Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Merger or Acquisition (January 2013)
32 slides from Sunway Real Estate Investment Trust's merger presentation, January 2013
Slide 1: Acquisition of Sunway Medical Centre, Proposed Placement of New Units and 1HFY2013 Financial Highlights
Acquisition of Sunway Medical Centre, Proposed Placement of New Units and 1HFY2013 Financial Highlights January 2013
Slide 2: Disclaimer
STRICTLY PRIVATE & CONFIDENTIAL DISCLAIMER This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Sunway Real Estate Investment Trust (“Sunway REIT”) and no part of it shall form the b
Slide 3: Contents
STRICTLY PRIVATE & CONFIDENTIAL CONTENTS 1. Transaction summary 2. Overview of Sunway Medical Centre 3. Hospital master lease agreement 4. Transaction rationale 5. Proposed placement of new units 6. 1HFY2013 financial highlights 2
Slide 4: 1. Transaction summary
STRICTLY PRIVATE & CONFIDENTIAL 1. Transaction summary 3
Slide 5: Transaction summary
STRICTLY PRIVATE & CONFIDENTIAL Transaction summary Transaction summary – Sunway Medical Centre o Acquisition of Sunway Medical Centre and related assets (1) (“SunMed Property”) for a purchase consideration of RM310 million o SunMed Property is one of Malaysia’s leading private hospitals strategical
Slide 6: Transaction summary (cont'd)
STRICTLY PRIVATE & CONFIDENTIAL Transaction summary (cont’d) Related proposals The REIT Manager has obtained unitholders’ approval for the following at the unitholders’ meeting held on 18 December 2012: Acquisition of SunMed Property for a purchase consideration of RM310 million; Private placeme
Slide 7: Enlarged Sunway REIT portfolio
STRICTLY PRIVATE & CONFIDENTIAL Enlarged Sunway REIT portfolio Largest Malaysian REIT by asset value with an attractive and diversified portfolio Total Appraised Value: RM4,960 million Perlis Sunway Resort City Pusat Bandar Seberang Jaya Kedah Sunway Resort Sunway Carnival Sunway Hotel Pyramid Tower
Slide 8: 2. Overview of Sunway Medical Centre
STRICTLY PRIVATE & CONFIDENTIAL 2. Overview of Sunway Medical Centre 7
Slide 9: Overview of Sunway Medical Centre
STRICTLY PRIVATE & CONFIDENTIAL Overview of Sunway Medical Centre Sunway Medical Centre and related assets(1) Property description A 7-storey hospital and multi-storey car park (675 car parking lots) Facilities 12 operating theatres, 94 consultation suites, and convention centre (500 guests capacity
Slide 10: Overview of Sunway Medical Centre (cont'd)
STRICTLY PRIVATE & CONFIDENTIAL Overview of Sunway Medical Centre (cont’d) Sunway Medical Centre’s services, specialists and accreditations o Sunway Medical Centre provides a wide range of medical and surgical services of international standard for total management of patients o Provides outpatient
Slide 11: 3. Hospital master lease agreement
STRICTLY PRIVATE & CONFIDENTIAL 3. Hospital master lease agreement 10
Slide 12: Hospital master lease agreement
STRICTLY PRIVATE & CONFIDENTIAL Hospital master lease agreement RM19.0mil 3.5% p.a. RENTAL PAYABLE INCREMENTAL FIRST 12 MONTHS SUBSEQUENT 9 YEARS LEASE TERM Master lease for an initial period of 10 years with an option to renew at prevailing market rate for another 10 years(1) LEASE BASIS Triple net
Slide 13: 4. Transaction rationale
STRICTLY PRIVATE & CONFIDENTIAL 4. Transaction rationale 12
Slide 14: Transaction rationale
STRICTLY PRIVATE & CONFIDENTIAL Transaction rationale Opportunity to acquire a quality hospital benefiting from being part of the Sunway Resort City 1 integrated township 2 Expected to be earnings accretive, DPU accretive and NAV accretive 3 Increases size of Sunway REIT’s portfolio and potential fo
Slide 15: Opportunity to acquire an attractive and high quality asset
STRICTLY PRIVATE & CONFIDENTIAL Opportunity to acquire an attractive and high quality asset Key asset highlights Sunway Medical Centre is one of Malaysia’s leading private hospitals Hospital is part of the master-planned integrated township of Sunway Resort City which has residential, commercial
Slide 16: SunMed Property is strategically located within Sunway Resort City
STRICTLY PRIVATE & CONFIDENTIAL SunMed Property is strategically located within Sunway Resort City Synergies with Sunway Resort City Sunway Medical Centre Sunway University Sunway South Quay College Monash University Precinct Sunway Sunway Resort Lagoon SP3 & SP4 Hotel & Spa developments Menara Sunw
Slide 17: Acquisition enhances Sunway REIT's financial profile and its position as the largest Malaysian REIT
STRICTLY PRIVATE & CONFIDENTIAL Acquisition enhances Sunway REIT’s financial profile and its position as the largest Malaysian REIT Increased income stability and weighted average lease expiry NAV accretive acquisition(1) (WALE) 2.60 1.097 1.119 2.17 (NAV per unit (RM)) 20% 2% (Years) Current (Sept
Slide 18: Portfolio Composition – by Asset Size
STRICTLY PRIVATE & CONFIDENTIAL Portfolio Composition – by Asset Size Pre-acquisition of SunMed Property (1) Post-acquisition of SunMed Property (2) Others Office 6.3% 9.3% Office 8.7% Hotel 23.8% Hotel Retail 22.3% Retail 67.0% 62.7% (1) Based on valuation as at 30 June 2012 (2) Existing Sunway REI
Slide 19: Portfolio Composition – by Revenue
STRICTLY PRIVATE & CONFIDENTIAL Portfolio Composition – by Revenue Pre-acquisition of SunMed Property (1) Post-acquisition of SunMed Property (2) Others Office 10.5% Office 4.5% 10.0% Hotel 17.6% Hotel 16.8% Retail Retail 71.9% 68.7% (1) Based on FY2012 revenue (2) Existing Sunway REIT’s properties
Slide 20: Portfolio Composition – by Net Property Income
STRICTLY PRIVATE & CONFIDENTIAL Portfolio Composition – by Net Property Income Pre-acquisition of SunMed Property (1) Post-acquisition of SunMed Property (2) Office Others 9.2% 6.6% Office 8.6% Hotel 22.6% Hotel 21.2% Retail Retail 68.2% 63.6% (1) Based on FY2012 Net Property Income (2) Existing Sun
Slide 21: Positive Malaysia healthcare industry outlook
STRICTLY PRIVATE & CONFIDENTIAL Positive Malaysia healthcare industry outlook Malaysia Total Healthcare Expenditure Healthcare spending in Malaysia o Annual healthcare spending in Malaysia have been steadily increasing since 2006 20 16.9 (US$ billion) 13.3 14.8 o Healthcare expenditure in 2010 reach
Slide 22: Initial Yield of Sunway Medical Centre in Comparison with Sunway REIT Portfolio of Assets
STRICTLY PRIVATE & CONFIDENTIAL Initial Yield of Sunway Medical Centre In Comparison with Sunway REIT Portfolio of Assets 9.00% 8.00% 7.60% 7.90% 7.00% 6.13% 6.90% 6.70% 6.70% 6.50% 6.00% 6.40% 5.00% 4.00% 4.50% 3.00% 2.00% 1.00% 0.00% Sunway Sunway Sunway * Sunway * Pyramid Sunway Menara Sunway Sun
Slide 23: 5. Proposed Placement of new units
STRICTLY PRIVATE & CONFIDENTIAL 5. Proposed Placement of new units 22
Slide 24: Acquisition and proposed placement of new units
STRICTLY PRIVATE & CONFIDENTIAL Acquisition and proposed placement of new units o The acquisition has been completed via proceeds drawn from Sunway REIT’s existing debt facilities o Proposed placement of new Sunway REIT units to raise up to RM320 million by way of bookbuilding will be used to partia
Slide 25: Proposed Utilisation of proceeds from Placement
STRICTLY PRIVATE & CONFIDENTIAL Proposed Utilisation of proceeds from Placement Utilisation (RM ’000) Repayment of bank borrowings (1) 310,000 Estimated expenses directly in relation to the acquisition 3,381 Estimated expenses directly in relation to the placement 4,426 Other estimated expenses (2)
Slide 26: 6. 1HFY2013 Financial Highlights
STRICTLY PRIVATE & CONFIDENTIAL 6. 1HFY2013 Financial Highlights 25
Slide 27: 1HFY2013 Financial Highlights
STRICTLY PRIVATE & CONFIDENTIAL 1HFY2013 Financial Highlights Key Statistics 1HFY2013 1HFY2012 Change 1 No. of properties 12 11 9.1% Property value (RM billion) 4.961 4.387 13.0% No of units in circulation (unit) 2,700,625,900 2691,761,600 0.3% Unit price as at 31 Dec (RM) 1.55 1.25 24.0% Market cap
Slide 28: 1HFY2013 Financial Highlights (Cont'd)
STRICTLY PRIVATE & CONFIDENTIAL 1HFY2013 Financial Highlights (Cont’d) Consolidated Statement of Comprehensive Income YTD 1H2013 (RM’000) YTD 1H2012 (RM’000) Change Gross revenue 205,592 205,776 -0.1% Less: Property operating expenses (54,589) (56,800) 3.9% Net property income 151,003 148,976 1.4% C
Slide 29: 1HFY2013 Financial Highlights (Cont'd)
STRICTLY PRIVATE & CONFIDENTIAL 1HFY2013 Financial Highlights (Cont’d) YTD 2Q 2013 (RM'mil) 205.6 Revenue Contribution YTD 2Q 2012 (RM'mil) 205.8 Retail Hotel Office Others 140.0 118.3 120.0 111.9 100.0 80.0 60.0 40.0 15.4 13.5 18.8 17.8 19.4 20.0 12.8 11.5 12.5 6.0 3.2 8.3 8.1 7.8 8.4 4.3 5.0 2.3 2
Slide 30: 1HFY2013 Financial Highlights (Cont'd)
STRICTLY PRIVATE & CONFIDENTIAL 1HFY2013 Financial Highlights (Cont’d) NPI Margin Net Property Income Contribution YTD 2Q 2013 (RM'mil) 151.0 73.4% YTD 2Q 2012 (RM'mil) 149.0 72.4% 90.0 Retail Hotel Office Others 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 - SCI Sunway Pyramid Sunway Sunway SHSJ 3 Putra
Slide 31: 1HFY2013 Financial Highlights (Cont'd)
STRICTLY PRIVATE & CONFIDENTIAL 1HFY2013 Financial Highlights (Cont’d) Rental Reversion New and renewed Due for renewal in FYE2013 tenancies @ 2Q2013 Total rental Properties NLA for % of increase in 3 Number NLA NLA Property Property years of sq. ft. sq.ft. sq. ft. NLA tenancies a b a/b Sunway Pyram
Slide 32: Thank You
STRICTLY PRIVATE & CONFIDENTIAL Thank You 31
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