Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaLand — Merger or Acquisition (February 2017)
16 slides from Singapore Exchange's merger presentation, Feb 17, 2017
Slide 1: Proposed Acquisition Of A Portfolio Of Office And Retail Assets In Greater Tokyo, Japan
CapitaLand Limited Proposed Acquisition Of A Portfolio Of Office And Retail Assets In Greater Tokyo, Japan 17 February 2017
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Represen
Slide 3: Contents
Contents • Transaction Overview • Transaction Rationale 3
Slide 4: Overview of the Acquisition
Overview of the Acquisition Yokohama Blue Avenue, Japan
Slide 5: Portfolio: Overview
Portfolio: Overview Yokohama Kokugikan Seiyu & Sun Hamada Blue Avenue Front Sundrug Supermarket+ Asset Type Office Office Office Drug Store Lease Multi-Tenanted Multi-Tenanted Multi-Tenanted Master Leased Location Greater Tokyo Greater Tokyo Tokyo Greater Tokyo Completion Nov 2009 Feb 1993 Jun 2004
Slide 6: Acquisition Costs And Proposed Funding Plan
Acquisition Costs And Proposed Funding Plan • Acquisition Costs JPY billion SGD1 million Purchase consideration 49.7 620.1 Transaction costs2 1.3 16.2 Total 51.0 636.3 • Acquisition to be financed by a combination of internal funds and borrowings Notes: (1) Based on exchange rate SGD1: JPY80.064 (2)
Slide 7: Yokohama Blue Avenue
Yokohama Blue Avenue Property Overview Address 4-4-2 Minatomirai, Nishi-ku, Yokohama-shi, Kanagawa Land Tenure Freehold GFA ~555,000 sq ft NLA ~373,000 sq ft Occupancy 78% ( as at 31 January 2017) Mitsubishi Heavy Industries, Ericsson Key Tenants Japan, Fuji Xerox, EMG Marketing Location • Three-min
Slide 8: Sun Hamada Building
Sun Hamada Building Property Overview Address 1-19-20 Shin-Yokohama, Kohoku-ku, Yokohama-shi, Kanagawa Land Tenure Freehold GFA ~132,000 sq ft NLA ~90,000 sq ft Occupancy 100% ( as at 31 January 2017) Allied Telesis, Lands‘ End Japan, Key Tenants Unipres Corporation Location • Nine-minute walk from
Slide 9: Kokugikan Front Building
Kokugikan Front Building Property Overview Address 1-10-5 Yokoami, Sumida-ku, Tokyo Land Tenure Freehold GFA ~ 85,000 sq ft NLA ~65,000 sq ft Occupancy 100% ( as at 31 January 2017) Shindo Corporation, Onkyo Key Tenants Corporation Location • Three-minute walk from the Japan Railway Ryogoku Station
Slide 10: Seiyu & Sundrug
Seiyu & Sundrug Property Overview Address 11-2 Komatsubara-cho, Higashi- Matsuyama-shi, Saitama Land Tenure Freehold GFA ~ 393,000 sq ft NLA ~ 393,000 sq ft Occupancy 100% ( as at 31 January 2017) Key Tenants Seiyu and Sundrug Location • Located in Higashi-Matsuyama, Saitama Prefecture. With a popul
Slide 11: Rationale for Proposed Acquisition
Seiyu & Sun Drug Property Overview Rationale Rationalefor for Address 11-2 Komatsubara-cho, Higashi- Matsuyama-shi, Saitama Proposed Proposed Land Tenure GFA Freehold ~393,000 sq ft Acquisition Acquisition NLA ~393,000 sq ft Occupancy 100% (as at 31 January 2017) Key Tenants Seiyu and Sun Drug Prope
Slide 12: Rationale
Rationale Deepen Presence In A Developed Market, Particularly In A Robust Region Advance A Long-term Business Strategy For Japan Operations Accretive And Income Producing Acquisition 12
Slide 13: Deepen Presence In A Developed Market, Particularly In A Robust Region
Deepen Presence In A Developed Market, Particularly In A Robust Region Sapporo • Tap into Tokyo which is a key global city and one of Asia Pacific’s top real estate development and investment market Greater Kobe Nagoya Tokyo Hiroshima Kyoto Osaka Fukuoka 13
Slide 14: Advance A Long-term Business Strategy For Japan Operations
Advance A Long-term Business Strategy For Japan Operations • Enlarge CapitaLand Group’s total portfolio1 in Japan to S$2.5 billion from approximately S$1.8 billion2 • Well-diversified presence across asset classes such as shopping malls, offices and serviced residences • Most assets are concentrated
Slide 15: Accretive And Income Producing Acquisition
Accretive And Income Producing Acquisition • Estimated entry property yield of 4.1% and recurring net operating income of approximately S$25.0 million per annum • Potentially achieving an upside yield of 4.5% to 4.8% in the next two to three years • Accretive return on equity of more than 10%1 Note
Slide 16: Thank You
Thank You For enquiries, please contact Ms. Chang Rui Hua, Head of Investor Relations, Direct: (65) 6713 2903; Email: chang.ruihua@capitaland.com