Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — Frasers Centrepoint Trust — Shareholder Meeting (September 2011)
25 slides from Fraser & Neave's shareholder meeting presentation, Sep 12, 2011
Slide 1: Frasers Centrepoint Trust Extraordinary General Meeting
Frasers Centrepoint Trust Extraordinary General Meeting 12 September 2011
Slide 2: Important notice
Important notice The information contained in this Presentation is for information purposes only, and is qualified in its entirety by, and should be read in conjunction with, the full text of a circular to Unitholders dated 24 August 2011 (the “Unitholders’ Circular”). This Presentation does not con
Slide 3: Agenda
Agenda 1 Overview of Bedok Point 4 2 Competitive Strengths of Bedok Point 6 3 Comparison with recently concluded transactions 13 4 Rationale for the Acquisition 15 5 Financing Structure Options 21 6 Conclusion 23 3
Slide 4: Overview of Bedok Point
Overview of Bedok Point 4
Slide 5: Exciting new suburban mall that offers strong F&B and entertainment trade mix
Overview of Bedok Point Exciting new suburban mall that offers strong F&B and entertainment trade mix Storeys 4 with 2 basement levels 99-year leasehold from Title 15 March 1978 Gross Lettable Area 133,598 sq ft Net Lettable Area 80,985 sq ft Number of 74 Committed Leases Purchase S$127.0m1 Consider
Slide 6: Competitive Strengths of Bedok Point
Competitive Strengths of Bedok Point 6
Slide 7: Strategic location and good connectivity to transportation hub
Competitive Strengths Strategic location and good connectivity to transportation hub Excellent location, connectivity and accessibility –Near to the Bedok MRT station and the Bedok bus interchange –Good street frontage on a major east-west road –Good accessibility to major expressways (ECP and PIE
Slide 8: New suburban mall with potential for growth
Competitive Strengths New suburban mall with potential for growth Bedok Point is currently the only fully enclosed and air-conditioned mall in Bedok Appeals to diverse groups of shoppers and restaurant customers Trade Mix by Monthly Gross Rental Income Top F&B Tenants by Gross Rental Income Su
Slide 9: Captive shopper catchments
Competitive Strengths Captive shopper catchments Bedok Point is located in Singapore’s most .. .with high per capita retail spending2 populous town1 S$ Hougang 216,700 $6,500 $6,327 $6,151 Woodlands 245,100 $6,000 $5,696 $5,538 Jurong West 250,000 $5,500 $5,000 Tampines 250,000 $4,500 Bedok 294,500
Slide 10: Competitive Strengths
Competitive Strengths … and a limited supply of new additional Bedok Estate has low shopping centre shopping centre floorspace in the East1 in the floorspace per capita (sq ft) near term (sq ft) 250,000 5.0 4.6 210,000 4.5 200,000 4.0 3.5 150,000 3.0 2.5 2.0 100,000 1.5 1.1 50,000 1.0 50,000 0.5 0.3
Slide 11: Limited supply of retail space in Singapore
Competitive Strengths Location Limited and of supply Accessibility retail spaceofin Singapore Total additional new retail floor space (of 260,000 sq ft) in the East region between 2011 and 2013 is relatively small compared to other regions New Shopping Centre Floorspace by Region (2011-2013) Sq ft
Slide 12: Exposure to the stable and resilient suburban retail property market
Competitive Strengths Exposure to the stable and resilient suburban retail property market Between Q3 2008 and Q1 2010, the combined effects of recession and additional retail space on Orchard Road placed downward pressure on rents and occupancy. Suburban prime rents decreased by 4% vis-à-vis Orch
Slide 13: Comparison with recently concluded transactions
Comparison with recently concluded transactions 13
Slide 14: Comparison with recently concluded transactions
Comparison with recently concluded transactions Property yield of recently concluded Recently concluded transactions transactions Property Name Approx Date of Price Price Lettable sale (S$’m) per sq ft 5.5% 5.0% Area (S$) 4.7% (sq ft) 3.7% Jurong Point Extension1 314,123 Jun-11 670 2,133 Illuma 1 18
Slide 15: Rationale for the Acquisition
Rationale for the Acquisition 15
Slide 16: Yield accretive transaction
Rationale for the Acquisition Yield accretive transaction Forecast Period 20121 DPU (cents) 8.58 8.50 0.9% Existing Assets Enlarged Assets Assumptions: – Debt financing of 51.2% of the Purchase Consideration (S$65.0m) and – New Units and the Acquisition Fee Units issued at the illustrative issue p
Slide 17: In line with the Manager's investment strategy
Rationale for the Acquisition In line with the Manager’s investment strategy 1 NPI (S$’m) (Forecast Period) Asset Size (S$’bn ) 1.66 94.8 87.8 1.53 8.5% 8.0% Existing Portfolio Enlarged Portfolio Existing Portfolio 2 Enlarged Portfolio 1. Based on the forecast Net Property Income for Forecast Period
Slide 18: Greater income diversification
Rationale for the Acquisition Greater income diversification Net Property Income Contribution Net Property Income Contribution Existing Portfolio1 Enlarged Portfolio1 Post acquisition, the NPI share contribution from the largest contributor Causeway Point will be reduced to 46.8% from 50.5% 1. Bas
Slide 19: Better geographical diversification of asset portfolio
Rationale for the Acquisition Better geographical diversification of asset portfolio Better geographical diversification of FCT’s asset portfolio and market share increase in the suburban estate in the East region of Singapore 19
Slide 20: Greater trading liquidity
Rationale for the Acquisition Greater trading liquidity Free Float1 (million units) Assuming 55.0m New Units issued, FCT’s free float1 is expected to increase by 12.6% upon completion of Private Placement2 12.6% FCL Group’s percentage unitholding in FCT is expected to be reduced from 43.2% to 40
Slide 21: Financing Structure Options
Financing Structure Options 21
Slide 22: Purchase Consideration of S$127.0m
Illustrative debt and equity funding plan Purchase Consideration of S$127.0m Financing Mix Gearing Post Acquisition S$65.0m S$62.0m Debt, Equity, 51.2% 48.8% 1 In the event that the Acquisition is fully financed by debt, the resultant aggregate leverage ratio of FCT at the start of the Forecast Pe
Slide 23: Conclusion
Conclusion Z FRASERS he CENTREPOINT TRUST
Slide 24: EGM Resolutions
Conclusion EGM Resolutions1 Resolution 1 : The Proposed Acquisition of Bedok Point - Purchase Consideration of S$127.0m Resolution 2 : The Proposed Issue of up to 55.0m New Units under the Private Placement Resolution 3 : The Proposed Subscription of New Units by the FCL Group under the Private Plac
Slide 25: Thank you
Thank you Analyst & media contact: Chen Fung-Leng Frasers Centrepoint Asset Management Ltd Tel: (65) 6277-2657 Email: fungleng.chen@fraserscentrepoint.com Website: www.fct.sg
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