Centuria Capital Group · ASX:CNI
Centuria Capital — Investor Presentation (February 2022)
30 slides from Centuria Capital's investor presentation, February 2022
Slide 1: Centuria 25 Grenfell Street Fund (C25GSF) Primewest Offer
February 2022 UNLISTED Centuria 25 Grenfell Street Fund (C25GSF) PRIMEWEST OFFER Note: This fund has been registered with ASIC. A Product Disclosure Statement (PDS) is expected to be issued on or around 21 February 2022. This document is strictly for the use of Primewest investors and must not be di
Slide 2: Agenda
AGENDA 1. About C25GSF 2. Investment Rationale 3. Financial Summary 4. Primewest Support 5. Appendix
Slide 3: Group AUM Profile
Group AUM Profile A leading Australasian real estate funds manager included in the S&P/ASX200 Index $20.2bn GROUP AUM1 $19.3bn REAL ESTATE AUM $6.7bn $12.6bn $0.9bn LISTED REAL ESTATE UNLISTED REAL ESTATE INVESTMENT BONDS CENTURIA LIFE $4.0bn $2.4bn $0.3bn $8.4bn $2.0bn $2.2bn CENTURIA INVESTMENT BO
Slide 4: About C25GSF
About C25GSF SECTION ONE
Slide 5: Investment Overview
Investment Overview 50/50 joint venture with ASX-listed financial services firm MA Financial Group (“Co-owner”) Closed-ended, unlisted office property fund with monthly distributions1 and a five-year initial Fund term FUND ASSET 7.00 p.a. $0.95 $83.3m Core Location Adelaide Landmark Forecast Startin
Slide 6: Fund Highlights
Fund Highlights Monthly distributions with a forecast average of 7.00% Yr.1 & 7.10% Year 21 South Australian stamp duty savings result in a starting NTA of $0.95 per unit One of Adelaide’s most prominent, A-grade office buildings Multi-tenanted with 72% of income underpinned government and b
Slide 7: Fund Launch Timetable – Primewest Offer
Fund Launch Timetable1 – Primewest Offer Total Equity Raise of $48.5 million ITEM DUE Independent Research 21 February 2022 Primewest Offer Bids Due 18 February 2022 Offer Opens 21 February 2022 Completed Application Forms & 18 March 2022 Funds2 Due First Monthly Distribution Paid3 10 May 2022 • Pri
Slide 8: Investment Rationale
Investment Rationale SECTION TWO
Slide 9: Return Comparison on Different Asset Classes
Return Comparison on Different Asset Classes Compelling yield relative to other investment opportunities currently available 7.00% 6.46% 6.00% 5.00% 4.44% 4.00% 3.00% Photo 1.92% 2.00% 1.00% 0.30% 0.10% 0.00% Cash Rate 5-year Term Deposits Government Bonds Australian Equities The Fund Return disclai
Slide 10: Significant Investment in South Australia
Significant Investment in South Australia The state’s economy has been resilient throughout the course of the pandemic Defence Bio-Med Education AUKUS Alliance and $45bn committed to Hunter Class Frigate program together $3.6bn Adelaide medical precinct and $2.4bn Royal Adelaide Hospital - The SA Go
Slide 11: Asset Highlights
Asset Highlights Landmark office tower located within the heart of Adelaide CBD ASSET ATTRIBUTES Adelaide Landmark High Calibre Tenants Secure Income 3.9 Years Iconic office tower within the Long history of attracting both 72% of gross income underpinned Weighted Average Lease Adelaide CBD public an
Slide 12: High Quality Office Accommodation
High Quality Office Accommodation Photos. placeholder Photos. placeholder Photos. placeholder Photos. placeholder Photos. placeholder Photos. placeholder 25 Grenfell Street Fund | 12
Slide 13: Located in the heart of the Adelaide CBD
Located in the heart of the Adelaide CBD 91 King William 25 Grenfell 60 King William Royal Adelaide Hospital Flinders Link 80 Grenfell Rundle Mall Adelaide Railway Station 25 Grenfell Street University of Adelaide Rundle Mall 25 Grenfell Street Fund | 13
Slide 14: Asset Highlights
Asset Highlights KEY CHARACTERISTICS • 26 level, A-grade office tower located in the core of Adelaide’s CBD • Ground floor entrance foyer with concierge, 23 upper levels of office accommodation, 10 retail tenancies and basement parking for 30 vehicles • Features large, flexible floorplates ranging f
Slide 15: Tenancy Profile
Tenancy Profile 88% leased with 72% of gross income underpinned by lease to government and multi-national tenants1 TENANT MIX (BY GROSS INCOME) EXPIRY PROFILE (BY GROSS INCOME)1,2 50% 24.5% 40% 38.2% 33.70% 30% 10.2% 20% 17.30% 9.5% 8.4% 13.20% 9.1% 10.40% 11.40% 10% 7.50% 6.90% 4.90% 2.60% 0.60% 0%
Slide 16: Major Tenant Summary
Major Tenant Summary South Australian government and multi-national tenants providing stable cashflow Department for Infrastructure MinterEllison Aurecon Lipman Karas and Transport www.minterellison.com www.aurecongroup.com www.lipmankaras.com www.dpti.sa.gov.au The Department for MinterEllison is A
Slide 17: Asset Strategy
Asset Strategy Proactive asset management strategy to improve leasing and reposition as a core office investment • Major facade replacement and high-rise destination-controlled lift upgrade underway Major • Refurbish bathrooms and lift lobbies as expiries occur Capital Works Program 1 • • Refresh gr
Slide 18: Extensive Experience in Repositioning Assets
Extensive Experience in Repositioning Assets FUNDS ASSET LEASING FACILITIES PROPERTY TRANSACTION DEVELOPMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT THE ZENITH, 821 PACIFIC HWY, CHATSWOOD, NSW 8 CENTRAL AVENUE, EVELEIGH, NSW 2-10 WENTWORTH STREET, PARRAMATTA, NSW
Slide 19: Financial Summary
Financial Summary SECTION THREE
Slide 20: Financial Information
Financial Information SOURCES AND APPLICATION OF FUNDS1 FORECAST PRO-FORMA BALANCE SHEET1 Source of Funds Amount ($) Consolidated Total Cash Subscribed by Investors $48.47m Assets Amount ($) Debt Facility from Financier $37.49m Investment Property (50% interest) $83.25m Total Funds Raised $85.96m Ca
Slide 21: Fund Structure
Fund Structure1 DEBT SUMMARY LVR & ICR COVENANT SENSITIVITY ANALYSIS 5 Year Rolling LVR3 Initial Drawn Debt/Total Facility $37.49m/$41.65m Change in Terminal Market Market Cap Rate Cap Rate Peak LVR Min LVR Facility Term 3 years -50bps 5.25% 45.5% 39.4% Total Interest Rate (Margin + Swap Rate) 2.77%
Slide 22: Fund Structure and Exit Process
Fund Structure and Exit Process INVESTMENT STRUCTURE CLOSED-END SINGLE ASSET UNIT TRUST Initial Fund Term 5 years Issue/Starting Price Per Unit $1.001 Distribution Payments Monthly2 EXIT VOTING PROCESS • The Fund is an illiquid investment with no redemption facility available • At the end of the ini
Slide 23: Fund Services and Fee Schedule
Fund Services and Fee Schedule Acquisition 2.0% (of gross asset purchase price) Base Management 0.80% p.a. (of GAV1) Disposal 1.0% (of gross asset sale price)2 Performance 20% over 8% IRR Custodian 0.015% p.a. (of GAV1) or $15,000 p.a. Property, Facilities and Charged at market rates Development Man
Slide 24: Primewest Support
Primewest Support SECTION FOUR
Slide 25: Your contact at Primewest
Your contact at Primewest Anthony Hewett Senior Relationship Manager M: 0484 366 389 T: (08) 9371 7133 E: Anthony.Hewett@PrimeWest.biz 25 Grenfell Street Fund | 25
Slide 26: Appendix
Appendix SECTION FIVE
Slide 27: Appendix – Attractive Acquisition Metrics and Leasing Fundamentals
Appendix – Attractive Acquisition Metrics and Leasing Fundamentals 150 to 170 bps yield premium over Sydney and Melbourne plus strong Prime-grade office leasing market Adelaide CBD Office Vacancy Rates by Grade CBD Prime Office Yields/Capital Values (Dec 21) 20.0% 18.4% 19.0% 18.0% 8.00% $30,000 17.
Slide 28: Appendix – Adelaide Office Transactions
Appendix – Adelaide Office Transactions 25 GRENFELL STREET ADELAIDE 75 HINDMARSH SQUARE, ADELAIDE 50 FLINDERS STREET, ADELAIDE 25 NILE STREET, PORT ADELAIDE 620 MERSEY ROAD, OSBORNE PARK 33 RICHMOND ROAD, KESWICK Sale Date Sale Price Sale Date Sale Price Sale Date Sale Price Sale Date Sale Price Sal
Slide 29: Appendix – Sydney and Melbourne Office Transactions
Appendix – Sydney and Melbourne Office Transactions 25 GRENFELL STREET, ADELAIDE SA 9 WENTWORTH STREET, 60 CARRINGTON STREET, SYDNEY 68 WATERLOO ROAD, MACQUARIE 505 LITTLE COLLINS STREET, 469 LA TROBE STREET, MELBOURNE PARRAMATTA NSW NSW PARK NSW MELBOURNE VIC VIC Sale Date Sale Price Sale Date Sale
Slide 30: Disclaimer
Disclaimer This document is strictly for the use of Primewest Investors only and must not be distributed to anyone other party in whole or in part. This document has been issued by Centuria Property Funds No. 2 Limited ABN 38 133 363 185 AFSL 340 304 (Centuria). Centuria is the Responsible Entity of
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