CVC Limited · ASX:CVC
CVC — CVC Trinity Property Fund — Investor Presentation (December 2006)
16 slides from CVC's investor presentation, December 2006
Slide 1: Capital Raising
CAPITAL RAISING The issue of 43.75 million units at 16 cents per unit to raise $7,000,000 December 2006
Slide 2: Agenda
CVC Property Managers Ltd Agenda 2 The Investment Opportunity 4 The Offer 5 Background 6 Property Expertise of CVC Limited and Trinity Group 8 Management Responsibilities 9 Initial Acquisition – Bulky Goods Retail Development, Belrose Sydney 12 Future Growth Strategy 13 Capital Structure – Unitholdi
Slide 3: The Investment Opportunity
CVC Property Managers Ltd The Investment Opportunity > To become a founding investor in a newly created listed property fund – CVC Trinity Property Fund (CVC Trinity) > To co-invest with the cornerstone investors – CVC Limited (CVC) and Trinity Group (TCQ) at the same price ie cash NTA of 16 cents p
Slide 4: The Investment Opportunity (cont.)
CVC Property Managers Ltd The Investment Opportunity (cont.) > The initial acquisition is a prime 14,157m2 retail bulky goods development site located in the Austlink Business Park at Belrose, Sydney > The project is estimated to be valued at $59m resulting in an $11m profit on completion > As a res
Slide 5: The Offer
CVC Property Managers Ltd The Offer > CVC Property Managers (CVCPM) intends to raise $7m by the issue of 43.75m units in CVC Trinity Property Fund at the current cash NTA of 16 cents > The proceeds will allow CVC Trinity to acquire a bulky goods retail development site at Belrose Sydney > The offer
Slide 6: Background
CVC Property Managers Ltd Background > CVC acquired the Manager of Taragon Property Fund in December 2005 to strategically expand funds management capability > CVC also acquired 19.5% of units in Taragon Property Fund at NTA equating to 16 cents > Trinity Group acquired 50% of the Manager – Taragon
Slide 7: Property Management Expertise – CVC Limited
CVC Property Managers Ltd Property Management Expertise – CVC Limited > Successful involvement in over 30 property deals involving: - property developments - property funding - direct investment - underwriting property companies for ASX listing - major shareholdings in listed property companies > Ma
Slide 8: Property Management Expertise – Trinity Group
CVC Property Managers Ltd Property Management Expertise – Trinity Group > Dynamic listed property funds manager that has grown from $200m to $700m FUM since listing two years ago > Market capitalisation - $300m - strong institutional platform > Established development expertise with the recent acqui
Slide 9: Management Responsibilities
CVC Property Managers Ltd Management Responsibilities Both groups bring complimentary strengths to CVC Trinity Property Fund > CVC Limited - fund strategy - capital raising - compliance > Trinity Consolidated - fund strategy - location of properties - development - ongoing property management “An ex
Slide 10: Initial Acquisition
CVC Property Managers Ltd Initial Acquisition Retail Bulky Goods Development Site, Austlink Business Park Belrose, Sydney NSW Belrose Development Site Bunnings Supa Centre Warehouse Aerial view Land boundary Completed development – 2008 Capital Raising 9
Slide 11: Initial Acquisition (cont.)
CVC Property Managers Ltd Initial Acquisition (cont.) > Land valued by Colliers (Nov 2006) - $15.1m > CVCPM to purchase the land for $13m consisting of $7m cash/ $6m units and $2m deferred payment on successful completion > Projected IRR – 25% > Strong tenant demand > Adjoining 33,000m2 Supa Centre
Slide 12: Initial Acquisition (cont.)
CVC Property Managers Ltd Initial Acquisition (cont.) "Belrose is in the centre of a primary and secondary catchment of 564,000 of Australia’s wealthiest people who will spend $1.4 billion on bulky goods." "Belrose is one of those rare regions that is undersupplied with bulky goods retailing." "The
Slide 13: Future Growth Strategy
CVC Property Managers Ltd Future Growth Strategy > Acquire properties that have development / capital growth potential > Also acquired more passive properties providing moderate income > Minimum three acquisitions worth $100m by 2007 1183 Toorak Road, Camberwell – an asset in the Trinity portfolio >
Slide 14: Capital Structure – Unitholding
CVC Property Managers Ltd Capital Structure – Unitholding Pre Raising Post Raising CVC Limited 2,940,002 39,502,502 (39%) Vendors of Belrose site - 7,187,500 (7%) Trinity - 6,250,000 (6%) Other 12,136,936 49,636,936 (48%) Total 15,076,938 102,576,938 Chevron Renaissance – a direct asset of CVC sold
Slide 15: Investor Value Proposition
CVC Property Managers Ltd Investor Value Proposition CVC Trinity Property Trust provides an excellent value proposition for “founding shareholders” WHY? > To subscribe for units at NTA with significant growth potential > The owners of the Manager are the cornerstone investors – 45% of issued capital
Slide 16: Timetable / Next Steps
CVC Property Managers Ltd Timetable / Next Steps > ASX announcement acquisition /unitholders notice 21 November 2006 > Offer to wholesale investors opens 25 November 2006 > Offer closes 19 December 2006 28-36 Summit Road, Noble Park – an asset in the Trinity portfolio > General meeting of unitholder
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