Capitaland Ascott Trust · SGX:HMN
Capitaland Ascott Trust — Ascott Residence Trust — Merger or Acquisition (June 2015)
33 slides from Capitaland Ascott Trust's merger presentation, Jun 25, 2015
Slide 1: The Proposed Acquisitions of Serviced Residence Properties in Australia and Japan
Ascott Residence Trust The Proposed Acquisitions of Serviced Residence Properties in Australia and Japan and Rental Housing Properties in Japan From Interested Persons Press Conference 25 June 2015 1
Slide 2: Important Notice
Important Notice The value of units in Ascott Residence Trust (“Ascott REIT”) (the “Units”) and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by Ascott Residence Trust Management Limited, the Manager of Ascott REIT (the “Manager”)
Slide 3: Content
Content 1 Overview of the Target Acquisitions 2 Rationale for the Target Acquisitions 3 Overview of Funding Structure 4 Impact on Ascott REIT 5 Conclusion 3
Slide 4: Overview of the Target Acquisitions
Overview of the Target Acquisitions Ascott Raffles Place Singapore 4 Ascott Limited Presentation July 2013
Slide 5: Summary of the Target Acquisitions
Overview of the Target Acquisitions Summary of the Target Acquisitions Portfolio of four Citadines on Citadines rental housing Bourke Citadines Karasuma-Gojo properties in Melbourne Shinjuku Tokyo Kyoto Osaka (“COBM”) (“CST”) (“CKK”) (“S-Residences”) Total Proposed Remaining Remaining 100% 100% Acqu
Slide 6: Properties
Overview of the Target Acquisitions Overview of the Target Properties Existing Ascott REIT Properties in Asia-Pacific Tokyo Kyoto Target Properties Tokyo Citadines Shinjuku Tokyo Citadines Karasuma- Gojo Kyoto 1 Property1 Japan Osaka China Kyoto 10 Properties 35 Properties 1 Property1 Osaka Viet
Slide 7: Property details of Citadines on Bourke Melbourne
Overview of the Target Acquisitions Property details of Citadines on Bourke Melbourne Agreed Property Value A$158.5m (S$167.6m1) Appraised Value2 A$156.0m (S$164.9m1) 380; Comprising studio, No. of Units 1-bedroom, 2-bedroom units Gross Floor Area 28,427.0 sqm Title Freehold 131-135 Bourke Street, L
Slide 8: Property details of Citadines on Bourke Melbourne (cont'd)
Overview of the Target Acquisitions Property details of Citadines on Bourke Melbourne (cont’d) Post completion, COBM will continue to be managed and operated by The Ascott Limited (“Ascott”) by the execution of a new serviced residence management agreement The new management agreement is for an
Slide 9: Competitive strengths of Citadines on Bourke Melbourne
Overview of the Target Acquisitions Competitive strengths of Citadines on Bourke Melbourne — 1 The property is strategically located within Melbourne’s central business district. Close to Parliament House, 101 Collins Street and Bourke Street Mall, it is ideal for both business and leisure traveller
Slide 10: Property details of Citadines Shinjuku Tokyo
Overview of the Target Acquisitions Property details of Citadines Shinjuku Tokyo Ascott REIT acquired 60% interest in Citadines Shinjuku Tokyo from Mitsubishi Estate Co. Ltd, an unrelated third party, on 25 November 2011 Agreed Property Value JPY7.6b (S$84.3m1) Appraised Value2 JPY7.7b (S$85.0m1) No
Slide 11: Competitive strengths of Citadines Shinjuku Tokyo
Overview of the Target Acquisitions Competitive strengths of Citadines Shinjuku Tokyo — 1 Located near the Shinjuku east area, the property is surrounded by many restaurants, entertainment outlets and department stores — 2 It enjoys good inter-city and intra-city connectivity via the Marunouchi, Toe
Slide 12: Property details of Citadines Karasuma-Gojo Kyoto
Overview of the Target Acquisitions Property details of Citadines Karasuma-Gojo Kyoto Ascott REIT acquired 60% interest in Citadines Karasuma- Gojo Kyoto from Mitsubishi Estate Co. Ltd, an unrelated third party, on 8 March 2012 Agreed Property Value JPY3.6b (S$39.9m1) Appraised Value2 JPY3.7b (S$40.
Slide 13: Competitive strengths of Citadines Karasuma-Gojo Kyoto
Overview of the Target Acquisitions Competitive strengths of Citadines Karasuma-Gojo Kyoto — 1 Property is located near Kyoto’s business district and tourist belt, 1-minute walk from Gojo subway station which is one stop from the main Kyoto station where the Shinkansen passes through — 2 Ranked 17th
Slide 14: Property details of S-Residences
Overview of the Target Acquisitions Property details of S-Residences Agreed Property Value JPY7.3b (S$81.0m1) Appraised Value2 JPY7.4b (S$82.3m1) No. of Units 488 (excludes 5 retail units) Gross Floor Area 16,322.5 sqm Title Freehold Hommachi 2-3-6, Tokuicho, S-Residence S-Residence Marks Chuo-ku, O
Slide 15: Competitive strengths of S-Residences
Overview of the Target Acquisitions Competitive strengths of S-Residences — 1 The S-Residences are located in Osaka city, within 7-minute walking distance from the S-Residence Fukushima Luxe nearest subway stations which provide easy access to the Fukushima Station central business districts in Osak
Slide 16: Rationale for the Target Acquisitions
Rationale for the Target Acquisitions Citadines Suites Louvre Paris 16
Slide 17: Rationale for the Target Acquisitions
Rationale for the Target Acquisitions Key Rationale 1 Enhance DPU to Unitholders 2 Broaden earnings base with increased portfolio scale 3 Enhance geographical diversification 4 Investment in Melbourne, the capital of Victoria, Australia 5 Expand footprint in the growing Japanese market 17
Slide 18: Enhance DPU to Unitholders
Rationale for the Target Acquisitions 1 Enhance DPU to Unitholders Distribution Per Unit (S cents) 8.441 8.20 Pre Acquisition Post Acquisition FY2014 pro forma DPU will increase by 2.9% from 8.20 cents to 8.44 cents1 post acquisition Note: 1. Ascott REIT intends to finance the proposed acquisitions
Slide 19: Broaden earnings base with increased portfolio scale
Rationale for the Target Acquisitions 2 Broaden earnings base with increased portfolio scale Ascott REIT’s total assets will increase 7.3% to S$4.4b The number of apartment units will increase 8.3% to 11,368 in 95 properties in 39 cities across 13 countries Total Assets (S$ billon) Number of Apa
Slide 20: Enhance geographical diversification
Rationale for the Target Acquisitions 3 Enhance geographical diversification Breakdown of Ascott REIT’s Assets by Geography Pre Acquisition Post Acquisition 68.3% in Asia-Pacific 70.2% in Asia-Pacific 31.7% in Europe 29.8% in Europe China, 19.6% China, 18.4% UK, 13.1% UK, 12.3% Singapore, Singapore,
Slide 21: Investment in Melbourne, the capital of Victoria, Australia
Rationale for the Target Acquisitions 4 Investment in Melbourne, the capital of Victoria, Australia Deepen Ascott REIT’s presence in the mature and stable market Visitor arrivals to Australia2 (million) of Australia 6.9 7.0 7.3 — Top ten global destination for FDI for third straight year after 5.7 5
Slide 22: Investment in Melbourne, the capital of Victoria, Australia (cont'd)
Rationale for the Target Acquisitions 4 Investment in Melbourne, the capital of Victoria, Australia (cont’d) Visitor nights in Victoria outperformed all states and Melbourne hospitality market performance2,3 territories in Australia for the period 2010-2014 AUD 100.0% 250 86.0% — International overn
Slide 23: Expand footprint in the growing Japanese market
Rationale for the Target Acquisitions 5 Expand footprint in the growing Japanese market Target Japanese government proactively attracting foreign Visitors arrivals to Japan2 by 2020 companies — Through the designation of “National Strategic 20.0 Special Zone” and tax reforms, the government Global T
Slide 24: Expand footprint in the growing Japanese market (cont'd)
Rationale for the Target Acquisitions 5 Expand footprint in the growing Japanese market (cont’d) Strong performance of the Tokyo hospitality market Tokyo hospitality market performance1,2 JPY’000 expected to continue 90.0% 86.3% 86.8% 87.0% 20 85.0% 81.6% 82.5% — Market occupancies for Tokyo have co
Slide 25: Strong historical performance of our properties
Rationale for the Target Acquisitions 5 Expand footprint in the growing Japanese market (cont’d) Strong historical performance of our properties — Both CST and CKK have exhibited strong performance since acquisition of 60% interest in November 2011 and March 2012 respectively — In FY2014, CST and CK
Slide 26: Funding Structure
Overview of Funding Structure Ascott Raffles Place Singapore 26
Slide 27: Funding Structure
Overview of Funding Structure Debt financing and issuance of perpetual securities Transaction Expenses $17.8m2 Remaining 40% interest in Remaining 40% interest in Citadines on Bourke Melbourne S-Residences Citadines Shinjuku Tokyo Citadines Karasuma-Gojo Kyoto S$167.0m1 S$20.5m1 S$9.7m1 S$48.8m1 Use
Slide 28: Impact on Ascott REIT
Impact on Ascott REIT Ascott Raffles Place Singapore 28
Slide 29: Pro Forma Financial Effects
Impact on Ascott REIT Pro Forma Financial Effects Pre Acquisition Post Acquisition DPU 8.20 cents 8.44 cents1 Net Asset Value Per Unit S$1.37 S$1.38 Gearing 38.5% 39.5%1 Note: 1. Ascott REIT intends to finance the proposed acquisitions with debt financing and the issuance of perpetual securities as
Slide 30: Conclusion
Conclusion Citadines Mount Sophia 30 CapitaLand Presentation May 2013
Slide 31: Conclusion
Conclusion The Proposed Acquisitions of Serviced Residence Properties in Australia and Japan and Rental Housing Properties in Japan From Interested Persons 1 Enhance DPU to FY2014 pro forma DPU will increase by 2.9% from 8.20 cents to 8.44 cents 1 post Unitholders acquisition 2 Broaden earning bas
Slide 32: Overview of Ascott REIT's Portfolio Post Acquisition
Conclusion Overview of Ascott REIT’s Portfolio Post Acquisition Existing Ascott REIT properties S$4.4b1 Target properties Total Assets United Kingdom 4 Properties 11,368 Belgium 2 Properties Germany Apartment Units 3 Properties France 17 Properties China Japan 95 Spain 1 Property 10 Properties 3
Slide 33: Thank You
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Ascott Residence Trust — Merger or Acquisition (June 2015) on 6ix