Gpt Group · ASX:GPT
Gpt — The GPT Group — Investor Presentation (September 2016)
57 slides from Gpt's investor presentation, Sep 21, 2016
Slide 1: GPT Retail Development September 2016
GPT RETAIL For personal use only DEVELOPMENT SEPTEMBER 2016
Slide 2: Agenda
AGENDA For personal use only Introduction Mark Fookes 2 GPT Retail Development Anthony McNulty 4 Retail Development Leasing Damien O’Connor 9 Casuarina Square Anthony McNulty 15 Charlestown Square Anthony McNulty 19 Melbourne Central Lachlan Cameron 23 Rouse Hill Town Centre Ken Knox/Penny Lloyd 31
Slide 3: Forecast Pipeline
FORECAST PIPELINE For personal use only • Total potential value for GPT Balance Sheet and Funds of $2.1b • Potential to increase AUM through organic growth by 26% Value Potential ($m) Pipeline Current AUM Potential Increase Value Jun 2016 in AUM GPT Retail 1,493 4,304 35% Retail Fund 598 3,849 16% F
Slide 4: Highpoint, Charlestown, Rouse Hill, Melbourne Central, Sydney Olympic Park
For personal use only HIGHPOINT SHOPPING CENTRE CHARLESTOWN SQUARE ROUSE HILL TOWN CENTRE MELBOURNE CENTRAL SYDNEY OLYMPIC PARK 3 GPT GROUP RETAIL DEVELOPMENT
Slide 5: Retail Development Team and Approach
GPT RETAIL DEVELOPMENT RETAIL For personal use only DEVELOPMENT TEAM AND APPROACH 4 GPT GROUP RETAIL DEVELOPMENT
Slide 6: Team Structure
TEAM STRUCTURE For personal use only ANTHONY MCNULTY HEAD OF RETAIL & MIXED USE DEVELOPMENT KEN KNOX LACHLAN CAMERON PENNY LLOYD PHILLIP BARROW DAMIEN O’CONNOR DEVELOPMENT DIRECTOR – HEAD OF DEVELOPMENT HEAD OF RETAIL LEASING DEVELOPMENT DIRECTOR DEVELOPMENT DIRECTOR RESIDENTIAL FINANCE • 30 years p
Slide 7: Development Approach
For personal use only RISK VALUE Monitor Asset MANAGEMENT DEVELOPMENT APPROACH BU SI VA N DE LU ES VE E S PR CA LO SE PM OP PR EN O SI T TI EL IM B LO ON IN CK AR PL CONCEPT Y AN IN FI VE N ST AL M IN EN VE T ST PR M OP CO EN OS N T AL DI PR TI ON O PO S SA PR EC L ED EN T VALUE & RISK MANAGEMENT CO
Slide 8: Development Approach: Governance
DEVELOPMENT APPROACH GOVERNANCE For personal use only BOARD(S) AUDIT & RISK INVESTMENT MANAGEMENT COMMITTEE COMMITTEE PROJECT CONTROL GROUP TENANCY DEVELOPMENT EXECUTIVE SELECTION REVIEW PANEL REVIEW GROUP COMMITTEE PROJECT 7 GPT GROUP RETAIL DEVELOPMENT
Slide 9: Market Trends
MARKET TRENDS URBANISATION AND TECHNOLOGY For personal use only • People are valuing their time Disrupted Mature and seeking to live in connected retail model market walkable communities • Technology is continuing to change the landscape Tightly held Customer investment power shift • Tenants are inc
Slide 10: Retail Development Leasing
GPT RETAIL DEVELOPMENT RETAIL For personal use only DEVELOPMENT LEASING 9 GPT GROUP RETAIL DEVELOPMENT
Slide 11: Retail Leasing Overview
RETAIL LEASING OVERVIEW For personal use only LEASING Operational Development Externally Leasing Leasing Managed Assets • Retail Planning • Commerce 9 x Retail Assets • Pre-leasing 5 x Retail Assets 600-700 Deals p.a • Development delivery 14 x Retail Leasing Executives Planning & Review RETAIL SERV
Slide 12: Retail Leasing: Adapting Our Product in a Dynamic Retail Environment
RETAIL LEASING ADAPTING OUR PRODUCT IN A DYNAMIC RETAIL For personal use only ENVIRONMENT Areas of focus and growth • Demand from international retailers continues • Capturing the growth in leisure based apparel • Evolving our food to add breadth – increased demand for premium and slow dining • Ente
Slide 13: Retail Leasing: Adapting Our Product (Transition)
RETAIL LEASING ADAPTING OUR PRODUCT IN A DYNAMIC RETAIL For personal use only ENVIRONMENT Some categories have experienced contraction • Pharmacy consolidation • Apparel consolidation • Banking services Transition in • Fresh Food undergoing transformation GPT’s key focus • Optimisation of product mi
Slide 14: Retail Leasing: Development and Operational Planning
RETAIL LEASING DEVELOPMENT AND OPERATIONAL For personal use only Retail plan looks at both the place and product on offer Strategic Plans • Leasing plan defines the remixes to drive optimal productivity with a 5 year focus • Precinct Planning defining – The end user – The characteristics and aesthet
Slide 15: Working with Retailers to Drive Productivity
RETAIL LEASING DEVELOPMENT AND OPERATIONAL For personal use only Working with retailers to drive productivity Segmented Customer Base • Defined and segmented tenant base to drive focussed outcomes • Relationship based, long term leasing focused on key customer drivers Informed by the following GPT s
Slide 16: Casuarina Square
GPT RETAIL DEVELOPMENT CASUARINA For personal use only SQUARE 15 GPT GROUP RETAIL DEVELOPMENT
Slide 17: Casuarina Square Before and After
For personal use only BEFORE AFTER CASUARINA SQUARE GPT GROUP RETAIL DEVELOPMENT
Slide 18: Casuarina Square: Creation of a New Entertainment & Leisure Precinct
CASUARINA SQUARE CREATION OF A NEW ENTERTAINMENT & For personal use only LEISURE PRECINCT • Opened July 2016 • New kids play area and family dining • Improve dominance in lifestyle and entertainment • Record opening results for majority of tenants • Seven new food retailers to the Darwin market – Th
Slide 19: Casuarina Square Entertainment and Leisure Precinct
For personal use only 17 CASUARINA SQUARE ENTERTAINMENT AND LEISURE PRECINCT GPT GROUP RETAIL DEVELOPMENT
Slide 20: Casuarina Square
For personal use only 18 CASUARINA SQUARE GPT GROUP RETAIL DEVELOPMENT
Slide 21: Charlestown Square
GPT RETAIL DEVELOPMENT CHARLESTOWN For personal use only SQUARE 19 GPT GROUP RETAIL DEVELOPMENT
Slide 22: Charlestown Square: International Mini Major Remix
CHARLESTOWN SQUARE INTERNATIONAL MINI MAJOR REMIX For personal use only • Opened July 2016 • Create International Mini Major point of difference • Improved mix and quality of retailers to anchor asset • Strong leasing results delivering positive leasing spreads • H&M, Cotton-On and Mecca trading str
Slide 23: Charlestown Square Levels
For personal use only LEVEL 1 LEVEL 2 21 CHARLESTOWN SQUARE GPT GROUP RETAIL DEVELOPMENT
Slide 24: Charlestown Square
CHARLESTOWN SQUARE For personal use only 22 GPT GROUP RETAIL DEVELOPMENT
Slide 25: Melbourne Central
GPT RETAIL DEVELOPMENT MELBOURNE For personal use only CENTRAL 23 GPT GROUP RETAIL DEVELOPMENT
Slide 26: Melbourne Central: Drivers for Change and Response
MELBOURNE CENTRAL For personal use only • Drivers for change – Asset upgrade to drive performance – included works to improve poor configuration – Daimaru leaving Australia – catalyst for major change • Response – Major repositioning – Customer psychographic – “Urban” vs “suburban” – Collaboration w
Slide 27: Melbourne Central Before and After
For personal use only BEFORE AFTER 25 GPT GROUP RETAIL DEVELOPMENT
Slide 28: Melbourne Central Floor Plans
MELBOURNE CENTRAL For personal use only FLOOR PLAN PRE-REDEVELOPMENT GPT’S RESPONSE – POST DEVELOPMENT 26 GPT GROUP RETAIL DEVELOPMENT
Slide 29: Melbourne Central: Key Development/Project Metrics
MELBOURNE CENTRAL KEY DEVELOPMENT/ PROJECT METRICS For personal use only 2002–2005 • Valuation Prior $210 million • Development Expenditure $263 million Valuation • Achieved Valuation Today $577 million • Valuation Uplift $1.136 billion $104 million • Margin on Cost 40% • 2007 Property Council of Au
Slide 30: Melbourne Central: Dining Hall and Corner Remix
MELBOURNE CENTRAL DINING HALL AND CORNER REMIX For personal use only 2010-2011 • Leverage trading performance and brand strength • Higher and better use – Freedom store to Dining Hall • Convert old food court – additional retail • Enhance circulation and connections • Refresh prior to Emporium • Cap
Slide 31: Melbourne Central: Asset Enhancement Activity
MELBOURNE CENTRAL ASSET ENHANCEMENT For personal use only ACTIVITY Arcade The Great Room Level 3 L&E • $50 million capital investment • Key precincts – Arcade – The Great Room Menzies Alley Menzies Place – Level 3 Leisure & Entertainment LG Eatery L2 Dining Hall – Menzies Alley – Menzies Place – Low
Slide 32: Melbourne Central: Rooftop Expansion
MELBOURNE CENTRAL ROOFTOP EXPANSION For personal use only • $70 million rooftop expansion • Additional three levels – Retail – Leisure and Entertainment – Library or other amenity 30 GPT GROUP RETAIL DEVELOPMENT
Slide 33: Rouse Hill Town Centre
GPT RETAIL DEVELOPMENT ROUSE HILL For personal use only TOWN CENTRE 31 GPT GROUP RETAIL DEVELOPMENT
Slide 34: Rouse Hill Town Centre: Background
ROUSE HILL TOWN CENTRE BACKGROUND For personal use only Town Centre opportunity – Designated Growth Corridor – Competitive NSW Government Tender – GPT secured opportunity to develop Town Centre 2003 – Initial retail centre opened in 2008 Masterplan – Regional Town Centre – Future rail and transport
Slide 35: Sydney Metro Northwest Construction Progress
For personal use only SYDNEY METRO NORTHWEST – CONSTRUCTION PROGRESS GPT GROUP RETAIL DEVELOPMENT
Slide 36: Rouse Hill: Creating a Town Centre
ROUSE HILL TOWN CENTRE CREATING A TOWN CENTRE For personal use only Retail Principles – Retail anchors - Coles, Woolworths, Big W, Target and Reading – Over 220 specialties – Quality car parking – Point of difference public spaces Town Centre Principles – Council library and community centre – Bus i
Slide 37: Rouse Hill: Asset Overview and Catchment Profile
ROUSE HILL TOWN CENTRE ASSET OVERVIEW AND CATCHMENT PROFILE For personal use only Positioning • GLA 69,700 sqm • Coles, WoW, Big W, Target, Reading • Over 220 specialties • Carparking Spaces – 2,767 Sales Performance & Leasing • Centre MAT $423 million • Spec Sales $8,264psm • Occupancy Cost 14.6% M
Slide 38: Rouse Hill: Securing Expansion Land
ROUSE HILL TOWN CENTRE SECURING EXPANSION LAND For personal use only • Entitlement total: – Retail – 130,000sqm – Commercial – 50,000sqm – Residential – 375 dwellings • Acquired 2015 including planning approval • Enables Stage 2 retail expansion • Future Mixed-Use Whole asset New land 35 GPT GROUP R
Slide 39: Rouse Hill: Development Scope
ROUSE HILL TOWN CENTRE DEVELOPMENT SCOPE For personal use only • Expanded Retail Offer – Additional 29,000sqm – New generation Department Store – International and expanded local Mini Majors – Best of “breed” fashion – Additional 80 speciality shops • Enhanced Day Out – Entertainment and public spac
Slide 40: Rouse Hill: Residential and Mixed-Use
ROUSE HILL TOWN CENTRE RESIDENTIAL AND MIXED-USE For personal use only • Shift in residential market towards greater density in outer suburban areas • Purchasers happy to trade-off larger private space for access to transport, amenity and lifestyle • GPT identified this trend early in setting vision
Slide 41: Highpoint Shopping Centre
GPT RETAIL DEVELOPMENT HIGHPOINT For personal use only SHOPPING CENTRE 38 GPT GROUP RETAIL DEVELOPMENT
Slide 42: Highpoint: David Jones Expansion 2011-2013
HIGHPOINT SHOPPING CENTRE DAVID JONES EXPANSION 2011-2013 For personal use only Fashion and Fresh Food • Dominant Fashion Offer – David Jones “first to West” – Zara, Top Shop, Australian Designer Fashion – Apple and Samsung • Convenience Fresh Food – Full line Woolworths and Fresh Food precinct • En
Slide 43: Highpoint: David Jones Expansion Result
HIGHPOINT SHOPPING CENTRE DAVID JONES EXPANSION 2011-2013 For personal use only The Result • Valuation Prior $1.260 billion • Development Expenditure Valuation $300 million Today • Achieved Valuation $1.825 billion $2.179 billion • Valuation Uplift $265 million • Margin on Cost 88% • Property Counci
Slide 44: Highpoint: Entertainment & Leisure
HIGHPOINT SHOPPING CENTRE ENTERTAINMENT & LEISURE For personal use only Entertainment and Dining Remix • Consolidate entertainment and dining offer in West – Strike Bowling – Best in class casual dining – New centre court – meeting place – Approved capital investment $18.9 million • The Result – Del
Slide 45: Highpoint: Future Retail Expansion
HIGHPOINT SHOPPING CENTRE FUTURE RETAIL EXPANSION For personal use only • East Side Retail – 30,000sqm retail – Enhance Highpoint’s position as the dominant retail asset in the West to include: - second supermarket – Coles - fresh food - international mini-majors - fashion - leisure and entertainmen
Slide 46: Highpoint: Town Centre Potential
HIGHPOINT SHOPPING CENTRE “TOWN CENTRE” POTENTIAL For personal use only • Major Town Square • Mixed Use potential – Hotel – Residential – Health – University 43 GPT GROUP RETAIL DEVELOPMENT
Slide 47: Sunshine Plaza
GPT RETAIL DEVELOPMENT SUNSHINE For personal use only PLAZA 44 GPT GROUP RETAIL DEVELOPMENT
Slide 48: Sunshine Plaza: Asset Overview and Catchment Profile
SUNSHINE PLAZA ASSET OVERVIEW AND CATCHMENT PROFILE For personal use only Positioning • Regional: GLA 73,400 sqm • Myer, Target, Kmart, Coles, Woolworths, Birch Carroll & Coyle • 249 specialties • Carparking spaces – 3,546 Sales Performance & Leasing • Centre MAT $532 million • Spec Sales $11,768psm
Slide 49: Sunshine Plaza: Development
SUNSHINE PLAZA DEVELOPMENT For personal use only Retail Plan • Additional 34,400 sqm, with 13,300 sqm of specialty GLA • Pre-committed: – David Jones – 8,000 sqm – Big W – 6,500 sqm – International Mini Major – 3,000 sqm – Myer – refurbished store and new lease until 2031 • Two mini majors (3,629 sq
Slide 50: Sunshine Plaza Site Plan Including Existing Asset
For personal use only 47 SUNSHINE PLAZA SITE PLAN INCLUDING EXISTING ASSET GPT GROUP RETAIL DEVELOPMENT
Slide 51: Sunshine Plaza Development Design
For personal use only 48 SUNSHINE PLAZA DEVELOPMENT DESIGN GPT GROUP RETAIL DEVELOPMENT
Slide 52: Sunshine Plaza Development Design
For personal use only 49 SUNSHINE PLAZA DEVELOPMENT DESIGN GPT GROUP RETAIL DEVELOPMENT
Slide 53: Sunshine Plaza: Enhancing Future Asset Value
SUNSHINE PLAZA ENHANCING FUTURE ASSET VALUE For personal use only Securing positioning and dominance Investment Returns • Capital investment – $400m (at 100% interest) • Stabilised yield greater than 6% • Forecast project 10 year IRR greater than 9% • Capturing sales leakage – positioning the asset
Slide 54: Retail Portfolio
GPT GROUP RETAIL For personal use only PORTFOLIO 51 GPT GROUP RETAIL DEVELOPMENT
Slide 55: GPT Retail Portfolio Strategy
GPT RETAIL PORTFOLIO STRATEGY For personal use only To be a market leader in Australia, maximising market A diverse portfolio of high ASPIRATION share & driving returns. EXPOSURE quality retail assets in This will be achieved by TO growth markets across providing enhanced shopper Australia. experien
Slide 56: Q&A & Closing Comments
GPT GROUP Q&A & For personal use only CLOSING COMMENTS 53 GPT GROUP RETAIL DEVELOPMENT
Slide 57: Disclaimer
DISCLAIMER For personal use only The information provided in this presentation has been prepared by The GPT Group comprising GPT RE Limited (ACN 107 426 504) AFSL (286511), as responsible entity of the General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188). The information pro
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