Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — Investor Presentation (2022)
39 slides from Vukile Property Fund's investor presentation, Oct 31, 2022
Slide 1: Los Arcos
Los Arcos
Slide 2: Located in Seville, capital of Andalucia region
Slide 3: A city with more than 3M tourists annually
A city with more than 3M tourists +4%vs annually Spending 3 days on 77€ day 2018 average /per person
Slide 4: A city that relies on tourism and is the heart of Andalusia
A city that relies on tourism and is the heart of Andalusia +5% Seville GDP In 2022 TOURISM PUBLIC F&B PRIMARY EMPLOYEES SECTOR SECTOR
Slide 5: Contributing more than €1.3 Bn to the city
Contributing more than €1.3 Bn to the city With remarkable traditions and customs among local residents
Slide 6: Exceptionally well connected
Exceptionally well connected Tamarguillo Avda Ronda de} Avda, Andalucia
Slide 7: Los Arcos was the first Shopping Centre in the city of Seville
Los Arcos was the first Shopping Centre in the city of Seville Inaugurated more than 25 years ago coinciding with the international expo in 1992, and in which you can enjoy a space renewed in 2013 and 2019 with wider and light-filled walkways.
Slide 8: Our customer profile
Our customer profile Age & Gender Shopper profile 51.5% 48.5% Female Male 40 year old woman Lives in Nervión & Santa nta Justa 23.3% 21.7% 45-59 years 30-44 years Lives in a family household ehold with good income level Favourite brands: Segmentation 32% 19% Well-settled Working families. Behaviour
Slide 9: Los Arcos has no customers, it has fans
Los Arcos has no ia ull nasa xowe ied customers, it has fans vs" the shopping centres in Seville. (3) “Without Los Arcos, Seville would not be the same" (=) “| remember being here since my childhood. | came to the cinema with my mother and then we used to eat in McDonadls... Our entire life has been
Slide 10: Main KPIs at the purchase
Main kpis at the purchase Acquisition Price €107m* NOI as per NBO €6.4m GLA 17,906 sqm WAULT MGR: Break 3 years Expiry 7.3 years Key Tenants Zara / Pull & Bear / Hipercor McDonald's / Kiabi / Toys' R' Us Base rentals 31 €/sqm/month Occupancy 93% OCR 16.3% *Transaction costs not included
Slide 11: Around 6.7 Million visits annually
Around 6.7 Million visits annually
Slide 12: Main competition
Main competition +10% shared visitors vs 2019* 3,500 SQM MERCADONA GREAT COMMERCIAL MIX BEST LOCATION *From Jan - Apr 2022 vs same period 2019. Data from Fetch Analytics
Slide 13: More growth to come
More growth to come Connection of Montesierra Avenue and Tamarguillo Square with El Greco Street. Connecting east and north of the city. Integration of different neighborhoods in San Pablo- Santa Justa district. 2,000 new houses next to Los Arcos. Green areas with a total surface of 70,000 sqm. Spor
Slide 14: What have we done over the last years?
What have we done over the last 2 years?
Slide 15: Leader shopping centre with underperforming hypermarket
This shopping centre, leader in Seville, had the traditional hypermarket of more than 10.000 sqm annex to the commercial gallery, that was not performing optimally
Slide 16: Before the purchase we saw the opportunity to add value
Before the purchase we saw the opportunity to add value... ...to transform Los Arcos into the center of reference in Seville
Slide 17: And then, the ROCK & ROLL begins!
And then, the ROCK & ROLL begins!
Slide 18: Timeline evolution of the project
Timeline evolution of the project Acquisition of the unit Start of owned by repositioning Opening Opening Opening May 2019 Sep 2019 Jul 2020 Feb 2021 Oct 2021 More than 30 leasing deals: Relocations, expansions, makeovers and new openings
Slide 19: Restructuring project on the ground floor
Restructuring project on the ground floor 6,3 m€ Capex* 729 GLA updated 10.729 14 new brands More than 280 new job positions Included brands like: Before layout Current layout *Excluding acquisition investment
Slide 20: Transformation of the commercial mix
Transformation of the commercial mix New brands
Slide 21: Transformation of the commercial mix
Transformation of the commercial mix New brands
Slide 22: Transformation of the commercial mix
Transformation of the commercial mix New brands
Slide 23: Transformation of the commercial mix
Transformation of the commercial mix New brands
Slide 24: Transformation of the commercial mix
Transformation of the commercial mix New brands
Slide 25: Transformation of the commercial mix
Transformation of the commercial mix New brands
Slide 26: Transformation of the commercial mix
Transformation of the commercial mix New brands
Slide 27: Transformation of the commercial mix: relocations and expansions
Transformation of the commercial mix Relocations and expansions Extension New of surface concept from 394 to with more 1,580 sqm than 65 sqm
Slide 28: Transformation of the commercial mix: relocations and expansions
Transformation of the commercial mix Relocations and expansions New store New store concept, with a restyling expanding its of the brand area from 198 sqm to with 156 362 sqm sqm
Slide 29: Transformation of the commercial mix: the numbers
Transformation of the commercial mix The numbers Sales increase The tenants involved in the project that were relocated and did a makeover upgrade have an average sales increase of +9,18% Leading brand in food * The reliable supermarket is positioned as number 1 of 20 Mercadona stores in a 5km radio
Slide 30: MediaMarkt and Mercadona store rankings
Our MediaMarkt Store Our Mercadona in Los Arcos is positioned in the province of Seville: is also positioned in the Supermarket 2nd of 4 stores (10 km radius). sector stores in Seville capital city: With the highest dwell time in the store: 47.7´per visit, 1st of 55 in a 5km radius. a 51% more than
Slide 31: Financial KPIs ECI Project
Financial KPIs ECI Project GLA SIGNED AND COMMITTED % 91.3% ADDITIONAL GRI GENERATED €2.1m ADDITIONAL NOI GENERATED €1.8m NOI INCREASE VS BUDGET % +37.32% YIELD ON INVESTMENT 7.10% AVERAGE CASH-ON-CASH 11.7% STILL ROOM TO GROW RENT
Slide 32: Total GLA, parking spaces, brands and catchment area
35,634 1,800 75 1,499,884 sqm Total GLA free parking spaces different brands inhabitants in the catchment area
Slide 33: Recovery index 2022 vs 2019
Recovery index 2022 vs 2019 January 2022 February 2022 March 2022 April 2022 78.8% 86.8% 86.0% 85.6% Footfall January 2022 February 2022 March 2022 April 2022 78.0% 92.9% 86.4% 99.6% Sales
Slide 34: Current KPIs
Current kpis YY y i © Fair value var. (‘000€): © KEY TENANTS: MERCADONA, LEFTIES, MEDIA MARKT, BERSHKA, PULL&BEAR, KIABI, 140,000 MC DONALD'S... 133,180 137,110** Acquisition price: 107m€* 132,810 WAULT by rent 12 years 430,000 8 BASE RENTALS (€/ m2): €24 © OCCUPANCY: 93.5% WAULB by rent: 3.1 years
Slide 35: ESG: Environmental & social performance
ESG: Environmental & social performance Environmental Energy performance Energy projects certifications PV plant project: 3,634,502 kWh off-site renewable energy consumption (100% of common areas Power capacity: 109 kWp (roof) Energy efficiency: consumption) Production: 184,533 kWh (2.4% of estimate
Slide 36: ESG: Portfolio actions
ESG: Portfolio actions Social: a shopping center and campaigns: committed to the community
Slide 37: And what's next?
And what's next?
Slide 38: Next steps in asset management: Los Arcos Phase II
NEXT STEPS IN ASSET MANAGEMENT LOS ARCOS Phase II Solidifying the leading position of Los Arcos, ensuring the most attractive leisure and food area Increasing the GLA by 5,000 sqm Anchoring the new area with a bowling operator surrounded by the most important restaurants and leisure brands TOTAL INV
Slide 39: #CambiamosContigo
LOS ARCOS #CambiamosC ontigo