Ina Invest with positive outlook

Ina Invest AG, newly founded as a spin-off of Implenia AG, plans to commence operations in June 2020. According to the recently presented corporate strategy, the entire Ina Invest portfolio is to be developed and realized according to the highest sustainability criteria. All projects are to be certified by national or international labels; Ina Invest is also seeking certifications from Sustainalytics and GRESB. Both companies hope that the transfer of part of Implenia's development portfolio to Ina Invest, which according to Wüest Partner's assessment at 95% are "top properties", will provide "significant growth opportunities". It would allow Ina Invest to develop the transferred portfolio more quickly through new financing capacities.

Ina Invest's growth strategy and business model cover the entire value chain - from acquisition, project studies, realization, marketing and sales, to realization and utilization. Close cooperation with Implenia is planned at all stages. Based on current assessments and market prospects, Ina Invest aims to hold a real estate portfolio of more than CHF 0.6 billion in the build-up phase by the end of 2022. In the development phase from 2023 to 2027, the portfolio is expected to grow to a value of around 2 billion. In the first phase until 2022, annual project completions are planned with areas of around 18,000 sqm; thereafter, these areas are expected to increase to around 45,000 sqm per year. By the end of the first growth phase, Ina Invest is targeting a return on equity of 6% to 8%. The annual acquisition budget is expected to average around 50 million, with acquisitions increasingly in the residential sector with rental and owner-occupied apartments. Ina Invest AG intends to finance its growth through mortgage loans, the sale of condominiums and the capital market.

Implenia will retain a minority stake of at least 40% in Ina Invest AG following the spin-off of Ina Invest Holding AG and the planned capital increases of Ina Invest Holding AG and Ina Invest AG. The remaining shares in Ina Invest AG will be held by Ina Invest Holding AG, another newly formed company, whose shares are expected to be listed on the SIX Swiss Exchange on or around 12 June 2020 and distributed to Implenia AG shareholders by way of a dividend in kind. Implenia shareholders will receive one Ina Invest Holding AG share for every five Implenia shares. The NAV per Ina Invest Holding AG share is around CHF 22.50 (respectively around CHF 4.50/Implenia share), based on a valuation by Wüest Partner as of 31 March 2020.

The spin-off and the capital increases will take place in several steps. Following the transfer of Implenia's selected real estate portfolio to Ina Invest AG, the Ina Invest Holding AG shares are to be distributed to Implenia shareholders in the form of a dividend in kind. Subsequently, Ina Invest Holding AG is to increase its share capital by approximately 100 million. As part of this planned capital increase, Implenia shareholders will receive non-tradable subscription rights - the Board of Directors may allocate any subscription rights not exercised to new investors. As already communicated, Swiss Life intends to acquire a significant stake of up to 15% in Ina Invest Holding AG. (bw)