NOTES to the consolidated financial statements
Accounting Principles
Investis Holding SA (“the Company”) is based in Zurich, Switzerland. Its shares have been traded on the SIX Swiss Exchange since 30 June 2016 (IREN). The consolidated financial statements, prepared as at 31 December 2018, include Investis Holding SA and all its direct or indirect subsidiaries and joint ventures (Investis Group) as well as its shareholdings in associated companies.
The business activity of the Investis Group includes the long-term holding of residential and commercial properties as well as comprehensive real estate services in the areas of property management and facility services.
Basis of accounting
The consolidated financial statements of Investis Holding SA have been prepared in accordance with Swiss GAAP FER as a whole and with the special provisions for real estate companies specified in article 17 of the SIX Swiss Exchange’s Directive on Financial Reporting. They give a true and fair view of the assets, liabilities, cash flows and earnings of Investis Group.
The consolidated financial statements have been prepared applying the principle of historical cost accounting or fair value. Please refer to the “Key accounting and valuation principles” in this chapter for the valuation principles of individual balance sheet items. The income statement is presented by nature. The financial statements have been drawn up on the basis of going concern values.
Assets realised or consumed in the ordinary course of business within twelve months or held for sale purposes are classified as current assets. All other assets are included in non-current assets. Liabilities to be settled in the ordinary course of business or falling due within twelve months from the balance sheet date are classified as current liabilities. All other liabilities are classified as non-current liabilities.
First-time application of Swiss GAAP FER standards
In the year under review the Swiss GAAP FER accounting principles have not been changed.
Consolidation principles
The consolidated financial statements are based on the individual financial statements of the Group companies, which were prepared as at 31 December 2018 and drawn up according to uniform accounting policies. The relevant accounting principles are described below. The consolidated financial statements are presented in Swiss francs (CHF). Unless otherwise stated, all amounts are stated in thousands of Swiss francs (CHF 1,000). Due to rounding, parts of an item that has been broken down may add up to more or less than 100% of the total item.
The consolidated financial statements include all subsidiaries that are directly or indirectly controlled by Investis Holding SA. Investis Group controls a subsidiary if it is exposed to the fluctuating returns of the investment or if it holds rights to these returns and has the ability to influence these returns given its power over the subsidiary. This is the case where the Investis Group holds more than 50% of the voting rights of an entity or where the Investis Group has been granted management of an entity contractually or is exercising control by other means. These entities are fully consolidated; assets, liabilities, income and expenses are incorporated in the consolidated accounts and all intercompany balances are eliminated.
Joint ventures are entities which Investis Group jointly controls with one or more joint venture partners, and whereby Investis Group is heavily involved in the management. Joint ventures are consolidated proportionally.
Associates are all companies on which Investis Group exerts significant influence but does not have control. This is generally evidenced when Investis Group holds voting rights and share capital ownership of between 20% and 50% of a company. Investments in associated companies are recognised using the equity method. Ownership of shares in organisations where Investis has voting rights of less than 20% of the total is recognised as financial assets at acquisition cost, less any necessary write-downs.
Capital consolidation is based on the purchase method. Companies acquired by the Investis Group are included in the consolidated financial statements from the date of obtaining control. The net assets previously recognised by the acquired subsidiary are revalued at acquisition date using uniform Group accounting principles and then consolidated. Any difference between the higher purchase price and the net assets acquired (goodwill) is off-set against retained earnings. Where an off-set takes place with retained earnings, the impact of this theoretical capitalisation and amortisation over the estimated useful life of five years is disclosed separately in the notes.
In a business acquisition achieved in stages (including transactions with minorities) the goodwill is determined on each separate transaction and off-set against retained earnings.
Goodwill arising from acquisitions of associates is recognised as part of the investment.
Companies sold are excluded from the scope of consolidation as of the date on which the Group ceases to have control, with any gain or loss recognised in income. Non-controlling interests in equity and profit are presented separately in the consolidated balance sheet and the consolidated income statement.
Changes in the consolidated companies are disclosed in Note 1.
Translation of foreign currencies
All Group companies prepare their financial statements in CHF.
KEY ACCOUNTING AND VALUATION PRINCIPLES
Cash and cash equivalents
Cash and cash equivalents include cash on hand, current accounts with banks, as well as fixed-term deposits with a maturity of less than three months, and are shown at nominal value. Positions in foreign currencies are translated at the spot rate on the balance sheet date.
Securities
Securities include investments in shares and bonds and include longer-term fixed-term deposits and money market investments with a maturity of more than three months. They are valued at fair value.
Trade receivables and other receivables
Trade receivables and other receivables are stated at nominal value. Provisions for doubtful debts are made in cases where the Group faces a risk of not collecting the outstanding amount. Changes in provisions are recognised in the income statement.
Properties held for sale
Investment properties leased out but intended for sale are classified under current assets as properties held for sale and valued at cost.
Development properties (projects) intended for sale are accounted for at the lower of cost (incl. interest incurred during the construction phase) or fair value and are recognised under current assets. The costs include the plot of land as well as the directly attributable construction costs in line with the construction progress. Discounts are recorded as a reduction in construction costs.
Properties reclassed from investment properties under construction (non-current assets, valued at fair value) are subsequently valued at the lower of this value (including construction costs after reclassification) or fair value.
Investment properties
The portfolio consists of the following categories:
– Residential properties
– Commercial properties
– Properties under construction
– Undeveloped plots of land
Investment properties are held for long-term investment purposes with the aim of realising revenues from the letting of properties. Investment properties are accounted for at fair value and as such are not subject to depreciation. The fair values are updated and calculated using the discounted cash flow (DCF) method on an annual basis by an independent property appraiser based on the individual risk profile per property. Single-family houses and condominiums are valued by the independent property appraiser using a sales comparison approach. In accordance with the provisions of Swiss GAAP FER, increases and decreases in value are recognised in the income statement in the period in which they occur, after consideration of any resulting deferred taxes. Investment properties under construction and undeveloped plots of land are recorded at fair value from the date on which their fair value can be reliably determined. Investis has defined the existence of a final construction permit, plus a definite construction project in which costs and revenues can be determined reliably, as mandatory requirements for a reliable market valuation. If the conditions for a reliable assessment of market value are not yet present, investment properties under construction and undeveloped plots of land are accounted for at cost. Provided they do not lead to an increase in market value, investments and refurbishments are recorded as an expense in the period in which they are incurred.
Borrowing costs for the financing of properties under construction and undeveloped plots of land are capitalised. Other borrowing costs are charged to financial expenses.
Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation and impairment. The depreciation is on a straight-line basis over their estimated useful lives: three to ten years for office and other equipment.
Intangible assets
Acquired intangible assets are stated at cost less amortisation and impairment. The amortisation is on a straight-line basis over their estimated useful lives: three to five years for intangible assets. Internally generated intangible assets are not capitalised.
Investments in associated companies
Ownership interests of more than 20% in companies in which the Investis Group has no control are classified as investments in associated companies and are valued and accounted for using the equity method.
Financial assets and financial assets of related parties
These items include long-term loans and other long-term receivables that are stated at their nominal value.
Deferred tax assets
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which temporary differences or unused tax losses can be utilised.
Impairment of assets
If there is any indication of impairment, an impairment test is performed immediately. If the carrying amount exceeds the recoverable amount, an impairment loss is recognised in the income statement. As the goodwill is already charged against equity at the date of the acquisition, an impairment of the goodwill does not affect the income statement but leads to a disclosure in the notes only.
Trade payables and other liabilities
Trade payables and other liabilities are recognised at their nominal values. They are recognised under current liabilities unless a broader economic perspective requires them to be assigned to non-current liabilities.
Short-term and long-term financial debt
Mortgages and fixed advances that are not repaid within twelve months, but are renewed, are regarded financially as long-term borrowings and disclosed as such in the balance sheet. Amortisations due within twelve months are disclosed as current financial liabilities. Financial debt is stated at its nominal value.
Bond emission costs, reduced by the amount of the premium, are charged in full to the income statement upon issue of the bonds.
Provisions
Provisions are recognised only if the company has a present obligation to a third party as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the obligation can be sufficiently reliably estimated. Provisions are presented as being either short- or long-term in accordance with their expected due dates.
Deferred tax liabilities
Deferred taxes are calculated by applying the balance sheet liability method for any temporary difference between the carrying amount according to Swiss GAAP FER and the tax basis of assets and liabilities. They include deferred taxes on revaluation of investment properties.
The current income tax rates are applied in cantons with a two-tier system. In cantons with a single-tier system there is a separate property gains tax with speculation surcharges or deductions for the period of ownership, depending on the holding period. For properties that are intended for sale, the actual holding period will apply. For the remaining properties, a holding period of 20 years or the effective holding period will apply, provided it is more than 20 years. Liabilities for deferred taxes are not discounted.
The tax rates applied in the financial year and preceding years lie between 17% and 24%.
Pension liabilities
All companies in the Investis Group are members of independent collective pension plan foundations with defined contribution plans. The capitalisation of possible economic benefits (stemming from a surplus in the pension institution) is neither intended nor do the conditions for this exist. A financial obligation is carried as a liability if the conditions for the establishment of a provision are met.
Equity
Treasury shares (own equity instruments held by the Group) are accounted for as a reduction of equity at acquisition cost and are not subsequently remeasured. When shares are sold out of treasury shares, the resulting profit or loss is recognised in the capital reserves, net of tax.
Share-based compensation
Share-based compensation to members of the Board of Directors and the Executive Board are stated at fair value and recognised in personnel expenses in the period in which the service is performed. Share-based compensation is disclosed in chapters 4.2 (for the Board of Directors) and chapter 4.3.3 (for the Executive Board) of the Compensation Report.
Financial result
This item includes interest income and expenses, exchange rate differences, gains and losses on securities and other financial income and expenses.
Derivative financial instruments
Investis has no derivative financial instruments outstanding at the balance sheet date.
Transactions with related parties/shareholders
Related parties include natural or legal persons who could exert a significant direct or indirect influence on financial and operating decisions affecting Investis Holding SA. Organisations that are directly or indirectly controlled by a related party are also classified as related parties. Major transactions with related parties are disclosed in Note 23.
Segment information
The following operating and reporting segments have been identified based on the management structure as well as the reporting to the Executive Board and the Board of Directors:
– Properties: invests primarily in Swiss residential properties
– Real Estate Services: provides comprehensive real estate services in Switzerland
Segment reporting is prepared to operating profit (EBIT) level since this key figure is used for management purposes. All operating assets and liabilities that can be assigned to the segments, either directly or on a reasonable basis, are reported in the respective segment. There are no differences between the accounting and valuation principles used for segment reporting and those used for the preparation of the consolidated financial statements.
The position “segment elimination” contains transactions between segments.
Contingent liabilities and other obligations
Contingent liabilities as well as other obligations for which a provision has not been recorded are assessed at each balance sheet date and are disclosed in the notes to the financial statements. If contingent liabilities or other obligations could lead to an outflow of funds without a useable inflow of funds, and this outflow of funds is probable and can be estimated, a provision is recorded.
Appraisals
The preparation of financial statements requires judgement and assumptions to be made. This will affect the reported asset values, liabilities and contingent liabilities at the balance sheet date, as well as income and expenses during the reporting period. If assumptions that were made at the date of the financial statements to the best of management’s knowledge and belief differ from the actual circumstances, the original assessments and assumptions will be adjusted in the reporting year in which the circumstances change.
Risk management
The Investis Group has a risk management programme. Every year a risk analysis is carried out to compile and document all business risks in accordance with uniform criteria. The identified risks are then assessed according to their probability of occurrence and their potential scope. Financial implications as well as general effects are taken into account when determining the potential impact on the Group. Such risks are then either borne, avoided, reduced or passed on by the measures decided upon by the Board of Directors.
1. Acquisitions and disposals of consolidated companies
Transactions In 2018
On 1 February 2018, Investis Properties SA acquired 100% of the shares in the real estate
company Société d’investissements immobiliers SII SA, Geneva, and merged it into the
acquiring company.
On 1 February 2018, 100% of the shares in Domus Flavia Investments AG, Geneva, were
sold.
On 3 July 2018, Investis Properties SA acquired 100% of the shares in the real estate company Carmat S.A., Lausanne.
On 23 August 2018, Investis Investments SA increased its shareholding in the company La Foncière de la Dixence SA from 75% to 83%.
On 28 August 2018, 100% of the shares in Hotel Investissements et Management SA, Fribourg, were sold.
On 20 November 2018, Investis Investments SA acquired 60% of the shares in the company C.T. Creative Technologies SA, Martigny. The company provides services in the area of property management software solutions.
Non-cash effects in 2018
With the signing of the purchase price agreement for the acquisition of Société dʼinvestissements immobiliers SII SA, Geneva, a deposit of CHF 10.8 million was paid in December 2017. As the transaction was completed only in February 2018, the corresponding cash outflow was reported as increase in other receivables in the net cash from operating activities (cash flow) in the Annual Financial Statements 2017.
With the signing of the purchase price agreement for the sale of Domus Flavia Investment AG, Geneva, a deposit of CHF 1.5 million was received in December 2017. As the transaction was completed only in February 2018, the corresponding cash inflow was reported as increase in other payables in the net cash from operating activities (cash flow) in the Annual Financial Statements 2017.
GROUP INTERNAL MERGERS in 2018
As at 1 January 2018 following Group companies were merged:
- –Casamar AG, Geneva, Jalu SA, Lens, Investis Patrimoine SA, Lens, Les Résidences Privées SA, Lens, Parallax SA, Geneva, Serge Spaggiari SA, Perly-Certoux, Transimo SA, Fribourg, and WEGRA Holding AG, Auenstein, were merged into Investis Properties SA, Lens.
- –Hauswartprofis Baar GmbH, Baar, Hauswartprofis Mägenwil AG, Mägenwil, Hauswartprofis ZH AG, Dübendorf, and Treos AG, Volketswil, were merged into hauswartprofis AG, Mägenwil.
- –Minas-Tirith SA, Wollerau, was merged into Investis Investments SA, Lens.
TRANSACTIONS IN 2017
On 9 January 2017, Investis Properties SA acquired 100% of the shares in the real estate company Alaïa Invest SA, Lens.
On 10 January 2017, Investis Investments SA acquired 100% of the shares in Wegra Holding AG, which holds 100% of the operating subsidiaries of “Hauswartprofis”. The company provides services in the area of facility services and strengthens the respective activity offered by the Real Estate Services segment in the greater Zurich area.
On 10 March 2017, Investis Properties SA acquired 100% of the shares in the real estate company Domus Angelo Sàrl, Luxembourg.
On 1 May 2017, Investis Properties SA acquired 100% of the shares in the real estate company Jalu SA, Geneva.
On 7 July 2017, Investis Properties SA acquired 100% of the shares in the real estate company Parallax SA, Geneva.
On 14 July 2017, Investis Properties SA acquired 100% of the shares in the real estate company Casamar AG, Geneva.
On 15 September 2017, Valotel SA acquired 100% of the shares in the real estate company Hotel Investissements et Management SA, Fribourg.
On 21 November 2017, Investis Investments SA increased its shareholding in the proportional consolidated company La Foncière de la Dixence SA from 50% to 75%. Hence, the company is fully consolidated as of 31 December 2017.
2. Segment reporting
Segment Information 2018
Segment information 2017
3. Revenue from letting of properties
Duration of existing fixed leases of commercial properties
The duration of existing fixed leases of commercial properties was:
Most important tenants
The five most important tenants measured according to property income were (in alphabetical order):
- –As of 31.12.2018: Hospice Général, Permanent Mission of India to the UN in Geneva, Valotel Management (Fribourg) Sàrl, Valotel Management (Rothrist) AG and Valotel Management (Sion) SA
- –As of 31.12.2017: Hospice Général, Permanent Mission of India to the UN in Geneva, Valotel Management (Fribourg) Sàrl, Valotel Management (Rothrist) AG and Valotel Management (Sion) SA
4. Personnel expenses
There are no pension funds with a surplus or deficit (full-value insurance) or employer contribution reserves.
5. Other operating expenses
7. Financial result
In 2018, other financial expenses include CHF 0.4 million (2017: CHF 0.8 million) for the issuance of bonds and CHF 0 million (2017: CHF 0.6 million) for unrealised losses on securities.
8. Income taxes
The difference between the expected income tax expense and the income tax expense shown in the income statement can be explained as follows:
Deferred income taxes are calculated for each subsidiary using the local tax rates. In 2018, the non-capitalised tax assets from losses carried forward decreased from CHF 1.0 million in 2017 to CHF 0.5 million. Deferred income tax assets relate to deferred income taxes on temporary differences. Accrued expenses and other liabilities include accrued taxes of CHF 5.8 million (2017: CHF 0.7 million). In 2017, the anticipated deferred taxes decreased as a result of the determined tax rate changes; this resulted in a positive tax effect of CHF 12.3 million.
Due to the release of deferred tax liabilities the total income taxes resulted in an income in 2017.
In 2017, deferred taxes in the amount of CHF 10.8 million had to be reversed due to an announcement by Canton Vaud on 1 November 2017, that corporate tax reform would be implemented on the cantonal level at the beginning of 2019. This reform sets the new corporate tax rate in the Canton of Vaud at 13.79% as from 1 January 2019.
9. Earnings per share and net asset value
Earnings per share are calculated by dividing the net profit attributable to Investis Holding SA shareholders by the weighted average number of outstanding shares entitled to dividends. For both periods under review there were no dilutive effects.
Weighted average number of shares
Earnings per share
Net asset value per share
Net asset value per share excluding deferred taxes with regard to properties
10. Trade receivables
Receivables from property accounts mainly include expenses for properties that were paid shortly before the balance sheet date but not yet reimbursed by the owners.
11. Properties held for sale
In 2018, the two properties “Rue de Zurich 35” in Geneva and “Rue du Vieux-Chêne 20–22” in Chêne-Bougeries were acquired as part of the takeover of Société d’investissements immobiliers SII SA with the intention to resale. The increases relate to ongoing construction activities of the properties “Saanen”, “Hérémence” and “Chemin des Chantres 8” in St.-Sulpice. The properties "Rue de Zurich 35", “Rue du Vieux-Chêne 20–22”, one apartment in the jointly held (50%) property “Rue du Prado 19” in Lens and one apartment of "Hérémence" were sold. The property “Chemin des Chantres 8” was reclassed from investment properties under construction and the property “Route de Crans 87a” in Lens was reclassed from residential properties.
In 2017, the residential properties “Chemin du Marquisat 15” in St.-Sulpice, “Chamblandes; PPE” in Pully and one apartment in the jointly held (50%) property “Le Prado” in Lens were sold. The land “Saanen”, previously undeveloped plots of land, was reclassified as property held for sale.
On 21 November 2017, Investis increased its stake in the company La Foncière de la Dixence SA from 50% to 75%. Thus, the consolidation method changed from proportional consolidation to full consolidation, which resulted in an addition from changes in scope of consolidation of CHF 6.5 million. The project company is in charge of planning and financing the Dixence Resort development project in Hérémence.
12. Investment properties
Increases consisted of value-enhancing renovations, purchases of buildings and investments.
In 2018, one residential property (Route de Pliany 16–18 in Crans-Montana), one commercial property (Chemin Lambien in Sion) and one property under construction (Route du Lac in Granges-Paccot) were sold. Additionally, the consolidated Group company “Domus Flavia Investments AG” and with it one commercial property (Rue Peillonnex 39 in Chêne-Bourg) was disposed.
In 2017, six residential properties (Avenue Général-Guisan 40 in Pully, Chemin Fagne 1 in Bière, Route de Tsarbouye 61 in Crans-Montana, Route du Pont du Diable 3 in Lens, Rue de la Télérésidence 2 in Lens and one building plot of Route de Crans 87 in Lens) and one commercial property (Chemin de Planchy 15/15a in Bulle) were sold.
The valuation of investment properties was carried out by Wüest Partner AG in accordance with national and international standards and guidelines.
13. Tangible fixed assets and intangible assets
All intangible assets were acquired.
14. Goodwill arising from acquisitions
The goodwill resulting from acquisitions is charged against equity at the acquisition date. The theoretical amortisation is based on a straight-line method over a useful life of five years. The theoretical capitalisation of the goodwill would affect the results of the consolidated financial statements as follows:
Theoretical movements in goodwill
Effect on consolidated income statement
Effect on consolidated balance sheet
15. Non-current financial assets
On 1 March 2018, Investis Investments SA has taken a 28.6% equity stake in PropTech Partners SA (Neho), a start-up company based at the EPFL (Federal Institute of Technology Lausanne). Through its minority stake in Polytech Ventures Holding SA, Investis Investments SA was already indirectly invested in the company and is at balance sheet date the beneficial owner of 40% of this company.
On 27 April 2018, Investis Investments SA acquired a 40% shareholding in YetiVisit SA, in Bulle. This start-up company is working in the field of digital real estate services.
On 26 April 2018, Investis Investments SA acquired a 10.7% shareholding in Lausanne-based Vanguard Internet SA, which offers digital facility services under the “Batmaid” brand.
On 4 June 2018, Investis Investments SA has purchased 10.8% of the share capital of Flatfox AG, a Zurich-based start-up company active in the field of digital services for property management.
On 9 October 2017, Investis Investments SA made a strategic investment by acquiring 50% of the shares in the Venture Capital firm Polytech Ventures Holding SA. Polytech Ventures evaluates industry needs in the field of digitalisation, develops disruptive business models on the basis of this evaluation, and supports innovative start-up companies.
Transactions involving related parties and companies are described in Note 23.
16. Other liabilities
The liabilities from property accounts mainly comprise rental income that was received shortly before the balance sheet date but not yet forwarded to the owners of the relevant properties, or that was used for expenses relating to these properties.
17. Financial liabilities
Mortgages and bonds due for repayment within the next twelve months are reported under current financial liabilities.
In 2018, a CHF 100 million bond, maturing on 12 June 2020, with a coupon of 0.35%, was issued on 12 June 2018.
In 2017, a CHF 140 million bond maturing on 14 February 2019 was issued on 14 February 2017. The coupon is 0.25%. A further bond of CHF 180 million, maturing on 3 October 2022, with a coupon of 0.75%, was issued on 3 October 2017.
As at the balance sheet date, the following bonds are outstanding:
Properties in the amount of CHF 233.7 million (31.12.2017: CHF 245.3 million) were pledged to secure mortgages and available credit lines. Unused credit lines totalled CHF 171 million at 31 December 2018 (31.12.2017: CHF 201 million).
As at the balance sheet date, amounts falling due are as follows:
Interest maturity periods are as follows (composition until next interest rate adjustment):
The weighted average interest rate for all mortgages and bonds amounted to 0.5% (2017: 0.7%).
18. Provisions
The position includes mainly provisions for lease commitments (CHF 0.7 million, 2017: CHF 0.9 million), for warranties (CHF 0.3 million, 2017: CHF 0.3 million) and for pending legal cases and disputes (CHF 0.3 million, 2017: CHF 0.8 million).
19. Deferred taxes
Deferred taxes are calculated using the local applicable tax rates for each subsidiary (see Note 8).
20. Equity
As at 31 December 2018, the share capital consists of 12,800,000 registered shares at a par value of CHF 0.10 each and remains unchanged from 31 December 2017.
Conditional share capital
Article 3a of the Company’s Articles of Association sets out that the Company’s share capital shall be increased by a maximum amount of CHF 30,000 through the issuance of no more than 300,000 fully paid-up registered shares with a nominal value of CHF 0.10 by way of the exercise of options or similar rights belonging to employees and members of the Board of Directors and the Executive Board in accordance with the applicable regulations and resolutions of the Board of Directors.
Article 3b of the Company's Articles of Association sets out that the share capital may be increased by the issuance of up to 1,280,000 fully paid-in registered shares with a nominal value of CHF 0.10 each, up to CHF 128,000, by means of the exercise of conversion rights and/or warrants granted in connection with newly or already issued bonds or similar debt instruments of the Company or its group companies to company creditors and/or investors.
Retained earnings
Retained earnings are only distributable on a limited basis:
- –The retained earnings of Investis Holding SA pursuant to a resolution of the Annual General Meeting
- –The retained earnings of subsidiaries in accordance with local fiscal and statutory requirements, first to the respective parent company
The non-distributable statutory and legal reserves amount to CHF 6.1 million (2017: CHF 7.0 million).
Treasury Shares
In 2018, Members of BoD and EB received part of their compensation in shares (total 12,382 shares, 2017: 0). See compensation report.
In 2017, Investis Holding SA acquired treasury shares for the first time.
21. Contingent assets and liabilities
There are no material contingent assets or liabilities on the balance sheet date.
22. Pledged assets and off-balance sheet lease/rental obligations
23. Transactions with related parties
Business transactions with related parties are based on standard commercial contractual forms and conditions. All transactions are included in the 2018 and 2017 consolidated financial statements. There are loans and services from and to related parties. The respective balances from financial receivables are reported separately in these financial statements (see Note 10 and Note 15).
Among the companies controlled by members of the Boards of Directors is the investment firm Be Capital SA, which is controlled by Stéphane Bonvin.
In 2018, the commercial property “Chemin Lambien” in Sion was sold for CHF 5.1 million to a company controlled by Stéphane Bonvin.
In 2018, the financial assets of related parties (2017: CHF 15.0 million) were fully repaid. In 2017, the financial assets were repaid by CHF 15.0 million. As at 31 December 2018 the trade receivables from Be Capital SA amounted to CHF 0.1 million (2017: CHF 0.5 million).
The consolidated income statement contains rental revenue amounting to CHF 1.4 million (2017: CHF 1.6 million) from the letting of three hotels in Fribourg, Rothrist and Sion to companies controlled by Stéphane Bonvin.
In January 2017, the company Be Capital SA sold its 25% shareholding in Alaïa Invest SA to Investis Properties SA for CHF 0.03 million.
In 2017, the residential properties “Chemin du Marquisat 15” in St-Sulpice and “Chamblandes; PPE” in Pully were sold for CHF 10.6 million to companies controlled by Stéphane Bonvin.
24. Events after the balance sheet date
On 14 February 2019, Investis Holding SA issued a CHF 140 million fixed-rate bond with a coupon of 0.773% and a tenor of two years (until 15 February 2021). The proceeds were used to refinance the CHF 140 million bond expiring on 14 February 2019.
On 28 February 2019, Investis successfully completed the sale, announced on 6 February 2019, of its 100% subsidiary Régie du Rhône Crans-Montana SA, Lens, to Crans Montana Aminona Immobilier S.A. (CMA Immobilier SA).
On 25 March 2019, Investis sold half of its shares in the project company La Foncière de la Dixence SA, Lens, to mjd Développement SA, Nendaz. Following this sale, Investis continues to hold 41.7% of the project company.
The Board of Directors approved the consolidated annual financial statements for publication on 26 March 2019. These statements are also subject to approval by the Annual General Meeting of Investis Holding SA on 29 April 2019.
No other events occurred between 31 December 2018 and the date of approval of the consolidated financial statements, which would require adjustments to the carrying amounts of the Group’s assets and liabilities as at 31 December 2018 or disclosure in this section.