Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — Investor Presentation (July 2018)
26 slides from Vukile Property Fund's investor presentation, July 2018
Slide 1: Investor Presentation
Investor Presentation July 2018 www.vukile.co.za
Slide 2: Disclaimer
DISCLAIMER This document has been prepared and issued by and is the sole responsibility of the management of the Company and its subsidiaries. No information made available in connection with this presentation may be passed on, copied, reproduced, in whole or in part, or otherwise disseminated, dire
Slide 3: Deal Highlights
DEAL HIGHLIGHTS An opportunity to buy a high quality unique portfolio of dominant shopping centres from Unibail- Rodamco-Westfield The proposed off-market acquisition provides meaningful scale to Vukile’s strategy to invest in the Spanish economy through retail property assets with strong fundamen
Slide 4: Strategic Direction
STRATEGIC DIRECTION Focus on capital allocation and strategic consistency Southern Africa Balance International sheet management Continued focus on defensive retail Focus will be on Spain to drive home Disciplined and conservative sector in line with our high-quality the advantage we have crea
Slide 5: Transaction Overview
TRANSACTION OVERVIEW Opportunity to gain further exposure to Spain through acquiring a unique portfolio of dominant assets at an accretive yield Portfolio acquisition value c.€460 million (externally valued at c.€480 million) Portfolio acquisition cost c.€490 million (inclusive of transaction costs)
Slide 6: Details of the Capital Raise
DETAILS OF THE CAPITAL RAISE Marketed to key investors followed by accelerated book build Targeted amount R1.55 billion (including R250 million from Encha SPV & R115 million from management) ▪ Book build: Wednesday, 18 July 2018 Indicative timing ▪ Settlement date: Thursday, 26 July 2018 Capital rai
Slide 7: Acquisition Overview
ACQUISITION OVERVIEW A low-risk dominant portfolio with stable income profile and value add potential Average asset value Dominant Cash on cash yield Occupancy costs €120.3 of Retail portfolio of 8.1% ratio of 13% in Spain million 121 119m² 8.1 WALE of of lettable area years to expiry 92% of income
Slide 8: Asset Summary
ASSET SUMMARY Evenly weighted shopping centre portfolio EL FARO LOS ARCOS BAHIA SUR VALSUR Location Badajoz Seville Cadiz Valladolid Valuation (€’000) 157 400 112 000 118 800 93 100 GLA(i) 43 423m² 17 906m² 24 789m² 35 220m² Number of stores 110 97 117 94 Opening Year 2013 1992/ 2013, 2016 Refurb 19
Slide 9: Tenant Overview
TENANT OVERVIEW Diversified tenant mix underpinned by a high proportion of international and national tenants Top 10 tenants % of rent Retail mix % of leased area Leisure Electrical Cinema 6% Hypermarket 2% 0% Goods 12% 3% 4% Food 0% 4% Household Fashion & 12% Accessories 51% Culture & 3% Presents 5
Slide 10: Portfolio Summary Forecast Income Statement
PORTFOLIO SUMMARY FORECAST INCOME STATEMENT 8 Months to March 2019 12 Months to March 2020 (€) (€) Revenue 19 504 314 29 867 722 Property operating costs (1 072 405) (2 212 002) Net operating income 18 432 245 27 655 720 Other expenses (2 045 087) (3 274 090) Earnings before interest and taxation 16
Slide 11: Vukile at a Glance Post Transaction
VUKILE AT A GLANCE POST TRANSACTION Focused Retail REIT in South Africa with growing Spanish retail exposure Group GAV R30.0bn United Kingdom 4% Vukile attributable LTV(iv) R1.2bn(iii) 37.3% Group consolidated LTV 42.5% Spain 43% R12.9bn(ii) Southern Africa R15.9bn(i) Direct Property Portfolio R14.5
Slide 12: Pro Forma Spanish Portfolio Metrics
PRO FORMA SPANISH PORTFOLIO METRICS Enhancing to Spanish portfolio metrics Pre acquisition Post acquisition Pre acquisition tenant mix by rent Gross Asset Value €384.5m €865.5m Fashion Electronics Sports goods DIY Household equipment Supermarkets Gross Lettable Area 197 132m² 318 471m² Other 16% Vac
Slide 13: LTV Bridge
LTV BRIDGE Scope for LTV reduction in the short-term Key assumptions: (i) ZAR:EUR 15.70 (ii) The underwrite is fully utilised (iii) Asset sales are made at carrying value in Vukile’s accounts and applied to debt (iv) Growth in line with market guidance 13
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Slide 16: Bahia Sur Shopping Centre
BAHIA SUR SHOPPING CENTRE Strategic location within the Bahía de Cádiz area Key figures Category by rent 1% 1% 1% Fashion 5% Restaurants/Catering 5% Services/Misc 7% 35% Accessories/Shoes/Bags/Jewellery WAULT to next Department Store GLA Number of Stores break (by MGR): 24 789 m² 117 10% Sporting Go
Slide 17: Bahia Sur Shopping Centre (cont.)
BAHIA SUR SHOPPING CENTRE (CONT.) ◼ Bahía Sur is a regional shopping centre with a strategic location within the Bahía de Cádiz area, which is within a reasonable distance from many large municipalities ◼ Adjacent to a main highway, the centre enjoys excellent access by car, public transport and foo
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Slide 19: El Faro Shopping Centre
EL FARO SHOPPING CENTRE Strong position as main shopping centre for Badajoz and surrounding areas Key figures Category by rent 2% 2% 1% 3% Fashion 3% Home Improvements /Brico 4% Accessories/Shoes/Bags/Jewellery 5% 37% Restaurants/Catering GLA WAULT to next Services/Misc break (by MGR): Number of Sto
Slide 20: El Faro Shopping Centre (cont.)
EL FARO SHOPPING CENTRE (CONT.) ◼ El Faro is a regional shopping centre situated in Badajoz, which is a city in the southwest of Spain close to the Portuguese border ◼ The leading shopping centre not only in Badajoz city, but also in the surrounding areas, including Portugal (with c.20% of annual fo
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Slide 22: Los Arcos Shopping Centre
LOS ARCOS SHOPPING CENTRE Most urban and consolidated retail centre in city of Seville Key figures Category by rent 2% 2% 1% 0% 2% Fashion 8% Services/Misc Accessories/Shoes/Bags/Jewellery 8% Healthcare/Cosmetics GLA WAULT to next 42% Number of Stores Restaurants/Catering 17 906 m² break (by MGR): 9
Slide 23: Los Arcos Shopping Centre (cont.)
LOS ARCOS SHOPPING CENTRE (CONT.) ◼ Los Arcos is situated in Seville, the capital city of Andalusia and the fourth largest city in Spain with c.2m inhabitants ◼ Seville is one of Spain’s most popular tourism destinations, with 2.6m visitors and 4.8m overnight stays in 2017 (c.+3.5% vs. 2016) ◼ The c
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Slide 25: Vallsur Shopping Centre
VALLSUR SHOPPING CENTRE Strategically placed within a mid-to-high class residential area Key figures Category by rent 2% 1% 1% 2% 0% Fashion 3% Hypermarket/Supermarket 3% Restaurants/Catering 5% 28% Accessories/Shoes/Bags/Jewellery Services/Misc GLA WAULT to next Number of Stores 8% Healthcare/Cosme
Slide 26: Vallsur Shopping Centre (cont.)
VALLSUR SHOPPING CENTRE (CONT.) ◼ Vallsur is situated in Valladolid, the 13th largest city in Spain ◼ Located very close to the main highways and infrastructure, enabling fast and easy accessibility ◼ Built in 1998 and refurbished in 2013 – the centre has been well maintained ◼ The centre has solidi
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