Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — Merger or Acquisition (June 2014)
30 slides from Growthpoint Properties Australia's merger presentation, Jun 3, 2014
Slide 1: Property Acquisition & Equity Raising
GROWTHPOINT PROPERTIES AUSTRALIA (ASX CODE: GOZ) For personal use only PROPERTY ACQUISITION & EQUITY RAISING 3 June 2014 Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409
Slide 2: Important Information
IMPORTANT INFORMATION DISCLAIMER Growthpoint reserves the right to withdraw the Rights a standardised meaning prescribed by Australian undertaking to release any updates or revisions to the This presentation and its appendices (“Presentation”) Offer or vary the timetable included in this Presentatio
Slide 3: Contents
CONTENTS For personal use only 4 Overview 6 Acquisition 10 Transaction impact 14 Acquisition funding 20 Appendix 1 – Control implications 22 Appendix 2 – Key risks 27 Appendix 3 – Foreign jurisdictions 29 Glossary EXECUTIVE MANAGEMENT TEAM TIMOTHY COLLYER AARON HOCKLY DION ANDREWS MICHAEL GREEN Mana
Slide 4: Overview
For personal use only OVERVIEW 4
Slide 5: Transaction Overview
TRANSACTION OVERVIEW ›› Acquisition of the NSW Police Headquarters, an A-grade office building located in Parramatta, New South Wales (Acquisition)1 For personal use only ACQUISITION –– Purchase price of $241.1 million2, representing a FY15 yield of 7.6% –– Fully leased to the NSW State Government (
Slide 6: Acquisition
For personal use only ACQUISITION 6
Slide 7: Transaction Meets Growthpoint's Objectives
TRANSACTION MEETS GROWTHPOINT’S OBJECTIVES For personal use only TRANSACTION IMPACTS ›› Accretive to FY15 distributable income ›› Quality A-grade office building (4.5 star NABERS), specified and constructed to high office standard ›› Enhances Growthpoint’s portfolio metrics – WALE, occupancy, averag
Slide 8: Property Acquisition: NSW Police Headquarters, Charles Street, Parramatta
PROPERTY ACQUISITION NSW POLICE HEADQUARTERS, 1 CHARLES STREET, PARRAMATTA, NSW For personal use only ›› Strategically located in the heart of the Parramatta CBD, KEY FACTS benefitting from excellent transport links and local amenities ›› Fully leased to the ‘AAA’ rated NSW State Government with a P
Slide 9: Property Acquisition: Location
PROPERTY ACQUISITION LOCATION ›› Parramatta is located 24km from the Sydney CBD, directly For personal use only connected via modern road and rail infrastructure ›› The property benefits from proximity to public transport, Parramatta CBD amenities and major arterial roads –– Close to Parramatta’s ra
Slide 10: Transaction Impact
For personal use only IMPACT TRANSACTION 10
Slide 11: Portfolio Overview Post Acquisition
PORTFOLIO OVERVIEW POST ACQUISITION For personal use only GEOGRAPHIC DIVERSITY1 SECTOR DIVERSITY1 ›› The Acquisition continues Growthpoint’s portfolio and income enhancement BY PROPERTY VALUE BY PROPERTY VALUE USING 30 APRIL 2014 FIGURES USING 30 APRIL 2014 FIGURES strategy 29+31+822136F 50+50+F ––
Slide 12: Portfolio Overview: Property Portfolio Key Metrics
PORTFOLIO OVERVIEW PROPERTY PORTFOLIO KEY METRICS For personal use only METRIC AS AT 31 DEC 13 PRO FORMA1 NUMBER OF ASSETS 49 51 TOTAL / AVERAGE VALUE $1,800.8m / $36.8m $2,064.9m / $40.5m TOTAL / AVERAGE LETTABLE AREA 995,964 m2 / 20,356 m2 1,036,844 m2 / 20,330 m2 AVERAGE PROPERTY AGE 7.0 years 7.
Slide 13: Pro Forma Balance Sheet
PRO FORMA BALANCE SHEET1 DEC 2013 DEC 2013 PRO FORMA PRO FORMA POST DEC 2013 (Post Transaction, (Post Transaction, For personal use only 31 DEC 2013 BALANCE DATE PRO FORMA TRANSACTION assumes $125m assumes $80m $m REPORTED ADJUSTMENTS3 (Pre-Transaction) ADJUSTMENTS4 equity raised) equity raised) CAS
Slide 14: Acquisition Funding
For personal use only FUNDING ACQUISITION 14
Slide 15: Sources and Applications of Funds
SOURCES AND APPLICATIONS OF FUNDS For personal use only ›› The Acquisition and associated costs will be funded using a combination of debt and equity –– Rights Offer to raise up to $125 million of new equity –– New $100 million tranche to expand existing Syndicated Debt Facility –– Undrawn debt capa
Slide 16: Equity Raising Structure
EQUITY RAISING STRUCTURE ›› 1 for 9.37 renounceable rights offer to raise up to $125 million For personal use only ›› Offer price of $2.40 –– Represents a 3.9% discount to Growthpoint’s distribution adjusted price on 2 June 2014 and a 1.2% discount to Growthpoint’s distribution adjusted 5 day volume
Slide 17: Equity Raising Timetable
EQUITY RAISING TIMETABLE For personal use only ANNOUNCEMENT OF RIGHTS OFFER VIA ASX Tuesday, 3 June 2014 EX-DATE FOR RIGHTS OFFER AND RIGHTS TRADING COMMENCES Thursday, 5 June 2014 RIGHTS OFFER RECORD DATE 7.00pm, Tuesday, 10 June 2014 RIGHTS OFFER OPENS 9.00am, Thursday, 12 June 2014 DESPATCH OF RI
Slide 18: Debt Funding
DEBT FUNDING DEBT FACILITIES For personal use only ›› Growthpoint has expanded its existing Syndicated Debt Facility with a SUMMARY OF DEBT FACILITIES new $100 million tranche (Acquisition Tranche)1 METRIC SYNDICATED DEBT FACILITY BILATERAL ›› The Acquisition Tranche will be fully drawn at completio
Slide 19: Outlook and Strategy
OUTLOOK AND STRATEGY For personal use only THE FOCUS FOR GROWTHPOINT IN THE SHORT TO MEDIUM TERM REMAINS: ›› Continuing to provide secure and growing distributions to Securityholders ›› Continued growth and diversification of the property portfolio via M&A transactions, direct property acquisitions
Slide 20: Appendix 1: Control Implications
For personal use only APPENDIX 1: CONTROL IMPLICATIONS 20
Slide 21: Control Implications
CONTROL IMPLICATIONS ›› The Rights Offer is structured as a pro rata offer to all eligible Growthpoint Securityholders For personal use only ›› Growthpoint SA currently owns approximately 64.0% of the Securities on issue and has provided a commitment to take up its full entitlement under the Rights
Slide 22: Appendix 2: Key Risks
For personal use only APPENDIX 2: KEY RISKS 22
Slide 23: Key Risks Summary
KEY RISKS SUMMARY For personal use only ›› Property Acquisitions ›› Regulatory Issues and Changes in Law ›› Counterparty / Credit Risk ›› Property Valuation Risk ›› Tenant Risk ›› Buildings Condition and Defects ›› Market Perception Risk ›› Property Illiquidity Risks ›› Rights Offer ›› Employees and
Slide 24: Key Risks
KEY RISKS PROPERTY ACQUISITIONS The Group relies on certain key tenants for the majority of TRUST TAXATION STATUS For personal use only its revenue. Any financial difficulty or insolvency affecting a A key element of the Group’s future strategy will involve key tenant, or a breach of lease by a key
Slide 25: Key Risks Continued
KEY RISKS CONTINUED CAPITAL EXPENDITURE SECURITY MARKET PRICES DEBT COVENANTS For personal use only There is a risk that unforeseen capital expenditure may be The market price of the Securities will depend on a variety The Group’s debt facilities are subject to a variety of required under the terms
Slide 26: Key Risks Continued
KEY RISKS CONTINUED PROPERTY VALUATION RISK GENERAL ECONOMIC CONDITIONS assurance can be given in relation to the level of franking or For personal use only tax deferral of future distributions. Franking or tax deferred The value of properties held by the Group may fluctuate from The Group’s operati
Slide 27: Appendix 3: Foreign Jurisdictions
For personal use only APPENDIX 3: FOREIGN JURISDICTIONS 27
Slide 28: Foreign Jurisdictions
FOREIGN JURISDICTIONS SOUTH AFRICA HONG KONG SINGAPORE For personal use only The offer of new Securities under the Rights Offer described in WARNING: This document has not been, and will not be, This document has not been registered as a prospectus this Presentation does not constitute an offer to t
Slide 29: Glossary
GLOSSARY A-REIT Australian real estate investment trust For personal use only ACQUISITION the acquisition of the NSW Police Headquarters, 1 Charles Street, Parramatta, New South Wales BALANCE SHEET GEARING borrowings divided by total assets BILATERAL means the loan facility agreement with National A
Slide 30: Thank You
For personal use only THANK YOU For more information contact us at: Email: info@growthpoint.com.au Investor services line: 1800 260 453 www.growthpoint.com.au Growthpoint Properties Australia Level 22, 357 Collins Street Melbourne VIC 3000
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