A combination of income sources
HIAG has many value drivers that work together to generate attractive overall returns for shareholders. Thanks to a diversified and high-quality group of tenants, the property portfolio provides stable and projectable income and therefore ensures the distribution of attractive dividends. The added value from site redevelopment comes from three core disciplines: architecture and planning processes, site and project sales and cost and process control. The added value created by the redevelopment process also expands the collateral value for financing new projects. The company thereby manages to press ahead with further redevelopments in its own portfolio without significant additional capital requirements. HIAG invests in infrastructure where its integration at the site provides an economic or environmental benefit. For that reason, HIAG has five hydroelectric plants in its portfolio and invests in network development and cloud infrastructures.
Differentiation through the land bank
The Group disposes of a site portfolio at about 40 locations that stretches over a total surface area of 2.5 million m², 1.6 million m² of which is zoned. In addition to its existing property portfolio, the company currently plans to establish 638’000 m² of additional usable area in roughly 50 redevelopment projects in the short, medium and long-term with an investment potential of approximately CHF 1.8 billion. This large “land bank” together with its impressive track record in site redevelopment, are important distinguishing features for the company. Furthermore, the portfolio provides a broad mix of uses, which, compared with other portfolios, presents a good balance between residential and industrial/commercial use and features a relatively low proportion of office space.
Focused organisation and continual process improvement
HIAG directs its strategic focus towards the activities that it considers to be the most intensive value creators in the development process. Core processes such as site acquisition, control of redevelopment processes, approval procedures, portfolio management and sales activities are primarily carried out internally and can be continually improved through a culture of open feedback. Building management is conducted by our own personnel at sites where HIAG deems it important to be close to the object; for example, in the case of redevelopment activities at sites with an industrial background. At the same time, the company also focuses heavily on the opportunities and usability of new technologies when designing uses, as well as in all core processes. Activities that are exposed to stiff competition, that have low margins or which are very work-intensive are outsourced. This includes, for example, architectural and technical planning, construction work and property management for yielding properties.
Work environment and employee development
The highly qualified HIAG employees are the architects of the corporate culture, which serves as the basis for individual and overall development paths. Thanks to the flat organisational structure and the generally very high level of specialisation, each employee takes responsibility, makes decisions and is often the direct contact person for his or her field of responsibility. Bearing in mind that every employee contributes to success, HIAG promotes training and further education and discusses possible measures in these fields during individual performance reviews. The open exchange between employees and managers, which is both regular and sporadic, is promoted by HIAG’s culture of values. This culture is characterised by trust, the courage to take initiative and a strong team spirit. HIAG always strives for appropriate work requirements, fair remuneration and an extremely attractive work environment.
Good locations in economic areas
HIAG’s sites are very well located. Approximately 92% of the portfolio is located in the economic core regions of Switzerland around Baden/Brugg, Zurich/Zug, in Northwestern Switzerland and Geneva. The scarce land resources in these regions, as well as the recent legally instituted reduction in rezoning of agricultural areas, highlight the need for consolidation and conversion of former industrial sites.
Brand and communication strategy
Thanks to the long-term, consistent, value-based actions of our site developers, the company and the HIAG umbrella brand have gained the valuable trust of important local stakeholders such as tenants, residents and municipal authorities. This presence interacts with site and project brands. Site brands persist in the long term and are therefore deployed strategically for their identity-creating dimensions. Project brands, on the other hand, are limited in time and primarily serve sales, but also remain visible as a reference after the completion of a project.
It is important to communicate transparently and consistently about the redevelopment service rendered in order to credibly fill the HIAG brand environment with relevant content. The perception of the HIAG brand environment can be realistically assessed through personal dialogue with stakeholders. The impressions that are gathered are integrated in the decision-making process on the sites’ strategic focus during the Executive Board’s strategy meetings, which take place several times per year.
In 2016, the HIAG Immobilien brand was shortened to HIAG. The visual focus strengthens the brand’s presence with a clear and concise profile. The shorter version corresponds to the way stakeholders use and perceive the brand. HIAG also benefits from its increasing familiarity as a brand that stands for sustainable site redevelopment in Switzerland.
The HIAG brand family grew by one member during the first half of 2016 with the addition of the fully owned subsidiary HIAG Data. HIAG Data has emerged in the form of an independent HIAG brand and symbolises the logical expansion and further development of the business model from site redevelopment towards network connection and cloud infrastructures.