Investore Property Ltd. · NZX:IPL
Investore Property — Shareholder Meeting (February 2018)
15 slides from Investore Property's shareholder meeting presentation, Feb 8, 2018
Slide 1: Special Meeting of Shareholders
Special Meeting of Shareholders investore 8 February 2018 Management Limited
Slide 2: Agenda
Agenda (@) Chairman’s Introduction and Address Background to the Bunnings Transaction Requirements of the NZX Listing Rules Description of the independent arms’ length negotiation process Details of the Bunnings Transaction and divestment update Rationale for the Board’s recommendation to support th
Slide 3: Chairman's Introduction and Address – Mike Allen
Chairman’s Introduction and Address – Mike Allen
Slide 4: Background to the Bunnings Transaction
Background to the Bunnings Transaction Kerikeri Auckland Hamilton Rotorua New Plymouth Napier Palmerston North Nelson Wellington Blenheim Christchurch Timaru Queenstown Dunedin Location of properties as at 30 September 2017 Invercargill C#) - Number of properties at location > : Investore Property L
Slide 5: NZX Announcements - November 2017
NZX Announcements - 13 November 2017 * Stride completed the re-structure of three regional Bunnings leases * Leases provide net rental of $4.81m p.a. and rental growth of 2.5% p.a. over 12 years * Investore agreed to purchase the three Bunnings properties from Stride for $78.5m ¢ Shareholder approva
Slide 6: NZX Listing Rule Requirements
NZX Listing Rule Requirements Listing Rule 9.2.1(a) - Related Party transaction requiring shareholder approval Material Transaction - value of the transaction exceeds 10% of Investore’s average market capitalisation Stride is a Related Party of Investore, due to its 19.9% shareholding als as i Listi
Slide 7: Independent and Robust Transaction Process
Independent and Robust Transaction Process v Independent Directors managed the sale and purchase negotiations Mike Allen Y Application ofthe Conflicts Protocolofthe john Harvey Chairman & Man ager, SIML Director Independent Director SIML Appointed ¥ Independently valued by Jones Lang LaSalle at $79.
Slide 8: Valuations and Contract Yields of the Three Properties
Hamilton Palmerston North Valuation - $28m Valuation - $26.25m Contract Yield – 5.96% Contract Yield – 6.05% Rotorua Valuation - $25.25m • Contract Yield – 6.14% • •
Slide 9: The Leases
The Leases Initial term of 12 years, with Bunnings right to renew for up to a further 48 years (i.e, potential 60 years) Aggregate contract rental of $4.81m p.a. for initial term Structured rental growth of 2.5% p.a. over initial term, with market rent reviews every 12 years thereafter Bunnings opti
Slide 10: Transaction Funding and Capital Management
Transaction Funding and Capital Management Acquisition funded through bank debt facilities Post settlement LVR to increase from approximately 39% to 46% Gearing to decrease through divestments: o Unconditional sale secured for Queenstown property for $11.1m o Sale process commenced for two additiona
Slide 11: Why Support this Transaction?
Why Support this Transaction? Consistent with investment mandate - delivers total returns to shareholders that are resilient to a range of market conditions Introduces a new high-quality tenant Provides a higher proportion of structured growth over the initial term Diversifies tenant mix 100% occupa
Slide 12: Formal Business and Ordinary Resolution – Mike Allen
Formal Business and Ordinary Resolution – Mike Allen
Slide 13: Resolution — Bunnings Transaction
Resolution 1 — Bunnings Transaction “That the purchase of three Bunnings properties located in Hamilton, Palmerston North and Rotorua for $78.5 million (excluding GST) by Investore Property Limited from Stride Property Limited (as described in further detail in the Explanatory Notes within the Notic
Slide 14: Thank You
Thank You
Slide 15: Contact details
Level 12, 34 Shortland Street Auckland 1010, New Zealand PO Box 6320, Wellesley Street Auckland 1141, New Zealand P +64 9 912 2690 W investoreproperty.co.nz
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