Heiwa Real Estate Reit Inc. · TSE:8966
Heiwa Real Estate Reit — CRESCENDO Investment — Merger or Acquisition (June 2010)
24 slides from Heiwa Real Estate Reit's merger presentation, Jun 25, 2010
Slide 1: Explanation of the merger between CIC and JSR
CRESCENDO Investment Corporation Japan Single-residence REIT Inc. Explanation of the merger between CIC and JSR June 25, 2010 Rule 802 Legend This exchange offer or business combination is made for the securities of a foreign company. The offer is subject to disclosure requirements of a foreign coun
Slide 2: Table of Contents
Table of Contents 1. Background of the Merger 2. Overview of the Merger 3. Growth Strategy after the Merger 4. Overview of New Corporation after the Merger These materials are distributed for information purposes only and not for the purpose of offering, solicitation or sale of any specific produc
Slide 3: 1. Background of the Merger
CRESCENDO, wy Japan Single-residence Tvestment Coxportion Ret 1. Background of the Merger
Slide 4: Measures taken by CIC and HEIWA
Measures taken by CIC and HEIWA Strengthened Strengthened Sponsorship Sponsorship by by HEIWA HEIWA Road Road Map Map to to Medium Medium to to Long Long Term Term Growth Growth Acquisition of all shares of the asset management company - On October 19, 2009, HEIWA’S shareholding ratio in Canal Inv
Slide 5: Background and Purpose of the Merger
Background and Purpose of the Merger CRESCENDO CRESCENDO Investment Investment Corporation Corporation (CIC) (CIC) Japan Japan Single-residence Single-residence REIT REIT Inc. Inc. (JSR) (JSR) Increase Increase of of financing financing costs costs due due to to credit credit uncertainty uncerta
Slide 6: 2. Overview of the Merger
CRESCENDO, wy Japan Single-residence Tvestment Coxportion Ret 2. Overview of the Merger
Slide 7: Overview of the Merger
Overview of the Merger Structure of the Merger Schedule for the Merger Execution Execution of of the the Merger Merger Agreement Agreement for for REITs REITs Apamanshop Apamanshop Sublease SubleaseCo., Co., Ltd. June 21, 2010 Execution Ltd. Execution of Share Purchase Agreements for of Share Purcha
Slide 8: 3. Growth Strategy after the Merger
3. Growth Strategy after the Merger
Slide 9: Significance of Merger
Significance of Merger Expand Expand Asset Asset Scale Scale Improve degree of recognition and brand power through expansion of asset scale – Current asset scale of CIC will expand from approximately ¥96.9 billion* to ¥145 billion Risk diversification and stabilization of profits by diversificat
Slide 10: Growth Scenario after the Merger
Growth Scenario after the Merger For For Medium Medium to to Long Long Term Term Growth Growth of of CIC CIC PPortfolio ortfolio Restructuring Restructuring Improving Improving Profitability Profitability Resolution Resolution of of unrealized unrealized loss loss of of Improvement Improveme
Slide 11: Change in CIC's Position in J-REIT Market
Change in CIC’s Position in J-REIT Market CIC CIC ranks ranks higher higher in in 22nd 22nd place place out out of of 37 37 issues issues （Hundred million yen） in in the the J-REIT J-REIT market market following following the the Merger Merger 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,450 969 1,00
Slide 12: Change in Portfolio Composition by the Merger
Change in Portfolio Composition by the Merger CIC JSR Pro Forma of CIC after the Merger Hotels Hotels 8.2% 3.0% Offices Usage Usage 35.9% （（Based Based on Residences Offices on 46.3% acquisition acquisition 53.7% Residences price ）） price 61.1% Residences 91.8% 2.3% Nagoya 1.3% Fukuoka Kobe Nagoya O
Slide 13: Utilizing Negative Goodwill
Utilizing Negative Goodwill Balance Sheet of JSR Before Merger Market Valuation of JSR’ JSR’s Assets and Liabilities Upon Application of Purchase Method Liabilities (Book Value) Liabilities Assumed (Market Value) Assets (Book Value) Assets Acquired (Market Value) Negative Goodwill Net Assets Other C
Slide 14: 4. Overview of New Corporation after Merger
4. Overview of New Corporation after Merger
Slide 15: Status of Surviving Corporation
Status of Surviving Corporation Name Name CRESCENDO CRESCENDO Investment Investment Corporation Corporation Address Address 5-1, 5-1, Atago Atago 2-chome, 2-chome, Minato-ku, Minato-ku, Tokyo Tokyo Executive Executive Director Director Masaaki Masaaki Higashihara Higashihara Supervisory Supervisory
Slide 16: Interest Bearing Debt
Interest Bearing Debt CIC Interest Bearing Debt （As of May 31, 2010） 2010） JSR Interest Bearing Debt （As of May 31, 2010） 2010） Outstanding Outstanding Interest Interest Remarks Lender Balance Due Date Remarks Lender Balance Due Date Rate Rate (million yen） (million yen） Aozora Bank, Ltd. The Chuo M
Slide 17: Major Unitholders
Major Unitholders CIC JSR Pro Pro Forma Forma of of CIC CIC after after the the Merger Merger Number of Share of Number of Share of Number of Share of No Name units held total units No Name units held total units No Name units held total units (shares) issued (%) (shares) issued (%) (shares) issued
Slide 18: CIC Main Portfolio
CIC Main Portfolio Kayabacho Kayabacho HEIWA HEIWA Building Building Hatchobori Hatchobori SF SF Building Building NV NV Tomioka Tomioka Building Building Office Office Office Chuo-ku, Tokyo Chuo-ku, Tokyo Koto-ku, Tokyo Lot Area : 811.59㎡ Lot Area : 533.05㎡ Lot Area : 748.36㎡ To
Slide 19: CIC Portfolio No.1
CIC Portfolio No.1 Acquisition Prices Occupancy ratio Book Value Appraised Value Usage Property Names Addresses （as of the end Constructed (mm yen) （mm yen） （mm yen） of May, 2010） Asahi Life Insurance Gotanda Building Shinagawa-ku, Tokyo 1,290 1,285 1,546 100.00% May 1980 Suitengu HEIWA Building Chu
Slide 20: CIC Portfolio No.2
CIC Portfolio No.2 Acquisition Prices Occupancy ratio Book Value Appraised Value Usage Property Names Addresses （as of the end of Constructed (mm yen) （mm yen） （mm yen） May, 2010） Concord Ichikawa Ichikawa-shi, Chiba 430 417 440 100.00% March 2003 CIC Meguro Meguro-ku, Tokyo 660 644 563 100.00% Apri
Slide 21: JSR Main Portfolio
JSR Main Portfolio Single- Single-residence Single-residence TOUR TOUR JAUNE JAUNE Komazawa- Komazawa-koen Komazawa-koen Single- Single-residence Umeda Single-residence Umeda TOWER TOWER Waseda Waseda First- First-Square First-Square Residence Residence Residence Setagaya-ku, Tokyo Shinjuk
Slide 22: JSR Portfolio No.1
JSR Portfolio No.1 Occupancy ratio Acquisition Prices Book Value Appraised Value Usage Property Names Addresses （as of the end of Constructed (mm yen) （mm yen） （mm yen） May, 2010） Single-residence Shiba-koen Minato-ku, Tokyo 954 937 848 100.00% August 2003 Single-residence Mita Minato-ku, Tokyo 1,25
Slide 23: JSR Portfolio No.2
JSR Portfolio No.2 Acquisition Prices Book Value Appraised Occupancy ratio Usage Property Names Addresses （mm yen） Value （as of the end of Constructed (mm yen) （mm yen） May, 2010） Single-residence Hisayaodori Nagoya-shi, Aichi 1,420 1,404 1,170 93.84% March 2006 Single-residence Karasuma Kuramaguchi
Slide 24: Provisional Translation Only
[Provisional Translation Only] The English translation of the original Japanese document is provided solely for information purposes. Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.
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