5.9 Mortgages

As of 31 March 2024, Züblin Groupʼs real estate portfolio is financed entirely by one variable-rate loan. The amounts shown as mortgages in the balance sheet include closing fees of kCHF 71 (previous year: kCHF 86). These closing fees are also reflected in the calculation of the average effective interest rate.

The mortgage includes financial covenants which specify, among other things, adherence to certain financial indicators (loan-to-value ratio and equity ratio). The following are the currently applicable financial covenants:

        Loan to Value (LTV)       ≤ 60%
        Equity ratio                    ≥ 10%

Züblin monitors compliance with these covenants on a quarterly basis. The breach of a covenant may have a variety of consequences and can result among other consequences in a higher interest rate or a (partial) repayment of the loan. If the LTV rises above 60%, the company could restore compliance with this financial covenant. The mortgage agreement also contains a “change of control” clause which stipulates the repayment of the entire loan if Züblin Immobilien Holding AG holds less than 50.1% of the voting rights or shares in the borrowing subsidiary or Lamesa Holding SA exercises direct or indirect control over more than 41.65% of the voting rights or shares in Züblin Immobilien Holding AG. A delisting of Züblin Immobilien Holding AG would also lead to an immediate repayment of the outstanding borrowing.

As in the previous year, the Group was in compliance with all its covenants as of the balance sheet date.

Value of investment properties pledged as security for mortgages:

Insurance policies for investment properties have been pledged as security over and above the mortgage lines.

Züblin currently finances itself entirely through mortgages. The balance sheet value as at 31 March 2024 is kCHF 62 929 (previous year: kCHF 64 914). The changes in financing activities during the financial year relate to repayments in the amount of kCHF 3 000 and borrowings in the amount of kCHF 1 000. Non-cash changes occurred in the context of the compounding and discounting (+kCHF 15).