Attacq Limited · JSE:ATT
Attacq — IPO Roadshow (September 2013)
58 slides from Attacq's IPO roadshow presentation, September 2013
Slide 1: Private Placement of Shares
PRIVATE PLACEMENT OF SHARES SEPTEMBER 2013
Slide 2: Disclaimer
DISCLAIMER This document has been prepared and issued by and is the sole responsibility of the management of Attacq Limited (the “Company” or “Attacq” and its subsidiaries. No information made available in connection with this presentation may be passed on, copied, reproduced, in whole or in part, o
Slide 3: Contents
CONTENTS Brooklyn Bridge 1. Proposed offer summary 2. Attacq at a glance 3. Highlights 4. Business strategy 5. Portfolio overview 6. Waterfall 7. Management 8. Governance 9. Debt management 10. Summary financials 11. Annexures 3
Slide 4: Proposed Offer Summary
P R O P O S E D O F F E R S U M M A RY Issuer: Attacq Limited Offer size: 53 333 333 shares on listing to raise up to R800 million Offer structure: Primary issue Offer price on listing: Indicative price of R15.00 per share Listing location: “Real Estate Holdings and Development” sector of the main b
Slide 5: Contents
CONTENTS Group 5 1. Proposed offer summary 2. Attacq at a glance 3. Highlights 4. Business Strategy 5. Portfolio overview 6. Waterfall 7. Management 8. Governance 9. Debt Management 10. Summary financials 11. Annexures 5
Slide 6: Attacq at a Glance
AT TA C Q AT A G L A N C E ATTERBURY PROPERTY HOLDINGS Investments Developments R 9.2 billion R 4.2 billion Income Producing Capital Growth Forward yield on income producing assets: 7.4% 6
Slide 7: Attacq at a Glance
AT TA C Q AT A G L A N C E Property portfolio value: R10.6 billion Operational R6.4 billion (incl. 5 properties of c. R970 million held for sale) Under development R1.4 billion Infrastructure and vacant land R2.8 billion Number of properties Operational 13 (excl. 5 properties held for sale) Under de
Slide 8: Contents
CONTENTS Newtown & Majestic 1. Proposed offer summary 2. Attacq at a glance 3. Highlights 4. Business strategy 5. Portfolio overview 6. Waterfall 7. Management 8. Governance 9. Debt management 10. Summary financials 11. Annexures 8
Slide 9: Highlights: Milestones
HIGHLIGHTS Milestones 2013 2012 2011 2009 • Rights offer of • 25% of Atterbury R580m heavily 2008 • Sale of Attfund Property acquired oversubscribed Retail to Hyprop • 32.5% of Atterbury • Internalisation of Africa acquired asset manager 2006 • Mall of Mauritius • Acquires interest in MAS • Secured
Slide 10: Unique Investment Proposition: Quality Portfolio
HIGHLIGHTS Unique Investment Proposition 1. A quality retail, office and industrial portfolio o Existing retail, office, mixed use and light industrial properties are high quality, generating stable, growing rental income o Landmark properties include: - 80 115m² Brooklyn Mall and Design Square in P
Slide 11: Unique Investment Proposition: Waterfall Development Rights
HIGHLIGHTS Unique Investment Proposition 2. Waterfall Development Rights o Long-term potential as a unique infill development centrally located in the Midrand market of the Gauteng region, South Africa’s economic heartland o Attacq has no debt outstanding on the leasehold land acquired (Attacq paid
Slide 12: Waterfall Development Rights (continued)
HIGHLIGHTS Unique Investment Proposition 2. Waterfall Development Rights (continued) 12
Slide 13: Substantial Development Pipeline
HIGHLIGHTS Unique Investment Proposition 3. A substantial pipeline of >400 000m² in current developments o Current developments include: - 116 000m² Mall of Africa Super Regional Mall at Waterfall (85.9% effective holding); - 75 000m² Newtown & The Majestic development in Johannesburg CBD (62.5% eff
Slide 14: Strategic Stake in Atterbury Property Holdings
HIGHLIGHTS Unique Investment Proposition 4. A strategic stake of 25% in Atterbury Property Holdings o More than 19 years’ experience in property development and investments 25% o Shares a common history and lineage with Attacq ATTERBURY PROPERTY HOLDINGS Management & Staff o Developed many of Attacq
Slide 15: Diversification
HIGHLIGHTS Unique Investment Proposition 5. Diversification Early mover to access high growth Africa exposure: o 32.5% effective shareholding in Atterbury Africa 25% Fund. Assets include: - Achimota, Accra, Ghana 37.5% - Accra Mall, Accra, Ghana - West Hills Mall, Accra, Ghana Major projects in Maur
Slide 16: Highly Experienced Management Team
HIGHLIGHTS Management o Highly experienced management team o Track record of achieving a CAGR in excess of 20% in NAV per share since inception o Notable achievements and accolades within the Atterbury Group: - Won 8 PMR Diamond Arrow Awards for “Best Developer” (2003 – 2011) - IPD award as best com
Slide 17: Contents
CONTENTS Newtown 1. Proposed offer summary 2. Attacq at a glance 3. Highlights 4. Business strategy 5. Portfolio overview 6. Waterfall 7. Management 8. Governance 9. Debt management 10. Summary financials 11. Annexures 17
Slide 18: Business Strategy: Nature of Business
Business Strategy Nature of Business o Focus on long-term sustainable capital growth Achieved through: - actively investing in and managing land positions for future developments - high quality investment properties, held directly or indirectly and - key long-term strategic relationships and alignme
Slide 19: Business Strategy: Investments and Developments
Business Strategy Strategy o Business of the group is undertaken in 2 focus areas: Investments - Comprises buildings (held directly or indirectly) most of which have been developed by the Atterbury Group and retained by Attacq - Provides the stable income and balance sheet strength for the group to
Slide 20: Strategy Flowchart
Business Strategy Strategy Flowchart Utilise Balance Sheet to secure and fund developments Investments – 65% Developments – 35% International – 10% Africa – 20% South Africa – 70% Developments • Rand hedge; • Rand hedge mainly US dollar • Stability; • Development profit/revaluation; • Geographical d
Slide 21: NAV Performance Metric
Business Strategy NAV – Performance Metric o Emphasis on net asset value per share (“NAV”) 16 Attacq’s Growth in NAV 15.00 as opposed to yield differentiates Attacq from 14 13.06 listed REITS 12 11.64 10.30 11.53 o Income from existing properties will be 10 10.32 redeployed into capital growth proje
Slide 22: Contents
CONTENTS Lynwood Bridge 1. Proposed offer summary 2. Attacq at a glance 3. Highlights 4. Business strategy 5. Portfolio overview 6. Waterfall 7. Management 8. Governance 9. Debt management 10. Summary financials 11. Annexures 22
Slide 23: Portfolio Overview
P O RT F O L I O O V E RV I E W Attacq Property and Investment Developments** Holdings - Club Retail, Pretoria, GP (40.0%)^ - Apr 2014 - Lynwood Bridge – Phase III, International Africa South Africa Pretoria, GP (100%)$ - May 2014 - Newtown and Majestic Development, (excluding Africa) (excluding Sou
Slide 24: Investments: Office & Mixed Use
P O RT F O L I O O V E RV I E W Investments: Office & Mixed Use Lease Weighted Ave. Effective Property Name Location Key Tenant/s Total GLA Valuation Value/m² Expiry Rent/m² Holding Yr m² R/m² R’000 R/m² % Aurecon Building Pretoria Aurecon 2023 21 628 212 676 000 31 256 78.1% Brooklyn Bridge & SARS,
Slide 25: Investments: Retail
P O RT F O L I O O V E RV I E W Investments: Retail Weighted Ave. Effective Property Name Location Key Tenant/s Total GLA Valuation Value/m² Rent/m² Holding m² R/m² R’000 R/m² % Brooklyn Mall & Woolworths, Dischem, Zara, Game, 72 635 Pretoria 178 2 335 863 29 156 20.5% Design Square Platinum Group 7
Slide 26: Investments: Light Industrial
P O RT F O L I O O V E RV I E W Investments: Light Industrial Lease Total Weighted Ave. Effective Property Name Location Key Tenant/s Valuation Value/m² Expiry GLA Rent/m² Holding Yr m² R/m² R’000 R/m² % Massbuild Distribution Johannesburg Massbuild 2028 35 671 46 243 000 6 812 85.9% Centre Notes: •
Slide 27: Directly Held Investments: Metrics
P O RT F O L I O O V E RV I E W Directly Held Investments: Metrics Sectoral profile by GLA Sectoral profile by GR 2.5% 2.8% 4.4% 11.1% Hotel 27.3% Hotel Industrial Industrial Office Office 27.1% Retail Retail 59.3% 65.4% Tenant profile by GLA Tenant profile by GR Key: A. Large international and nati
Slide 28: Directly Held Investments: Metrics
P O RT F O L I O O V E RV I E W Directly Held Investments: Metrics Geographical profile by GLA Geographical profile by GR 38.6% Gauteng 44.4% Gauteng 40.0% North West North West Western Cape Western Cape 45.7% 15.7% 15.7% GR = Gross rental revenue Vacancies Continued Operations Discontinued Operatio
Slide 29: Directly Held Investments: Lease Expiry
P O RT F O L I O O V E RV I E W Directly Held Investments: Lease Expiry By GLA By Gross Rental Revenue 50% 120.0% 50% 120.0% 100.0% 100.0% 40% 40% 80.0% 80.0% 30% 30% 60.0% 60.0% 20% 20% 40.0% 40.0% 10% 20.0% 10% 20.0% 0% 0.0% 0% 0.0% Vacant <1 Year 2014 2015 2016 2017 > 2018 <1 Year 2014 2015 2016
Slide 30: Developments: Waterfall
P O RT F O L I O O V E RV I E W Developments: Waterfall Completion Total % Pre-let Total Value Estimate Est. Development Effective Property Name Status Date GLA (GLA) Capital Cost On Completion Profit/Revaluation Holding m² % R’000 R’000 R’000 % Mall of Africa Construction yet to start Apr 2016 116
Slide 31: Developments: Other
P O RT F O L I O O V E RV I E W Developments: Other Completion Total % Pre-let Total Value Estimate Est. Development Effective Property Name Status Date GLA (GLA) Capital Cost On Completion Profit/Revaluation Holding m² % R’000 R’000 R’000 % The Grove, Under construction Oct 2014 55 000 80% 922 487
Slide 32: Contents
CONTENTS Cell C, Waterfall 1. Proposed offer summary 2. Attacq at a glance 3. Highlights 4. Business strategy 5. Portfolio overview 6. Waterfall 7. Management 8. Governance 9. Debt management 10. Summary financials 11. Annexures 32
Slide 33: Waterfall
WAT E R FA L L o Leasehold title and the rights to develop all the commercial property on the Waterfall Business Estate secured in 2008 o Expected to close the gap between the Sandton and Pretoria corridor (infill development) o Business estate measures approximately 311ha with 1.7 million m² of cur
Slide 34: Waterfall
WATERFALL se ustiess Aisi EAUTRAINISTATION AT.) ALATEPOR 4 Bio p) MIDRAND, YW aie = Mi oe
Slide 35: Waterfall Development Summary
WAT E R FA L L Development Summary Bulk/GLA Status Under Remaining Total Remaining Land Total Construction # Description Development Developable Completed Undeveloped Parcel Land Area and secured Timeline Bulk Bulk pipeline Years m² m² m² m² m² 1 Parcel 3 Convenience Corner 8 50 000 15 000 - - 15 00
Slide 36: Contents
CONTENTS Mall of Africa, Waterfall 1. Proposed offer summary 2. Attacq at a glance 3. Highlights 4. Business strategy 5. Portfolio overview 6. Waterfall 7. Management 8. Governance 9. Debt management 10. Summary financials 11. Annexures 36
Slide 37: Management: Reporting Structure
MANAGEMENT Reporting Structure CEO Executive Director Morné Wilken Louis van der Watt Head of Asset and Financial Director Company Secretary Head of Legal Property Management Melt Hamman Talana Smith Helena Austen Nicolle Weir Head Office Portfolio Finance Team Management Team 37
Slide 38: Management
MANAGEMENT Morné Wilken – Chief Executive Officer [insert picture] Leading Attacq’s strategy to list on the JSE, Morné has extensive experience in property development, property investment, property finance, corporate restructuring and acquisitions. Morné spent 10 years in the Property Finance Divis
Slide 39: Management
MANAGEMENT Nicolle Weir – Head of Property and Asset Management [insert picture] Nicolle has extensive financial, auditing and asset management experience. Nicolle joined Attacq in 2008, first as an asset manager and then as a director of AAM in 2009. Under her operational leadership, the AAM team w
Slide 40: Contents
CONTENTS Proposed development, Waterfall 1. Proposed offer summary 2. Attacq at a glance 3. Highlights 4. Business strategy 5. Portfolio overview 6. Waterfall 7. Management 8. Governance 9. Debt management 10. Summary financials 11. Annexures 40
Slide 41: Governance: Board of Directors
GOVERNANCE Board of Directors – Members and Sub-committees Transformation, Remuneration Investment Audit & Risk Social & Ethics & Nominations Non-executive Directors Pierre Tredoux (Chairman) Francois van Niekerk Pieter Faure Lucas Ndala Johan van der Merwe Stewart Shaw-Taylor Hellen El Haimer Thys
Slide 42: Board of Directors: Non-executive Directors
GOVERNANCE Board of Directors – Non-executive Directors Pierre Tredoux – Independent Non-executive Chairman [insert picture] Founder and executive director of the Barnstone group, Pierre is also a former partner and managing director of Deloitte Consulting South Africa. He has advised many of South
Slide 43: Non-executive Directors (continued)
GOVERNANCE Board of Directors – Non-executive Directors (continued) Lucas Ndala – Non-executive Director [insert picture] Lucas Ndala qualified as a chartered accountant in 2001 and completed his articles with Deloitte. After articles he joined Mettle in their structured finance division and thereaf
Slide 44: Non-executive Directors (continued)
GOVERNANCE Board of Directors – Non-executive Directors (continued) Hellen El Haimer – Independent Non-executive Director [insert picture] Hellen is the Managing Director of the FM Institute (Proprietary) Limited, a facilities and property management consulting company, Hellen is an admitted attorne
Slide 45: Contents
CONTENTS Aurecon Building, Lynwood Bridge 1. Proposed offer summary 2. Attacq at a glance 3. Highlights 4. Business strategy 5. Portfolio overview 6. Waterfall 7. Management 8. Governance 9. Debt management 10. Summary financials 11. Annexures 45
Slide 46: Debt Management
DEBT MANAGEMENT 31 March 2013 Gearing¹ 39.5% Fixed debt 54.3% Weighted average cost of finance 8.96% Cash and working capital facilities R330 million Maturity of Total Debt Debt Providers 8% 8% 2% Investec Bank Assets held for sale 23% 21% Nedbank 47% Within 1 year Rand Merchant Bank 1 to 5 years 53
Slide 47: Contents
CONTENTS The Grove, Mall of Namibia 1. Proposed offer summary 2. Attacq at a glance 3. Highlights 4. Business strategy 5. Portfolio overview 6. Waterfall 7. Management 8. Governance 9. Debt management 10. Summary financials 11. Annexures 47
Slide 48: Forecast Net Rental Income – 30 June 2014
S U M M A RY F I N A N C I A L S Forecast Net Rental Income – 30 June 2014 Investment properties¹* Investment properties²* Forecast for the year R’000 (held for full year) (held for partial year) ending 30 June 2014 Continuing Operations* Gross rental income 665 923 170 511 836 434 Rental income 605
Slide 49: Forecast Net Rental Income – 30 June 2015
S U M M A RY F I N A N C I A L S Forecast Net Rental Income – 30 June 2015 Investment properties¹* Investment properties²* Forecast for the year R’000 (held for full year) (held for partial year) ending 30 June 2015 Continuing Operations* Gross rental income 1 025 172 138 295 1 163 467 Rental income
Slide 50: Detailed Forecast
S U M M A RY F I N A N C I A L S Detailed Forecast Forecast Forecast Year ending Year ending R’000 30 June 2014 30 June 2015 Continuing Operations Net rental income 597 166 873 545 Other income 12 770 147 Operating and other expenses (42 609) (63 449) Operating profit 567 327 810 243 Fair value adju
Slide 51: Contents
CONTENTS Attacq Building, Waterfall 1. Proposed offer summary 2. Attacq at a glance 3. Highlights 4. Business strategy 5. Portfolio overview 6. Waterfall 7. Management 8. Governance 9. Debt management 10. Summary financials 11. Annexures 51
Slide 52: Case Study: Lynnwood Bridge
ANNEXURES Case Study: Lynnwood Bridge – Phase 1 & 2 o During 2006/2007, SANRAL received objections from residents in Lynnwood regarding the upgrade of the Lynnwood Bridge interchange o SANRAL approach Atterbury to assist with the resident’s complaints and to consider developing a mixed use developme
Slide 53: Case Study: Lynnwood Bridge (continued)
ANNEXURES Case Study: Lynnwood Bridge – Phase 1 & 2 (continued) R June 2011 June 2012 June 2013 Project Cash Flows* Investment (1 105 036 638) Cash flow - 112 944 161 120 850 252 Terminal value - - 1 538 300 000 Net cash flow (1 105 036 638) 112 944 161 1 659 150 252 Project IRR (pre tax) 27.7% R Ju
Slide 54: Waterfall: Land Description
ANNEXURES Waterfall: Land Description Convenience Corner Waterfall Distribution Centre Waterfall Logistics Precinct Land Parcel Parcel 3 Parcel 8 Parcel 9 Earmarked for a 15 000m² retail Use Industrial land Industrial land development Existing Developments / Massbuild (35 671m² GLA)(completed) Comzt
Slide 55: Waterfall: Land Description (continued)
ANNEXURES Waterfall: Land Description (continued) Waterfall City Corporate City Business Centre Land Parcel Parcel 10 Parcel 10A Parcel 10B • To be the “CBD” of the Waterfall • To be developed as a corporate park • To be developed as a corporate park on Precinct under development adjacent the N1 hig
Slide 56: Waterfall: Land Description (continued)
ANNEXURES Waterfall: Land Description (continued) Capital City Lifestyle Estate Woodmead North Office Park Land Parcel Parcel 12 Parcel 15 Parcel 20 Will consist of 55 000 bulk m² of office A basket of rights, consisting of a Office & mixed accommodation 10 100 bulk m² retail development, a 20 000 b
Slide 57: Waterfall: Land Description (continued)
ANNEXURES Waterfall: Land Description (continued) Landmark Park Commercial District Factory Depot Land Parcel Parcel 21 Parcel 22 Parcel 24 Use Office & mixed Office or commercial development Industrial land Cell C development (44 200m² GLA) Existing MB Technologies (26 286 m² GLA) An additional 14
Slide 58: Contacts
C O N TA C T S Morne Wilken 087 845 1111 [email protected] Melt Hamman 087 845 1111 [email protected]