Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — Investor Presentation (August 2014)
33 slides from Globalworth Real Estate Investments's investor presentation, August 2014
Slide 1: Company Update
August 2014 3 Company Update 11
Slide 2: Key company highlights
Key company highlights 1 Fully-integrated real estate investment company with significant scale in our core market 2 Well-positioned in a favourable macroeconomic and attractive real estate environment 3 High quality commercial real estate portfolio in attractive Bucharest locations 4 Robust rental
Slide 3: Fully-integrated real estate investment company with significant scale in our core market
Fully-integrated real estate investment company with significant scale 1 in our core market Fully-integrated platform with scale in the fragmented …with proven capabilities in leasing out substantial space in a Bucharest office market… short time frame GWI cumulative leased space by month sqm Office
Slide 4: Romania is a large CEE country with solid economic fundamentals and a legal environment favourable to investors
Romania is a large CEE country with solid economic fundamentals and a 2 legal environment favourable to investors Strong macroeconomic fundamentals Favourable environment for real estate investments GDP growth above the CEE average One of the lowest cost of labour in the EU Romania CEE EU Forecast U
Slide 5: A comprehensive program of subsidies from both the national government and the EU
A comprehensive program of subsidies from both the national 2 government and the EU provides substantial support to FDIs in Romania A successful track record of absorption of funds... ...position Romania as a top FDI destination Increase of reimbursements from the EU in 2013 compared to the 2008 - 2
Slide 6: Favorable market dynamics position Romania among the most attractive real estate markets in the CEE region
Favorable market dynamics position Romania among the most attractive 2 real estate markets in the CEE region Structural supply/demand imbalance for ...with over 50% of the take up comprising commercial space in Bucharest... new occupation / pre-leases ’000, Sqm Supply Demand Demand by type of transa
Slide 7: Globalworth benefits from a high quality portfolio in the most attractive Bucharest locations
Globalworth benefits from a high quality portfolio in the most attractive 3 Bucharest locations… Majority of the portfolio located in the New CBD Newest and highest quality assets district Lower vacancy rates and higher rental levels Most sought after area for commercial real estate Excellen
Slide 8: …with significant value growth potential
3 …with significant value growth potential GAV upon completion¹ GAV bridge to value upon completion¹ Total GAV: € 887mm Total uplift on currently owned portfolio: €355mm 30% 1,000 887 900 25% 800 185 702 20% 700 18% 600 170 532 € million 15% 500 97 12% 400 10% 300 8% 7% 200 435 5% 5% 3% 100 0% - Tod
Slide 9: Robust rental income and cash flow growth
4 Robust rental income and cash flow growth Acquisition & Development Cost NOI (€ m) Remaining NOI Asset Name Status Investment Cost Development Acq./Dev .Cost Current / Q1 ’15(E) Q1’16(E) Yield3 YTD (€ m) 1 (€ m) Contracted2 Cost (€ m) BOB Completed 42.0 - 42.0 3.3 3.9 4.0 9.5% BOC Completed 110.0
Slide 10: ...supported by triple-net lease terms, secure and visible cash flows…
4 ...supported by triple-net lease terms, secure and visible cash flows… Predictable, stable cash flows… … secured on a long term basis 1 Expenses covered by tenants Approximately 78% of the leases expire in or after 2020 Tax Insurance 78% Maintenance Triple net lease 2 Euro-denominated, m
Slide 11: …and by favourable contracts terms in development projects ensuring protection against cost over-run
…and by favourable contracts terms in development projects ensuring 4 protection against cost over-run and unexpected project delays The turn-key contracts with contractors provide the highest protection to GWI and no space GWI selects best-in-class contractors with for downside cash flow exposure a
Slide 12: Attracting high quality, diversified tenants from around the world
5 Attracting high quality, diversified tenants from around the world A highly diversified tenants base both by country of origin… …and by business sector Based on annualized contracted rental income as of June 30, 2014 Based on annualized contracted rental income as of June 30, 2014 Belgium Italy Ot
Slide 13: A top management with unique track record in the real estate sector…
6 A top management with unique track record in the real estate sector… Ioannis Papalekas Founder & CEO Andreas Dimitris Raptis Adrian Dănoiu Papadopoulos Deputy CEO / CIO COO CFO Stan Andre Stamatis Sapkas Deputy CIO Investment Director Commercial Administrative Project Legal Finance and Project Sal
Slide 14: … and a clear, proven strategy
6 … and a clear, proven strategy Clear, focused strategic guidelines… …with a proven investment strategy 1 Arbitrage between the acquisition, development and management of Key Commercial real estate assets new commercial assets, and of existing distressed / underperforming / Sector mispriced assets
Slide 15: Appendix: Assets profiles
Appendix Assets profiles 15 15
Slide 16: Current Portfolio – Standing assets BOC
Current Portfolio – Standing assets BOC 16 16
Slide 17: Current Portfolio – Standing assets BOC
Current Portfolio – Standing assets BOC BOC Description Class A office building completed in 2009, located in the Northern part of Bucharest on Dimitrie Pompeiu area Offers 57,607sqm (GLA) on 8 floors above ground and 895 parking spaces Part of a wider building complex developed by the Founder
Slide 18: Current Portfolio – Standing assets BOB
Current Portfolio – Standing assets BOB 18 18
Slide 19: Current Portfolio – Standing assets BOB
Current Portfolio – Standing assets BOB BOB Description Class A office building, completed in 2008, located in the Northern part of Bucharest on Dimitrie Pompeiu area Offers 22,391sqm (GLA) on 7 floors above ground and 161 parking spaces Part of a wider building complex developed by the Founde
Slide 20: Current Portfolio – Standing assets TCI
Current Portfolio – Standing assets TCI 20 20
Slide 21: Current Portfolio – Standing assets TCI
Current Portfolio – Standing assets TCI TCI Description Landmark class A building completed in 2012 centrally located in Bucharest’s Historical CBD area at Victoriei Square Consists of two interconnected buildings and is currently the 2nd tallest building in Bucharest. Comprises 22,228sqm GLA
Slide 22: Current Portfolio – Standing assets City Offices
Current Portfolio – Standing assets City Offices 22 22
Slide 23: Current Portfolio – Standing assets City Offices
Current Portfolio – Standing assets City Offices City offices Description Mixed-use property comprising of two connected buildings, a Commercial Building and a Multilevel Parking (1,019 spaces) Located at the southern part of Bucharest in the densely populated area of Eroii Revolutiei Former r
Slide 24: Current Portfolio – Standing assets Upground Towers
Current Portfolio – Standing assets Upground Towers 24 24
Slide 25: Current Portfolio – Standing assets Upground Towers
Current Portfolio – Standing assets Upground Towers Upground Towers Description Modern residential complex located in the Northern part of Bucharest on Fabrica de Glucoza Street The complex was completed in 2009 and Globalworth currently owns 446 residential units (in 2 towers of 17 floors each)
Slide 26: Current Portfolio – Assets under completion Bucharest One
Current Portfolio – Assets under completion Bucharest One 26 26
Slide 27: Current Portfolio – Assets under completion Bucharest One
Current Portfolio – Assets under completion Bucharest One Bucharest One Description Flagship office development project under construction in the northern part of Bucharest in the Floreasca/Barbu Vacarescu area Upon completion, the building will be the second tallest tower in Bucharest, offering
Slide 28: Current Portfolio – Assets under completion Globalworth Campus
Current Portfolio – Assets under completion Globalworth Campus 28 28
Slide 29: Current Portfolio – Assets under completion Globalworth Campus
Current Portfolio – Assets under completion Globalworth Campus Globalworth Campus Description Globalworth Campus project is set to become upon completion one of the largest business parks in Romania offers 105,000sqm (GLA) and 1,500 parking spaces Unique development to be constructed on top of o
Slide 30: Current Portfolio – Assets under completion Herastrau 1
Current Portfolio – Assets under completion Herastrau 1 30 30
Slide 31: Current Portfolio – Assets under completion Herastrau 1
Current Portfolio – Assets under completion Herastrau 1 Herastrau 1 Description Herastrau 1 is an office development project to be constructed in the northern part of Bucharest on Nordului Road across from Herastrau Park Most of the site was acquired out of insolvency in 2012 The building is e
Slide 32: Current Portfolio Timisoara Airport Park
Current Portfolio Timisoara Airport Park 32 32
Slide 33: Current Portfolio Timisoara Airport Park
Current Portfolio Timisoara Airport Park Timisoara Airport Park (TAP) Description Industrial project located in the North-East of Timisoara in the vicinity of the international airport Benefits of easy access towards the 4th European Corridor Comprises of one logistics warehouse leased to Vale
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