Gpt Group · ASX:GPT
Gpt — Investor Presentation (October 2007)
25 slides from Gpt's investor presentation, Oct 19, 2007
Slide 1: JV Fund Update: German Residential Portfolio
JV Fund Update German Residential Portfolio Berlin, 19th October 2007
Slide 2: Table of Contents
German Residential Table of Contents Table of Contents Page No. Sector Overview Sector Characteristics 4 Market Attractiveness 5 Portfolio Overview Current Portfolio 10 Key Strategies 12 Barg Group 13 Focus on Berlin Berlin Market Overview 15 Berlin Portfolio 18 Summary 19 Asset Pages 20 – 24 Annexu
Slide 3: Sector Overview
German Residential Sector Overview 3
Slide 4: Sector Characteristics
German Residential Sector Characteristics The German rental apartment market comprises approx. 23 million units Low level of home ownership - Renting is relatively more attractive than owner occupation for most Germans A high proportion of affordable housing provided by municipalities and larg
Slide 5: Market Attractiveness: Ownership of Rental Apartments
German Residential Ownership of Rental Apartments 2003 Market Attractiveness Private Sector undergoing “structural transition” Owners 59% Govt / corporates Ownership is fragmented 23% - 60% of rental apartments owned by private investors - The Top Five owners own 3% of the rental market Investment
Slide 6: Market Attractiveness: Real Rent Growth
German Residential Market Attractiveness Market is at the beginning of a rental growth phase Minimal rental growth over the past 10 yrs Real Rent Growth 1992 to 2006 Increasing demand, supply in check 5.0% 4.0% Real Growth Subsidised housing reverting to market 3.0% 2.0% Long term owners foc
Slide 7: Market has scale and favorable demand side drivers
German Residential Market Attractiveness Market has scale and favorable demand side drivers The sector is large scale ~ 23 million rental apartments in Germany - Scale provides the benefits of income diversification, operating efficiencies, market liquidity Demand is stable - Stable and growing
Slide 8: A listed market has been established
German Residential Market Attractiveness A listed market has been established Comprises five entities, internally managed, with a market capitalisation of €5.7bn Aggregation is the main game, scale is a key theme - Aggregation of single assets and small portfolios, M&A deals - Major players are
Slide 9: Portfolio Overview
German Residential Portfolio Overview 9
Slide 10: Current Portfolio
German Residential Current Portfolio The portfolio is well diversified by location and almost entirely located in western Germany Key Metrics September 2007 Book value (€m) €1,444 Apartments 29,081 Commercial units 958 GLA (million m2) 1,966 Occupancy 90% Value / apartment €48,087 Value p/sqm €735 R
Slide 11: JV Fund assets comparable with public market
German Residential Current Portfolio The JV Fund assets are comparable in quality with those in the public market JV Portfolio Comparison with Listed Owners Listed Owners (1) JV Fund Comment Locations Various Bremen, Berlin, Dusseldorf, Similar quality of location Hannover No. of apartments 19,000 t
Slide 12: Key Strategies
German Residential Key Strategies Sourcing transactions: - Transactions sourced off-market - Transactions team “on the ground and local” with established network and track record - Worked with portfolio aggregators, such as Vivacon Targeted properties - Under rented and under managed portfolios
Slide 13: Barg Group
German Residential Barg Group Barg Group is a residential property specialist, managing 70% of the JV’s portfolio Owned by Babcock & Brown (50%) and Wolfgang Barg (50%) Services include property management, letting, maintenance, janitorial, landscaping and project management. 574 people in 46
Slide 14: Focus on Berlin
German Residential Focus on Berlin 14
Slide 15: Berlin Market Overview
German Residential Berlin Market Overview Berlin is undergoing a modern day Renaissance Established in 13th Century – Capital city of Prussia Population – 3.4 million (4% of total Germany) - Net migration to Berlin is positive Post re-unification, Berlin has been re-established as the German c
Slide 16: Berlin Market Overview
German Residential Berlin Market Overview Berlin market comprises ~1.6 million rental apartments - Represents ~ 6½% of total German rental apartments Low vacancy - ~5% vacancy in west Berlin (higher in east Berlin) Berlin upswing clearly evident - Rents increased by 5.8% over past two years to
Slide 17: GEHAG transaction sets a new valuation benchmark
German Residential Market Overview The GEHAG transaction sets a new valuation benchmark for Berlin Buyer Deutsche Wohnen Seller Oaktree Capital Management LLC Price €1.684 billion (excl. non-resi assets) Location(s) Berlin (mainly west) & Brandenburg Apartments 27,468 Rent restricted 12%
Slide 18: Berlin Portfolio
German Residential Berlin Portfolio The Berlin assets are well located predominantly in west Berlin Sub Portfolio / No. of Commercial Rent / Location Apartments Units Area Occ m2 Key Metrics Vivacon II 1,056 12 68,116 94.8% €4.32 September 2007 Berlin Book value (€m) €388 Franz-Marc 2,335 25 145,381
Slide 19: Summary
German Residential Summary Market is in structural transition - Towards long term ownership - Consolidation and scale efficiencies are key themes Sector represents good value - Rents at the beginning of a growth phase - Supply growth in check JV Fund portfolio compares favorably with portfolio
Slide 20: Berlin Portfolios for Site Visits
12 0 0 German Residential 10 0 0 Berlin Portfolios for Site Visits 8 0 0 12 0 0 6 0 0 4 Glienicker Spitze 10 0 0 4 0 0 Subportfolio Glienicke/Nordbahn 199 8 0 0 2 0 0 1200 35 1000 6 0 0 0 Res Comm 800 4 0 0 3 Idealwert II 600 Property Bismarkstr. 74-75 2 0 0 1 400 Annenhöfe 29 12 0 0 2 219 0 200 Res
Slide 21: Annenhoefe
German Residential Annenhoefe Heinrich-Heine-Strasse / Annenstr. Location Berlin - Mitte Date Acquired June 2005 Apartments 219 Commercial units 49 Year of construction 1996-1999 Land title Freehold Rentable area 22,569 sqm Occupancy 71.4% Rent p/sqm €7.87 Book Value €27,024,18
Slide 22: Grazer Damm
German Residential Grazer Damm Grazer Damm / Grazer Platz / Peter-Vischer- Strasse / Poeppelmann Strasse / Kauschstr. Location Berlin - Schoeneberg Date Acquired January 2006 Apartments 627 Commercial units 10 Year of construction 1930-1940 Land title Leasehold Rentable area 41,106 s
Slide 23: Bismarckstr 74-75
German Residential Bismarckstr 74-75 Location Berlin - Charlottenburg Date Acquired March 2007 Apartments 29 Commercial units 2 Year of construction 1966 Land title Freehold Rentable area 1,443 sqm Occupancy 100% Rent p/sqm €9.43 Book Value €2,248,227 Value p/sqm €1,558 Multi
Slide 24: Glienicke/Nordbahn
German Residential Glienicke/Nordbahn Schönfließer Strasse / Lindenstrasse / Oranienburger Chaussee Location Glienicke / Nordbahn Date Acquired October 2005 Apartments 199 Commercial units 35 Year of construction 1999-2001 Land title Freehold Rentable area 25,184 sqm Occupancy 93%
Slide 25: Annexure - Listed Market
German Residential Annexure - Listed Market Gagfah Deutsche Wohnen Colonia Ownership Listed (Luxembourg) Listed (Frankfurt) Listed (Frankfurt) Market Cap €3,200m €740m €600m Asset Type Residential property only Residential property only Residential property only Main locations Dresden, Berlin, Hambu