Alony Hetz Properties & Investments Ltd. · TASE:ALHE
Alony Hetz Properties & Investments — Brockton Everlast — Alony Hetz Capital Markets Conference 2022
26 slides from Alony Hetz Properties & Investments's conference presentation, Mar 23, 2022
Slide 1: Brockton Everlast Presentation
BROCKTON EVERLAST PRESENTATION Alony Hetz Capital Markets Conference PRIVATE AND CONFIDENTIAL 23 March 2022 Tel Aviv
Slide 2: Important Notice
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET IMPORTANT NOTICE This document and its contents are confidential to the persons to whom they are provided and should not be copied or distributed in whole or in part by such persons, or any other person, without the prior written consent of Brockton Everlas
Slide 3: Contents
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET CONTENTS Constantly looking for different perspectives 1 Who Are Brockton Everlast? 2 The Three Factors Driving Strong Real Estate Returns in the UK: Zoning, Stock Selection and NZC 3 Our Portfolio: Overview and Big Picture Strategy Brockton’s Workplace Por
Slide 4: 1. Who Are Brockton Everlast?
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 1. WHO ARE BROCKTON EVERLAST? When: • Founded in 2018. London-based. What: • Investor-developer of both premium workplaces (targeting major office occupiers across all sectors of the economy) and next generation Life Science laboratories • Brockton Workplac
Slide 5: 1. Who Are Brockton Everlast?
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 1. WHO ARE BROCKTON EVERLAST? Our office. Our team. (In Soho, London). (In the market). Our Website. Our philosophy. (Informative). (Insatiably curious about the space needed for dynamic, changing economies). 45
Slide 6: Contents
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET CONTENTS Constantly looking for different perspectives 1 Who Are Brockton Everlast? 2 The Three Factors Driving Strong Real Estate Returns in the UK: Zoning, Stock Selection and NZC 3 Our Portfolio: Overview and Big Picture Strategy Brockton’s Workplace Por
Slide 7: Zoning: key driver of value creation in the UK
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 2. THE THREE FACTORS DRIVING STRONG REAL ESTATE RETURNS IN THE UK: ZONING, STOCK SELECTION AND NZC A. Zoning: The UK is one of the most expensive real estate markets in the world. And Zoning is a key driver of value creation. Q: Why? A: It’s simple. Supply
Slide 8: Stock Selection: Wired, Tired, Expired
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 2. THE THREE FACTORS DRIVING STRONG REAL ESTATE RETURNS IN THE UK: ZONING, STOCK SELECTION AND NZC B. Stock Selection: As both society and the economy re-organises itself (post-Amazon, post-Brexit, post-Covid), where are you invested? WIRED TIRED EXPIRED Ho
Slide 9: NZC (Part One): The Big Picture
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 2. THE THREE FACTORS DRIVING STRONG REAL ESTATE RETURNS IN THE UK: ZONING, STOCK SELECTION AND NZC C. NZC (Part One): The Big Picture – the West (and to an extent, China) are in the early stages of a massive shift towards decarbonisation. The UK was the fir
Slide 10: NZC (Part Two): Real Estate implications of sustainable investing
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 2. THE THREE FACTORS DRIVING STRONG REAL ESTATE RETURNS IN THE UK: ZONING, STOCK SELECTION AND NZC C. NZC (Part Two): The Real Estate implications of the shift to sustainable investing (specifically on UK Offices) Delivering Green and winning buildings invo
Slide 11: Contents
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET CONTENTS Constantly looking for different perspectives 1 Who Are Brockton Everlast? 2 The Three Factors Driving Strong Real Estate Returns in the UK: Zoning, Stock Selection and NZC 3 Our Portfolio: Overview and Big Picture Strategy Brockton’s Workplace Por
Slide 12: 3. Our Portfolio: Overview
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 3. OUR PORTFOLIO: OVERVIEW The London portfolio: 4 assets Size: • 9 assets(1) Telephone House Kings Cross • 1.18m sf across c.40 acres Shoreditch • £1.20bn valuation as of December 2021 Waterside House Marylebone Farringdon The Dovetail Building Income: Pad
Slide 13: 3. Our Portfolio: Overview (Rent Roll)
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 3. OUR PORTFOLIO: OVERVIEW Rent Roll as at 31st December 2021 - £37.6m • Diversified income with 21 resident companies accounting for 83% of total income • 67% of the rent roll derived from strong credit companies Gross Headline Rent by Asset (The Top 21 Oc
Slide 14: 3. Our Portfolio: London portfolio
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 3. OUR PORTFOLIO: OVERVIEW • The London portfolio: branded as Brockton Workplaces • Over 1.0m sf of standing investments and future developments, valued at over £700m in December 2021. • All four assets are located within walking distance of major London tr
Slide 15: 3. Our Portfolio: Oxford and Cambridge portfolio
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 3. OUR PORTFOLIO: OVERVIEW • The Oxford and Cambridge portfolio: branded as Brockton SRI (‘Science Real Estate & Innovation’) • Over 2.0m sf of standing investments and future developments, valued at c.£470m in December 2021. • All the assets are located in
Slide 16: 3. Our Portfolio: Cambridge Science Park
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 3. OUR PORTFOLIO: OVERVIEW • Brockton’s SRI (‘Science Real Estate + Innovation’) portfolio includes c.25 acres of prime investment and development land in Cambridge Cambridge Science Park comprises: • c.2.0m sf of office and labs over c.150 acres (overall F
Slide 17: 3. Our Portfolio: Big Picture Strategy
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 3. OUR PORTFOLIO: BIG PICTURE STRATEGY Three Case Studies that will deliver around 40% of the floorspace and 50% of the rental income of Brockton Everlast’s total development pipeline in the next 10-12 years VALUE CREATION + OPTIONALITY FROM: ZONING + HIGH
Slide 18: 3. Big Picture Strategy: Floor area and rental income gains
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 3. OUR PORTFOLIO: BIG PICTURE STRATEGY • Whilst our portfolio has a blended WAULT(1) of c.5.5 years, the reality is that our NOI expires fairly evenly across this decade, ranging from near term expiries across 2022-23 (eg: The Dovetail Building site and Tel
Slide 19: 3. Big Picture Strategy: Yield on Cost
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 3. OUR PORTFOLIO: BIG PICTURE STRATEGY • By adding significant floor area (STP*) in sectors of the economy that are growing, Brockton Everlast could deliver a high Yield on Cost, significantly above current prime, stabilised cap rates. Equity Requirement Fo
Slide 20: Contents
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET CONTENTS Constantly looking for different perspectives 1 Who Are Brockton Everlast? 2 The Three Factors Driving Strong Real Estate Returns in the UK: Zoning, Stock Selection and NZC 3 Our Portfolio: Overview and Big Picture Strategy Brockton’s Workplace Por
Slide 21: 4. Brockton's Workplace Portfolio in London
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 4. BROCKTON’S WORKPLACE PORTFOLIO IN LONDON • ‘Clean, Green and Seen on Dezeen’* • Post-Covid, post-climate emergency and post-WFH, the 21st century Workplace in London is having to work harder to attract growing companies, to achieve top rents and to maint
Slide 22: Case Study: The Dovetail Building, London
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 4. BROCKTON’S WORKPLACE PORTFOLIO IN LONDON • Case Study 1:The Dovetail Building, London • Location: - 3 min walk from Liverpool Street Station; a 70m passengers pa ‘super-station’ - situated on the edge of both the prime EC3 tower cluster (inc. The Gherkin
Slide 23: Case Study: Telephone House, London
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 4. BROCKTON’S WORKPLACE PORTFOLIO IN LONDON • Case Study 2: Telephone House, London • Location: - 3 min walk from Old Street Underground station and Old Street Roundabout (AKA ‘Silicon Roundabout’), incl. major new placemaking - situated in Shoreditch which
Slide 24: Contents
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET CONTENTS Constantly looking for different perspectives 1 Who Are Brockton Everlast? 2 The Three Factors Driving Strong Real Estate Returns in the UK: Zoning, Stock Selection and NZC 3 Our Portfolio: Overview and Big Picture Strategy Brockton’s Workplace Por
Slide 25: 5. Brockton's SRI Portfolio: DNA, NIA, RoE
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 5. BROCKTON’S SRI (‘SCIENCE REAL ESTATE + INNOVATION’) PORTFOLIO IN CAMBRIDGE AND OXFORD • ‘DNA, NIA, RoE’ • Developing a successful Life Science portfolio requires a detailed understanding of the requirements from large Pharma, CRO providers, Biotech busin
Slide 26: 5. Brockton's SRI Portfolio: UK life science lab undersupply
CONFIDENTIAL, PROPRIETARY AND TRADE SECRET 5. BROCKTON’S SRI (‘SCIENCE REAL ESTATE + INNOVATION’) PORTFOLIO IN CAMBRIDGE AND OXFORD • ‘DNA, NIA, RoE’ Life Science space: technical laboratories (ie: not manufacturing space for pharmaceuticals) • The Life Sciences sector in the UK totals: - c. 6,300 c
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