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Elite Uk Reit — Elite Commercial REIT — Shareholder Meeting (January 2021)
21 slides from Elite Uk Reit's shareholder meeting presentation, Jan 25, 2021
Slide 1: Elite Commercial REIT Extraordinary General Meeting
Elite Commercial REIT Extraordinary General Meeting Acquisition of 58 UK commercial properties primarily leased to the UK Government 25 January 2021
Slide 2: Disclaimer
Disclaimer This presentation should be read in conjunction with the circular dated 28 December 2020 issued by Elite Commercial REIT to its unitholders ("Unitholders"). This presentation is for information only and does not constitute an invitation, offer or solicitation of any offer to acquire, purc
Slide 3: Overview of the Proposed Acquisition
Section 1 Overview of the Proposed Acquisition
Slide 4: Proposed Acquisition – reinforces the Manager's investment strategy
Proposed Acquisition – reinforces the Manager's investment strategy 58 commercial properties Summary of the New Properties primarily leased to UK Government entities, with a Agreed Value £212.5m WALE of 7.4 years(1) No. of assets 58 Agreed Value of £212.5m, with a transaction structure Occupancy 100
Slide 5: Rationale for the Proposed Acquisition
Rationale for the Proposed Acquisition Executing the Manager's stated growth strategy at IPO 1. Extends the REIT's exposure to UK sovereign credit, whilst diversifying occupier mix 2. Stable cashflows and CPI-linked growth from uniquely counter-cyclical occupier 3. Increases exposure to London 4. In
Slide 6: Extends exposure to UK sovereign credit, whilst diversifying occupier mix
1 Extends exposure to UK sovereign credit, whilst diversifying occupier mix New Properties tenant breakdown by Gross Rental Income(2) New Properties add new tenants including: • Responsible for ensuring UK's security • Ministry of Defence 5.6% • 4th largest area of UK government expenditure in 2018/
Slide 7: Stable cashflows and CPI-linked growth from counter-cyclical occupier
2 Stable cashflows and CPI-linked growth from counter-cyclical occupier UK unemployment claimant count (Jan 2008 – Nov 2020) ('000 claimants) Stable cashflows amidst economic uncertainty 3,000 Nov 2020 • Increased need for DWP and 2.7 million Jobcentre Plus locations amidst increase in unemployment
Slide 8: Increases exposure to London
3 Increases exposure to London 36% of New Properties Enlarged portfolio valuation breakdown located in London(2) Yorkshire & Humber East 3% 2% Improves geographical North East London 5% 14% balance of the REIT's Wales portfolio, between London 6% and regional UK Midlands 7% South East 100% Freehold
Slide 9: Increases size and DPU
4/5 Increases size and DPU Portfolio valuation (£ m) Pro forma DPU (pence) (6 Feb 2020 – 30 June 2020) 67% increase in portfolio valuation 531.6(4) 57% increase in market cap(1),(2),(5) 2.02 3.2% DPU accretion(1), (6) 1.95 319.1(3) Existing Portfolio Enlarged Portfolio Existing portfolio Enlarged po
Slide 10: Overview of acquisition financing
Overview of acquisition financing Transaction partially funded • Transaction structured to provide completion certainty regardless of Equity Fund Raising by Consideration Units • Consideration Units issued at a min price of £0.68 per Unit(1) issued to Vendor • PartnerRE, a leading global reinsurance
Slide 11: Unitholders' Approvals
Section 2 Unitholders' Approvals
Slide 12: Ordinary Resolutions for Unitholders' approval
Ordinary Resolutions for Unitholders' approval EGM Ordinary Resolutions 1 To approve the Proposed Acquisition, as an interested person transaction 2 To approve the issue of Consideration Units To approve the proposed transfer of a controlling interest to Elite UK Commercial Fund II as a result of th
Slide 13: Ordinary Resolution 1
Ordinary Resolution 1 1 To approve the Proposed Acquisition, as an interested person transaction No. of Votes Percentage (%) For 66,590,092 99.99% Against 8,000 0.01% 12
Slide 14: Ordinary Resolution 2
Ordinary Resolution 2 2 To approve the issue of Consideration Units No. of Votes Percentage (%) For 66,589,092 99.99% Against 9,000 0.01% 13
Slide 15: Ordinary Resolution 3
Ordinary Resolution 3 To approve the proposed transfer of a controlling interest to Elite UK Commercial 3 Fund II as a result of the issue of Consideration Units No. of Votes Percentage (%) For 66,589,092 99.99% Against 9,000 0.01% 14
Slide 16: Ordinary Resolution 4
Ordinary Resolution 4 4 To approve the proposed Whitewash Resolution No. of Votes Percentage (%) For 29,753,001 99.99% Against 3,000 0.01% 15
Slide 17: Thank You
Confidential Thank You For information on Elite Commercial REIT, do visit our website at www.elitecreit.com or reach out to us at [email protected] to find out more.
Slide 18: Appendix A: The New Properties
Appendix A The New Properties
Slide 19: The New Properties
The New Properties WAULT WAULT Valuation by Agreed New Total Area Valuation by Property Address Region Tenure (to break) (to expiry) BNP Paribas(1) Properties (sq ft) Colliers(1) (£m) (years) (years) (£m) Value (£m) 1 Crown House Crown House, 30 Main Road, Romford, RM1 3HH London Freehold 34,279 7.6
Slide 20: The New Properties (cont'd)
The New Properties (cont'd) WAULT WAULT Valuation by Agreed New Total Area Valuation by Property Address Region Tenure (to break) (to expiry) BNP Paribas(1) Properties (sq ft) Colliers(1) (£m) (years) (years) (£m) Value (£m) 21 Saxon Mill Lane Jobcentre Plus, 90 Saxon Mill Lane, Tamworth, B79 7JJ Mi
Slide 21: The New Properties (cont'd)
The New Properties (cont'd) WAULT WAULT Valuation by Agreed New Total Area Valuation by Property Address Region Tenure (to break) (to expiry) BNP Paribas(1) Properties (sq ft) Colliers(1) (£m) (years) (years) (£m) Value (£m) Leasehold 41 Blackburn House Blackburn House, 1 Theatre Street, NR2 1RG Eas
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