Helios Re SOCIMI, S.A. · BME:SCHLR

Helios Re SOCIMI — Lar España Real Estate SOCIMI — Investor Presentation (August 2014)

25 slides from Helios Re SOCIMI's investor presentation, Aug 28, 2014

  1. Slide 1: CNMV Material Fact

    NATIONAL SECURITIES MARKET COMMISSION In compliance with the reporting requirements under Article 82 of Law 24/1988, of 28th July, on the Securities Market, Lar España Real Estate SOCIMI, S.A. (hereinafter, "Lar España" or the “Company") hereby informs the National Securities Market Commission of th

  2. Slide 2: Lar España Real Estate, 28 August 2014

    Lar España Real Estate 28 August 2014

  3. Slide 3: Disclaimer

    Disclaimer The information included in this presentation has been drafted by Grupo Lar Inversiones Inmobiliarias, S.A. (“Grupo Lar”) for informational use only, to assist a investors in deciding whether they wish to proceed with a further investigation of the company named Lar España Real Estate SOC

  4. Slide 4: Introduction. Share price

    Lar España Real Estate 1 Introduction. Share price 2 Market overview 3 Investment Criteria, First Acquisitions and Pipeline 2

  5. Slide 5: Lar España's share price

    Lar España’s share price  Share price below NAV (9.77 €)  Low trading volume in the first months  A communication plan is in place following recent investments 3

  6. Slide 6: Market overview

    Lar España Real Estate 1 Introduction. Share price 2 Market overview 3 Investment Criteria, First Acquisitions and Pipeline 4

  7. Slide 7: Market Overview

    Market Overview  Madrid office market  Rents. Improving in the city centre (2% average evolution in H1). -1.2% in Madrid.  Gross Take up improving (212,000 m2 in H1). +0,2% vs H1 2013 and +16% vs H2 2013  Vacancy 13.2% (14.1% in December 2013)  Barcelona office market  Rents. Improving in the

  8. Slide 8: Market Overview

    Market Overview  Retail sales  Sales of most of big fashion retailers are improving in the majority of the SC compared with 2013.  The general index of sales (índice general del comercio minorista) shows an increase of 0.2% in June compared with 2013  1.23% of increase in sales in 2014 (6 months

  9. Slide 9: Investment Market Overview

    Investment Market Overview Lar España Real Estate Outlook  The market has become more competitive due to:  3 new REIT´s competing in some of the asset classes  Other large international investors also very actively looking for investments » Opportunistic, core and value added  Financing is impro

  10. Slide 10: Investment Criteria, First Acquisitions and Pipeline

    Lar España Real Estate 1 Introduction 2 Market overview 3 Investment Criteria, First Acquisitions and Pipeline 8

  11. Slide 11: Proposed investment criteria

    Proposed investment criteria Target property types and locations Investment criteria across different asset classes  Mainly focused on office properties in Madrid and Barcelona  Primarily fully built assets with a small component of development risk on Office a highly selective cases.  Potential

  12. Slide 12: Basis of the initial investment proposition

    Basis of the initial investment proposition  To invest 750MM€ in 18 to 24 months (equity + debt)  To invest 300MM€ in 2014  Try to avoid the bigger processes where the competition will be higher. Focus on medium-size deals with an asset management angle.  Investing the equity first and starting

  13. Slide 13: Transactions signed between IPO and August 7th

    Transactions signed between IPO and august 7th  8 assets bought  5 retail assets in 5 different cities  2 office buildings in Madrid  1 logistic platform  €213 MM of investment and €235 MM including capex  115,000 sqm  Initial yield between 5.5 % (assets with higher vacancy) and 10%  Other d

  14. Slide 14: Transactions signed between IPO and August 7th

    Transactions signed between IPO and august 7th GLA 100% Average owned Estimated Total rent in € Initial Intial Yield Asset Asset class by Lar Price(MM €) CAPEX Investment per occupancy on cost España (MM €) (MM €) occupied (sqm) m2 Las Huertas (Palencia) Shopping center 6,108 11.7 2.6 14.3 86.0% 8.0

  15. Slide 15: Pipeline

    Pipeline  6 assets in advanced negotiation  4 retail assets in 3 different locations  1 logistic warehouse in the Madrid area  1 prime residential development in Madrid  Limited execution risk, subject to satisfactory DD  4 under formal exclusivity and DD in final stage  2 linked to other inv

  16. Slide 16: Types and Sources of Opportunities

    Types and Sources of Opportunities ACQUISITIONS Asset classes MM euros % SC 159.2 68% Off market 65% Offices 52.8 22% Competitive process 35% Others 22.8 10% Total 234.8 100% PIPELINE Asset classes MM euros % SC 91.3 46% Off market 94% Others 106.2 54% Competitive process 6% Total 197.5 100% 14

  17. Slide 17: Arturo Soria, Office Building

    Arturo Soria, 336 – Office Building Location & Profile  Located in Madrid (North - East), very close to the M-30 ring and Madrid Airport.  Underground station is 150 m. away from the building.  Freestanding building with 4 facades  Construction year: 1994  Seller: IVG INSTITUTIONAL FUNDS GMBH (

  18. Slide 18: Card. Marcelo Spínola, Office Building

    Card. Marcelo Spínola, 42 – Office Building Location & Profile  Located in Madrid (North - East), inside M-30 ring.  Underground station is 900 m. away from the building.  Freestanding tower with 4 facades  Construction year: 1993  Seller: REYAL URBIS (Spanish RE company) Figures of Interest 

  19. Slide 19: Alovera (Guadalajara) – Logistic Warehouse

    Alovera (Guadalajara) – Logistic Warehouse Location & Profile  Guadalajara (East), 48 km away form Madrid. Facing A-2 (national highway).  Prime Logistic and industrial area  Two tenants.  Construction year: 2000 - 2001  Seller: INVISTA EUROPEAN RE SPANISH PROPCO, S.L. Figures of Interest  Tot

  20. Slide 20: Retail Acquisitions Completed as of 31st July 2014

    Retail Acquisitions Completed as of 31st July 2014 Las Huertas, Txingudi, Palencia Guipuzcoa Anecblau, Barcelona Media Markt, Madrid Albacenter, Albacete 18

  21. Slide 21: Txingudi, Irún – SC

    Txingudi, Irún (Guipuzcoa, Basque Country) – SC Location & Profile  Irún (61,193 inhab.) within the Guipuzcoa (Basque Country) on the North Coast of Spain,adjacent with the border of France.  Catchment (20 min driving): 91,351 inhab.  Consolidated industrial and commercial area with excellent acc

  22. Slide 22: Las Huertas SC, Palencia – SC

    Las Huertas SC, Palencia – SC Location & Profile  Palencia within the Castilla y León Region in North West Spain. Catchment (20 min driving): 99,310 inhab.  Immediate area is mixed residential and retail area, therefore, at pedestrian level (50%). Well located, connecting the city centre with the

  23. Slide 23: Albacenter SC, Albacete – SC

    Albacenter SC, Albacete – SC Location & Profile  Located in Albacete, the largest city in Castilla La Mancha, with a provincial population of 402,837 inhabitants and municipal population of 172,472.  Albacete's dominant shopping centre providing main mass market fashion operators and anchored by a

  24. Slide 24: Media Markt, Villaverde (Madrid) – SC

    Media Markt, Villaverde (Madrid) – SC Location & Profile  Madrid (Santa Petronila 1, Villaverde)  Stand alone unit in a very consolidated residential area.  Excellent visibility: facade to 2 Avenida de Andalucía, main urban link of the South of Madrid connecting the bypasses M-30, M-40 and M-45 

  25. Slide 25: Anecblau, Castelldefels (Barcelona) – SC

    Anecblau, Castelldefells (Barcelona) – SC Location & Profile  Castelldefells in the Catalonia Region. Strong combination of permanent residential population and touristic destination.  18 km. to the South-West of Barcelona city and 9 km. from El Prat International Airport.  Primary Catchment 140,

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