Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — Investor Presentation (December 2012)
24 slides from Vukile Property Fund's investor presentation, December 2012
Slide 1: Unitholder Presentation
Unitholder Presentation December 2012
Slide 2: Table of Contents
Table of Contents High level transaction overview & update Continued transformation of Vukile Key investment highlights Overview of East Rand Mall Financing structure Indicative timeline and way forward Pipeline 2
Slide 3: Transaction Overview & Update
Transaction Overview & Update East Rand Mall Acquisition East Rand Mall (“ERM” or the “Property”) has been a core part of Sanlam’s portfolio for a number of years - Due to concentration risk Sanlam has decided to sell the Property Vukile is Sanlam’s property asset manager and knows the Property
Slide 4: Transforming Vukile
Transforming Vukile East Rand Mall Acquisition Pre-acquisition as at 30/09/12 Post acquisition Change Number of properties : 82 : 83 +1.2% Rentable area (GLA) : 1,054,323m² : 1,085,546m² +3.0% Portfolio value (directors valuation) : R7,698 million : R8,702 million +13.0% Loan to value : 29.2
Slide 5: Transforming Vukile
Transforming Vukile Stated Objectives 2012 AR “…the next phase of our growth which will be more acquisitive and proactive in nature while not diluting focus from delivering growth in distributions for our unitholders.” “In growing the portfolio, Vukile is committed to remain a diversified fund but w
Slide 6: Transforming Vukile: Delivering on stated strategy
Transforming Vukile Delivering on stated strategy Vukile is aiming to increase its market capitalisation to at least R10 billion within the next 3 years, and is focused on building a fund which is overweight retail. Vukile continues to look for opportunities to improve the quality of its office po
Slide 7: Key Investment Highlights
Key Investment Highlights Transformational Acquisition Relative market liquidity1,2 Acquisition of flagship retail asset and other Bubble size represents market capitalisation 60% smaller properties including Hammarsdale, GRT Linbro Park and Edendale Value traded as a % of market 50% VKE SAC Imp
Slide 8: Key Investment Highlights
Key Investment Highlights Strong Market Performance Vukile has outperformed the sector over the last 36 months Indexed to 100 200 Vukile linked unit price vs. ALSI, PLS Index and the sector (36 months) 180 VKE unit price 160 CAGR = 18.1% 140 120 100 80 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov
Slide 9: Key Investment Highlights
Key Investment Highlights Strong Capacity for Growth Pre-emptive over Sanlam properties still in place Extensive deal making experience with ability to deliver on stated strategy Strong asset management team with proven track record over many years Winner of the 2012 IPD award for the highes
Slide 10: East Rand Mall
East Rand Mall gene VUKILE PROPERTY FUND AWAKEN THE POTENTIAL WITHIN 10
Slide 11: East Rand Mall: Overview
East Rand Mall Overview Largest Tenants (% of GLA) 3,031m² 8,141m² 2018 Edgars Consolidated Stores 20.7% Mr Price Group 9.0% Woolworths 8.7% Foschini Retail Group 7.3% Ster Kinekor Films 5.3% Truworths International 5.2% Pepkor Holdings 3.4% 7,646m² New Clicks 1.9% 2022 Banks 4.1% 65.6% 1,592m² 2017
Slide 12: East Rand Mall: Key Statistics
East Rand Mall Key Statistics Purchase price (50%) R1.115bn Calculated Market Value (as at 31 May 2013) (50%) R1.09bn (98% of purchase price) GLA 62,446m² Number of Tenants 177 Current vacancy 505m² (0,8%) Historical average vacancy 1,6% Average annual growth rate previous 3 years Re
Slide 13: East Rand Mall: Impact of Acquisition
East Rand Mall Impact of Acquisition Market Value R/m² Vacancy as at 30 September 12 19.4% R10,000/m² 16.0% 9.9% R9,448/m² 14.0% R8,000/m² R8,774/m² R8,774/m² 12.0% 13.4% 13.4% R8,013/m² R7,910/m² R7,291/m² R6,000/m² 10.0% 8.0% 8.2% 8.2% R4,185/m² R4,185/m² R4,000/m² 7.6% 6.0% 7.4% 4.0% R2,000/m² 3.
Slide 14: East Rand Mall: Key Considerations
East Rand Mall Key Considerations Shareholder principles and co-ownership considerations 1) Co-ownership agreement - There will be equal representation by Vukile and Redefine on the Manco - Each party will have equal voting rights 2) All decisions will be made within the framework of the existing au
Slide 15: Financing Structure
East Rand Mall Financing Structure Offer price : R1,115 million (50% of the Property) Total purchase price is estimated to be R1,111 million (based on a 1 April 2013 transfer date including price adjustment and transaction costs) c.R350 million funded by way of issuing new Vukile equity c.R2
Slide 16: Proposed Timeline
East Rand Mall Proposed Timeline Event Indicative timing Results announcement Friday 23 November 2012 Detailed cautionary (with financial effects) released on SENS Friday 23 November 2012 Announcement re distribution Friday 23 November 2012 Results roadshow Monday 26 – Wed 28 November 2012 File for
Slide 17: Property Pipeline
Property “Pipeline” Acquisitions and Developments 1 Hammarsdale 2 Linbro Park 3 Edendale Mall 17
Slide 18: Property Pipeline: Hammarsdale
Property “Pipeline” 1) Hammarsdale 18
Slide 19: Hammarsdale Overview
Property “Pipeline” 1) Hammarsdale Overview Locality Mpumalanga township Development cost R193 million Scheduled completion date 31 May 2013 GLA 19,138m² Anticipated final national component 85% Number of tenants 75 Average gross rental R/m² p.m. R101.65 Initial yield on capital expe
Slide 20: Property Pipeline: Linbro Park
Property “Pipeline” 2) Linbro Park 20
Slide 21: Linbro Park Overview
Property “Pipeline” 2) Linbro Park Overview Locality JHB Marlboro off-ramp N3 Development cost R119 million Scheduled completion date November 2013 Development to commence April 2013 GLA 15,000m² Number of units 22 Size range 460m² to 1,870m² Average net rental R/m² p.m. R60.00 Ini
Slide 22: Property Pipeline: Edendale Mall
Property “Pipeline” 3) Edendale Mall 22
Slide 23: Edendale Mall Overview
Property “Pipeline” 3) Edendale Mall Overview Locality Pietermaritzburg Purchase price (50%) R204 million Directors’ valuation R203 million Anticipated transfer date May 2013 GLA 31,700m² (100%) National tenant component 87% by GLA Number of Tenants 112 Current vacancy 5% Average g
Slide 24: Disclaimer
Disclaimer This document has been prepared and issued by and is the sole responsibility of the management of Vukile Property Fund Limited (the “Company” or “Vukile”) and its subsidiaries. No information made available in connection with this presentation may be passed on, copied, reproduced, in whol
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