The investment guidelines of Mobimo Holding AG define which principles and criteria the Group companies need to take into account when making investments.
1. Amendments to and compliance with the investment guidelines
The Board of Directors reviews the investment guidelines each year during its strategy meeting and can amend them at short notice to reflect changing market conditions. Amendments are published in accordance with the publication guidelines of the SIX Swiss Exchange. Compliance with the investment guidelines is reviewed by the Real Estate Committee and/or the Board of Directors for each investment decision.
2. Real estate investments
Investment and development properties in Switzerland can be acquired as real estate investments. The preferred ownership model is always full ownership. Other forms of ownership or investments under construction law are not actively sought, but may be approved by the Board of Directors in exceptional cases. The target regions defined in the strategy form the basis of the regional orientation.
2.1. Investment properties
Investment properties are
- residential, business and commercial properties that have been acquired or constructed by the company itself as investment properties with a long-term investment horizon in order to generate an attractive return.
- Business and commercial properties are properties for which more than 50% is used for office, retail or commercial purposes.
- Residential properties are properties for which more than 50% of the total utilisation is residential.
2.2. Development properties
Development properties are
- building plots acquired for the development of real estate or owner-occupied apartments for sale to third parties or for the construction of investment properties for the company’s own portfolio;
- properties with a high vacancy rate and/or structural defects and/or no contemporary use which are acquired for development purposes;
- properties in the investment portfolio that have a long-term vacancy rate of more than 10% which can only be reduced sustainably through construction measures.
2.3. Further principles
The main criteria for the investment decision are
- the quality and the economic development prospects of the site,
- road traffic and public transport connections,
- the attractiveness of the location – architectural concept, construction standard and versatility,
- the occupancy rate or absorption potential as well as the solvency of the tenants and the tenancy structure,
- returns in line with the strategy,
- potential for value and earnings growth.
When selecting investment properties, the aim is to achieve attractive, stable and sustainable returns on the investment portfolio in a broad utilisation mix in the following proportions:
- approximately 30% residential use
- approximately 30% business use (services)
- approximately 30% commercial and similar use (retail).
Investment properties generally have a market value (according to IFRS) of at least CHF 10 million. For investments in development properties, the aim is a market value (according to IFRS) of at least CHF 10 million after completion of development.
Investments are made in developments for third parties if they promise a service income and an attractive return on the investment.
In addition to economic efficiency, all investments are evaluated for environmental sustainability, or nationally or internationally recognised certification such as MINERGIE, 2000-watt society, LEED (Leadership in Energy and Environmental Design) or DGNB (German Sustainable Building Council).
Mobimo can borrow up to 60% of the total value of assets in the short and long term. The following principles must be observed when borrowing debt capital on a consolidated basis:
- Consolidated equity represents at least 40% of the total assets
- The interest coverage ratio (EBITDA in relation to net financial expenditure) does not fall below 2.0
- A net gearing ratio (net financial debt to equity) of less than 150% is maintained.
Derivative financial instruments, particularly swaps and forwards, may be used to hedge against interest rate risks. Derivative financial instruments are to be used exclusively for hedging purposes.
(valid from 1 April 2013)