Industries – Real Estate & Construction

REAL ESTATE & CONSTRUCTION

The real estate industry is an important part of the Swiss economy. According to a study published by the Swiss Homeowner Association (HEV), the Federal Office for Spatial Development (ARE) and the Federal Housing Office (BWO), the real estate industry contributes 18% to Switzerland’s GDP and approximately one sixth of all Swiss employees is associated with this industry.

YOUR CONTACT PERSON

Dr. Thomas Vettiger
Managing Partner
thomas.vettiger@ifbc.ch

CURRENT TOPICS & CHALLENGES

Digitalisation

Digitisation remains a key trend in the real estate & construction industry. Building Information Modelling (BIM)-based planning, execution and management of real estate or the implementation of artificial intelligence to increase efficiency and safety in construction processes become increasingly important. Moreover, virtual reality solutions as well as digital media is used within sales and marketing to facilitate the communication between buyers or tenants and the real estate manager.

Trend towards environmental sustainability

The trend towards sustainability is also influencing the real estate & construction industry. Being a significant energy user and producer of greenhouse gases, the industry is increasingly facing criticism and demands from tenants, investors as well as the public. Sustainable investments are, however, not only positive for the environment, but also reasonable from an economic perspective, as they can significantly increase the future value of real estate.

Urbanisation

The growth of megacities and the trend towards increasing urbanisation are important drivers in the construction industry. Furthermore, the development of high-rise residential buildings will continue to increase due to denser constructions. Technological advances as well as the trend towards sustainability are shaping urbanisation significantly. In particular, the redesign of processes to reduce emissions or material usage, for example through additive manufacturing, is highly relevant.

NOTABLE RECENT TRANSACTIONS

Spin-off of Implenia’s development portfolio

In the context of a spin-off, Ina Invest Holding AG was listed on the SIX Swiss Exchange in June 2020, following approval by the Annual General Meeting of Implenia AG. Ina Invest now manages the former real estate portfolio under development of Implenia with a market value of CHF 282 million.

Going private of BFW Liegenschaften AG

In the context of the going private, BFW Holding AG acquired the registered shares of BFW Liegenschaften AG not yet in its possession in spring 2020. BFW Liegenschaften AG is a Swiss real estate company with a portfolio valued at CHF 333 million.

Investis sells Régie du Rhône to Immoparticipation

In August 2019, the Investis Group sold its subsidiary Régie du Rhône SA to Immoparticipation SA in Fribourg. Régie du Rhône offers real estate services in the French speaking part of Switzerland and generated a revenue of CHF 20 million in 2018.

OUR PROJECTS

Other clients
Financial Advisor to the shareholders of CSD Group in partnering with the new majority investment partner Initiative & Finance

The CSD Group, which was owned by its management team, sought to rejuvenate and strengthen its own shareholder structure as part of its growth strategy. As part of their succession plan, the company has found an excellent partner in Initiative & Finance as its new anchor shareholder.

IFBC supported the shareholders of CSD Group as financial advisor in partnering with the new majority investment partner Initiative & Finance.

CSD Group is a Swiss consulting and engineering company that advises both public sector institutions as well as private individuals on environmental, natural resources and construction issues. The group comprises a total of 30 offices in Switzerland, Belgium, Luxembourg, Germany, Italy and Lithuania.

Fairness Opinion in accordance with the Merger Act related to the planned merger between Burkhalter and Poenina

IFBC was mandated by the board of directors of Burkhalter and Poenina to prepare a Fairness Opinion in accordance with the Merger Act assessing the share exchange ratio of the planned merger between Burkhalter Holding Ltd and poenina holding ltd from a financial point of view.
The Burkhalter Group is the leading provider of electrical engineering services to the construction sector and, with almost 50 Group companies, is represented at more than 100 locations in Switzerland. The Group is headquartered in Zurich and employs more than 3’000 people. Burkhalter Holding AG is listed on the SIX Swiss Exchange and has a market capitalization of approximately CHF 400 million.

Poenina is a leading provider of services in the areas of building technology and building envelopes and is represented by 29 companies at 42 locations in Switzerland and the Principality of Liechtenstein. The headquarters are located in Opfikon (ZH). Poenina employs almost 1’500 people. poenina holding ltd is listed on the SIX Swiss Exchange and has a market capitalization of approximately CHF 280 million.

Valuation of Immofonds Asset Management AG for Zuger Kantonalbank

In connection with strategic considerations for a full takeover of Immofonds Asset Management AG, in which Zuger Kantonalbank held a minority stake, IFBC performed a valuation of the management company. The valuation results, applying different scenarios, were used by Zuger Kantonalbank as a basis for the decision to make a successful purchase offer to the co-shareholders.

As leading financial institution in the economic region of Zug, Zuger Kantonalbank provides a full range of banking services to its private, corporate and institutional clients.

Further development of financial management

IFBC has been supporting ANLIKER for years as an external partner in the area of performance management. In addition to the development and ongoing preparation of various planning and budgeting tools, IFBC structured and implemented various reports as a basis for the financial management of ANLIKER's divisions.

ANLIKER is one of the leading construction and real estate companies in Switzerland. With locations in the market areas of Central Switzerland, Zurich, Northeastern Switzerland, Aargau, Solothurn, Basel and Berne, ANLIKER realizes projects for large companies, the federal government and cantons as well as numerous other institutional and private clients.

M&A TRENDS AND MARKET ANALYSIS

NAV multiples of Swiss real estate companies (before deferred taxes)

Median
75%-Quartil
25%-Quartil
>

  • Due to different methods of calculating deferred taxes for the individual real estate companies, NAV values after deferred tax are not fully comparable. We therefore show NAV multiples before deferred taxes as comparative values.
  • Within the time frame of June 2015 to June 2020, the median NAV multiple was between 0.9x and 1.2x. Mid-2020 the multiple amounts to 1.0.

EBITDA multiples of listed European real estate agencies and managers

Median
75%-Quartil
25%-Quartil
>

  • The trading multiple shown is based on the Enterprise Value (EV) at the respective point in time and the EBITDA adjusted for extraordinary events of the last 12 months.
  • The median trading multiple of European real estate agencies and managers was in the range of 6.4x and 11.2x for the period June 2015 to June 2020.
  • With a value of 7.8x, the average multiple as of mid-2020 is only slightly below the multi-year average of 8.1x.

EBITDA multiples of listet European construction companies

Median
75%-Quartil
25%-Quartil
>

  • The trading multiples shown are based on the Enterprise Value (EV) at the respective point in time and the EBITDA of the last 12 months adjusted for extraordinary events.
  • After the median multiples of European construction companies had increased slightly between mid-2016 and 2018, the valuation level since decreased to a range between 6.3x and 7.3x.

Source: Bloomberg.

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