Hmc Capital Limited · ASX:HMC
Hmc Capital — Merger or Acquisition (November 2024)
20 slides from Hmc Capital's merger presentation, Nov 11, 2024
Slide 1: $400m iseek acquisition & DigiCo platform update
BNE2 SYD1 BNE1 $400m iseek acquisition & DigiCo platform update November 2024 0
Slide 2: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY HMC Capital acknowledges the Traditional Custodians of Country throughout Australia and celebrates their diverse culture and connections to land, sea and community. We pay our respect to their Elders past and present and extend that respect to all Aboriginal and Torres Str
Slide 3: Important notices and disclaimer
Important notices and disclaimer Important notices and disclaimer This investor presentation (Presentation) is dated 11 November 2024 and has been prepared by HMC Capital Limited ACN 138 990 593 (HMC). To the extent that the Presentation relates to HMC’s proposed establishment of the global DigiCo I
Slide 4: Important notices and disclaimer
Important notices and disclaimer Financial information All financial information in this Presentation is in Australian dollars ($ or AUD) unless otherwise stated. This Presentation may include certain pro forma financial information. Any such pro forma historical financial information provided in th
Slide 5: Investment highlights
Investment highlights Unique diversified global exposure to the data centre sector, targeting superior risk-adjusted returns through ownership, development and operational expertise ✓ Diversified portfolio of 131 assets to be acquired with high credit quality customers across tier 1 and 2 markets in
Slide 6: DigiCo REIT – high-quality global data centre platform
DigiCo REIT – high-quality global data centre platform DigiCo REIT will be a diversified owner, operator and developer of data centres globally, with a broad investment mandate targeting multiple geographies, risk-return profiles and business models Portfolio1 summary statistics DigiCo REIT global d
Slide 7: Differentiated investment strategy and Portfolio construction
Differentiated investment strategy and Portfolio construction DigiCo REIT will target a diversified exposure across risk-return profiles STABILISED LEASE-UP AND VALUE-ADD DEVELOPMENT Model Portfolio ~40 – 50% ~40 – 50% ~10 – 20% Target IRR1 8 – 12% 12 – 15% 15 – 30%+ Greenfield Development Wholesale
Slide 8: Long-term income stability and diversified customer base
Long-term income stability and diversified customer base Geographically diverse seed portfolio with high-quality tenant counterparties and long-term customer relationships that will support stable and growing distributions Portfolio breakdown (by income)1,2 Top ten tenants in Portfolio by income1,2
Slide 9: Model Portfolio strategies
Model Portfolio strategies DigiCo REIT will provide a diversified exposure across three key risk-return profiles Stabilised Lease-up and Value-add Development ✓ Operating data centres with stable ✓ Operating data centres with leasing or ✓ Hyperscale built-to-suit or Co- income profiles underpinned b
Slide 10: Dedicated global management and operational team
Dedicated global management and operational team Highly credentialed management team across Australia and North America with an average of >20 years' experience in the data centre sector, supported by a vertically integrated platform with deep internal capability Senior leadership – DigiCo Australia
Slide 11: Growth strategy and initiatives
GROWTH STRATEGY AND INITATIVES 10 10
Slide 12: Total return drivers
Total return drivers DigiCo REIT will seek to provide stable and growing distributions along with strong income and capital growth from value accretive investment and portfolio optimisation initiatives Target annual returns Commentary • Targeting a ~4.0% Distribution Yield1 Distribution yield • Targ
Slide 13: Growth pipeline embedded in Portfolio
Growth pipeline embedded in Portfolio Material value embedded, to be realised through lease-up, densification and optimisation initiatives across Value- Add assets and attractive brownfield and greenfield development opportunities IT Capacity (MW) value added initiatives and growth capital expenditu
Slide 14: Overview of US acquisitions under exclusive due diligence
Overview of US acquisitions under exclusive due diligence Diverse collection of Stabilised US assets currently in exclusive due diligence, which will seek to complement the existing seed assets in the DigiCo REIT Portfolio A B C Chicago Kansas City Dallas Fort Worth • Located in an attractive submar
Slide 15: Sydney 1 – SYD1 overview
Sydney 1 – SYD1 overview Strategically positioned asset with a high-quality and diverse customer base and clear growth initiatives to drive meaningful near to medium-term earnings and value accretion Asset overview • Two large-scale adjoining data centres in inner Sydney – the only large-scale campu
Slide 16: iseek portfolio
iseek portfolio Leading co-location data centre platform with a diverse customer base, long-term customer relationships and material growth potential through existing and new capacity lease-up Asset overview • iseek comprises a portfolio of seven co-location data centres located across Queensland, S
Slide 17: DigiCo REIT overview of key development projects
DigiCo REIT overview of key development projects DigiCo REIT will retain flexibility over the scope and timing of developments and will assess each project against prevailing conditions at the time Overview of development projects SYD1 ADL1 LAX1 LAX2 BNE4 Expansion Brownfield Brownfield Greenfield G
Slide 18: DigiCo REIT funding strategy
DigiCo REIT funding strategy DigiCo REIT will have a number of funding sources available to support near term growth, including selling down interests in seed assets into a proposed Unlisted Fund1 or partnering for development assets post asset de-risking Funding strategy • Globally diversified port
Slide 19: Key metrics and supplementary information
Key metrics and supplementary information HMC Capital will maintain an investment in DigiCo REIT and following Completion will invest a minimum of $500m (c.19%) in DigiCo REIT Key DigiCo REIT Portfolio statistics1 Key supplementary information Number of Data Centre Properties 13 • Intention to raise
Slide 20: Authorised for release by the Board of HMC Capital Limited
19 19 Authorised for release by the Board of HMC Capital Limited