Plaza Centers N.V. · LSE:PLAZ
Plaza Centers — Debt Investor Presentation (November 2013)
37 slides from Plaza Centers's debt investor presentation, November 2013
Slide 1: Plaza Centers N.V. Debt Restructuring
PLAZA CENTERS N.V. Company Presentation Debt Restructuring November 2013
Slide 2: Disclaimer
Disclaimer The information detailed in this presentation is subject to the general reservations and the risk factors detailed herein. • This presentation does not constitute a proposal and/or an offer and/or invitation by or on behalf of Plaza Centers N.V. (the “Company”) and/or any of its affiliate
Slide 3: 1. General
1. General 3
Slide 4: General – About the Company
General – About the Company Plaza Centers is a leading emerging markets developer of shopping and entertainment centers, focusing on developing new centers and, where there is significant redevelopment potential, redeveloping existing centers, in both capital cities and important regional centers •
Slide 5: Overview - Plaza's Liquidity Issue
Overview - Plaza’s Liquidity Issue The financial crisis in Europe coupled with the liquidity shortage in the Israeli capital markets has led to a mis-alignment between Plaza’s debt service needs and its ability to generate cash flows from business operations Europe Financial Crisis Israeli Public De
Slide 6: 2. The Company's Profile
2. The Company’s Profile 6
Slide 7: Plaza Centers - Business Card
Plaza Centers - Business Card Plaza Centers is a leading emerging markets property developer, focusing on western-style shopping and entertainment centres Business Description Real Estate Portfolio • 17-year track record of developing shopping & entertainment centres in CEE - Plaza Centers has been
Slide 8: Total 30 Assets in nine countries
Assets Portfolio The company has future growth potential through its attractive development assets and a number of yielding assets designated for sale (for a list of main assets see Appendix A) Total 30 Assets in nine countries Active (7) Offices (2) Development (6) Plots Pipeline (15)* 6 3 1 2 2 2
Slide 9: Capital Markets Milestones
Capital Markets Milestones Plaza’s shares are traded on the Main Board of the London Stock Exchange (LSE) and also listed on the Warsaw Stock Exchange (WSE) Capital Markets Shareholding Structure • On 1 November 2006, Plaza raised ₤166m Elbit Imaging 62.52% (€247m) from its IPO and began trading on
Slide 10: History of capital raising and bond repayments of the Company
History of capital raising and bond repayments of the Company The Company raised debt in Israel by issuing marketable bonds and in Poland by private issuance Series A Series B Polish Bonds Israeli Bonds Israeli Bonds NIS *EURO Bond raising 401,850,451 1,483,126,346 15,085,058 Directly purchased by P
Slide 11: The Company's Consolidated balance sheet
The Company’s Consolidated balance sheet The Company’s consolidated balance sheet as of June 30, 2013 (EURO in thousands) LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Interest bearing loans from banks 186,452 Liabilities held for sale 3,997 Debentures at fair value through profit or loss
Slide 12: 3. Debt restructuring – scheduling principal payments to asset realization dates
3. Debt restructuring – scheduling principal payments to asset realization dates 12
Slide 13: Debt restructuring – Rationale
Debt restructuring – scheduling principal payments to asset realization dates Rationale • The income generating assets are qualitative and may be improved further. • Land reserves represent a potential for initiation and betterment. • The management team is highly professional and skilled, and has e
Slide 14: The circumstances for addressing the creditors
Debt restructuring – scheduling principal payments to asset realization dates The circumstances for addressing the creditors • The Company exhausted all the available possibilities to meet its repayment obligations. • Lack of reasonable sources for material cash flows in the immediate/short term. •
Slide 15: The actions taken by the Company during last year
Debt restructuring – scheduling principal payments to asset realization dates The actions taken by the Company during last year Last year, the Company increased its efforts to generate cash flows in the following ways: • Asset realization – five assets were realized and the consideration balance rec
Slide 16: The Company's guiding principles
Debt restructuring – scheduling principal payments to asset realization dates The Company’s guiding principles • Most of the Company’s assets are in process of being intensively managed and improved prior to their sale. Transferring the assets for realization in their current condition to receiver/l
Slide 17: The Company's address to the shareholders and creditors
Debt restructuring – scheduling principal payments to asset realization dates The Company’s address to the shareholders and creditors To the shareholders The Company will address the shareholders requesting capital/monetary inflow to the Company by way of issuing rights in a scope of EUR 20 million.
Slide 18: Request to Israeli bond holders and Polish institutional holders
Debt restructuring – scheduling principal payments to asset realization dates The Company’s address to shareholders and creditors – itemizing the request to the Israeli bond holders and the institutional holders in Poland Israeli bond holders and the institutional holders in Poland Principal payment
Slide 19: Payment deferral and equity upside
Debt restructuring – scheduling principal payments to asset realization dates The Company’s address to shareholders and creditors – itemizing the request to the Israeli bond holders and the institutional holders in Poland Payment Deferral – This would occur in the event that in two years from the ar
Slide 20: Collaterals and instructions on unpledged assets
Debt restructuring – scheduling principal payments to asset realization dates The Company’s address to shareholders and creditors – itemizing the request to the Israeli bond holders and the institutional holders in Poland Collaterals - a negative pledge on all of the Company’s assets. The asset valu
Slide 21: Request to banks with recourse rights
Debt restructuring – scheduling principal payments to asset realization dates The Company’s address to shareholders and creditors – itemizing the request to banks with Recourse rights To banks with Recourse right Debt balance to banks – the debt balance in the Company’s books as of 30.9.13 amounts t
Slide 22: Expected Cash Flow under reasonable market conditions
Debt restructuring – scheduling principal payments to asset realization dates Expected Cash Flow under the assumption of reasonable market conditions H2/2013 H1/2014 H2/2014 H1/2015 H2/2015 H1/2016 H2/2016 H1/2017 H2/2017 H1/2018 Cash - Opening Balance(1) 94 32 49 50 48 56 49 33 61 97 Proceeds from
Slide 23: 4. Appendix A – Details of the Company's assets
4. Appendix A – Details of the Company’s assets 23
Slide 24: Plaza Centers - Operating Assets
Plaza Centers - Operating Assets Poland Location Torun, Poland • Operating shopping and entertainment Shopping and centre Concept entertainment centre • Located in Central Poland GLA (sqm) 40,000 • Opened to the public in November 2011 • Current annual revenue from rent – €6.5M Occupancy 88%* (Expec
Slide 25: Plaza Centers - Operating Assets
Plaza Centers - Operating Assets Serbia • Operating shopping and entertainment Location Kragujevac, Serbia centre Shopping and • Located in Central Serbia Concept entertainment centre • The first western style shopping center GLA (sqm) 22,000 built outside the capital city • Opened to the public in
Slide 26: Plaza Centers - Operating Assets
Plaza Centers - Operating Assets India • Operating shopping and entertainment Location Koregaon Park, Pune centre • Located in Pune, India Shopping and • Opened to the public in March 2012 Concept Entertainment Centre • The company's first completed project in GLA (sqm) 41,000 India. Occupancy 85%*
Slide 27: Plaza Centers - Current Developments
Plaza Centers - Current Developments • The planned scheme will include a shopping and Poland Location Lodz, Poland entertainment centre project Concept Commercial • Located in one of Poland’s largest cities with GLA (sqm) 35,000 750,000 inhabitants Value upon • The company is currently obtaining per
Slide 28: Plaza Centers - Current Developments
Plaza Centers - Current Developments • The scheme will include a shopping and Romania Location Bucharest, Romania entertainment centre, main underground car Concept Commercial park and Public Authority Building (PAB) GLA (sqm) 76,000 • The Romanian Government is a 15% partner in the scheme alongside
Slide 29: Plaza Centers - Current Developments
Plaza Centers - Current Developments Romania Location Timisoara, Romania • The planned scheme will include a shopping Concept Commercial and entertainment centre GLA (sqm) 36,000 • Located in West Romania in a city with over Value upon 300,000 inhabitants 68 (Euro m) completion* • Plaza Centers’ sha
Slide 30: Plots Pipeline
Plots Pipeline Plaza has a strong plots pipeline, with a total of additional 1.2 million sqm of GLA/GBA to be built Percentage Value Upon Current Value* Country Project Type GLA/ GBA (sqm) Holding Completion* (€m) (€m) Romania Targu Mures Commercial 30,000 100% N/A** 6 Romania Slatina Commercial 17,
Slide 31: 5. Appendix B – the Company's operating milestones
5. Appendix B – the Company’s operating milestones 31
Slide 32: Historical Business Cycle
Historical Business Cycle 17 year track record of developing shopping & entertainment centres in CEE — Plaza Centers has been active in the region since 1996 and was the first to develop western-style shopping and entertainment centres in Hungary 1996 First investment in Hungary 1996–2004 Developed
Slide 33: Biggest Exit of a Single Asset
Biggest Exit of a Single Asset The sale of Arena Plaza represented circa 20% of all real estate transactions by value in Hungary during 2007 Lettable area – 66,000 m2 Project cost – €162m Selling price – €387m Total profit – €225m 33
Slide 34: Appendix – Risk Factors
6. Appendix 6 – Risk Factors 34
Slide 35: Risk Factors
Risk Factors The Company is exposed to certain risk factors as specified in the Company's Reports that may be material for the purpose of assessing the market risks associated with the transaction (s) and that may affect the outcome of its activities and/or its ability to realize its plans as ouline
Slide 36: Risk Factors
Risk Factors (b) The Company is highly dependent on realising cash proceeds from the sale of existing and pipeline projects in order to service its financial obligations. The Company’s primary business strategy is the construction, development and sale of shopping and entertainment centres in Centra
Slide 37: Risk Factors
Risk Factors (e) Risks factors relating to the holdings structure of the Company: One of the Company’s shareholder, Elbit Imaging Ltd. (“Elbit”) beneficially owns a substantial amount of the Company’s ordinary shares and, therefore, has effective control over the Company’s affairs. As a result, Elbi
Plaza Centers — Debt Investor Presentation (November 2013) on 6ix