Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — Investor Presentation (September 2015)
46 slides from Globalworth Real Estate Investments's investor presentation, Sep 17, 2015
Slide 1: Globalworth Real Estate Investments Ltd.
September 2015 Globalworth 3 Real Estate Investments Ltd. 11
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE The Presentation does not constitute, or form part of, any offer or invitation to sell or issue any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, or act as
Slide 3: Company snapshot
Company snapshot Company overview Portfolio primarily focused on the office sector2 Globalworth (“GWI”) is a leading fully integrated real estate investment “As Is” Valuation of €809mn company focused on acquiring, developing and managing predominantly office properties in Romania GWI is listed
Slide 4: A long journey in a short time
A long journey in a short time … >c.€754mn of investments undertaken & +190k sqm leased to date … Key Corporate Events Key Asset Transactions & Deliveries Feb-13 Incorporation of GWI Jul-13 SPA for TCI, Bucharest One, Upground & GAM Jul-13 Listing on GWI on LSE AIM, raising €54mn Sep-13 Acquisition
Slide 5: Portfolio overview
Portfolio overview Targeting building contracts with contractors on “turnkey” basis Standing and operational assets4 Developments Value “As is”1 €639mn Value “As is”1 €151mn Total Commercial GLA (sqm): 282,779 Value at “Completion”1 €392mn Contracted occupancy: c.88.1% Total Commercial GLA (sqm): 19
Slide 6: 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 7: 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 8: Favourable Country and Real Estate market fundamentals
2 Favourable Country and Real Estate market fundamentals … ● Q1 2015 real GDP growth above CEE average, at 4.2% and at 2.8% for 2014 Strong Macroeconomic ● Jan-May 2015 retail sales y-o-y growth of 4.3% Fundamentals Vs ● Low unemployment (Jul 2015: 6.8% Vs 9.5%-EU & 10.9% - Euro Area) EU and CEE ave
Slide 9: … and improving market dynamics
2 … and improving market dynamics … Bucharest remains the principal real estate market in Romania Investment Volume - Romania Demand for office space remains strong, and continues to outweigh supply 1,500 H1 2015 office demand of c.130,000sqm Vs c.60,000sqm of new supply 1,200 Average office
Slide 10: … in the office sector
2 … in the office sector Structural supply/demand imbalance for commercial ...with over 84% of the take up comprising new space in Bucharest... occupation / pre-leases Demand by type of transactions, H1-15 ’000, Sqm Supply Demand 450 Renewal 16% New Demand 400 18% 350 Expansion 7% 300 250 200 150 Ne
Slide 11: 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 Globalworth’s portfolio is located in the “New CBD” Targeted sub-markets benefit from lower vacancy rates compared to the city average The portfolio provides top quality assets includin
Slide 12: …with significant value growth potential
3 …with significant value growth potential GAV upon completion¹ GAV bridge to value upon completion¹ Total GAV: € 1,050mn Total uplift on currently owned portfolio: €241mn 25% 1,200 1,050 20% 1,000 72 169 809 18% - 800 15% 15% € million 14% 600 10% 10% 400 7% 5% 6% 6% 6% 5% 5% 5% 200 3% 0% 1% 1% - T
Slide 13: Robust rental growth and very attractive NOI yield profile
3 Robust rental growth and very attractive NOI yield profile Acquisition & Development Cost NOI (€ m) NOI Asset Name Status Investment Cost to Remaining Total Acq./Dev . Sep-15 Q1-17(E) 2 Q1-18(E)2 Yield3 Jun-15 (€ mn) 1 Cost (€ mn) Cost (€ mn) BOB Completed 42.0 - 42.0 3.7 3.8 3.9 9.3% BOC Complete
Slide 14: 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 80% of the leases expire in or after 2020 Tax Insurance 80% Maintenance Triple net lease 2 Euro-denominated, m
Slide 15: Favourable contract terms in development projects protecting against cost over-run
…and by favourable contract 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 16: Attracting high quality, diversified tenants from around the world
5 Attracting high quality, diversified tenants from around the world Major Tenants in the Portfolio Other Selected Tenants A highly diversified tenants base both by country of origin… …and by business sector Based on annualized contracted rental income as of 15 Sept., 2015 Based on annualized contra
Slide 17: Top management with unique track record in the real estate sector
6 Top management with unique track record in the real estate sector… Ioannis Papalekas Founder & CEO • 16yrs (14yr in Romania) real estate track record • Involved in multiple investments in Romania and SEE • Realised IRR of 175% and an equity multiple of 4.7x Andreas Papadopoulos Dimitris Raptis Adr
Slide 18: … ability to execute
6 … ability to execute … Globalworth since its IPO in July 2013 acquired 14 properties in c.190k sqm of GLA have been leased since April 2013 including the Romania with a total appraised value upon completion of c.€1.1bn landmark leases for: Completed the refurbishment of City Offices in Decem
Slide 19: …and with a clear and proven strategy
6 …and with a clear and proven strategy Clear, focused strategic guidelines… …with a proven investment strategy 1 Key • Acquisition, development and management of commercial Commercial real estate assets assets Sector • Active management of underperforming / mispriced assets 2 Key • Value creation v
Slide 20: Selected financials: NAV Evolution
Selected financials : NAV Evolution Audited Consolidated Unaudited Consolidated Audited Consolidated Unaudited Consolidated Figures in € million 31st December 2013 30th June 2014 31st December 2014 30th June 2015 NAV to ordinary equity holders 119.7 377.7 392.7 427.3 Adj. Deferred Tax Liability, Goo
Slide 21: Appendix: Profiles of Selected Assets
Appendix: Profiles of Selected Assets 21 21
Slide 22: Standing Assets: BOB
Standing Assets BOB Decrisption Location Class “A” multi-tenanted 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 LEED/Platinum certification for DB space BREEAM In
Slide 23: Standing Assets BOB
Standing Assets globalworth’ BOB PPP
Slide 24: Standing Assets: BOC
Standing Assets BOC Description Location Class “A” multi-tenanted office building completed in 2009 Is located in the Northern part of Bucharest on Dimitrie Pompeiu area Offers 56,647sqm (GLA) on 8 floors above ground and 895 parking spaces BREEAM In-Use / Excellent certification Tenants Sta
Slide 25: Standing Assets BOC
globe Standing Assets BOC
Slide 26: Standing Assets: TCI
Standing Assets TCI Description Location Landmark class “A” multi-tenanted office building completed in 2012 Located in Bucharest’s Historical CBD area at Victoriei Square Consists of two interconnected buildings and is currently the 2nd tallest building in Bucharest. Offers 22,228sqm GLA ov
Slide 27: Standing Assets TCI
balworth PPP glo | Standing Assets TC
Slide 28: Standing Assets: City Offices
Standing Assets City Offices Description Location 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 retail mall recently re-d
Slide 29: Standing Assets City Offices
Standing Assets City Offices 29 29
Slide 30: Standing Assets: UniCredit HQ
Standing Assets UniCredit HQ Description Location Class “A” office building completed in 2012 Headquarter of UniCredit Tiriac Bank Ranked 17th on the list of the 30th most architecturally impressive banks in the world Located in Presei Libere Square on Expozitiei Boulevard Offers 15,500sqm
Slide 31: Standing Assets UniCredit HQ
Standing Assets UniCredit HQ 31 31
Slide 32: Standing Assets: Nusco Tower
Standing Assets Nusco Tower Decrisption Location Class “A” multi-tenanted office building, completed in 2010, Located in the Northern part of Bucharest at the crossroad of Pipera Road / Gara Herastrau Street Offers 22,972sqm (GLA) on 20 floors above ground and 336 parking spaces The building
Slide 33: Standing Assets Nusco Tower
Standing Assets Nusco Tower 33 33
Slide 34: Standing Assets: Green Court Building A
Standing Assets Green Court Building “A” Description Location Class “A” multi-tenanted office building delivered in Q1-’15 Located on Gara Herastrau Street in the New CBD of Bucharest Offers 19,168sqm (GLA) on 12 floors above ground and 278 parking spaces Part of a complex involving the deve
Slide 35: Standing Assets Green Court Building A
Standing Assets Green Court Building “A” 35 35
Slide 36: Standing Assets: Upground Towers
Standing Assets Upground Towers Description Location Modern residential complex located in the Northern part of Bucharest on Fabrica de Glucoza Street The complex was completed in 2010 and Globalworth currently owns 442 residential units (in 2 towers of 17 floors each), retail space of 6,555sqm
Slide 37: Standing Assets Upground Towers
Standing Assets Upground Towers 37 37
Slide 38: Standing Assets: Timisoara Airport Park
Standing Assets (with Expansion Potential) Timisoara Airport Park Description Location Light-industrial property located in the North-East of Timisoara in the vicinity of the international airport Benefits of easy access towards the 4th European Corridor TAP is leased to Valeo, Continental and
Slide 39: Standing Assets: Timisoara Airport Park
Standing Assets (with Expansion Potential) Timisoara Airport Park 39 39
Slide 40: Developments: Bucharest One
Developments Bucharest One Description Location Flagship class “A” multi-tenanted office development project under construction (est. completion Q4 2015) Located in the northern part of Bucharest in the Floreasca/Barbu Vacarescu area Upon completion, the building will be the 2nd tallest tower
Slide 41: Developments Bucharest One
Developments Bucharest One 41 41
Slide 42: Developments: Globalworth Campus
Developments Globalworth Campus Description Location Globalworth Campus project, is set to become upon completion one of the largest business parks in Romania offers 87,808sqm (GLA) and 758 parking spaces Unique development to be constructed on top of one of the busiest metro stations in Buchare
Slide 43: Developments Globalworth Campus
Developments Globalworth Campus 43 43
Slide 44: Developments: Gara Herastrau
Developments Gara Herastrau Description Location “Gara Herastrau” is an office development project to be constructed in the northern part of Bucharest in the Floreasca/Barbu Vacarescu area (on Gara Herastrau) The site was acquired in December 2014 and the building is expected to comprise of 12,0
Slide 45: Developments Gara Herastrau
Developments Gara Herastrau 45 45
Slide 46: globalworth
globalworth PPP
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