Notes to the consolidated interim financial statements

1 General information and principles

Ina Invest Holding Ltd (the Company) is a Swiss company domiciled at Binzmühlestrasse 11, Zurich, Switzerland. The Company’s consolidated interim financial statements cover the Company and its subsidiaries (referred to collectively as “the Group” or “Ina Invest”). The individual companies are to be considered group companies.

The Group’s business activities comprise developing and building of real estate and construction projects of all kinds, planning and completion of new buildings and conversions of real estate held by Ina Invest, as well as holding, managing, renting and brokering of real estate.

The consolidated interim financial statements were prepared in accordance Swiss GAAP FER 31 “Complementary recommendations for listed companies” and provides a true and fair view of the Group’s assets, financial situation and earnings. It shall be read in conjunction with the consolidated annual financial statements as of 31 December 2020, as it represents and update of this and compared to an annual financial statement, allows for abbreviations in presentation and disclosures. The accounting principles applied in these interim financial statements correspond to those applied in the consolidated annual financial statements as of 31 December 2020. The consolidated interim financial statements comply with the provisions of Swiss law. The Group discloses the additional information required for real estate companies by the Swiss stock exchange (SIX Swiss Exchange) (Article 17 of the Directive on Financial Reporting of SIX Swiss Exchange).

The consolidated interim financial statements have been prepared under the assumption of going concern for the Group’s business. Valuations in the consolidated interim financial statements are based on historical acquisition or production costs, unless a standard prescribes another valuation basis for an item in the financial statements or another value was used based on an accounting policy choice. This is the case for the investment properties presented in note 2.2, which were measured at fair value.

The consolidated interim financial statements are presented in Swiss francs (CHF), the Company’s functional currency. Unless otherwise stated, all financial information is presented in Swiss francs, rounded to the nearest thousand.

The comparative period only includes 3 months in which Ina Invest was not yet fully operational. A comparison of the comparative period is therefore limited.

The consolidated interim financial statements are based on the stand-alone financial statements prepared in accordance with consistent principles as at 30 June 2021 by all group companies in which the Company directly or indirectly held more than 50% of voting rights or which it controls in another way. The entity included in the scope of consolidation together with the Company is Ina Invest Ltd.

    Share capital
in CHF thousands
Votes and capital share
Name of the company Domicile Business activity 30.06.2021 31.12.2020 Inclusion in consolidated financial statements 30.06.2021 31.12.2020 
Ina Invest Ltd Zurich Properties 202 202 Full consolidation 57.5% 57.5%

Implenia Ltd holds the remaining voting rights and shares in Ina Invest Ltd (42.5%; 31 December 2020: 42.5%).

Subsidiaries are included in the consolidated financial statements from the date on which control is assumed and excluded from the date on which control is relinquished. These dates do not necessarily coincide with the acquisition or disposal date. Capital consolidation is performed according to the purchase method. This involves the group companies’ equity being offset against the carrying amount of the parent company’s investment at the time when it is purchased or, if appropriate, at the date of incorporation. Assets and liabilities of the group company are measured at fair value as at this date in accordance with principles that are consistent throughout the Group. Using the full consolidation method, the assets and liabilities of the consolidated companies were recognised in full in the consolidated interim financial statements. Intragroup assets and liabilities are eliminated, as are intragroup income and expenses.

The current reporting period was not influenced by seasonality. The income for the period consists mainly of the result from the revaluation of the investment properties, income from the rental of investment properties and income from the sale of promotional properties, which are not subject to any significant seasonal fluctuations.


2 Operating activities

The following section presents additional information on the operating result and the current and non­current assets relevant to the Group’s operating activities. The notes on assets primarily concern the promotional and investment properties.

Promotional properties include projects involving condominium apartments intended for sale at a later date.

in CHF thousands 30.06.2021 31.12.2020
Projects under development 58,803 53,630
Projects under construction 10,752 22,370
Projects in sale - -
Total promotional properties 64'555 76,000

The plots of land on which the projects are being built are completely owned by Ina Invest at the beginning of a project. Ina Invest develops the plots of land until it receives a building permit for them and then makes them ready to be built on. Construction begins as soon as most of the condominium apartments have been reserved. A general contractor executes the constructions. The two projects, Ernst-Jung-Gasse 18 (Lokstadt Tender) in Winterthur and Auf der Höhe 12-18 (Am Schwinbach) in Arlesheim, have Implenia Group acting as general contractor. In terms of risks and rewards, a distinction is made between sold and unsold projects under construction as well as completed projects in sale:

  • Projects under construction: During the construction phase, Ina Invest, as the owner of the plots of land, bears the material risks and rewards from the development and implementation until the units are sold to an end customer. Accordingly, acquisition cost for the plot of land and development costs attributable to the unsold units are recognised in promotional properties. When units are sold, Ina Invest transfers the relevant portion of the fully developed land to the buyer, who concludes or has already concluded an agreement with a general contractor to build the unit. Ina Invest no longer bears any risks or rewards for these units after their sale, which is why the acquisition cost for the plot of land and development cost for this unit is de-recognized at the time of the transaction and no further development costs are recognised.
  • Projects in sale: For units not sold, the cost of work performed by the general contractor is transferred to Ina Invest after construction is completed. Ina Invest is obliged to accept the work provided during the construction phase. Ina Invest sells units not yet sold by the end of the construction as turnkey units to the end customers. Ina Invest bears the material risks and rewards concerning the condominium apartments between the end of construction until the sale, therefore acting as seller of the portion of the plot of land and the respective development cost share.

The following table shows the change in the number of the projects’ condominium apartments included in the promotional properties.

In units Projects under
Projects under
Projects in sale Total
Balance as at 01.04.2020 174 - - 174
Of which reserved - - - -
Additions 66 - - 66
Disposals from notarized sales - (3) - (3)
Transfer between categories (39) 39 - -
Balance as at 31.12.2020 201 36 - 237
Of which reserved - 23 - 23
Disposals from notarized sales - (18) - (18)
Balance as at 30.06.2021 201 18 - 219
Of which reserved - 10 - 10

Investment properties comprise plots of land and properties that are expected to be held and managed over a longer period of time. This item includes properties under development, properties under construction and portfolio properties held for rent.

in CHF thousands Properties under development Property under construction Portfolio properties Properties down payments Total
Cumulative acquisition costs 
Balance as at 01.04.2020 159,771 - - - 159,771
Additions 25,565 14,104 51,650 - 91,319
Performance-based development fee 492 1,040 724 - 2,256
Transfer between balance sheet items 6,265 - - - 6,265
Transfer between categories (47,623) 47,623 - - -
Balance as at 31.12.2020 144,470 62,767 52,374 - 259,611
Additions 891 17,774 868 3,982 23,515
Performance-based development fee 525 636 (200) - 961
Balance as at 30.06.2021 145,886 81,177 53,042 3,982 284,087
Cumulative revaluations 
Balance as at 01.04.2020 - - - - -
Profit from revaluation 6,853 3,449 2,896 - 13,198
Loss from revaluation (3,565) - - - (3,565)
Transfer between balance sheet items (316) - - - (316)
Transfer between categories (709) 709 - - -
Balance as at 31.12.2020 2,263 4,158 2,896 - 9,317
Profit from revaluation 4,086 2,544 76 - 6,706
Loss from revaluation (2,068) - (875) - (2,943)
Balance as at 30.06.2021 4,281 6,702 2,097 - 13,080
Carrying amounts of investment properties 
Balance as at 01.04.2020 159,771 - - - 159,771
Balance as at 31.12.2020 146,733 66,925 55,270 - 268,928
Balance as at 30.06.2021 150,167 87,879 55,139 3,982 297,167

The contractual agreements with Implenia Group as a partner for the development of investment properties include a performance-based development fee for the services rendered. This contractual arrangement applies to all investment properties in the portfolio as at the balance sheet date. The performance-based development fee corresponds to 20% of the project result between the market values and the investment acquisition costs before settlement of the performance-based development fee. For Ina Invest, this contractual mechanism can lead to an increase or also a reduction of the development costs recognised on the basis of other contractual elements. Generally, the performance-based development fee is settled after completion of the development project. Thereafter, the development partner Implenia Group has no further share of a potential increase or reduction in the value of the investment property. The performance-based development fee recognised as at the balance sheet date resulted in non-current receivables from and non-current liabilities to the developer. Without the contractually agreed performance-based development fee, the profit from revaluation would amount to CHF 8,379 thousand and the loss from revaluation to CHF 3,655 thousand. The net profit from revaluation would be CHF 961 thousand higher than presented in the income statement as at the balance sheet date.

In June 2021, Ina Invest made down payments in connection with the acquisition of a new property in the amount of CHF 3,982 thousand. The total purchase price of the property is approximately CHF 60,000 thousand. The purchase transaction is expected to be completed in the third quarter of 2021.

Valuation methods

Property valuations are carried out by Wüest Partner Ltd, Zurich, an external, independent and qualified valuation expert. The properties are valued in accordance with the discounted cash flow method (DCF method), whereby the fair value of a property is determined by the sum of the entire estimated future net income discounted to the present value. The net income (EBITDA) for each property is discounted individually taking into account property-specific risks and rewards, as well as market conditions and risks. For properties under development or under construction, the value of the project is determined in three steps:

  • Valuation of the property at the time of its completion, taking into account the current occupancy rate, market and cost estimates as at the cut-off date;
  • Determination of the market value as at balance sheet date, in light of the forecasted future investments;
  • Estimation of the risk, taking into account the separate cash flow of a cost item.

The discounting rates, market rents and vacancy rates have been identified as material non-observable input factors. The values used are summarised below.

Non-observable input factors used as at 30 June 2021

Information in  Properties under development Property under construction Portfolio properties
Discount rate
Discount rate, bandwidth % 2.45%-3.75% 2.80%-3.65% 2.60%-3.20%
Achievable market rents
Office space CHF per m2 205-280 261 324-603
Residential space CHF per m2 210-397 NA 585
Hotel space  CHF per m2 300 242 NA
Parking space inside CHF per unit 1,482-2,160 2,100 2,400
Commercial/industrial space CHF per m2 200-300 400 NA
Others CHF per m2 90-280 50-120 120-380
Bandwidth vacancy rate % 1.50%- 6.70% 4.90% -5.00% 4.20%-5.00%



Non-observable input factors used as at 31 December 2020

Information in  Properties under development Properties under construction Portfolio properties
Discount rate
Discount rate, bandwidth % 2.55%- 3.65% 2.80%-3.65% 2.60%-3.20%
Achievable market rents
Office space CHF per m2 208-280 261 350-602
Residential space CHF per m2 210-397 NA 585
Hotel space  CHF per m2 300 242 NA
Parking space inside CHF per unit 1,482-2,160 1,800-2,100 2,400
Commercial/industrial space CHF per m2 200-300 NA 380
Others CHF per m2 90-265 50-400 120-130
Bandwidth vacancy rate % 1.50%-5.00% 5.00% 4.20%-5.00%

Beyond that, uncertainties regarding future investments remain. 

Encumbered investment properties

In financial year 2020, collateral for a mortgage note used to finance a project was issued, thus encumbering the investment properties located at Schaffhauserstrasse 220-224 in Zurich and at Zürcherstrasse 31 (Lokstadt Elefant) in Winterthur. The recognised fair value of these two properties amounted to CHF 98,250 thousand as at 30 June 2021 (31 December 2020: CHF 84,440 thousand). See note 3.1 for more information.

As at 30 June 2021, intangible assets include the purchase rights for plots of land located at Rue du Château in Préverenges (plot size: 2,763 m2). The execution of the purchase right shall take place when the neighbourhood plan becomes legally effective, but no later than 28 February 2025.

The purchase rights reported as intangible assets in the amount of CHF 21,333 thousand (31 December 2020: CHF 21,176 thousand) correspond to the acquisition costs for the purchase rights or the purchase obligations. The nominal value of the unrecognized obligations from the purchase commitments amounts to CHF 5,007 thousand (31 December 2020: CHF 5,007 thousand).

Ina Invest is currently active exclusively on the Swiss market. The property portfolio, comprising promotional and investment properties, is managed as a single entity by the Board of Directors and Executive Management. In accordance with Swiss GAAP FER 31, the Group therefore has a single segment. Therefore, no segment reporting is presented.

During the reporting period, Ina Invest generated rental income from investment properties amounting to CHF 1,397 thousand (30 June 2020: zero). This rental income is mainly attributable to the three investment properties located at Chemin des Oliquettes 10 in Petit-Lancy, Rue du Valais 7 in Geneva and Schaffhauserstrasse 220-224 in Zurich.

Maturity of long-term rental agreements

This maturity schedule shows the terms of commercial rental agreements (e.g. for hotels, commercial and industrial uses). Rental income from residential properties is not included as these agreements may be terminated on a short-term notice.

in CHF thousands 30.06.2021 31.12.2020
Rental income within 1 year 1,836 2,303
Rental income within 2 to 5 years 16,731 14,523
Rental income after 5 years 37,261 38,899
Total future rental income from perpetual leases (without residential properties) 55,828 55,726

Most important tenants

The rental income of the following five most important tenants accounts for 74.8% of the entire target rental income during the reporting period (30 June 2020: no rental income).

in % 01.01.-
SA Régie du Rhône  50.1% -
Mission Permanente de l'Inde  13.6% -
JUWO-Jugendwohnnetz 4.5% -
Guinée - Mission Permanente 3.6% -
Délégation Permanente de la Ligue des États Arabes 3.0% -
Total 74.8% -


Loss of rent from vacancies

Loss of rent from vacancies in portfolio properties amounted to CHF 74 thousand during the reporting period (30 June 2020: zero), which corresponds to a vacancy rate of 5.0% (30 June 2020: zero).


3 Financing

This section contains information on the financing of the Group through debt and equity.

in CHF thousands Currency Interest rate Maturity 30.06.2021 31.12.2020
Loans secured by mortgages in CHF 0.55% 2023 15,000 -
Total loans 15,000 -
Of which non-current 15,000 -

Ina Invest concluded two framework credit agreements at the following terms and conditions:

Investment properties
30.06.2021 31.12.2020
Amounts of credit framework in CHF thousands 85,600 85,600
Property liens in CHF thousands 85,600 85,600
Credit sum drawn down as at balance sheet date in CHF thousands 15,000 -
Maturity period perpetual perpetual
Interest rate variable variable, not determined yet

For further information on property liens, please refer to note 2.2.

in CHF thousands 30.06.2021 31.12.2020
Promotional properties 64,555 76,000
Investment properties 297,167 268,928
Intangible assets (purchase rights) 21,333 21,176
Total value of property portfolio 383,055 366,104
Cash and cash equivalents 8,313 14,118
Trade accounts receivable 13 453
Other current receivables 1,256 1,174
Accrued income and prepaid expenses 8,705 1,295
Other non-current receivables 1,010 1,044
Trade accounts payable (210) (56)
Advance payments for promotional properties (180) (460)
Other short-term liabilities (495) (108)
Accrued expenses and deferred income (1,076) (1,439)
Non-current financial liabilities (15,000) -
Deferred tax liabilities (39,247) (39,496)
Other non-current liabilities (5,364) (4,430)
Non-current provisions (210) (610)
NAV (equity including minorities) 340,570 337,589
NAV (equity excluding minorities) 195,823 194,036
NAV (shareholders' equity excluding minorities) per share (in CHF) 22.09 21.91

Earnings per share are calculated as follows:


in CHF thousands, as indicated 01.01.-
Profit attributable to shareholders of Ina Invest Holding Ltd 1,662 (1,671)
Weighted average number of shares outstanding 8,866,527 4,774,302
Earnings per share (in CHF) 0.19 (0.35)
Profit attributable to shareholders of Ina Invest Holding Ltd 1,662 (1,671)
Weighted average number of shares outstanding 8,869,857 4,774,302
Diluted earnings per share (in CHF) 0.19 (0.35)




4 Other disclosures

This section contains information that has not already been disclosed elsewhere in the consolidated interim financial statements.

The Board of Directors approved the consolidated interim financial statements on 12 August 2021.

Ina Invest is not aware of any events after the balance sheet date that have a material impact on the consolidated interim financial statements.

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