Precinct Properties Nz Ltd & Precinct Properties Investments Ltd · NZX:PCT
Precinct Properties Nz Ltd & Precinct Properties Investments — Precinct Properties New Zealand — Merger or Acquisition (March 2021)
12 slides from Precinct Properties Nz Ltd & Precinct Properties Investments's merger presentation, Mar 29, 2021
Slide 1: Precinct Properties Internalisation
Precinct Properties Internalisation PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION - Page 1
Slide 2: Internalisation overview
Internalisation overview • The Independent Directors of Precinct Properties New Zealand Limited (“Precinct”) are pleased to announce today that they have reached an agreement with the Manager, AMP Haumi Management Limited (“AHML”), to internalise the management of Precinct • The agreement includes a
Slide 3: Background
Background • AMP NZ Office Trust was listed in 1997 following the sale of AMP owned office assets to create AMP NZ Office Trust • In 2010, AMP NZ Office Trust (now Precinct) was corporatised and entered into a Management Services Agreement with AMP Haumi Management Ltd (AHML) • AMP has played a sign
Slide 4: PCT Transformation
PCT Transformation Portfolio transformation AFFO and Dividend per share growth 2010 2020 7.00 cps +20% Size $1.27 b $3.0 b 6.50 cps 6.00 cps Age 26 yrs 12 yrs 5.50 cps Maint. Capex 0.60-0.80% p.a 0.20% p.a 5.00 cps AKL Weighting 47% 73% 4.50 cps 4.00 cps Quality A-grade Premium 2016 2017 2018 2019 2
Slide 5: Internalisation approach
Internalisation approach • In September 2020, Precinct established a sub-committee of Independent Directors to assess the potential for internalisation. • The Independent Directors determined that the most optimal outcome was to internalise the management of Precinct. • As Independent Directors need
Slide 6: Key terms of the internalisation
• Gross payment from Precinct to AHML of $215m. • $10m of fees on current development projects will no longer be paid. • Precinct will apply for a binding ruling from the IRD to confirm that the Key terms of the termination payment is deductible for income tax purposes. internalisation • The net cos
Slide 7: Benefits of internalisation
Benefits of internalisation The internalisation is expected to provide significant benefits to Precinct and its shareholders • On a pro forma basis, pre-tax gross cash savings of approximately $14.6 million1 per annum in total management fees net of costs $14.6m • MER reduces from 0.74% to 0.31% ann
Slide 8: Funding
Funding • Internalisation to be debt funded through a new 5-year $250 million bank facility • The new facility will increase bank debt to $860 million out of a total facility pool of $1.45 billion • Expected settlement for ANZ Centre remains on track for April 2021 • As previously outlined, Precinct
Slide 9: Summary
Summary • The internalisation is expected to provide significant benefits to Precinct and its shareholders • Management alignment • Removal of uncertainty • Net cost to Precinct of internalisation is expected to be $145 million1 • On a pro forma basis, the internalisation is expected to provide cost
Slide 10: Appendices
Appendices
Slide 11: Analysis of pro forma impacts
Analysis of pro forma impacts Assumes completion of committed Pro forma Portfolio size $3.5 b projects, 1 Queen St and the sale of a non-core asset MSA 0.55% up to $1bn, 0.45% between Management fee $14.8 m $1-1.5bn and 0.35% greater than $1.5bn Performance fee $1.5 m 10-year annual average paid Lea
Slide 12: Disclaimer
Disclaimer The information and opinions in this presentation were prepared by Precinct Properties New Zealand Limited or one of its subsidiaries (Precinct). Precinct makes no representation or warranty as to the accuracy or completeness of the information in this presentation. Opinions including est
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