CapitaLand Ascott Trust · SGX:HMN
CapitaLand Ascott Trust — Ascott Residence Trust — Non-Deal Roadshow (August 2010)
41 slides from CapitaLand Ascott Trust's roadshow presentation, Aug 20, 2010
Slide 1: Proposed acquisition of 28 Serviced Residence Properties in Singapore, Vietnam and Europe
NOT FOR DISTRIBUTION IN THE UNITED STATES Ascott Residence Trust Proposed acquisition of 28 Serviced Residence Properties in Singapore, Vietnam and Europe Non-Deal Roadshow Presentation AUGUST 2010 These materials are not an offer of securities for sale in the United This presentation is a summary o
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell, or the solicitation of an offer or invitation to purchase or subscribe for units in Ascott Residence Trust (“Ascott REIT”) in Singapore, the United State
Slide 3: Transaction Summary
Transaction Summary Proposed Interests in 28 serviced residence properties in Europe and Asia (“Target Acquisitions”) for an Acquisitions enterprise value of S$1,394.7(1,2) million Portfolio of 3,347 apartment units in 28 properties across 7 countries Vendors Various wholly-owned subsidiaries of The
Slide 4: Agenda
Agenda Ascott REIT to Acquire 28 Asia and Europe Properties 1 and Divest Ascott Beijing, China 2 Key Benefits of the Proposed Transactions 3 Overview of Funding Structure 4 Summary of Approvals Sought 5 Conclusion 3
Slide 5: Target Properties - Asia
Target Properties - Asia Asia portfolio increases to 39 properties(1) SINGAPORE Asia Target Acquisitions Citadines Singapore Mount Sophia Property Citadines Singapore Mount Sophia Property Japan Somerset Hoa Binh, Hanoi 20 properties China Vietnam 3 properties(1) 4 + 1 properties Philippines Divestm
Slide 6: Target Properties - Europe
Target Properties - Europe Europe target portfolio of 26 properties Europe Target Acquisitions UNITED KINGDOM BELGIUM 4 London properties Citadines Citadines Citadines Citadines London Citadines Citadines London London London Holborn-Covent Bruxelles Bruxelles 10 Paris properties Barbican South Kens
Slide 7: Agenda
Agenda Ascott REIT to Acquire 28 Asia and Europe Properties 1 and Divest Ascott Beijing, China 2 Key Benefits of the Proposed Transactions 3 Overview of Funding Structure 4 Summary of Approvals Sought 5 Conclusion 6
Slide 8: Key Benefits of the Proposed Transactions
Key Benefits of the Proposed Transactions 1 Increase scale and enhance liquidity of Ascott REIT – Rare opportunity to acquire sizeable portfolio of attractive assets mainly located in global cities of Singapore, London and Paris – Asset size almost doubles to S$2.85 billion (Ascott REIT moves from 1
Slide 9: Reduced Exposure to Risks
Reduced Exposure to Risks Minimizing integration issues − Ascott REIT will acquire 100% interest in 26 out of 28 properties − TAL has been managing a substantial portion of the target portfolio for several years Certainty of Equity Fund Raising: fully underwritten − CapitaLand Group undertakes to su
Slide 10: Ascott REIT becomes 6th Largest S-REIT
Ascott REIT becomes 6th Largest S-REIT Total asset size of comparable REITs as at 30 June 2010 (S$ in billion) 7.8 6.0 5.2 4.9 3.1 2.9 2.7 2.7 2.4 2.3 2.0 1.8 1.7 CMT CCT Suntec Ascendas Mapletree Enlarged Indiabulls Starhill K-REIT Fortune FCOT CDLHT Existing REIT REIT LT Ascott Global REIT Ascott
Slide 11: S-REITs: Annualised Distribution Yield
S-REITs: Annualised Distribution Yield Annualised distribution yield of enlarged Ascott REIT versus S-REITs with market capitalisation > S$1.0bn(1) FY2011 Projection 7.5% 7.1% 7.1% 6.7% 6.6% 6.4% 6.1% 6.0% 5.7% 5.7% 5.1% 5.0% 4.8% Suntec MLT Enlarged Starhill Enlarged FCT A-REIT(5) CCT K-REIT CDLHT
Slide 12: Balanced and Diversified Portfolio
Balanced and Diversified Portfolio Geographical division of Ascott REIT’s share of asset values as at 31 December 2009 Existing Pro Forma Enlarged 100% Pan Asia 55% Pan Asia: 45% Europe Australia Germany Spain Indonesia 3% 3% 2% Belgium Singapore 5% Philippines 2% 19% Singapore 9% 27% UK 16% China V
Slide 13: Singapore Target Property
Singapore Target Property Citadines Singapore Mount Sophia is part of Wilkie Edge, an integrated lifestyle development. It is near Orchard Road and in the heart of Singapore’s arts, culture, learning and entertainment hub Singapore serviced residences enjoying healthy occupancies with rental rates t
Slide 14: UK Target Properties
UK Target Properties The UK Target Properties are all located close to London’s business district or popular tourist districts such as Mid-town, Trafalgar Square and South Kensington SR Management Agreements with minimum net operating profit guarantee per annum and remaining terms of 5 to 10 years C
Slide 15: France Target Properties
France Target Properties Of the 17 France Target Properties, 10 are in Paris and the remaining 7 are in some of France’s largest cities such as Marseille and Lyon. The Paris properties are all located in prime areas of the city near famous landmarks such as the Louvre, Eiffel Tower, Notre Dame and t
Slide 16: Target Portfolio: Valuation per Apartment Unit
Target Portfolio: Valuation per Apartment Unit Valuation per Apartment Unit(1) Average Appraised Locations Value per Apartment Unit London £326,000 Paris €238,000 Outside Paris €82,000 Germany, €129,000 Belgium & Spain Singapore S$695,000 Vietnam US$193,000 Source: Savills UK and HVS (Appendix H in
Slide 17: DPU Accretive
DPU Accretive Following completion of the Transactions: DPU accretive(1): +1.9% for the three months ending 31 December 2010 and +4.8% for FY2011 Distribution per Unit (Singapore cents) Annualised 4Q 2010 Forecast FY2011 Projection 7.74 +4.8% 7.35 7.39 7.21 +1.9% Existing portfolio Enlarged portfoli
Slide 18: Increased Income Stability
Increased Income Stability Proportion of EBITDA from master leases and guaranteed income SR 19 of the 28 Target Management Agreements increases from 3.9% to 47.2%(1) Properties are subject to Master Lease Existing Pro Forma Enlarged(2) arrangements Fixed rental payments 52.8% subject to annual adjus
Slide 19: Unlocking Value in Ascott Beijing
Unlocking Value in Ascott Beijing Key Benefits of Divestment Comparison of EBITDA yields(1) Divestment at FY2009 EBITDA yield of 5.7% 1 1.6% for Ascott Beijing, compared to FY2010 annualised EBITDA yield of 5.7% for the Target Acquisitions(1) 2 Gain of ~S$106.2 million and net proceeds of S$168.7 mi
Slide 20: Transactions are in line with Ascott REIT's Strategy
Transactions are in line with Ascott REIT’s Strategy Ascott REIT - more than tripling of asset size since Proposed Transactions listing (S$ million) Yield accretive acquisitions almost doubles asset size, increases market capitalisation and free float 2,850.0 Divestment unlocks value of an asset at
Slide 21: Strong Sponsor – The Ascott Limited
Strong Sponsor – The Ascott Limited World’s largest international serviced residence owner-operator TAL serviced residences footprint Key statistics Right of First Refusal Current Total(1): TAL has granted a Right Over 26,000 Units of First Refusal UK Russia (“ROFR”) to Ascott REIT Belgium Target(1)
Slide 22: Agenda
Agenda Ascott REIT to Acquire 28 Asia and Europe Properties 1 and Divest Ascott Beijing, China 2 Key Benefits of the Proposed Transactions 3 Overview of Funding Structure 4 Summary of Approvals Sought 5 Conclusion 21
Slide 23: Purchase Consideration of Target Acquisitions
Purchase Consideration of Target Acquisitions Purchase consideration for each Property is the average of two independent valuations from Savills and HVS as of 1 July 2010 Net purchase consideration (S$ million) Total Enterprise Value(1) 1,394.7 Aggregate debt, which will be assumed by Ascott REIT (4
Slide 24: Proposed Funding Structure
Proposed Funding Structure Proposed Target Acquisitions General corporate, working capital purposes and associated costs S$814.2 million S$31.4 million Total Uses: S$845.6 million Proposed Divestment Equity Fund Raising Debt Financing(2) (net of expenses) 487.5 million New Units S$168.7 million S$56
Slide 25: Equity Fund Raising
Equity Fund Raising Overview of Issuance of 487.5 million new units Equity Fund Timing of the Equity Fund Raising will be announced in due course Raising It is intended that the Equity Fund Raising will comprise: a non-renounceable preferential offering of new units; and a placement of new units to
Slide 26: Agenda
Agenda Ascott REIT to Acquire 28 Asia and Europe Properties 1 and to Divest Ascott Beijing, China 2 Key Benefits of the Proposed Transactions 3 Overview of Funding Structure 4 Summary of Approvals Sought 5 Conclusion 25
Slide 27: Summary of the Approvals Sought
Summary of the Approvals Sought EGM Resolution Benefits to Ascott REIT unitholders 1 The Proposed Target Acquisitions Transactions are yield accretive and Divestment(1) Increases the scale of Ascott REIT 2 The Proposed Equity Fund Raising Provides partial funds for Target Acquisitions Increases abso
Slide 28: Indicative Timetable
Indicative Timetable Event Date Announcement of Transactions 20 August 2010 Last date and time for lodgment of Proxy Forms 10.00am, 7 September 2010 Date and Time of EGM 10.00am, 9 September 2010 To be determined (but is Target date for completion of the Target Acquisitions and expected to be no lat
Slide 29: Agenda
Agenda Ascott REIT to Acquire 28 Asia and Europe Properties 1 and Divest Ascott Beijing, China 2 Key Benefits of the Proposed Transactions 3 Overview of Funding Structure 4 Summary of Approvals Sought 5 Conclusion 28
Slide 30: Ascott REIT's size and footprint to expand significantly
Ascott REIT’s size and footprint to expand significantly United Kingdom Belgium 4 properties 2 properties France Germany 17 properties 2 properties Japan Spain 20 properties 1 property China 3 properties(1) Philippines Vietnam 3 properties 4+1 properties Singapore 2+1 properties Indonesia 3 properti
Slide 31: Conclusion
Conclusion Acquisition of 28 Asia and Europe properties will almost double asset size to S$2.85 billion Exposure to Serviced Residence Enlarged portfolio will operate under established international brands: Ascott, Somerset and asset class Citadines Quality Assets in 75% of Target Acquisitions (by p
Slide 32: Thank You
Thank You RESIDENCE TRUST
Slide 33: Additional Information
Additional Information RESIDENCE TRUST
Slide 34: Overview of Acquisitions and Divestment
Overview of Acquisitions and Divestment United Kingdom Belgium 4 properties 2 properties Germany France 2 properties 17 properties Japan Spain 20 properties 1 property China 3 properties(1) Philippines Vietnam 3 properties 4+1 properties Current Ascott REIT Target Properties Pro forma Ascott REIT Si
Slide 35: Target Properties
Target Properties Singapore Vietnam France (in Paris) Citadines – Citadines – Citadines – Somerset Hoa Binh, Hanoi Singapore Mount Sophia Property Paris Louvre Paris Trocadéro • Number of Apartment Units: 154 • Number of Apartment Units: 206 • Net Lettable Area (sq m): 7,015 • Net Lettable Area (sq
Slide 36: Target Properties (cont'd)
Target Properties (cont’d) France (in Paris) Citadines – Citadines – Citadines – Citadines – Paris Voltaire République Paris Maine-Montparnasse Paris Les Halles Paris Didot Alésia • Number of Apartment Units: 76 • Number of Apartment Units: 67 • Number of Apartment Units: 189 • Number of Apartment U
Slide 37: Target Properties (cont'd)
Target Properties (cont’d) France (outside Paris) Citadines – Citadines – Citadines – Lyon Presqu’île Lille Centre Grenoble • Number of Apartment Units: 116 • Number of Apartment Units: 101 • Number of Apartment Units: 106 • Net Floor Area (sq m): 5,973 • Net Floor Area (sq m): 3,863 • Net Floor Are
Slide 38: Target Properties (cont'd)
Target Properties (cont’d) Belgium Germany Citadines – Citadines – Citadines – Citadines – Bruxelles Sainte-Catherine Bruxelles Toison d’Or Berlin Kurfürstendamm Munich Arnulfpark • Number of Apartment Units: 169 • Number of Apartment Units: 153 • Number of Apartment Units: 118 • Number of Apartment
Slide 39: Existing Portfolio (1/3)
Existing Portfolio (1/3) Singapore Australia Somerset Liang Court Property, Somerset Grand Cairnhill, Somerset Gordon Heights, Somerset St Georges Terrace, Singapore Singapore Melbourne Perth • Located along River Valley Road with • Located along Orchard Road, • Located in Melbourne’s Central • Loca
Slide 40: Existing Portfolio (2/3)
Existing Portfolio (2/3) Indonesia Ascott Jakarta Somerset Grand Citra, Jakarta Country Woods, Jakarta(1) • Located in the Golden Triangle, • Located in the Golden Triangle, • Located in South Jakarta Jakarta’s business and shopping Jakarta’s business and shopping • 251 units (including bungalows an
Slide 41: Existing Portfolio (3/3)
Existing Portfolio (3/3) The Philippines Somerset Salcedo Property, Ascott Makati Somerset Millennium, Makati Makati • Located in Makati City’s shopping and • Located in Makati City’s shopping and • Located in Makati City’s shopping and business district business district business district • 306 apa
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