Centuria Capital Group · ASX:CNI
Centuria Capital — Centuria Metropolitan REIT — Merger or Acquisition (April 2015)
37 slides from Centuria Capital's merger presentation, Apr 29, 2015
Slide 1: Centuria Metropolitan REIT Market Update, Acquisitions & $100 million Entitlement Offer
Centuria Metropolitan REIT Market Update, Acquisitions & $100 million Entitlement Offer Centuria Property Funds 29 April 2015 1
Slide 2: Disclaimer
DISCLAIMER Summary information This document has been issued by Centuria Property Funds Limited ABN 11 086 553 639 AFSL No. 231149 (CPFL) in its capacity as the responsible entity of Centuria Metropolitan REIT No. 1 ARSN 124 364 718 and Centuria Metropolitan REIT No. 2 ARSN 124 364 656 (together, "t
Slide 3: Market Update
MARKET UPDATE 3 Forward-looking statements are by their very nature subject to uncertainties and contingencies, many of which are outside the control of CPFL. Please refer to Appendix B (Key Assumptions) and Appendix C (Key Risks)
Slide 4: Market Update: Major Developments Since ASX Listing
MARKET UPDATE: MAJOR DEVELOPMENTS SINCE ASX LISTING Centuria Metropolitan REIT (the Fund) has had an active period since listing on 10 December 2014 1 “Locked-in" low interest rates • On 15 December 2014 the Fund entered into a five year interest rate swap to hedge 100% of its drawn debt at IPO at a
Slide 5: Market Update: Re-statement of PDS Forecast
MARKET UPDATE: RE-STATEMENT OF PDS FORECAST • The Fund has entered into an agreement with CH2MHill to extend the lease over its core premises for three years to 31 March 2019 • As part of the agreement CH2MHill have surrendered 1,102 sqm of surplus space in return for partial upfront payment to the
Slide 6: Acquisitions & Entitlement Offer
ACQUISITIONS & ENTITLEMENT OFFER 60 Marcus Clarke Street, Canberra 6 Forward-looking statements are by their very nature subject to uncertainties and contingencies, many of which are outside the control of CPFL. Please refer to Appendix B (Key Assumptions) and Appendix C (Key Risks)
Slide 7: Acquisitions and Entitlement Offer: Summary
ACQUISITIONS AND ENTITLEMENT OFFER: SUMMARY The Fund seeks to provide investors with income returns and the potential for capital growth 1 Property acquisitions • The Fund has entered into agreements to acquire four properties from three separate vendors (Acquisitions)(1) • The total purchase price
Slide 8: Acquisitions and Entitlement Offer: Property Details
ACQUISITIONS AND ENTITLEMENT OFFER: PROPERTY DETAILS The four properties to be acquired are independently valued at $129.3 million, reflecting an initial yield of 8.5% and are located in the metropolitan markets of Adelaide, Canberra and the Gold Coast Independent Property State Initial yield(2) Cap
Slide 9: Acquisitions and Entitlement Offer: Transaction Rationale
ACQUISITIONS AND ENTITLEMENT OFFER: TRANSACTION RATIONALE The Acquisitions are in line with the Fund's objectives and have strong strategic rationale 1 Quality properties acquired with significant future upside • Acquisitions create a broader platform for future income and capital growth • Acquisiti
Slide 10: Acquisitions and Entitlement Offer: Financial Impact
ACQUISITIONS AND ENTITLEMENT OFFER: FINANCIAL IMPACT The Fund is forecasting a 3.5% increase to distributable earnings in FY16 • The acquisitions are accretive to distributable earnings Key financial metrics PDS(1) Pro forma(2) from settlement FY16 forecast distributable earnings 17.3 17.9 (cents pe
Slide 11: Acquisitions and Entitlement Offer: Portfolio Impact
ACQUISITIONS AND ENTITLEMENT OFFER: PORTFOLIO IMPACT The Acquisitions will significantly increase the size of the Fund’s asset base and provide greater geographic diversification • The Acquisitions: Key portfolio metrics At 31 March 15 Pro forma(1) – have an independent valuation of $129.3 million a
Slide 12: Acquisitions and Entitlement Offer: Portfolio Impact
ACQUISITIONS AND ENTITLEMENT OFFER: PORTFOLIO IMPACT The Acquisitions will maintain the Fund’s strong tenant profile while reducing near term lease expiries • The Acquisitions provide a complementary mixture of income streams from long leases and the potential to add value by leasing vacant space an
Slide 13: Property Details
PROPERTY DETAILS 54 Marcus Clarke Street, Canberra 60 Marcus Clarke Street, Canberra 13 Forward-looking statements are by their very nature subject to uncertainties and contingencies, many of which are outside the control of CPFL. Please refer to Appendix B (Key Assumptions) and Appendix C (Key Risk
Slide 14: Property Details: 60 Marcus Clarke Street, Canberra, ACT
PROPERTY DETAILS: 60 MARCUS CLARKE STREET, CANBERRA, ACT • Also known as the "St George Bank Building" it is adjacent to 54 Marcus Clarke Street. • 13 levels of multi-tenanted accommodation including a ground floor with 5 retail tenancies and 133 car spaces on site • An extensive capital expenditure
Slide 15: Property Details: 35 Robina Town Centre Drive, Robina, QLD
PROPERTY DETAILS: 35 ROBINA TOWN CENTRE DRIVE, ROBINA, QLD • Modern commercial office tower fully occupied by Foxtel, with 6 levels of office accommodation and average floorplates of 1,600 sqm • The property has 268 above and below ground parking spaces • Positioned directly opposite Robina Town Cen
Slide 16: Property Details: 131-139 Grenfell Street, Adelaide, SA
PROPERTY DETAILS: 131-139 GRENFELL STREET(1), ADELAIDE, SA • Built in 2009, the property is located in the core of the Adelaide CBD • The building is strata titled with the Fund acquiring levels 5 – 9 comprising of 4,052 sqm of high quality office space together with 10 secure car parks and a dedica
Slide 17: Property Details: 54 Marcus Clarke Street, Canberra, ACT
PROPERTY DETAILS: 54 MARCUS CLARKE STREET, CANBERRA, ACT • A multi-tenanted building in the Western Core of Canberra’s CBD with nine levels of office accommodation, ground floor retail, a two–storey podium to Rudd Street and one level of basement car parking • Major capital expenditure works have in
Slide 18: Entitlement Offer
ENTITLEMENT OFFER 60 Marcus Clarke Street, Canberra 35 Robina Town Centre Drive, Robina 18 Forward-looking statements are by their very nature subject to uncertainties and contingencies, many of which are outside the control of CPFL. Please refer to Appendix B (Key Assumptions) and Appendix C (Key R
Slide 19: Entitlement Offer: Summary
ENTITLEMENT OFFER: SUMMARY The Acquisitions will be partly funded by a $100 million (2 for 3) non-renounceable Entitlement Offer • The non-renounceable Entitlement Offer is fully underwritten at a fixed price of $2.10 per Stapled Security, representing: – FY16 distributable earnings yield of 8.5% –
Slide 20: Entitlement Offer: Indicative Timetable
ENTITLEMENT OFFER: INDICATIVE TIMETABLE Key event Date1 Trading halt, Institutional Entitlement Offer and Bookbuild opens 10.00am, Wednesday, 29 April 2015 Institutional Entitlement Offer and Bookbuild closes 5.00pm, Wednesday, 29 April 2015 Trading of Stapled Securities recommences on ASX on an ‘ex
Slide 21: Grenfell Street, Adelaide: Approval
GRENFELL STREET, ADELAIDE: APPROVAL Stapled Securityholder approval is required to acquire Grenfell Street, Adelaide • The Fund is acquiring Grenfell Street, Adelaide from Centuria 131-139 Grenfell Street Fund, which is a related party of CPFL, the responsible entity of CMA. Stapled Securityholder a
Slide 22: Conclusion
CONCLUSION 54 Marcus Clarke Street, Canberra 60 Marcus Clarke Street, Canberra 22 Forward-looking statements are by their very nature subject to uncertainties and contingencies, many of which are outside the control of CPFL. Please refer to Appendix B (Key Assumptions) and Appendix C (Key Risks)
Slide 23: Conclusion
CONCLUSION CMA continues to offer investors strong financial metrics with an attractive quarterly distribution, a conservative capital structure, low gearing and the potential for capital growth The Acquisitions are in line with the Fund's strategy to invest in office and industrial assets in Au
Slide 24: Appendix A: Pro Forma Property Portfolio
APPENDIX A PRO FORMA PROPERTY PORTFOLIO 24 Forward-looking statements are by their very nature subject to uncertainties and contingencies, many of which are outside the control of CPFL. Please refer to Appendix B (Key Assumptions) and Appendix C (Key Risks)
Slide 25: Property Portfolio Post Acquisitions
PROPERTY PORTFOLIO POST ACQUISITIONS Independent Initial Cap NLA WALE(3) Property State Type Occupancy(3) valuation ($m)(1) yield(2) rate (sqm) (years) New acquisitions 60 Marcus Clarke Street, Canberra ACT Office 49.1 8.5% 8.3% 12,215 2.2 76.1% 35 Robina Town Centre Drive, Robina QLD Office 46.0 8.
Slide 26: Appendix B: Key Assumptions
APPENDIX B KEY ASSUMPTIONS 26 Forward-looking statements are by their very nature subject to uncertainties and contingencies, many of which are outside the control of CPFL. Please refer to Appendix B (Key Assumptions) and Appendix C (Key Risks)
Slide 27: Key Assumptions
KEY ASSUMPTIONS Key best estimate general assumptions include: Key best estimate specific assumptions include: • the Entitlement Offer completes and the Acquisitions settle by 30 June 2015; Gross property income and direct property expenses • CPI of 2.75% from 30 June 2015 to 30 June 2016; Gross pro
Slide 28: Appendix C: Key Risks
APPENDIX C KEY RISKS 28 Forward-looking statements are by their very nature subject to uncertainties and contingencies, many of which are outside the control of CPFL. Please refer to Appendix B (Key Assumptions) and Appendix C (Key Risks)
Slide 29: Key Risks
KEY RISKS An investment in the Fund is subject to risks, both specific to the Fund and more general risks. Many of these risks are beyond the control of CPFL and if they were to eventuate, may adversely affect the future performance of, or value of an investment in, the Fund. This section identifies
Slide 30: Key Risks
KEY RISKS Risks specific to an investment in the Fund Property liquidity Property assets are by their nature illiquid investments. The Fund may not be able to realise the assets within a short period of time or may not be able to realise assets at valuation. This may affect the Fund’s NTA or Stapled
Slide 31: Key Risks
KEY RISKS Risks specific to an investment in the Fund Breach of covenants A decline in rental income or the value of the Fund's portfolio may cause the Fund to breach covenants under its debt facilities. A breach of debt facilities may result in the debt financier enforcing its security over the rel
Slide 32: Key Risks
KEY RISKS Risks specific to an investment in the Fund Insurance CPFL will ensure that insurance coverage is maintained in respect of each property within the Fund's portfolio (including insurance for destruction or damage to the property and public risk liability) where that coverage is available on
Slide 33: Key Risks
KEY RISKS Risks specific to an investment in the Fund Compliance CPFL is subjected to strict regulatory and compliance arrangements under the Corporations Act and ASIC policy. If CPFL breaches the Corporations Act or the terms of its Australian Financial Services Licence, ASIC may take action to sus
Slide 34: Key Risks
KEY RISKS General risks of an Investment in the Fund Law, regulatory and policy changes Changes in law, government legislation, regulation and policy in a jurisdiction in which the Fund operates may adversely affect the value of the Fund's portfolio and/or the Fund's future distributions. Accounting
Slide 35: Appendix D: Offer Jurisdictions
APPENDIX D OFFER JURISDICTIONS 35 Forward-looking statements are by their very nature subject to uncertainties and contingencies, many of which are outside the control of CPFL. Please refer to Appendix B (Key Assumptions) and Appendix C (Key Risks)
Slide 36: Offer Jurisdictions
OFFER JURISDICTIONS International Offer restrictions This document does not constitute an offer of Stapled Securities in any jurisdiction in which it would be unlawful. Stapled Securities may not be offered in any country outside Australia except to the extent permitted below. United States This doc
Slide 37: Offer Jurisdictions
OFFER JURISDICTIONS Singapore This document has not been registered as a prospectus with the Monetary Authority of Singapore (MAS) and, accordingly, statutory liability under the Securities and Futures Act, Chapter 289 (the SFA) in relation to the content of prospectuses does not apply, and you shou
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