Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Shareholder Meeting (October 2007)
16 slides from Keppel REIT's shareholder meeting presentation, Oct 11, 2007
Slide 1: Extraordinary General Meeting
Extraordinary General Meeting 11 October 2007
Slide 2: Important Notice
Important Notice THIS PRESENTATION IS AVAILABLE ONLY TO PERSONS WHO ARE NON-U.S. PERSONS AND PERSONS WITH ADDRESSES OUTSIDE THE U.S., CANADA AND JAPAN The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicit
Slide 3: Approvals Sought
Approvals Sought To seek unitholders’ approval for: 1 Proposed Acquisition of a one-third interest in One Raffles Quay (“ORQ”) Inter-conditional 2 Proposed Issue of New Units under the Equity Fund Raising (“EFR”) 3 Proposed Issue of Convertible Bonds (“CB”) 4 Proposed Placement of New Units to Keppe
Slide 4: Proposed Acquisition Of One-Third Interest In One Raffles Quay
Proposed Acquisition Of One-Third Interest In One Raffles Quay A Prestigious Landmark Commercial Development North Tower South Tower The Plaza Retail Link • Strategically Located • Close proximity to the Marina Bay Financial Centre and the Sands Integrated Resort developments • 50-storey office towe
Slide 5: Joint-Ownership Structure
Joint-Ownership Structure Joint ownership with Suntec REIT and Hongkong Land (1) one-third ownership one-third ownership one-third ownership One Raffles Quay Pte Ltd Property management company(2) 100% One Raffles Quay (1) Suntec REIT’s unitholders approved the acquisition of one-third interest in O
Slide 6: Key Benefits To Unitholders
Key Benefits To Unitholders The acquisition will bring the following key benefits to Unitholder: 1 Delivering Delivering on on Growth Growth Strategy Strategy 2 Acquisition Acquisition of of aa Landmark Landmark Property Property with with Blue-Chip Blue-Chip Tenants Tenants 3 Accretive Accretive Ac
Slide 7: Delivering On Growth Strategy
1 Delivering On Growth Strategy Acquisition of One Raffles Quay: • More than doubles K-REIT Asia’s portfolio value • Closer to achieving target size of S$2.0 billion • Increases ability to capitalise on strengthening Singapore office sector • Enhances K-REIT Asia’s position as a leading commercial R
Slide 8: Acquisition Of A Landmark Commercial Property
2 Acquisition Of A Landmark Commercial Property Tenants Tenants Singapore’s Singapore’s Central Central Business Business District District include: include: One Raffles Quay • Designed by internationally-acclaimed architectural firm: KPF, New York • Strategically Located at the gateway to Marina Ba
Slide 9: Accretive Acquisition
3 Accretive Acquisition The Manager expects the Acquisition to significantly improve DPU… DPU DPU Forecast Forecast for for Projection Projection Year Year 2008 2008 11.0 c r etion S$567 million EFR(1) c 10.0 .7% a 10.43¢ S$400 million CB(2) DPU cents +16 33.0% Leverage n c retio % ac +9.1 9.0 S$717
Slide 10: High Growth Potential From Future Rental Reversions
4 High Growth Potential From Future Rental Reversions • 55.7% of ORQ leases are due for renewal or rent review from 2007-2011 • 84.9% of existing properties are due for renewal from 2007-2011 • Strong potential for positive rental reversions • Staggered expiry profile facilitates stable and rising r
Slide 11: Greater Trading Liquidity And Flexibility
5 Greater Trading Liquidity And Flexibility • Investors will have greater trading liquidity and free float Post-Acquisition Post-Acquisition Post-Acquisition Post-Acquisition Pre-Acquisition Pre-Acquisition (if (if S$567m EFR; S$567m EFR; S$400m S$400m CB) CB) (if (if S$717m EFR; S$717m EFR; S$250m
Slide 12: Independent Financial Adviser's Opinion
Independent Financial Adviser’s Opinion KPMG Corporate Finance (“KPMG”) appointed as Independent Financial Adviser to the Independent Directors of K-REIT Asia Financial terms of the Acquisition and the Keppel Land Placement: 9 On normal commercial terms 9 Not prejudicial to the interests of K-RE
Slide 13: Proposed Acquisition And Financing Structure
Proposed Acquisition And Financing Structure One Raffles Quay Pte Ltd Uses of funds Total Proceeds Sources of funds S$966.5m Equity Fund Raising Convertible Bonds S$566.5m–716.5m S$250m–S$400m Keppel Land to 33.0% subscribe for approx. 41% 24.6% 22.9% Pre-Acquisition S$250m CB S$400m CB 13 AGGREGATE
Slide 14: Attractive Investment Proposition
Attractive Investment Proposition 1 Delivering Delivering on on Growth Growth 116% growth in portfolio value to S$1,756m Strategy Strategy Closer to achieving acquisition target of S$2.0 billion 2 Acquisition Acquisition of of aa ORQ is strategically located and is a superior commercial proper
Slide 15: Summary of Approvals Sought
Summary of Approvals Sought 1 Proposed Acquisition of a one-third Grade ‘A’ property 9 interest in One Raffles Quay asset 2 Inter-conditional Proposed Issue of New Units under the Equity Fund Raising 9 Prudent means of 3 Proposed Issue of Convertible Bonds financing 9 4 Proposed Placement of New Uni
Slide 16: Thank You
Thank You