IREIT Global · SGX:8U7U
IREIT Global — Merger or Acquisition (June 2023)
40 slides from IREIT Global's merger presentation, Jun 1, 2023
Slide 1: Acquisition of 17 Retail Properties in France
Acquisition of 17 Retail Properties in France 1 June 2023 Joint Sponsors of IREIT Global:
Slide 2: Important Notice
Important Notice This presentation should be read in conjunction with the announcement released by IREIT Global ("IREIT") on 1 June 2023 titled “Proposed Acquisition of a Portfolio of 17 Retail Properties Located in France” (the “Announcement”). Terms not otherwise defined in this presentation shall
Slide 3: Agenda
Agenda Transaction Overview 4 Rationale for and Benefits of the Acquisition 9 Funding Structure and Financial Impact 24 Conclusion 28 Appendix 30 3
Slide 4: Transaction Overview
Transaction Overview Blois
Slide 5: Transaction Overview
Transaction Overview Proposed Acquisition of a Portfolio of 17 Retail Properties in France ▪ FIT 2 SAS, a wholly-owned subsidiary of IREIT, has on 31 May 2023, entered into a call option agreement (“Call Option Agreement”) with DKR Participations, a French société par actions simplifiée (“SAS”) mana
Slide 6: Overview of the New Properties
Overview of the New Properties Properties with Excellent Geographical Distribution in France 61,756 sqm 100% (1) 7.9% (3) €76.8 m 6.8 years (2) 4.6 years (2) Gross Lettable Let to B&M Initial NPI Purchase WALE WALB Area (“GLA”) France Yield Consideration Hauts-de-France Grand Est Nouvelle-Aquitaine
Slide 7: Enlarged Property Portfolio Post Acquisition
Enlarged Property Portfolio Post Acquisition 5 German Properties 54 Gross Lettable Area (sqm) 201,103 Properties Valuation (€ m) (2) 659.7 % of Enlarged Portfolio (3) 64.2% 446,038 sqm Occupancy (%) 84.1% GLA 384,282 as at 31 March 2023 WALE (years) (4) 3.5 44 French Properties €1,027.3 m Gross Lett
Slide 8: Track Record Since Inception
Track Record Since Inception 254% Increase in Portfolio Value in 2023 YTD since IPO 4 • IREIT was listed on SGX-ST as the first Singapore-listed real estate investment trust with the investment strategy of principally investing in 2014 €290.6 m properties income-producing real estate in Europe 5 • B
Slide 9: Rationale for and Benefits of the Acquisition
Rationale for and Benefits of the Acquisition Claye-Souilly
Slide 10: Rationale for and Benefits of the Acquisition
Rationale for and Benefits of the Acquisition 1 Increase in Exposure to an Attractive and Resilient Asset Class 2 Blue-chip Tenant, B&M Group, a Leading European Discount Retailer 3 Quality Retail Portfolio that Complements IREIT’s Existing Portfolio 4 Potential Upside in Income through Developments
Slide 11: Increase in Exposure to an Attractive and Resilient Asset Class
1 Increase in Exposure to an Attractive and Resilient Asset Class Retail Parks (Out-of-Town) Outperformed Broader Retail Investment Market ▪ The total Retail investment volume in France totalled c.€5.6 b in 2022, accounting for c.20% of the total investment volume in France and equates to an increas
Slide 12: Increase in Exposure to an Attractive and Resilient Asset Class
1 Increase in Exposure to an Attractive and Resilient Asset Class Retail Parks (Out-of-Town) – A Format Favoured by Customers and Tenants ▪ Retail Parks (Out-of-Town) asset class has shown resilience even through Changes in retail park performance and occupancy the COVID-19 pandemic due to their acc
Slide 13: Blue-chip Tenant, B&M Group, a Leading European Discount Retailer
2 Blue-chip Tenant, B&M Group, a Leading European Discount Retailer B&M Group – A Leading Discount Retailer in the UK and France ▪ B&M Group is a leading discount retailer in Europe listed on the Network distribution throughout France No. of stores by country (2) London Stock Exchange since 2014. It
Slide 14: Blue-chip Tenant, B&M Group, a Leading European Discount Retailer
2 Blue-chip Tenant, B&M Group, a Leading European Discount Retailer B&M Group Remains Resilient Amidst Challenges in the Retail Industry ▪ B&M Group has proven its model’s resilience by B&M Group delivered stable sales in 2021 and 2022 (1) (2) exceeding market expectations amidst challenges in Sales
Slide 15: Blue-chip Tenant, B&M Group, a Leading European Discount Retailer
2 Blue-chip Tenant, B&M Group, a Leading European Discount Retailer Discount Retail Industry Emerged as a Fast-Growing Industry ▪ The discount retail industry has emerged as a fast-growing industry in recent Key figures for the French discount retail market (4) years driven by the current macroecono
Slide 16: Quality Retail Portfolio that Complements IREIT's Existing Portfolio
3 Quality Retail Portfolio that Complements IREIT’s Existing Portfolio Strategically Located Retail Properties Fully Let to B&M France ▪ The New Properties comprise of 17 retail properties with a total GLA of No. of Assets 17 61,756 sqm Land Area Approximately 252,000 sqm ▪ 13 of the properties are
Slide 17: Potential Upside in Income through Developments
4 Potential Upside in Income through Developments Potential Upside in Income through Developments ▪ 17 single tenant sites with total GLA of 61,756 sqm and approximately 252,000 sqm of land ▪ The New Properties currently generates GRI of c.€6.7 m p.a. and has potential income upside from the followi
Slide 18: Strengthens IREIT's Portfolio Resilience and Diversification
5 Strengthens IREIT’s Portfolio Resilience and Diversification Acquisition of the New Properties Accelerates IREIT’s Growth ▪ Since 2018, IREIT’s property portfolio value has grown at a CAGR of c.17.1%, from €504.9 m to €950.5 m by 2022. The Acquisition builds on IREIT’s growth momentum, increasing
Slide 19: Strengthens IREIT's Portfolio Resilience and Diversification
5 Strengthens IREIT’s Portfolio Resilience and Diversification Continuing its Diversification Strategy on Geography, Trade Sector and Asset Class ▪ The Acquisition reduces IREIT’s reliance on any single geographical location, trade sector and asset class, benefitting unitholders from increased scale
Slide 20: Strengthens IREIT's Portfolio Resilience and Diversification
5 Strengthens IREIT’s Portfolio Resilience and Diversification Improves Quality of Portfolio Tenant Base ▪ The Acquisition improves quality of IREIT’s tenant base with the inclusion of B&M Group, one of the leading discount retailers in Europe which is currently listed on the London Stock Exchange ▪
Slide 21: Strengthens IREIT's Portfolio Resilience and Diversification
5 Strengthens IREIT’s Portfolio Resilience and Diversification Portfolio WALE (by GRI) will increase from 4.8 years to 5.1 years ▪ The New Properties have a WALE of c.6.8 Years (1) and a WALB of c.4.6 Years (1) ▪ Post-acquisition, the WALE of IREIT’s portfolio is expected to increase from 4.8 years
Slide 22: Increases Market Capitalisation and Liquidity
6 Increases Market Capitalisation and Liquidity IREIT is Expected to Benefit from a Larger Market Capitalisation ▪ The increased market capitalisation increases probability of inclusion in key indices, which offers benefits of a wider and more diversified investor base, higher trading liquidity, inc
Slide 23: Leveraging on Strategic Investors' Knowledge, Expertise, Support and Resources in France
Leveraging on Strategic Investors’ Knowledge, Expertise, 7 Support and Resources in France Deep Knowledge, Expertise and Support from Strategic Investors, Tikehau Capital and CDL ▪ The Acquisition marks IREIT’s second portfolio acquisition in France, and demonstrates the deep knowledge, expertise an
Slide 24: Funding Structure and Financial Impact
Funding Structure and Financial Impact Forbach
Slide 25: Method of Financing
Method of Financing Method of Financing Illustrative Uses Total Acquisition Cost: c.€90.9 m (c. S$132.7 m) (1) ▪ Purchase Consideration: c.€76.8 m (c. S$112.2 m) (1); Cost of the Acquisition ▪ Real estate transfer tax: c.€5.3 m (c. S$7.8 m) (1); ▪ Acquisition Fee payable in units in IREIT to the Man
Slide 26: Illustrative Pro Forma Financial Impact
Illustrative Pro Forma Financial Impact FOR ILLUSTRATIVE PURPOSES ONLY – NOT A FORWARD LOOKING PROJECTION Distribution per Unit (€ Cents) Net Asset Value per Unit (€) 2.35 0.54 2.30 0.50 0.45 (3) (1) Adjusted Pre-Acquisition (1) Post-Acquisition (2) Adjusted Pre-Acquisition Post-Acquisition(2) Note:
Slide 27: Illustrative Pro Forma Financial Impact
Illustrative Pro Forma Financial Impact FOR ILLUSTRATIVE PURPOSES ONLY – NOT A FORWARD LOOKING PROJECTION Aggregate Leverage (%) 33.3% 32.0% (1) (2) Pre-Acquisition Post-Acquisition Note: Please refer to announcement titled "Proposed Acquisition of a Portfolio of 17 Retail Properties Located in Fran
Slide 28: Conclusion
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Slide 29: Key Transaction Highlights
Key Transaction Highlights 1 Increase in Exposure to an Attractive and Resilient Asset Class 2 Blue-chip Tenant, B&M Group, a Leading European Discount Retailer 3 Quality Retail Portfolio that Complements IREIT’s Existing Portfolio 4 Potential Upside in Income through Developments 5 Strengthens IREI
Slide 30: Appendix
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Slide 31: Portfolio Asset List
Portfolio Asset List Béthune (Bruay-la-Buissière) Noyelles-Godault Region ▪ Hauts-de-France Region ▪ Hauts-de-France Land tenure ▪ Freehold Land tenure ▪ Leasehold Completion Year ▪ 2011 Completion Year ▪ 1990 GLA (sqm) ▪ 3,396 GLA (sqm) ▪ 4,756 Occupancy Rate ▪ 100% Occupancy Rate ▪ 100% ▪ Savills:
Slide 32: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Saint-Quentin / Fayet Rouen (St Etienne du Rouvray) Region ▪ Hauts-de-France Region ▪ Normandie Land tenure (1) ▪ Leasehold Land tenure ▪ Freehold Completion Year ▪ 2007 Completion Year ▪ 1976 GLA (sqm) ▪ 3,571 GLA (sqm) ▪ 6,649 Occupancy Rate ▪ 100% Occupancy Rate ▪ 10
Slide 33: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Claye-Souilly Forbach Region ▪ Île-de-France Region ▪ Grand Est Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2005 Completion Year ▪ 2010 GLA (sqm) ▪ 3,860 GLA (sqm) ▪ 3,052 Occupancy Rate ▪ 100% Occupancy Rate ▪ 100% ▪ Savills: 8.1 ▪ Savills: 3.8 Valu
Slide 34: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Metz Epinal (Golbey) Region ▪ Grand Est Region ▪ Grand Est Land tenure ▪ Leasehold Land tenure ▪ Freehold Completion Year ▪ 1997 Completion Year ▪ 2005 GLA (sqm) ▪ 4,020 GLA (sqm) ▪ 3,160 Occupancy Rate ▪ 100% Occupancy Rate ▪ 100% ▪ Savills: 1.9 ▪ Savills: 3.8 Valuatio
Slide 35: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Nancy (Essey-lès-Nancy) Blois Region ▪ Grand Est ▪ Centre-Val de Region Loire Land tenure ▪ Freehold Land tenure ▪ Leasehold Completion Year ▪ 2010 Completion Year ▪ 1989 GLA (sqm) ▪ 3,693 GLA (sqm) ▪ 2,337 Occupancy Rate ▪ 100% Occupancy Rate ▪ 100% ▪ Savills: 5.9 Valu
Slide 36: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Tours (Saint-Cyr-sur-Loire) Châteauroux (Saint-Maur) ▪ Centre-Val de ▪ Centre-Val de Region Region Loire Loire Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2006 Completion Year ▪ 2006 GLA (sqm) ▪ 3,810 GLA (sqm) ▪ 3,182 Occupancy Rate ▪ 100% Occupancy
Slide 37: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Brive-la-Gaillarde Périgueux (Marsac) ▪ Nouvelle- ▪ Nouvelle- Region Region Aquitaine Aquitaine Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 2011 Completion Year ▪ 1996 GLA (sqm) ▪ 3,036 GLA (sqm) ▪ 3,215 Occupancy Rate ▪ 100% Occupancy Rate ▪ 100% ▪
Slide 38: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Bourg-en-Bresse (Viriat) Marseille ▪ Auvergne- Region ▪ PACA Region Rhône-Alpes Land tenure ▪ Freehold Land tenure ▪ Freehold Completion Year ▪ 1995 Completion Year ▪ 2005 GLA (sqm) ▪ 3,945 GLA (sqm) ▪ 3,092 Occupancy Rate ▪ 100% Occupancy Rate ▪ 100% ▪ Savills: 8.3 ▪ S
Slide 39: Portfolio Asset List (Cont'd)
Portfolio Asset List (Cont’d) Martigues (St-Mitre-les-Remparts) Region ▪ PACA Land tenure ▪ Freehold Completion Year ▪ 2005 GLA (sqm) ▪ 2,982 Occupancy Rate ▪ 100% ▪ Savills: 4.8 Valuation (€ m) (1) ▪ BNPP: 5.2 Purchase ▪ 4.9 Consideration (€ m) Catchment Area (Number of ▪ 118,439 Inhabitants) (2) ▪
Slide 40: Thank You
Thank You For enquiries, please contact: Mr Kevin Tan Head of Investor Relations and Capital Markets Tel: (65) 6718 0593 Email: kevin.tan@ireitglobal.com Périgueux 40