star certification (best quadrant)
- Based on the GRESB methodology Ina Invest aims to constantly optimize the social and ecological performance of its portfolio
- Sustainalytics is one of the leading global providers of ESG and corporate governance research and ratings to investors
- Based on the internal sustainability strategy, Ina Invest is confident to achieve a score which is clearly above average
Source: Company information.
Ina Invest • Capital Market Day • 26
Business model and strategy
Ina Invest strives to be a sustainability leader (cont'd)
Case study: Lokstadt "2000-Watt-Areal1" | Key facts | ||||||||||||||||||||||
• Lokstadt is a newly emerging state-of-the-art city district in central Winterthur with a wide variety of uses | |||||||||||||||||||||||
• Over 700 apartments, offices, retail, hotel and co-working spaces | |||||||||||||||||||||||
• Construction 1st phase in progress, hand-over last phase by 2025 | |||||||||||||||||||||||
• Certified "2000-Watt-Areal1" | |||||||||||||||||||||||
• Different buildings designed and realised in wood construction and certified with Minergie labels | |||||||||||||||||||||||
• Established strict guidelines on building materials with exclusion list | |||||||||||||||||||||||
• Innovative design with Building Information Modelling and VR | |||||||||||||||||||||||
• Partial pre-fabrication of wood construction elements/modules | |||||||||||||||||||||||
• Financing sources include the public capital markets as well as partially also the sale of condominiums | |||||||||||||||||||||||
• To source its acquisition opportunities, Ina Invest will leverage the local expertise and wide-reaching | |||||||||||||||||||||||
Implenia network | |||||||||||||||||||||||
Greenhouse gas emissions of construction2 | Greenhouse gas emissions of operation2 | Annual heating costs4 | |||||||||||||||||||||
9.6 3 | -11% | 10.8 | -90% | 33.8 | 3 | -25% | 2.5 | ||||||||||||||||
3.4 3 | 1.9 | ||||||||||||||||||||||
Lokstadt | Average | Lokstadt | Average | Lokstadt | Average | ||||||||||||||||||
Switzerland | Switzerland | Switzerland | |||||||||||||||||||||
Source: Company information.
1 The certificate "2000-Watt-Areal" distinguishes settlement areas that can demonstrate sustainable use of resources and emissions over the entire life cycle of site development (from an planning to operation). 2 In kg/m2 per year. Average greenhouse gas emissions of Switzerland 2010/2015 are based on SIA-documentation D 0258.
3 Company estimates based on current construction plans.
4 In CHF/m2 per year. Average annual heat consumption of Switzerland based on standard MuKEn 2008. Applied district heating price from Winterthur municipal utility as of January 2020.
Ina Invest • Capital Market Day • 27
Business model and strategy
Positioning of Ina Invest against its peers
The Swiss property development market is highly fragmented but Ina Invest represents a scarce opportunity for investors:
- Investment in top development projects with a diversified regional footprint and balanced use
- Very attractive portfolio consisting of top properties1 as confirmed by Wüest Partner
- All properties newly built according to state-of-the-art standards
- Lean operational set-up benefiting from close collaboration with Implenia
Portfolio structure comparison against major developers in Switzerland - illustrative overview
Share of | • | 100% development | • | <10% of real estate | • | c. 33% of real estate | • c. 10% of real estate | • c. 21% of real estate | • | <10% of real estate |
development | ||||||||||
portfolio (initially) | portfolio | portfolio | portfolio | portfolio | portfolio | |||||
projects in portfolio | ||||||||||
Regional focus | • | Diversified across | • | Zurich (c. 87%) | • | Diversified across | • Zurich (c. 58%) and | • Diversified across | • | Diversified across |
regions | regions | Geneva (c. 24%) | regions | regions | ||||||
• | Balanced portfolio with |
Use focus | c. 50% residential |
properties |
- Focus on office / commercial
- Residential c. 20% of rental income
• | Focus on industry | ||
properties | • | Focus on commercial | |
• | Residential properties | • | Residential c. 6% of |
c. 13% of portfolio | rental income | ||
value |
- Balanced portfolio with c. 37% residential properties
- Focus on office and retail
- Residential c. 1% of net rental income
Source: Company information.
1 Wüest Partner defines "top properties" as properties in the top quadrant (based on location as well as property quality).
Ina Invest • Capital Market Day • 28
4 Portfolio and pipeline
Portfolio and pipeline
Portfolio overview
Key portfolio figures1
CHF 282mn | Market value | |
31 March 2020 | ||
CHF 1,118mn | Market value at | |
completion | ||
~140,000m2 | Floor space at | |
completion | ||
4.0% | Gross yield2 | |
Quality level3
Portfolio locations
Allschwil
(Basel)
Zurich | Winterthur | |
Arlesheim | ||
Baar (Zug) | ||
Neuchâtel | ||
Préverenges | ||
(Lausanne) | ||
Onex | ||
(Geneva) |
Portfolio split | by floorspace | ||
Other; 7% | Office; 34% | ||
Hotel; 8% | |||
7% | by market value at | ||
11% | |||
completion1 | |||
By | 38% | ||
type | |||
44% | |||
Residental; 51% | |||
by floorspace | Northwestern Switzerland | ||
10% | |||
5 | Good | |
Macro location | 4 | |
3 | ||
2 | ||
Micro location | 1 | |
quality | ||
Utilization | 4.4 | |
Standard | Object Bad | |
Condition | ||
BadGood
Location quality
Central Switzerland | ||
Zurich / | By | 15% |
Winterthur 47% | region |
Western Switzerland 28%
1 Wüest Partner valuation, market value 31 March 2020 incl. adjustments for Bestandeshallen, see more information on page 35.
2 Across the portfolio (2027).
3 Wüest Partner valuation (rating factors: Macro location, Micro location, Utilization (floor plan quality, flexibility, parking), Standard (room conditions, materialization, technology), Condition (exterior shell, interiors, house technology), quality score: 5=highest quality level, 1=lowest quality level).
Ina Invest • Capital Market Day • 30
Portfolio and pipeline
Overview of portfolio execution timeline
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
1. Baselink, Allschwil
2. Lokstadt, Tender, Winterthur
3. Lokstadt, Elefant, Winterthur
4. Chemin de l'Echo, Onex
5. Tivoli, BF2, Neuchâtel
6. Tivoli, BF4, Neuchâtel
7. Lokstadt, Hallen, Winterthur
8. Schaffhauserstrasse, Zurich
9. Grand Record, Préverenges
10. Lokstadt, Rocket & Tigerli, Winterthur
11. Schwinbach, Arlesheim
12. Unterfeld, BF3, Baar
13. Les Tattes, Onex
14. Unterfeld, BF1B, Baar
15. KIM, Houses Brown & Bodmer, Winterthur
rental | rental & condominium | condominium |
Note: Illustrative timeline, does not reflect precisely the beginning and end of project execution.
Ina Invest • Capital Market Day • 31
Portfolio and pipeline
Lokstadt project overview
Ina Invest • Capital Market Day • 32
Portfolio and pipeline
Project at a glance: Lokstadt, Tender
Address: | Ernst Jung Gasse 8, 8400 Winterthur | |||
Property area / Floor space1: | 620m2 / 4,087m2 | |||
Capex: | CHF 27.2mn | |||
Discount rate real / nominal: | 2.8% / 3.3% | |||
Gross yield1: | Not available for condominium | |||
Status: | Building permit expected soon | |||
Highlight: | 39 modern urban flats in condominium ownership with | |||
striking architecture linked to its historic location | ||||
Value1 (in CHFmn) | Utilization |
47.9 | 4% | ||
18.0 | |||
As of 31.03.2020 | Sales proceeds | 96% | 100% |
Other Residential Condominium
Timeline
today | Q3 2020 | Q2 2023 |
Building permit | Start of | End of |
expected soon | construction | construction |
1 Based on Wüest Partner valuation as of 31 March 2020.
SIA
Energy Efficiency Path
lokstadt.ch
Ina Invest • Capital Market Day • 33
Portfolio and pipeline
Project at a glance: Lokstadt, Elefant
Address: | Zürcherstrasse, 8400 Winterthur |
Property area / Floor space1: | 3,050m2 / 13,014m2 |
Capex: | CHF 48.5mn |
Discount rate real / nominal: | 2.9% / 3.4% |
Gross yield1: | 3.5% |
Status: | Building permit available |
Highlight: | Modern, Minergie-certified timber construction office |
building; 100% of rental space signed by SWICA |
Value1 (in CHFmn) | Utilization |
98.9 | 3% |
43.1 |
As of 31.03.2020 | As of | 97% | |
completion | Other | Office |
Timeline
today | Q4 2020 | Q4 2022 |
Building permit | Start of | End of |
available | construction | construction |
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date.
SIA
Energy Efficiency Path
lokstadt.ch
Ina Invest • Capital Market Day • 34
Portfolio and pipeline
Project at a glance: Lokstadt Hallen
Address: | Zürcherstrasse, 8400 Winterthur |
Property area / Floor space1: | 7,682m2 / 8,032m2 |
Capex2: | CHF 35.9mn |
Discount rate real / nominal: | 3.7% / 4.2% |
Gross yield1: | 4.8% |
Status: | Competition procedure in revision |
Highlight: | Historical halls with contemporary |
urban usability |
Value1 (in CHFmn) | Utilization | ||||||
43.2 | 15% | ||||||
44% | |||||||
0.0 | 41% | ||||||
As of 31.03.2020 | As of | Hotel | Other | ||||
completion | Office | ||||||
Timeline | |||||||
today | Q1 2022 | Q4 2023 | |||||
Competition procedure | Start of | End of | |||||
in revision | construction | construction | |||||
SIA
Energy Efficiency Path
lokstadt.ch
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date, value as of 31 March 2020 -CHF 27.0mn, however, set to CHF 0mn due to cost transfer to Implenia. 2 CHF 61.9mn total expected Capex, whereof Ina Invest carries CHF 35.9mn.
As landmark of the entire Lokstadt, the Bestandeshallen uplift the value of all Lokstadt projects. As part of the Lokstadt remains in Implenia´s development portfolio, Implenia will carry parts of the construction cost.
Ina Invest • Capital Market Day • 35
Portfolio and pipeline
Project at a glance: Lokstadt, Rocket & Tigerli
Address: | Dialogplatz 1 (Rocket), Ernst Jung Platz (Tigerli), | |||
8400 Winterthur | ||||
Property area / Floor space1: | 2,325m2 / 22,039m2 | |||
Capex: | CHF 126.8mn | |||
Discount rate real / nominal: | Rental: 2.6% / 3.1%; Condo: 2.8% / 3.3%; Tigerli: 3.1% / 3.6% | |||
Gross yield1: | Rental: 3.2%; Tigerli: 3.8% | |||
Status: | Strategic planning, conception and study contract | |||
Highlight: | Max. 100m tower block (Rocket) as landmark of Lokstadt | |||
with Student accommodation and hotel in the base (Tigerli) | ||||
Value1 (in CHFmn) | Utilization |
SIA
Energy Efficiency Path
224.9
63.5 |
As of 31.03.2020 | As of |
completion |
6% | 9% | 35% |
85% | ||
65% | ||
Hotel | Other | Condominium |
Residential | Rental |
Timeline
today | Q1 2023 | Q4 2025 |
Conception, | Start of | End of |
study contract | construction | construction |
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date.
lokstadt.ch
Ina Invest • Capital Market Day • 36
Portfolio and pipeline | ||||||
Project at a glance: KIM, Houses Brown & Bodmer | Minergie P | |||||
Address: | Solarstrasse 11-21, 8404 Winterthur | |||||
Property area / Floor space1: | 5,913m2 / 18,610m2 | |||||
Capex: | CHF 63.7mn | |||||
Discount rate real / nominal: | 3.5% / 4.0% | |||||
Gross yield1: | 4.4% | |||||
Status: | Building permit available, marketing in progress | |||||
Highlight: | Flexible room division, modern working world, very good | |||||
price-performance ratio, ZEV2 energy sourcing | ||||||
Value1 (in CHFmn) | Utilization | |||||
89.7 | 2% |
11.5 |
As of 31.03.2020 | As of | 98% | |
completion | Other | Office |
Timeline
today | Q3 2025 | Q4 2027 |
Building permit | Start of | End of |
available | construction | construction |
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date.
2 ZEV (Zusammenschlüsse zum Eigenverbrauch), self-produced energy consumption community.
kim-winterthur.ch
Ina Invest • Capital Market Day • 37
Portfolio and pipeline
Project at a glance: Schaffhauserstrasse
Address: | Schaffhauserstrasse 220, 222, 224, 8057 Zürich |
Property area / Floor space1: | 1,798m2 / 3,418m2 |
Capex: | CHF 17.9mn |
Discount rate real / nominal: | 2.6% / 3.1% |
Gross yield1: | 3.1% |
Status: | Strategic planning, feasibility study |
Highlight: | Central location in Zurich with proximity to university |
and a wide view towards Zürichberg and Glatttal |
Value1 (in CHFmn) | Utilization | |||||||
44.6 | ||||||||
22.6 | 100% | |||||||
As of 31.03.2020 | As of | |||||||
completion | Residential | |||||||
Timeline | ||||||||
today | Q3 2022 | Q2 2024 | ||||||
Strategic planning, | Start of | End of | ||||||
feasibility study | construction | construction | ||||||
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date; subject to public certification of the contract of sale; or the valuation it is assumed that the transfer of ownership as of 31.03.2020.
Source: Google Maps / Google Inc.
Ina Invest • Capital Market Day • 38
Portfolio and pipeline
Project at a glance: Unterfeld, BF1B
Address:
Property area / Floor space1:
Capex:
Discount rate real / nominal: Gross yield1:
Status:
Highlight:
Nordstrasse 1B, 6340 Baar 5,115m2 / 8,604m2
CHF 55.7mn 2.6% / 3.1% 3.1%
Referendum Sep-27 20202
Part of an area development with versatile mixed use; wide view of lake & mountains, train station within walking distance
Value1 (in CHFmn) | Utilization |
113.2 | 7% |
39.8 |
As of 31.03.2020 | As of | 93% | |
completion | Other | Residential |
Timeline
today | Q2 2025 | Q4 2027 |
Referendum Sep-27 | Start of | End of |
construction | construction | |
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date.
2 Referendum for the building and zoning approval, project conception and concretisation will start afterwards.
unterfeld-sued.ch
Ina Invest • Capital Market Day • 39
Portfolio and pipeline
Project at a glance: Unterfeld, BF3
Address:
Property area / Floor space1:
Capex:
Discount rate real / nominal: Gross yield1:
Status:
Highlight:
Nordstrasse 3, 6340 Baar 4,761m2 / 13,760m2 CHF 54.4mn
3.4% / 3.9%
4.0%
Referendum Sep-27 20202
Part of an area development with versatile mixed use; highly attractive business location, train station within walking distance
Value1 (in CHFmn) | Utilization |
95.5 | 8% |
24.2 |
As of 31.03.2020 | As of | 92% | |
completion | Other | Office |
Timeline
today | Q2 2023 | Q3 2025 |
Referendum Sep-27 | Start of | End of |
construction | construction | |
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date.
2 Referendum for the building and zoning approval, project conception and concretisation will start afterwards.
unterfeld-sued.ch
Ina Invest • Capital Market Day • 40
Portfolio and pipeline
Project at a glance: Baselink
Address: | Hegenheimermattweg 179, 4123 Allschwil | |||||||||||
Property area / Floor space1: | 2,949m2 / 8,466m2 | |||||||||||
Capex: | CHF 30.1mn | |||||||||||
Discount rate real / nominal: | 3.8% / 4.3% | |||||||||||
Gross yield1: | 5.4% | |||||||||||
Status: | Building permit available, lease agreement signed with one | |||||||||||
hotel operator, second agreement just before closing | ||||||||||||
Highlight: | Long-term and short-term stay, only hotel in the | |||||||||||
Baselink development area | ||||||||||||
Value1 (in CHFmn) | Utilization | |||||||||||
38.9 | 4% | |||||||||||
1.1 | ||||||||||||
96% | ||||||||||||
As of 31.03.2020 | As of | |||||||||||
completion | Other | Hotel | ||||||||||
Timeline | ||||||||||||
today | Q3 2020 | Q4 2022 | ||||||||||
Building permit | Start of | End of | ||||||||||
available | construction | construction | ||||||||||
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date.
baselink.com
Ina Invest • Capital Market Day • 41
Portfolio and pipeline
Project at a glance: Schwinbach
Address: | Zinnhagweg, Auf der Höhe, 4144 Arlesheim | ||
Property area / Floor space1: | 8,119m2 / 5,588m2 | ||
Capex: | CHF 33.0mn | ||
Discount rate real / nominal: | 2.8% / 3.3% | ||
Gross yield1: | Not available for condominium | ||
Status: | Building permit submitted | ||
Highlight: | Sustainable architecture within natural | ||
surrounding and close city proximity | |||
Value1 (in CHFmn) | Utilization |
SIA
Energy Efficiency Path
58.0 | |
19.3 | |
As of 31.03.2020 | Sales proceeds |
100% | 100% |
Residential | Condominium |
Timeline
today | Q2 2023 | Q3 2025 |
Building permit | Start of | End of |
submitted | construction | construction |
1 Based on Wüest Partner valuation as of 31 March 2020.
schwinbach-arlesheim.ch
Ina Invest • Capital Market Day • 42
Portfolio and pipeline
Project at a glance: Tivoli, BF2
Address: | Rue de Tivoli, 2000 Neuchâtel | ||
Property area / Floor space1: | 3,997m2 / 5,180m2 | ||
Capex: | CHF 24.3mn | ||
Discount rate real / nominal: | 3.1% / 3.6% | ||
Gross yield1: | 4.0% | ||
Status: | Neighbourhood plan in effect | ||
Highlight: | Top location with nice view on the lake; | ||
train station and car highway | |||
Value1 (in CHFmn) | Utilization |
31.5 | 25% | ||
2.7 | 75% | ||
As of 31.03.2020 | As of | ||
completion | Office | Residential |
Timeline
today | Q1 2022 | Q4 2023 |
Neighbourhood plan | Start of | End of |
in effect | construction | construction |
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date; subject to purchase right after entry into force of neighborhood plan; for the valuation it is assumed that the transfer of ownership as of 31.03.2020.
Ina Invest • Capital Market Day • 43
Portfolio and pipeline
Project at a glance: Tivoli, BF4
Address: | Rue de Tivoli, 2000 Neuchâtel |
Property area / Floor space1: | 1,459m2 / 1,536m2 |
Capex: | CHF 7.8mn |
Discount rate real / nominal: | 3.1% / 3.6% |
Gross yield1: | 4.1% |
Status: | Neighbourhood plan in effect |
Highlight: | Top location with nice view on the lake; |
train station and car highway |
Value1 (in CHFmn) | Utilization | |||||
9.2 | ||||||
100% | ||||||
0.2 | ||||||
As of 31.03.2020 | As of | |||||
completion | Residential | |||||
Timeline | ||||||
today | Q1 2022 | Q4 2023 | ||||
Neighbourhood plan | Start of | End of | ||||
in effect | construction | construction | ||||
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date; subject to purchase right after entry into force of neighborhood plan; for the valuation it is assumed that the transfer of ownership as of 31.03.2020.
Ina Invest • Capital Market Day • 44
Portfolio and pipeline
Project at a glance: Grand Record
Address: | Rue du Château (Condo), | |||
Route de Genève (Rental), 1028 Préverenges | ||||
Property area / Floor space1: | 11,205m2 / 6,892m2 | |||
Capex: | CHF 42.3mn | |||
Discount rate real / nominal: | Condo: 2.8% / 3.3%; Rental: 3.0% / 3.5% | |||
Gross yield1: | 3.9% | |||
Status: | Site permit pending, building permit in process | |||
Highlight: | Attractive and central location near the lake Geneva; | |||
very low number of vacancies2 | ||||
Value1 (in CHFmn) | Utilization | |||
76.7 | 5% | 23% | ||
26.1 |
As of 31.03.2020 | As of |
completion |
95%77%
Other | Residential | Condominium | Rental |
Timeline
today | Q3 2022 | Q3 2024 |
Building permit | Start of | End of |
in process | construction | construction |
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date; subject to purchase right after entry into force of neighborhood plan; for the valuation it is assumed that the transfer of ownership as of 31.03.2020.
2 No rent price volatility, government subsidies may be expected.
Ina Invest • Capital Market Day • 45
Portfolio and pipeline
Project at a glance: Chemin de l'Echo
Address: | Chemin de l'Echo 9, 1213 Onex | |||
Property area / Floor space1: | 7,000m2 / 9,198m2 | |||
Capex: | CHF 42.2mn | |||
Discount rate real / nominal: | 3.0% / 3.5% | |||
Gross yield1: | 4.5% | |||
Status: | Localized neighbourhood plan in process | |||
Highlight: | Traffic-free district in an privileged urban location with | |||
optimal transport connections and great infrastructure; | ||||
very low number of vacancies2 | ||||
Value1 (in CHFmn) | Utilization |
55.8 | |
7.9 | 100% |
As of 31.03.2020 | As of | |
completion | Residential |
Timeline
today | Q1 2022 | Q3 2023 |
Localized neighbourhood | Start of | End of |
plan in process | construction | construction |
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date; the reported market value does not take into account the capping of the sales price under applicable laws.
2 No rent price volatility, government subsidies may be expected.
Ina Invest • Capital Market Day • 46
Portfolio and pipeline
Project at a glance: Les Tattes
Address: | Rue du Comte-Géraud, 1213 Onex |
Property area / Floor space1: | 13,220m2 / 17,740m2 |
Capex: | CHF 77.8mn |
Discount rate real / nominal: | 3.0% / 3.5% |
Gross yield1: | 5.6% |
Status: | Localized neighbourhood plan in process |
Highlight: | High-quality,traffic-free environment with optimal |
transport connections; very low number of vacancies2 |
Value1 (in CHFmn) | Utilization | ||||||
90.3 | 5% | 4% | |||||
91% | |||||||
2.0 | |||||||
As of 31.03.2020 | As of | Office | Other | ||||
completion | Residential | ||||||
Timeline | |||||||
today | Q4 2023 | Q3 2026 | |||||
Localized neighbourhood | Start of | End of | |||||
plan in process | construction | construction | |||||
1 Based on Wüest Partner valuation as of 31 March 2020. The value as of completion and gross yield refer to the date when steady-state vacancy rate is achieved and may not correspond to the indicative construction completion date.
2 No rent price volatility, government subsidies may be expected.
Ina Invest • Capital Market Day • 47
Portfolio and pipeline
New acquisition to further accelerate growth
Strategy
Growth through the development of the real estate portfolio transferred with the spin-off …
… and through additional acquisitions of approximately CHF 50mn per year
Utilization
- Mixed-usebuildings
- Main focus on residential buildings
- Other uses may include office buildings
Sustainability
- New acquisitions must be in-line with the vision to operate one of Switzerland's most sustainable real estate portfolios
- Pre-checkof every new investment based on the Implenia ESG-evaluation tool GeNaB©
Acquisition
strategy
Location
- Across Switzerland
- Focus on attractive urban regions
- Selected suburban areas with commuter-friendly transport links
Object quality
- Strong focus locations with commuter-friendly transport links
Ina Invest • Capital Market Day • 48
5 Financials and financial outlook
Certain statements on this section, including in particular the financial targets described immediately in the following section, constitute forward-looking statements. These forward-looking statements are not guarantees of future financial performance and our actual results could differ materially from those expressed or implied by these forward-looking statements as a result of many factors. The Company can give no assurance that the targets described above will materialize or prove to be correct. Because these are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those described in the following section.
Financials and financial outlook
Net asset value bridge - opening balance (31 March 2020)
Ina Invest Ltd.
(In CHFmn)
Ina Invest
Holding Ltd.
(before capital increase)
Ina Invest Holding 50.1%
Implenia 49.9%
• Market value based on | • Based on the |
third party valuation | revaluation gain from |
reports (Wüest Partner)1 | book value Swiss Code |
of Obligations (OR) to | |
fair value Swiss GAP FER |
• | CHF 16mn | • Financial liability transferred | • Cost accrued by | • | Net asset value before |
Schaffhauserstr. (Zurich), | to Ina Invest Ltd. in | Implenia for the | transaction costs | ||
payable in 2020 | connection with the | ongoing project | • | Includes CHF 1mn cash | |
spin-off | development of Ina | ||||
• | CHF 3mn Tivoli | transferred from | |||
Invest Ltd. projects | |||||
(Neuchâtel), payable in | Implenia to Ina Invest | ||||
2020 |
- CHF 5mn Grand Record (Préverenges), payable in 2021
(after capital increase)
Ina Invest Holding <60%
Implenia>40%
Net asset value of Ina Invest of CHF 165mn
Note: preliminary financial figures based on unaudited numbers.
1 Including adjustments for Bestandeshallen, see more information on page 35.
Ina Invest • Capital Market Day • 50
Financials and financial outlook
Financial outlook
Ina Invest mid-termsteady-state targets
Growth phase (2020 - 2022) | Development phase 2023 onwards2 | |
Gross asset value investment properties | >CHF 0.6bn (2022) | ~CHF 2.0bn (2027) |
Project development completions (per annum) | ~18,000m2 | ~45,000m2 |
Thereof for own portfolio vs. sale | ~85% own portfolio / 15% condominium unit sales | |
Project development gross margin | ~10-20% | ~15% |
Return on equity1
LTV
Dividend policy
~3% | ~6-8% |
Mainly financed by equity capital raised | 55-65% (depending on future |
and proceeds from condo unit sales | market situation) |
No dividends paid out in 2020, | In line with broader Swiss |
nominal dividends in 2021-2022 | real estate market |
Note: financial figures based on unaudited numbers 1 Return on equity excluding transaction costs.
2 Includes the development of the transferred portfolio (starting portfolio) and the development of additional land acquisitions.
Ina Invest • Capital Market Day • 51
Financials and financial outlook
Cash outlook 2020
Transaction Cash development 2020
Other 15% | |
Tivoli BF2 | |
6% | Baselink 29% |
Lokstadt, | |
Elefant 10% | |
Lokstadt, | Capex new land |
Tender 12% | |
acquisition 28% | |
Growth phase
Fairly self-sustaining business model through the growth phase
- Capital increase of c. CHF 100mn in cash less transaction costs
- Operating cash flow in 2020 mainly results from the sale of condominium units
- Capex represents construction costs, in 2020 the majority of investments are linked to the Lokstadt areal as well as to the Baselink project, includes cost buffer
- Outstanding purchase price payments due in Q2 2020 are included and considered as payed in the market value as per 31 March 2020
- Dividend yield will be nominal1 during the growth phase (2020 - 2022)
- Financed mainly by the initial equity capital raised, project financing and proceeds from sale of condominium units
1 Details on next page. | Ina Invest • Capital Market Day • 52 |
Financials and financial outlook
Financing policy / strategy
Ina Invest financing policy
LTV / project financing
- During the growth phase, the portfolio will be fairly self-sustaining through 2024 and will be mainly financed by the initial equity capital raised and proceeds from condo unit sales
- Project financing will be drawn once the initial equity capital raised is used up, the maximum of project financing is determined by an LTV ratio of 55-65% (depending on future market situation)
- Financing costs are calculated based on LIBOR + 175bps (depending on future market situation)
• During the growth phase (2020-2022),dividend yield is expected to be nominal and | ||
Dividend policy | no dividends paid out in 2020 | |
• | Development phase (2023 onwards), dividend yield expected to be aligned with the broader | |
Swiss real estate market | ||
• Ina Invest intends to grow its development portfolio through additional acquisitions | ||
CHF 50mn annual | of c. CHF 50mn per year | |
acquisition budget | • | The acquisition is focused on residential properties (both rental apartments and condominiums) |
in order to continuously decrease the risk profile of Ina Invest | ||
Ina Invest • Capital Market Day • 53
6 Corporate governance
Corporate governance
Ina Invest group structure and shareholdings
New investors | Swiss Life1 | |||
Implenia shareholders | Implenia shareholders | |||
Implenia Ltd. | Shareholders' agreement | Ina Invest Holding Ltd. | |||
50.1% / <60% | |||||
before / after | |||||
capital increase | |||||
49.9% / >40% | |||||
before / after | |||||
capital increase | |||||
Various service agreements | Ina Invest Ltd. | ||||
Related to Implenia
Not related to Implenia
Board of Directors | CEO |
same
Board of Directors | CEO |
Source: Company information.
1 Swiss Life Ltd. has committed to participate in the planned capital raise by acquiring a significant stake of up to 15% in Ina Invest Holding Ltd.
Ina Invest • Capital Market Day • 55
Corporate governance
Real estate specialist as designated CEO of Ina Invest
Marc Pointet
- Born in 1974
- Certified Architect ETH, Executive MBA HSG
- Until 2020, Head of Mobimo Suisse romande and Member of the Executive Board of Mobimo
Professional background
2020 | - | CEO Ina Invest |
2015 | - 2020 | Head of Mobimo Suisse romande and Member of the Executive Board, Mobimo, Küsnacht / Lausanne |
2013 - 2015 | Head of Mobimo Suisse romande, Mobimo, Küsnacht / Lausanne | |
2006 | - 2013 | Head of Project Management team, Mobimo, Küsnacht |
2004 | - 2006 | Branch Head, Karl Steiner Ltd., St. Moritz |
2003 | - 2004 | Assistant to the CEO, Karl Steiner Ltd., Zurich |
2002 - 2003 | Project team member, Credit Suisse, Zurich | |
Education | ||
2012 | Executive MBA, University of St. Gallen (HSG) | |
2001 | Certified Architect, ETH Zurich | |
Source: Company information.
Ina Invest • Capital Market Day • 56
Corporate governance
Board of Directors with significant real estate and public company experience
Stefan Mächler
Chairman of the Board
- Group CIO and Member of the Group Executive Board of Swiss Life
- Previously, Chairman of the Board of Directors of Swiss Prime Site Ltd. and CIO Asset Management of Mobiliar
- More than 20 years of real estate experience
- Lic. iur from the University of St. Gallen (HSG)
Christoph Caviezel
Member of the Board
- Previously, Member of the Board of Directors of Mobimo
- Previously, CEO of Mobimo and CEO of Intershop
- More than 30 years of real estate experience
- Attorney at law
- Dr. iur from the University of Fribourg
Marie-Noëlle
Zen-Ruffinen
Member of the Board
- Member of the Board of Baloise, Professor at the University of Geneva and Of Counsel at Tavernier Tschanz
- Previously, Partner at Tavernier Tschanz
- Attorney at law
- Dr. iur from the University of Fribourg
Hans Ulrich Meister
Member of the Board
- Chairman of the Board of Directors of Implenia
- Previously, Head Private Banking & Wealth Management and CEO Switzerland Region for Credit Suisse
- Business degree from Zurich University of Applied Sciences and Advanced Management Program of Wharton School and Harvard Business School
André Wyss
Member of the Board
- CEO and Member of the Implenia Executive Committee
- Previously, President of Novartis Operations and Country President for Novartis in Switzerland
- Degree in economics from the School of Economics and Business Administration
Audit Committee | Nomination and Compensation Committee | Investment Committee (only at subsidiary level) | ||
• Hans Ulrich Meister, Chair | • Marie-NoëlleZen-Ruffinen, Chair | • Christoph Caviezel, Chair | ||
• Christoph Caviezel | • Christoph Caviezel | • Marie-NoëlleZen-Ruffinen | ||
• André Wyss | ||||
Source: Company information.
Ina Invest • Capital Market Day • 57
7 Envisaged transaction
Envisaged transaction
Spin-off and capital increase
Step 1: Spin-off of Ina Invest Holding Ltd.
Implenia
shareholders
2 | 100% |
Ina Invest Holding Ltd. | Implenia Ltd. |
1 | 1 |
50.1% | 49.9% | 1 |
Ina Invest Ltd. |
- Transfer of, among other things, selected development projects from Implenia to Ina Invest Ltd. Following an internal reorganisation, Ina Invest Holding Ltd. will hold 50.1% in Ina Invest Ltd. (pre-capital increase)
- Spin-offof 100% in Ina Invest Holding Ltd. to Implenia´s shareholders
Step 2: At-market rights issue of Ina Invest Holding Ltd.
New investors | |||||||||||||||||||
1.b. | |||||||||||||||||||
Implenia shareholders | |||||||||||||||||||
1.a. | |||||||||||||||||||
Swiss Life | |||||||||||||||||||
1.a. | Implenia Ltd. | Rights | |||||||||||||||||
Cash | Shares | ||||||||||||||||||
2.b. | |||||||||||||||||||
Ina Invest Holding Ltd. | |||||||||||||||||||
Shares | Debt offset | ||||||||||||||||||
2.a. | Shares | ||||||||||||||||||
Ina Invest Ltd. | |||||||||||||||||||
Cash | |||||||||||||||||||
- Capital increase of Ina Invest Holding Ltd. of approximately CHF 100mn in cash
- Implenia shareholders will receive subscription rights in Ina Invest Holding Ltd.; non-exercised subscription rights will be allocated to new investors
- Swiss Life Ltd. has committed to participate in the planned capital raise by acquiring a significant stake of up to 15% in Ina Invest Holding Ltd.
- Capital increase by Ina Invest Ltd.
- Ina Invest Holding Ltd. to receive shares for cash
- Implenia to receive shares by offsetting claims. As a result, Implenia is expected to hold a significant minority stake of at least 40% in Ina Invest Ltd.
Ina Invest • Capital Market Day • 59
Envisaged transaction
Preliminary transaction timetable
Date | Description | |||
28 | May 2020 | Announcement of rights issue terms | ||
2 | June 2020 | Publication of prospectus | ||
3 | June - 10 | June (noon) | Rights exercise period | |
3 | June - 11 | June | Roadshow / bookbuilding | |
11 June 2020 | Capital increase | |||
12 | June 2020 | Distribution of dividend-in-kind and listing | ||
12 | June 2020 | Start of trading of new shares | ||
16 June 2020 | Closing of rights issue | |||
Ina Invest • Capital Market Day • 60
Envisaged transaction
Envisaged transaction
Transaction type | • Spin-off of Ina Invest Holding Ltd. (dividend in kind by Implenia Ltd.) | |
• | Rights offering of Ina Invest Holding Ltd. (rights allocated to Implenia shareholders) | |
• Creation of Ina Invest Ltd., a subsidiary of Ina Invest Holding Ltd., owning development portfolio (co-owned by Implenia) | ||
• Distribution of Ina Invest Holding Ltd. shares to Implenia shareholders who will receive 1 Ina Invest Holding Ltd. share | ||
Transaction description | for every 5 Implenia shares with a NAV per share of c. CHF 22.50 respectively c. CHF 4.50 per Implenia share | |
• Capital increase of Ina Invest Holding Ltd. via at-market rights issue of c. CHF 100mn, rights not taken up by existing shareholders | ||
will be offered to new investors, bookbuilding sets subscription price (maximum price: NAV) | ||
Cornerstone investment | • | Swiss Life Ltd. has committed to participate in the planned capital raise by acquiring a significant stake of up to 15% in Ina Invest |
Holding Ltd. | ||
Listing | • | SIX Swiss Exchange (Standard for Real Estate Companies) |
Syndicate (rights issue) | • | Credit Suisse will act as Sole Bookrunner |
Distribution of new | • Public offering in Switzerland | |
• | Private placements outside Switzerland and the US under Reg S | |
shares (rights issue) | ||
• | No offering in the US | |
Ina Invest • Capital Market Day • 61
8 Closing remarks
Highlights
Ina Invest - a unique proposition in the Swiss real estate industry
Initial portfolio1 | Ø return on equity after ramp-up | Significant value potential3 | ~2 bn | |||||||||||||
CHF 282mn | + 6-8% | ~1 bn | ||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |||||||||
Close collaboration | One of Switzerland's most | |||||||||||||||
with Implenia | sustainable real estate portfolios | |||||||||||||||
Top quality and diversified portfolio1,2
BadGood
Object quality
BadGood
Location quality
5Values
1 Based on valuation report by Wüest Partner, 31 March 2020; including adjustments for Bestandeshallen, see more information on page 35.
2 Bubble sizes refer to current market values. Graphs based on floor space.
3 Gross asset value of portfolio including the development of transferred projects (starting portfolio) plus the development of additional land acquisitions (assuming CHF 50mn acquisition budget p.a.).
Ina Invest • Capital Market Day • 63
9 Q&A
10 Appendix
Financials and financial outlook
Preliminary opening balance sheet and NAV bridge (31.03.2020)
Opening balance sheet (in CHFmn)
Assets | |
Cash and equivalents | 1 |
Real estate developments | 71 |
Total current assets | 72 |
Investment properties | 160 |
Intangible assets | 27 |
Total non-current assets | 187 |
Total assets | 259 |
Liabilities & Shareholders' Equity | |
Accrued expenses and deferred income | 34 |
Total current liabilities | 34 |
Financial liabilities | 20 |
Total debt | 20 |
Deferred tax liabilities | 39 |
Total non-current liabilites | 59 |
Total liabilities | 94 |
Share capital | 0 |
Reserves | 83 |
Equity attributable to shareholders | 83 |
Non-controlling interests | 82 |
Total Equity | 165 |
Total liabilities & shareholders' equity | 259 |
NAV bridge (in CHFmn)
Real estate developments | 71 |
Investment properties | 160 |
Purchase rights | 52 |
Market value 31.03.2020 | 282 |
Cash and equivalents | 1 |
Purchase obligations | (25) |
Accrued expenses and deferred income | (34) |
Financial liabilities | (20) |
Deferred tax liabilities | (39) |
NAV 31.03.2020 | 165 |
Note: Preliminary financial figures based on unaudited numbers.
Ina Invest • Capital Market Day • 66
Corporate governance
Transparent corporate governance with clearly distributed decisive power
• Same 5 Board members on Ina Invest Holding Ltd. and Ina Invest Ltd. level | |||
Board of Directors | • | Majority of 3 members independent from Implenia; 2 members appointed by Implenia | |
• | Independent Chairman | ||
Audit Committee | • Audit Committees on both entity levels | ||
• | 2 members (1 independent and 1 appointed by Implenia) | ||
Board | Nomination and | • | Nomination and Compensation Committees on both entity levels |
Compensation | • | 2 members (both independent) | |
committees | |||
Committee | • | Holding level committee has decisive power | |
Investment | • | 3 members (2 independent and 1 appointed by Implenia) | |
Committee | • | Only on Ina Invest Ltd. level | |
• Wüest Partner to serve as external valuation provider | |||
External property valuation | • | Properties to be valued semi-annually | |
• Valuation report to be disclosed with annual report once a year | |||
Accounting and reporting | • | KPMG to provide accounting and reporting services |
Opting-up | • The articles of association of Ina Invest Holding Ltd. include a provision which increases the threshold for a mandatory |
tender offer to 40% | |
Source: Company information.
Ina Invest • Capital Market Day • 67
Financials and financial outlook
Fee overview in relation to agreements between Ina Invest and Implenia entities
Acquisition of land: 1.50% | ||
Transaction fee | Acquisition and sale of investment property: 0.80%-1.50%1 | Calculation based on transaction price |
Sale of condominium units: 2.50% |
Development fee
Planning and legal processing: 0.25%
Selection procedure: 0.10%-0.25%2
Preliminary project: 0.45%
Building project: 0.45%
Calculation based on market value after completion
Not all fees are applicable for all projects, thus fees might not be cumulative
Construction owner | Lead: 1.00% | Calculation based on construction costs |
representation fee | Support (tendered to third parties): up to 2.00% | |
Asset and portfolio | 0.50% | Calculation based on gross asset value |
management fee | ||
Development profit / | 20% | Share on project profit (positive or negative) |
(loss) | ||
1 Depending on acquisition price (staggered from below CHF 50mn to above CHF 150mn). 2 Depending on complexity of tender process.
Ina Invest • Capital Market Day • 68
Contacts
Contact for investors | Christian Dubs, Head Investor Relations Implenia | ir@implenia.com | +41 58 474 45 15 |
Media contact | Silvan Merki, CCO Implenia | communication@implenia.com | +41 58 474 74 77 |
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Ina Invest Holding AG published this content on 06 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2020 13:56:09 UTC