CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — Merger or Acquisition (December 2013)
34 slides from CDL Hospitality Trusts's merger presentation, Dec 3, 2013
Slide 1: Acquisition of Jumeirah Dhevanafushi, Maldives
Acquisition of Jumeirah Dhevanafushi, Maldives 3 December 2013
Slide 2: Disclaimer
Disclaimer The value of Stapled Securities and the income derived from them may fall as well as rise. Stapled Securities are not obligations of, deposits in, or guaranteed by the H-REIT Manager or M&C Business Trust Management Limited, as trustee of CDL Hospitality Business Trust (the “HBT Trustee-M
Slide 3: Table of Contents
Table of Contents § Executive Summary 4 § Overview of Transaction 7 § Investment Rationale 13 § Financials 30 3
Slide 4: Executive Summary
Executive Summary 4
Slide 5: Executive Summary
Executive Summary 1 Executive Summary Resort Type Jumeirah Dhevanafushi (the “Property”) is a top-end 5-star resort that opened on 1 Nov 2011 35 existing villas (19 beachfront + 16 over-water villas) Number of Villas + 2 additional beachfront villas to be completed by Vendor in 2014 Villa Size Avera
Slide 6: Executive Summary
Executive Summary 2 § Strengthening foothold in Maldives, CDLHT acquires an upmarket operating resort in one of the world’s highest RevPAR markets for US$59.6 million § The Property focuses on personalised luxury of the highest standard, offering extremely spacious villas, which are among the larges
Slide 7: Overview of Transaction
Overview of Transaction 7
Slide 8: Property Overview
Property Overview § Occupying the Meradhoo Island of Gaafu Alifu Atoll located in the southern part of the Maldives archipelago, the recently opened Jumeirah Dhevanafushi currently boasts 35 luxury villas, each with its own private pool § Two additional villas will be added in 2014 at the Vendor’s c
Slide 9: Details and Description of the Property
Details and Description of the Property Jumeirah Dhevanafushi Branding Branded Jumeirah since opening in Nov 2011 19 Beachfront Villas, 16 Over-water Villas Number of Villas (Two more Beachfront Villas to be added in 2014 at the Vendor’s costs) § Dive centre and water sports centre § Talise SPA Faci
Slide 10: Details and Description of the Property (con't)
Details and Description of the Property (con’t) Main Island Over-water Villas Source: Information memorandum on Jumeirah Dhevanafushi, the Maldives, prepared by Jones Lang LaSalle for the Acquisition 10
Slide 11: Transaction Details
Transaction Details Transaction Summary Purchase Price § US$ 59.6 million Total Acquisition Cost (1) § US$ 61.0 million Valuation (2) § US$ 61.0 million 6.2% (4), with potential for improvement as the Property opened only in Pro Forma Annualised NPI Yield for FY2013 (3) November 2011 and is currentl
Slide 12: Transaction Details: Summary Structure
Transaction Details Summary Structure CDLHT Stapled Group H-REIT Group (H-REIT Lessor) HBT Group (HBT Lessee) • Owns the Property (including Provides Working Capital Line • Responsible for working capital land, fixed assets and FF&E) requirements of the operations • Responsible for capital • Takes o
Slide 13: Investment Rationale
Investment Rationale 13
Slide 14: Investment Rationale
Investment Rationale 1 Accretive Acquisition 2 Positioned to Further Benefit from the Buoyant Hospitality Sector in the Maldives 3 High Quality New Asset Managed by Reputable Operator 4 Upside Opportunities from Potential Enhancements and Development of Additional Villas 5 Further Strengthens the Po
Slide 15: Investment Rationale
Investment Rationale 1 Accretive Acquisition 2 Positioned to Further Benefit from the Buoyant Hospitality Sector in the Maldives 3 High Quality New Asset Managed by Reputable Operator 4 Upside Opportunities from Potential Enhancements and Development of Additional Villas 5 Further Strengthens the Po
Slide 16: Accretive Acquisition
1 Accretive Acquisition § Pro Forma Annualised NPI yield of 6.2% (1) for FY2013, based on Pro Forma Annualised NPI for FY2013 of US$3.7 million § The Property is expected to provide a 2.2% (2) DPS accretion on a pro forma annualised basis, assuming CDLHT owns the Property from 1 January 2013 § Opene
Slide 17: Investment Rationale
Investment Rationale 1 Accretive Acquisition 2 Positioned to Further Benefit from the Buoyant Hospitality Sector in the Maldives 3 High Quality New Asset Managed by Reputable Operator 4 Upside Opportunities from Potential Enhancements and Development of Additional Villas 5 Further Strengthens the Po
Slide 18: Positioned to Further Benefit from the Buoyant Hospitality Sector in the Maldives
2 Positioned to Further Benefit from the Buoyant Hospitality Sector in the Maldives Visitor Arrivals 2002 - YTD Oct 2013 Top Visitor Arrivals by Nationality Arrivals 2013 % Share % Share Thousands Rank Nationality YTD Oct YOY % YTD Oct Full Year 931 958 925 1,000 60% 2013 Change 2013 2012 792 784 80
Slide 19: Positioned to Benefit from Maldives Hospitality Sector (con't)
2 Positioned to Further Benefit from the Buoyant Hospitality Sector in the Maldives (con’t) Expanded Flight Connectivity, Expected to Drive Arrivals Growth § Cathay Pacific launched a new four times weekly flight from Hong Kong to the Maldives since end-October 2013 § AirAsia X added four times week
Slide 20: Positioned to Benefit from Maldives Hospitality Sector (con't)
2 Positioned to Further Benefit from the Buoyant Hospitality Sector in the Maldives (con’t) § The Property is well-positioned in the luxury segment to benefit from the growing affluence of Asian travellers § Growth in visitor arrivals from China and Russia, the Property’s top two source markets, wil
Slide 21: Investment Rationale
Investment Rationale 1 Accretive Acquisition 2 Positioned to Further Benefit from the Buoyant Hospitality Sector in the Maldives 3 High Quality New Asset Managed by Reputable Operator 4 Upside Opportunities from Potential Enhancements and Development of Additional Villas 5 Further Strengthens the Po
Slide 22: High Quality New Asset Managed by Reputable Operator
3 High Quality New Asset Managed by Reputable Operator § Two-year old property, opened only on 1 November 2011 § Property is new and villas are spacious and luxuriously fitted out, targeted at the high-end clientele, which is expected to grow with increasing affluence in Asia and Russia § Well-posit
Slide 23: High Quality New Asset Managed by Reputable Operator (con't)
3 High Quality New Asset Managed by Reputable Operator (con’t) Beach Revive 23
Slide 24: High Quality New Asset Managed by Reputable Operator (con't)
3 High Quality New Asset Managed by Reputable Operator (con’t) Ocean Sanctuary Bathroom 24
Slide 25: Managed by a Reputable Operator, Jumeirah
3 High Quality New Asset Managed by Reputable Operator (con’t) Managed by a Reputable Operator, Jumeirah § Established in 1997 and headquartered in Dubai, Jumeirah is an international luxury hotel operator § Since 2011, Jumeirah has more than doubled the number of properties under management to 22 a
Slide 26: Investment Rationale
Investment Rationale 1 Accretive Acquisition 2 Positioned to Further Benefit from the Buoyant Hospitality Sector in the Maldives 3 High Quality New Asset Managed by Reputable Operator 4 Upside Opportunities from Potential Enhancements and Development of Additional Villas 5 Further Strengthens the Po
Slide 27: Upside Opportunities from Potential Enhancements and Development of Additional Villas
4 Upside Opportunities from Potential Enhancements and Development of Additional Villas Upside Opportunities from Asset Enhancement and Development of Additional Villas § Existing built-up area of approximately 17% offers an estimated 7,017 sqm headroom for potential development of additional villas
Slide 28: Investment Rationale
Investment Rationale 1 Accretive Acquisition 2 Positioned to Further Benefit from the Buoyant Hospitality Sector in the Maldives 3 High Quality New Asset Managed by Reputable Operator 4 Upside Opportunities from Potential Enhancements and Development of Additional Villas 5 Further Strengthens the Po
Slide 29: Further Strengthens the Portfolio through Diversification
5 Further Strengthens the Portfolio through Diversification § On a pro forma basis post-acquisition, the net property income contribution from the Property is 3.3% (1) § Net property income contribution from any single property in CDLHT’s portfolio will decrease from 17.4% to 16.8% (1) Breakdown of
Slide 30: Financials
CDL HOSPITALITY TRUSTS Financials 30
Slide 31: Increase in Portfolio Size
Increase in Portfolio Size Valuation (1) of CDLHT’s Properties + 3.6% Country Pre-Acquisition Post-Acquisition S$ M S$2,210.1M Singapore 79.5% 76.7% S$2,133.5M 165 Australia (2) 12.2% 11.8% 89 2,000 88 88 New Zealand (3) 4.1% 4.0% 261 261 Maldives (4) 4.2% 7.5% 1,500 Key: 1,000 1,695 1,695 500 - Pre
Slide 32: Pro Forma Effect on Nine Months Ended September 2013
Pro Forma Effect on Nine Months Ended 30 September 2013 Net Property Income (1) Income Available for Distribution Per Stapled Security (1)(2) Singapore S$ '000 cents +2.2% 110,000 +3.4% 10.0 104,410 8.9 9.1 100,929 100,000 8.0 90,000 6.0 80,000 4.0 70,000 2.0 60,000 0.0 Pre-Acquisition Post-Acquisit
Slide 33: Ample Headroom for Further Acquisitions
Ample Headroom for Further Acquisitions § Acquisition to be fully funded through debt financing via H-REIT’s acquisition facility § At a post-Acquisition gearing of 30.6%(2), there is ample headroom for more acquisitions Debt Value Debt to Total Assets S$ million 35.0% 800 30.6% 695 30.0% 28.1% 700
Slide 34: Thank You
CDL HOSPITALITY TRUSTS THANK YOU 34
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