Goodman Group · ASX:GMG
Goodman — Non-Deal Roadshow (2006)
27 slides from Goodman's roadshow presentation, 2006
Slide 1: Property Services Overview
Property Services Overview Charles Shaw Managing Director; Arlington Property Services 78
Slide 2: APS Objectives
APS Objectives ● To maximise asset value by providing property, IT and facilities management to Arlington’s landlords and occupiers (customers) 79
Slide 3: History and Culture of Arlington Property Services
History and Culture of Arlington Property Services ● Property and Business services - an Arlington cornerstone since inception ● 1997 the establishment of APS ● Strategic objective to manage all assets in-house ● “Integrated property solution enhances asset value” ● Customer services ethic 80
Slide 4: Summary of APS Services
Summary of APS Services Professional ● Collecting Rent ● Rent Reviews ● Lease compliance ● Licenses ● Project ● Fit Out ● Refurbishment ● Churn ● Maintenance ● Service Charge (landlord) ● FM (customers) 81
Slide 5: United Kingdom
a United Kingdom Arlington manned sites 1 ‘Aztec (Bristol) 4 2 Birmingham x 3 Bracknell 4 Capability Green (Luton) Ww 5 Gloucester a 6 Hatfield [6] ‘ Pr 7 Manchester 8 Newcastle Or \ 9 ‘Oxford _ mI 40 Reading/Theale i?) ' "1 The Walnuts (Orpington) | ) 3 _ NF | i i 82 ‘Arlington
Slide 6: Europe
Europe European offices olalelel rn] = Arlington
Slide 7: Some Facts and Figures
Some Facts and Figures - Arlington Securities ● 23 million sqft of assets under management; ● 593 properties – UK and Europe: ● Offices ● Industrial ● Retail ● 2730 occupiers 84
Slide 8: Some Facts and Figures
Some Facts and Figures - Arlington Property Services ● APS manages: ● 14 million sqft ● 366 properties ● Offices ● Industrial ● Retail ● 155 multi let properties ● 1220 customers ● An international team of nearly 50 staff ● International supplier network 85
Slide 9: Working with the Asset Managers
Working with the Asset Managers ● Proactive management of the buildings ● Customer retention ● Property action plans 86
Slide 10: Benefits to the Funds
Benefits to the Funds ● Dedicated in-house property and customer services team ● Integrated “one stop shop” solution to landlords and occupiers ● National and international capability ● Global clients 87
Slide 11: Summary
Summary ● Property Services as a Major Differentiator ● Customer Focus ● European Expansion 88
Slide 12: Growth Strategy Overview
Growth Strategy Overview Rob Wilkinson Managing Director; Business Development 89
Slide 13: Growth Objectives
Growth Objectives ● Maximise value for investors and occupiers ● Create sustainable long term revenue streams ● Exploit synergies between investment, development and property services ● Focus on core sectors ● Targeted growth of balanced mandates ● Expand European coverage and meet in the middle 90
Slide 14: Maximise Value for Investors and Occupiers
Maximise Value for Investors and Occupiers Annualised Return Customer Satisfaction (All Park Averages) 25 21.6 Overall Total 19.4 20 16.6 15.9 ABS Staff Performance 15 13.3 12.7 Service Desk 10 Operations & Quality 5 Control 0 Mobilisation 1 Year 3 Years 5 Years Needs Identification Arlington House
Slide 15: Long Term Synergies
Long Term Synergies ● Integrated model provides long term revenue stream through property cycle ● Cradle to grave provision maximises longevity of revenues ● Development projects provide in-built growth over long term ● ABPP – 446,000 m2 of development with an estimated end value of £1.1bn ● AEBPF –
Slide 16: Focus On Core Sectors
Focus On Core Sectors Business parks - Build out development pipeline - Targeted development site acquisitions in UK - Achieve scale and pan-Euro portfolio Logistics - Acquire seed portfolio - Enhance development and property management - Launch European logistics fund Science parks - Acquire furthe
Slide 17: Targeted Growth of Balanced Mandates
Targeted Growth of Balanced Mandates Balanced Funds Fund of Funds Direct Mandates - Strong investor - Growing market - Increased allocations appetite - Popular in Europe - Tender process - Diversified direct - Limited competitions - Investment commercial property - Arlington launching consultants ke
Slide 18: European Coverage
European Coverage ● Expand European office network ● People or assets first? ● Recruitment and potential smaller acquisitions in all three business units ● Leverage off Macquarie Goodman investor and occupier relationships ● REITs 95
Slide 19: Arlington European Business Parks Fund Overview
Arlington European Business Parks Fund Overview Nick Murray Managing Director; Investment Services Europe 96
Slide 20: Fund Strategy
Fund Strategy ● Pan-european fund focussed on prime business parks ● Research driven targeted locations ● Diversified portfolio of assets ● Total Return investment focus ● Mix of investments and development – 80/20 rule ● Development agreements/options over land ● Long term management structure ● Cu
Slide 21: Fund Overview
Fund Overview ● Key Facts ● 4 assets totalling € 269 million ● Target size € 1+billion ● Net assets of € 528 million ● Gearing limited to 60% LTV ● Target return European offices ex CBD +2% ● Development pipeline of €500 million Dec 2005 - €268.7 mn Paris - €40.4 mn Lyon - €32.0 mn Madrid - €167.0 m
Slide 22: Target Locations
Target Locations Hamburg Amsterdam Utrecht Berlin Rotterdam Düsseldorf Brussels Frankfurt Key Paris Munich Nantes Strasbourg Acquired Milan Lyon Tier 1 Aix Active targets Toulouse Marseille Rome Barcelona Madrid Lisbon Valencia 99
Slide 23: Arlington Business Park, Paris Val d’Europe
Arlington Business Park, Paris Val d’Europe Park Facts Total Area 185 hectares Arlington Square 14,260 sq m Vacancy Rate 54% (7,695 sq m) Average Rent €190 Equivalent Yield 7.50% - 8.75% No. of Park Tenants 4 Spec. development 6,684 sq m 100
Slide 24: Arlington Business Park, Barcelona
Arlington Business Park, Barcelona Park Facts Total Park Area 8.6 hectares Phase 1 (Manzana B) 3.3 hectares Phase 2 (Manzana A) 2.75 hectares Phase 3 (Manzana C) 2.55 hectares Planning for up to 89,680 sq m (NIA) of offices and associated retail Equivalent Yield 6.25% 101
Slide 25: Arlington Business Park, Barcelona (cont’d)
Arlington Business Park, Barcelona (cont’d) Bldg No. Area Completion Bldg 1 12,153 sq m February 2007 Bldg 2 9,528 sq m 17 October 2006 Bldg 3 4,548 sq m 27 October 2006 Bldg 4 6,676 sq m February 2007 102
Slide 26: Arlington Business Park, Madrid
Arlington Business Park, Madrid Park Facts Total Area 73,034 sq m Vacancy Rate (approx.) 10.4% (7,506 sq m) Average Rent €124 Equivalent Yield 6.23% Park Population 4,000 No. of Park Tenants 107 103
Slide 27: Parc Mail, Lyon
Parc Mail, Lyon Park Facts Total Area 4.8 hectares Vacancy Rate 27% (3,261 sq m) Average Rent €140 Equivalent Yield 7.07% No. of Park Tenants 10 Park Population c. 725 Principle established to purchase additional 1.2 hectares accommodating approximately 4,000 sq m 104