Vukile Property Fund Limited · JSE:VKE

Vukile Property Fund — Merger or Acquisition (July 2017)

54 slides from Vukile Property Fund's merger presentation, July 2017

  1. Slide 1: Spanish Acquisition Investor Presentation July 2017

    Spanish Acquisition Investor Presentation July 2017 www.vukile.co.za

  2. Slide 2: Agenda

    AGENDA 01 Deal overview 02 Spanish economy 03 Spanish retail sector 04 Key deal facts 05 Portfolio overview 06 Management 07 Financial impact 08 Castellana: growth strategy and prospects

  3. Slide 3: Deal overview

    Deal overview The investment Strong recovery Holistic strategy Unique is in line with in Spanish incorporates a opportunity to Vukile’s strategy economic strong acquire a Retail to diversify into environment management park portfolio of developed and property team with significant scale markets fund

  4. Slide 4: Spanish economy

    Spanish economy Why Spain  The Spanish economy is currently providing one of the most attractive growth rates in the Eurozone region with GDP growth of 3.2% in 2016 and a forecast for 2017 of 2.2% vs 1.5% for the Eurozone (BMI research).  This trend is set to continue with Spanish GDP expected to

  5. Slide 5: Spanish retail property sector

    Spanish retail property sector Improving fundamentals in line with recovering economy  The main retail market indicators are showing a positive trend, in line with the Spanish economic recovery with lower vacancy rates and rising rentals.  Spain is still behind the rest of Europe in terms of e-com

  6. Slide 6: Key deal facts

    Key deal facts Portfolio of 9 Retail parks in Spain 117 670m² of lettable area Purchase price of €193 million Average asset value of €21.4 million Net operating income of €11.94mn 73 stores in the portfolio Net initial yield of 6.2% 95% of income derived from national tenants Loan to value of 49% WA

  7. Slide 7: Portfolio overview

    Portfolio overview Kinepolis Retail Marismas del Parque Oeste Parque Principado La Heredad Park Polvorin GAV €43.0m €30.0m €29.7m €25.0m €17.5m Region Alcorcon Asturias Granada Huelva Merida Gross Lettable Area 13 604m2 16 246m2 18 508m2 20 000m2 13 447m2 Monthly Rental €15.03/m2 €9.44/m2 €9.18/m2 €

  8. Slide 8: Portfolio overview

    Portfolio overview Kinepolis Leisure Ciudad del La Serena Mejostilla Retail Park Motril Centre Transporte GAV €14.0m €11.8m €8.0m €7.5m €6.5m Region Villanueva Granada Caceres Motril Castellon Gross Lettable Area 12 405m2 7 369m2 7 281m2 5 559m2 3 250m2 Monthly Rental €6.74/m2 €9.38/m2 €6.52/m2 €8.3

  9. Slide 9: Tenant profile

    Tenant profile 95% national tenant component Category Split (by rent) National Component (by rent) Top 10 tenants (by rent) 5% 16% 25% 27% 6% 8% 14% 8% 73% 10% 13% 95% Electronics Hardware Fashion Sportswear National Tenants Non-national Tenants Top 10 Other Supermarket Pet Stores Furniture Other Sp

  10. Slide 10: Tenant profile

    Tenant profile 73% of income is generated from the top 10 tenants Percentage of Tenant Overview Income Europe’s largest consumer electronics chain and second largest in the World (number 1 is Best Buy in the 16% US) Sprinter was founded in 1981 and is Spain’s leading sports footwear, equipment and a

  11. Slide 11: Lease Profile

    Lease Profile Weighted average lease term of 15.6 years to expiry and 4.9 years to next break option 100% 120% 90% 100% 100% 80% Lease expiry profile by rent 80% 80% 70% 60% 60% 50% 40% 40% 19% 20% 20% 30% 10% 11% 1% 2% 2% 0% 20% 8% 8% -20% 10% 1% 1% 1% 1% 0% -40% 2017 2018 2019 2020 2021 2022 2023

  12. Slide 12: Management approach

    Management approach  Redevco, the current property and asset managers, will continue to property manage the portfolio for a period of 6 months to ensure a smooth handover and transition into Castellana.  Redevco is a pan-European investment manager specialising in retail property. They provide a f

  13. Slide 13: Management team

    Management team Alfonso joined Pradera Spain, a specialist retail sector fund and asset manager, in 2006 as Acquisitions Manager and was subsequently promoted to Head of Investment, Spain and to Head of Spain and Portugal in May 2015. Prior to Pradera, Alfonso Brunet Alfonso spent 8 years at CBRE, w

  14. Slide 14: Financial impact

    Financial impact Vukile Funding Forecast for the 12 Schedule Yield / Interest months ending EUR million Rate 30 June 2018 R’000 Property purchase consideration 1 193.0 6.2% Property revenue 196 491 Estimated Acquisition costs 5.1 Straight-line rental income accrual 7 857 Debt procured by Castellana

  15. Slide 15: Castellana: growth strategy and prospects

    Castellana: growth strategy and prospects  Castellana (98.3% owned by Vukile) is now firmly established as Vukile’s Spanish arm  The Castellana portfolio consists of 11 assets – two existing call centres and the nine retail parks  Employment of a high quality, experienced management team together

  16. Slide 16: Appendix: Property Information

    Appendix Property Information APPENDIX Spanish Acquisition – Investor Presentation July 2017

  17. Slide 17: Parque Oeste – Alcorcon

    Parque Oeste – Alcorcon Key Figures WAULT to next Number of Rent per m² per Vacancy (by NOI growth (5 GLA breaks (by Stores month GLA): year CAGR): 13,604 m² MGR): 6 €15.03 0% 3.0% 5.4 years Tenants % (by rent) Category % (by rent) Break profile (by rent) 4% 4% 100% 9% MEDIA MARKT 8% Electronics WOR

  18. Slide 18: Parque Oeste – Alcorcon

    Parque Oeste – Alcorcon The centre is located to the South-West of central 1km A-5 Madrid (25 minute drive via the A-5 highway) 0.5km The centre has excellent visibility from the road and is very well located at the intersection of two main highways, the M-30 and the A-5 (which is one of Parque Alca

  19. Slide 19: Parque Oeste – Alcorcon

    Parque Oeste – Alcorcon Spanish Acquisition – Investor Presentation July 2017 19

  20. Slide 20: Parque Oeste – Alcorcon

    Parque Oeste – Alcorcon Click and Collect Spanish Acquisition – Investor Presentation July 2017 20

  21. Slide 21: La Heredad – Merida

    La Heredad – Merida Key Figures WAULT to next Rent per m² per GLA Number of Vacancy (by NOI growth (5 breaks (by month 13,447 m² Stores GLA): year CAGR): MGR): €7.37 9 0% 2.2% 3.8 years Tenants % (by rent) Category % (by rent) Break profile (by rent) 4% 3% AKI BRICOLAJE Hardware 5% WORTEN 6% 6% 6% E

  22. Slide 22: La Heredad – Merida

    La Heredad – Merida N 630 Located in the south-west of Mérida city, in the Madrid province of Badajoz 280km (autonomous region of Extremadura). Recently A-5 completed in 2012. Its location alongside the N-630 road, gives it N 630 good visibility and direct access to the national A-5 highway (connect

  23. Slide 23: La Heredad – Merida

    La Heredad – Merida Spanish Acquisition – Investor Presentation July 2017 23

  24. Slide 24: La Heredad – Merida

    La Heredad – Merida Spanish Acquisition – Investor Presentation July 2017 24

  25. Slide 25: Retail Park Motril – Motril

    Retail Park Motril – Motril Key Figures GLA WAULT to next Vacancy (by Number of Rent per m² per NOI growth (5 5,559 m² breaks (by GLA): Stores month year CAGR): MGR): 0% 4 €8.33 2.2% 2.7 years Tenants % (by rent) Category % (by rent) Break profile (by rent) 13% 47% 34% WORTEN 34% 28% Fashion 24% SPR

  26. Slide 26: Retail Park Motril – Motril

    Retail Park Motril – Motril Grenada Located in Motril, a mid-sized municipality in the 48km south of Granada Province, part of Andalucía autonomous region (strong tourist destination). The retail park is strategically located on the south side of Motril, connected to a bypass, which gives access to

  27. Slide 27: Retail Park Motril – Motril

    Retail Park Motril – Motril Spanish Acquisition – Investor Presentation July 2017 27

  28. Slide 28: Retail Park Motril – Motril

    Retail Park Motril – Motril Spanish Acquisition – Investor Presentation July 2017 28

  29. Slide 29: La Serena – Villanueva

    La Serena – Villanueva Key Figures GLA WAULT to next Number of Rent per m² per Vacancy (by NOI growth (5 12,405 m² breaks (by Stores month GLA): year CAGR): MGR): 9 €6.74 4.6% 2.0% 4.2 years Tenants % (by rent) Category % (by rent) Break profile (by rent) 4% 4% MERCADONA 4% 4% 0% Super Market 38% Ha

  30. Slide 30: La Serena – Villanueva

    La Serena – Villanueva Madrid Located in Villanueva de la Serena, a mid-sized 240km municipality in the north of Badajoz Province, part of Extremadura autonomous region. The retail park has direct access to the key road connecting the two main municipalities of the area, Villanueva de la Serena and

  31. Slide 31: La Serena – Villanueva

    La Serena – Villanueva Spanish Acquisition – Investor Presentation July 2017 31

  32. Slide 32: La Serena – Villanueva

    La Serena – Villanueva Spanish Acquisition – Investor Presentation July 2017 32

  33. Slide 33: Kinepolis Leisure Centre – Granada

    Kinepolis Leisure Centre – Granada Key Figures GLA WAULT to next Number of Rent per m² per Vacancy (by NOI growth (5 7,369 m² breaks (by Stores month GLA): year CAGR): MGR): 24 €9.38 30% 2.1% 1.5 years Tenants % (by rent) Category % (by rent) Break profile (by rent) 3% BURGER KING Restaurant 16% KIW

  34. Slide 34: Kinepolis Retail Park – Granada

    Kinepolis Retail Park – Granada Key Figures WAULT to next Rent per m² per Vacancy (by NOI growth (5 GLA Number of breaks (by month GLA): year CAGR): 18,508 m² Stores MGR): €9.18 0% 2.1% 8 6.1 years Tenants % (by rent) Category % (by rent) Break profile (by rent) 4% 3% MEDIA MARKT 4% 3% 43% AKI Fashi

  35. Slide 35: Kinepolis Retail Park and Leisure Centre – Granada

    Kinepolis Retail Park and Leisure Centre – Granada Located in the Granada municipality the capital of the province of Andalucia. The centre Seville services the whole northern region of 210km Granada. Alameda (13 397m²) 0.5km A-44 Easily accessed via the A-44 highway, which Alcampo (14 900m²) 2km co

  36. Slide 36: Kinepolis Retail Park and Leisure Centre – Granada

    Kinepolis Retail Park and Leisure Centre – Granada Spanish Acquisition – Investor Presentation July 2017 36

  37. Slide 37: Kinepolis Leisure Centre – Granada

    Kinepolis Leisure Centre – Granada Before After Spanish Acquisition – Investor Presentation July 2017 37

  38. Slide 38: Kinepolis Leisure Centre – Granada

    Kinepolis Leisure Centre – Granada Spanish Acquisition – Investor Presentation July 2017 38

  39. Slide 39: Mejostilla – Caceres

    Mejostilla – Caceres Key Figures GLA WAULT to next Number of Rent per m² per Vacancy (by NOI growth (5 7,281 m² breaks (by Stores month GLA): year CAGR): MGR): 7 €6.52 0% 2.2% 9.5 years Tenants % (by rent) Category % (by rent) Break profile (by rent) 6% ALDI 12% 48% Fashion 9% 23% SPRINTER 29% Super

  40. Slide 40: Mejostilla – Caceres

    Mejostilla – Caceres Madrid 248km The centre is located in the north-east of Cáceres, capital city of the Province Cáceres, and part of Extremadura autonomous region (strong tourist destination via the Silver route). N-521 It’s location close to the N-521 ring road, permits a direct connection with

  41. Slide 41: Mejostilla – Caceres

    Mejostilla – Caceres Spanish Acquisition – Investor Presentation July 2017 41

  42. Slide 42: Mejostilla – Caceres

    Mejostilla – Caceres Spanish Acquisition – Investor Presentation July 2017 42

  43. Slide 43: Parque Principado – Asturias

    Parque Principado – Asturias Key Figures GLA WAULT to next Number of Rent per m² per Vacancy (by NOI growth (5 16,246 m² breaks (by Stores month GLA): year CAGR): MGR): 7 €9.44 0% 2.4% 3.8 years Tenants % (by rent) Category % (by rent) Break profile (by rent) 2% 1% 4% 2% 4% BRICOMART Hardware 49% 6%

  44. Slide 44: Parque Principado – Asturias

    Parque Principado – Asturias Located in the heart of the main retail destination A-66 in Asturias, just five minutes from Oviedo’s city centre N-521 Azabache(28 664m²) 2.4km The centre faces onto the A-66 highway and is strategically positioned at the intersection with the A-64 highway which provide

  45. Slide 45: Parque Principado – Asturias

    Parque Principado – Asturias Spanish Acquisition – Investor Presentation July 2017 45

  46. Slide 46: Parque Principado – Asturias

    Parque Principado – Asturias Spanish Acquisition – Investor Presentation July 2017 46

  47. Slide 47: Ciudad del Transporte – Castellon

    Ciudad del Transporte – Castellon Key Figures GLA WAULT to next Number of Rent per m² per Vacancy (by NOI growth (5 3,250 m² breaks (by Stores month GLA): year CAGR): MGR): 2 €10.94 0% 8.0% 1.0 years Tenants % (by rent) Category % (by rent) Break profile (by rent) 53% 47% 37% 37% KIABI Fashion TIEND

  48. Slide 48: Ciudad del Transporte – Castellon

    Ciudad del Transporte – Castellon N-340 Barcelona 250km Located in the heart of the main retail district in Castellon on the East coast of Spain. N-340 Very easily accessed by car via the N-340 which 1 km provides a direct link to the AP-7 (the main road along the East coast) 0.5km The rest of the r

  49. Slide 49: Ciudad del Transporte – Castellon

    Ciudad del Transporte – Castellon Spanish Acquisition – Investor Presentation July 2017 49

  50. Slide 50: Ciudad del Transporte – Castellon

    Ciudad del Transporte – Castellon Spanish Acquisition – Investor Presentation July 2017 50

  51. Slide 51: Marismas del Polvorin – Huelva

    Marismas del Polvorin – Huelva Key Figures GLA WAULT to next Number of Rent per m² per Vacancy (by NOI growth (5 20,000 m² breaks (by Stores month GLA): year CAGR): MGR): 10 €7.55 0% 2.9% 6.4 years Tenants % (by rent) Category % (by rent) Break profile (by rent) MEDIA MARKT 47% 5% C&A 5% 6% 8% Fashi

  52. Slide 52: Marismas del Polvorin – Huelva

    Marismas del Polvorin – Huelva Seville M-30 85km Located in the eastern area of Huelva city, in M-30 M-31 Andalucía autonomous region. Strong inland port and close to the coast line. Easily accessed via its direct connection to the M-30 M-30, the city’s main ring road, which connects to the M-31/A-4

  53. Slide 53: Marismas del Polvorin – Huelva

    Marismas del Polvorin – Huelva Spanish Acquisition – Investor Presentation July 2017 53

  54. Slide 54: Marismas del Polvorin – Huelva

    Marismas del Polvorin – Huelva Spanish Acquisition – Investor Presentation July 2017 54

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