Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Merger or Acquisition (June 2020)
24 slides from Sunway Real Estate Investment Trust's merger presentation, Jun 29, 2020
Slide 1: Sunway REIT Presentation on The Proposals
Sunway REIT Presentation on The Proposals Announced on 29th June 2020
Slide 2: Disclaimer
Disclaimer You must read the following before continuing. This presentation is for information purposes only and does not constitute an offer, solicitation to deal in securities or to enter into any legal relations or advertisement or advice or recommendation or invitation with respect to the purcha
Slide 3: Table of contents
Table of contents 1 Overview of the Proposals 4 2 Proposed Acquisition of The Pinnacle Sunway 7 3 Proposed Private Placement 15 4 Proposed Establishment of a DRS 21 Empowering Businesses Curating Experiences Enriching Lives 3
Slide 4: 1. Overview of the Proposals
1. Overview of the Proposals
Slide 5: Overview of the Proposals
Overview of the Proposals Overview Summary Rationale 1 Proposed Acquisition of The Pinnacle Sunway (“Proposed • Quality addition of Prime Grade A office building to Sunway Acquisition”) REIT’s portfolio • Sales and Purchase Agreement (“SPA”) signed for the acquisition of The Pinnacle Sunway from who
Slide 6: Approvals Required
Approvals Required The Proposals are subject to the following approvals being obtained: Approvals Required Approving Authority Bursa Malaysia 1 • For the listing and quotation of the Placement Units on the Main Market of Bursa Securities Securities Berhad (“Bursa Securities”) • Approval of Unitholde
Slide 7: 2. Proposed Acquisition of The Pinnacle Sunway
2. Proposed Acquisition of The Pinnacle Sunway
Slide 8: Overview of The Pinnacle Sunway
Overview of The Pinnacle Sunway An iconic 24-storey Grade A office building, with 3-storey Property Description mezzanine floors and 6 levels of basement car park, GBI- certified and MSC-status Located strategically within the master-planned integrated Location township development of Sunway City Ap
Slide 9: Transaction Rationale
Transaction Rationale 1 Quality addition of a Prime Grade A office asset (with GBI certification and MSC status) with strong tenants 2 3 Increase portfolio strength Enhances scale, operational through further diversification and business synergies within the Sunway City ecosystem 4 Proposals are Ear
Slide 10: Quality Addition of a Prime Grade A Office
Quality Addition of a Prime Grade A Office Exterior Reception area Link Bridge Transportation Link • Strategically located at the pulse of Strategically Sunway City’s business activities with Located Transit-Oriented Development (“TOD”) infrastructure connectivity • Seamlessly integrated to Sunway S
Slide 11: Quality Addition of a Prime Grade A Office (Cont'd)
Quality Addition of a Prime Grade A Office (Cont’d) Key Highlights • An iconic 24-storey Grade A office building with 3-storey mezzanine floors and 6 levels of basement car park, GBI-certified, MSC-status and sustainability at its core • A unique corporate environment where it is situated within an
Slide 12: Increases Portfolio Strength Through Further Diversification
Increases Portfolio Strength Through Further Diversification Property Value (RM million) indicates years in which acquisitions took place 8,497 8,047 7,280 6,689 6,324 6,433 5,520 5,184 4,630 4,379 3,456 IPO FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2021 Properties Acquired: 9
Slide 13: Increases Portfolio Strength Through Further Diversification (Cont'd)
Increases Portfolio Strength Through Further Diversification (Cont’d) Pre - Proposed Acquisition Post - Proposed Acquisition Number of properties 17 18 GFA (‘000 sqft) 15,737 16,882 Exposure to Sunway City 75.0% 76.3% (by property value) 1% 1% 11% 11% 6% 11% 60% Portfolio Mix 21% 57% 20% Retail Hote
Slide 14: Enhances Scale and Synergies within Sunway City Eco-System
Enhances Scale and Synergies within Sunway City Eco-System Complementary Addition to Sunway REIT’s Existing 7 Assets Within Sunway City • The Pinnacle Sunway will be the 8th asset within Sunway City to be added to the portfolio • The acquisition is synergistic to its existing assets within the integ
Slide 15: 3. Proposed Private Placement
3. Proposed Private Placement
Slide 16: Indicative Terms of the Proposed Private Placement
Indicative Terms of the Proposed Private Placement Issuer • Sunway Real Estate Investment Trust (“SUNWAY REIT”) • Private Placement of new units of Sunway REIT Type of Offering • Undertaken under the General Mandate to be obtained at the forthcoming AGM Offering Size • Up to RM710.0 million raised v
Slide 17: Proposed Utilisation of Proceeds
Proposed Utilisation of Proceeds* A total of RM405.0 million will be used for the Proposed Acquisition and RM295.3 million will be used for the expansion of Sunway Carnival Mall, with the rest being utilized for paying expenses in relation to the Proposals Intended Utilisation of Proceeds 1 2 Propos
Slide 18: Overview of the Expansion of Sunway Carnival Mall
Overview of the Expansion of Sunway Carnival Mall Expansion of Sunway Carnival Mall The expansion of Sunway Carnival Mall (comprising 9 storeys of retail space and 7 levels of carpark) is expected to transform the retail scene in Penang with its appealing architectural design and enhanced tenancy mi
Slide 19: Proforma Effects of the Proposals
Proforma Effects of the Proposals* 1 2 3 DPU Accretive* NAV Per Unit Accretive* Reduction in Gearing* (Sen) (RM) 9.62 1.52 37.9% 9.59 1.51 35.0% As at 30 June 2019 After the Proposals* As at 30 June 2019 After the Proposals* As at 30 June 2019 After the Proposals* (Audited) (Audited) (Audited) Total
Slide 20: Rationale for the Proposed Private Placement
Rationale for the Proposed Private Placement Rationale Description Partly Finance the DPU- • Placement proceeds will primarily be used to partly finance the Proposed Acquisition, and the Accretive Acquisition and expansion of Sunway Carnival Mall 1 the Expansion of Sunway Carnival • Expected to impr
Slide 21: 4. Proposed Establishment of a Distribution Reinvestment Scheme
4. Proposed Establishment of a Distribution Reinvestment Scheme (“DRS”)
Slide 22: Description of the Proposed DRS
Description of the Proposed DRS • The Distribution Reinvestment Scheme (“DRS”) will give unitholders of Sunway REIT an option to re-invest their cash income distribution in new units of Sunway REIT (“DRS Units”) Overview • Unitholders will have an option to invest in whole or in part of their cash d
Slide 23: Rationale for the Proposed DRS Scheme
Rationale for the Proposed DRS Scheme Rationale Description • Provides the Manager with flexibility in managing the REIT’s capital position • The reinvestment of Income Distribution by the Unitholders for DRS Units will also enlarge the unit capital Provides Flexibility base of Sunway REIT 1 in Capi
Slide 24: Proposed DRS Process Flow Chart
Proposed DRS Process Flow Chart Step 1 Step 2 Step 3 • The Board of Directors of Sunway REIT • Sunway REIT despatches the Notice of • Unitholders to decide whether to reinvest the declares an income distribution and Election to Unitholders Electable Portion (in whole or part thereof) determines whet
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