Commercial Teaser

COMMERCIAL TEASER

H4S MICROLIVING – CHIASSO TI

© ValoRizE AG, Balzers H4S Microliving - Chiasso Confidential Commercial Teaser The H4S Microliving project A detailed and comprehensive Study from PWC shows that for the over 8’000 students of the universities in Ticino – and, with Como, 11’000 students in a radius of 10 minutes by public transportation around Chiasso - there is practically no offer for student accommodation. On the contrary, there is a great demand for affordable student apartments, as well as a strong demand from other target groups such as language students, young workers, corporate clients, tourists and travellers. Based on these considerations valoRizE is developing, in cooperation with local architects and specialists, a forward-looking student facility with 457 units, designed to comply with the most modern standards. Object Accommodation facility

Project data Plot size: 18‘639 m2

Building area: 14’503 m2 Usable area: 10’215 m2 Building volume: 38’000 m3

Spatial data

+423 377 19 11 19 377 +423

Number of buildings: 11 | Number of residential units: 457 The project is located right beside the Chiasso train station with the Number of parking lots: 23 best connections to Mendrisio and Lugano, where most of the approximately 8’000 students study. The University of Como is also Time schedule

very well connected by public transportation. Building permit: Spring 2020 www.valorize.info www.valorize.info The new headquarters of the Tailoring School and the College of

Construction start: Summer 2020 | Clothing Technology and Fashion will be built next to the Chiasso train Construction period: 23 months station. Completion: Summer 2022 Balzers 9496 , The building application process is currently ongoing and will be Ready for occupancy: Winter 2022

submitted for approval in the summer of 2018. The project can be Höfle 38 Höfle

realized in three stages with approx. 150-200 units each. The plan is to Project status | create a campus compound consisting of eleven buildings, each with a

Building application process ongoing ag

different number of studio apartments. E iz

The approximately 24 m2 apartments are offered furnished and fully Financials R [email protected] [email protected] equipped. In addition to a bed, a desk and a closet, the standard Rental income: CHF 3.20 mio valo equipment includes a living room, a kitchen and a bathroom. Selling price: On request Additional services such as Restaurant, library, fitness centre, laundry room and vending machine rooms areas are provided, as well as freely available bicycles. The monthly rent is CHF 565 / unit, far below the average for comparable offers.

www.h4s.immo Version: 29.08.2019 10:10:00 Page 2 / 5 ©2019 valoRizE ag, Balzers H4S Microliving - Chiasso Confidential Commercial Teaser Chiasso Chiasso is located within the administrative district of Mendrisio of the canton Ticino, near the A2 motorway (Basel- Lucerne-Gotthard-Lugano-Chiasso), which flows into the Italian A9 in the direction of Milan, whose city centre can be reached by car in less than 45 minutes. The Chiasso train station has been connected to the Gottardo basis tunnel, opened in 2016, making it part of the connection between Italy and the German-speaking Switzerland. It’s expected that tourism in Ticino will benefit from this new connection.

Chiasso Address: Via L. Favre, CH-6830 Plot: 1281, 1820, 1358 State: Switzerland

Canton: Ticino (TI) District: Mendrisio BFS-No.: 5250 UN/LOCODE: CH CHI

Elevation: 230 m above sea level 11 19 377 +423

| Area: 5.3 km² Population: 8‘174 (12/2015) Density: 1‘542 /km²

Website: www.chiasso.ch

www.valorize.info www.valorize.info

| The property is conveniently located within easy walking distance of the railway station, with several bus stops nearby

and only one kilometre to the next motorway exit (A2). Shops of daily necessities are numerous in Chiasso and various Balzers 9496 , leisure activities such as cinemas, sports facilities, restaurants etc. are all close by. In close proximity to the property is

located a post office and a selection of different banks. The area around Chiasso station will change significantly over Höfle 38 Höfle

the next few years. SBB is investing over CHF 240 million in the renewal of the station. The investment foundation of

Credit Suisse invests CHF 72 million close to the station in a retirement home, rental apartments, commercial space ag

and a public underground car park. E

valo [email protected]

1) Home4Students

2) SBB renovation and new Fashion school Investment: CHF 240 mio by 2024

3) Credit Suisse Tertianum (retirement home) Investment: CHF 72 mio by 2019

www.h4s.immo Version: 29.08.2019 10:10:00 Page 3 / 5 ©2019 valoRizE ag, Balzers H4S Microliving - Chiasso Confidential Commercial Teaser Market analysis A study conducted by PWC in 2018 shows a demand for student housing in Ticino for clearly more than 500 units. Excerpt study: „The high occupancy rate of residential homes in Switzerland shows that the small proportion is not due to a lack of demand, but due to the too low supply and there is potential for further student dormitories. Based on a German study, there is a demand potential of about 10% of Swiss students who would like to live in a dorm. This would correspond approximately to a potential of about 540 additional dormitory places in Ticino alone. […] Thus, Chiasso still has potential as a location for students and young adults. “

Table: Overview of Success Factors for Student Housing for H4S

Success factor Fulfilment Note

Sufficient size and brightness of A living space of about 30 m2 per student is preferred 01

the apartments - H4S offers bright apartments of 24 m2

75 % of the students prefer their own room with bathroom Single room with private (kitchen and / or living room can be shared rooms) 02 bathroom - H4S offers single rooms with private bathroom and kitchenette

+423 377 19 11 19 377 +423

Furnished apartments are an advantage especially for | 03 Furnished apartments foreigners or exchange students - H4S offers furnished apartments

Presence of communication elements such as Internet and TV Other equipment of the is mandatory 04 apartments / rooms - H4S provides apartments with internet access and TV

connection www.valorize.info www.valorize.info

The rent should not exceed 450.00 to 800.00 CHF per month | and per student 05 Favourable rent

- H4S provides a rent of around 565.00 CHF per month and Balzers 9496 , student

University should ideally be within a radius of 5 km Höfle 38 Höfle

As close as possible to the

06 - H4S does not meet this criterion in total, since some | university

universities extend a radius of 10 to 20 km (see chapter 8.4).

Well developed, inner city location - good shopping structure, R various possibilities of entertainment, varied leisure offer

07 Central location [email protected] [email protected] - H4S offers a variety of Point of Interests in the immediate valo vicinity

Access to public transportation should be given as well as 08 Good transportation link accessibility by bicycle - H4S offers a good transportation link

E.g. parking lots / bike storage rooms, laundry rooms, contact 09 "Services" person on site - H4S offers a variety of additional services

***

Martin Meili Managing Director [email protected]

Disclaimer

This document is prepared and published by valoRizE AG ("valoRizE"). The rights to the material to which we refer, belong to the

parties who elaborated the reports. This material is for your information only and is not intended as an offer, or a solicitation of an offer, to buy or sell any investment or another specific product. Certain services and products are subject to legal restrictions and cannot be offered worldwide on an unrestricted basis and/or may not be eligible for sale to all investors. Past performance of an investment is no guarantee for its future performance. Changes in foreign exchange rates may have an adverse effect on the price, value or income of an investment. All information and opinions expressed in this material were obtained from sources believed to be reliable and in good faith, but no representation or warranty, express or implied, is made as to its accuracy or completeness

(other than disclosures relating to valoRizE). All information and opinions as well as any prices indicated are current as of the date +423 377 19 11 19 377 +423

of this report and are subject to change without notice. The analysis contained herein is based on numerous assumptions. Different | assumptions could result in materially different results. Opinions expressed herein may differ or be contrary to those expressed by other business areas or divisions of valoRizE as a result of using different assumptions and/or criteria. At any time, investment decisions (including whether to buy, sell or hold) made by valoRizE and its employees may differ from or be contrary to the opinions expressed in valoRizE research publications. Some investments may not be readily realizable since the market is illiquid and therefore valuing the investment and identifying the risk to which you are exposed may be difficult to quantify. valoRizE relies on information barriers to control the flow of information contained in one or more areas within valoRizE, into other areas, units,

divisions or affiliates of valoRizE. Additional information will be made available upon request. The analyst(s) responsible for the www.valorize.info www.valorize.info preparation of this report may interact with trading desk personnel, sales personnel and other constituencies for the purpose of gathering, synthesizing and interpreting market information. Tax treatment depends on the individual circumstances and may be | subject to change in the future. valoRizE does not provide legal or tax advice and makes no representations as to the tax treatment

of assets or the investment returns thereon both in general or with reference to specific client's circumstances and needs. We are , 9496 Balzers 9496 , of necessity unable to take into account the particular investment objectives, financial situation and needs of our individual clients and we would recommend that you take financial and/or tax advice as to the implications (including tax) of investing in any of the

products mentioned herein. This material may not be reproduced or copies circulated without prior authority of valoRizE. valoRizE Höfle 38 Höfle

expressly prohibits the distribution and transfer of this material to third parties for any reason. valoRizE accepts no liability |

whatsoever for any claims or lawsuits from any third parties arising from the use or distribution of this material. This report is for ag

distribution only under such circumstances as may be permitted by applicable law. Forecasts and estimates are current only as of E the date of this publication and may change without notice. Additional information on the relevant authors of this publication and iz other publication(s) referenced in this report; and copies of any past reports on this topic; are available upon request from valoRizE. R

Because this publication avoids the use of legal language, information about the law may have been expressed in general

valo [email protected] statements. All information provided by valoRizE is intended as general information regarding real estate and should never be treated as specific advice or recommendations. valoRizE is not regulated in by the FMA or other equivalent authorities in any other jurisdiction. valoRizE only discusses available real estate investment opportunities with qualified valoRizE clients with whom valoRizE is satisfied have sufficient knowledge to make an informed decision. While valoRizE endeavours to identify innovative and exclusive, low risk real estate investment opportunities, both valoRizE and its clients acknowledge that all real estate investments, real estate and otherwise, are subject to an element of risk. While the information presented in this report has been researched and is thought to be reasonable and accurate, any real estate investment is speculative in nature. valoRizE cannot and do not guarantee any rate of return or investment timeline based on the information presented herein. No part may be reproduced by any process without prior and written permission from valoRizE. External Asset Managers / External Financial Consultants: In case this research or publication is provided to an External Asset Manager or an External Financial Consultant, valoRizE expressly prohibits that it is redistributed by the External Asset Manager or the External Financial Consultant and is made available to their clients and/or third parties.