Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Forterra Trust — Non-Deal Roadshow (September 2013)
46 slides from Singapore Exchange's roadshow presentation, September 2013
Slide 1: Forterra Trust Business Update Presentation
Forterra Trust Business Update Presentation September 2013 1
Slide 2: Important Notice
Important Notice This document does not constitute an offer to sell or the solicitation of an offer to purchase any interest in or related to any real estate, securities, or other investment products or assets. This document is provided for informational purposes only and is intended solely for the
Slide 3: Contents
Contents 1 Introduction to Nan Fung and Forterra 2 Opportunities Presented by Nan Fung’s Ownership 3 Portfolio Update & Financial Results 4 Market Outlook 3
Slide 4: Recent Corporate Developments
Recent Corporate Developments Nan Fung Group became the largest unitholder of Forterra Trust and owner of the Trustee-Manager and Property Manager on 28 Aug 2013 through the completion of acquisitions of 100% of the equity of Oriental Management Services Ltd (as parent company of the Trustee-Man
Slide 5: Nan Fung Group Overview
Nan Fung Group Overview Nan Fung Group has successfully transformed from a local textile manufacturer to an international business conglomerate with strong credit history of almost 60 years Over 47 years solid experience in real estate development in Hong Kong and 20 years in China Fully integ
Slide 6: Nan Fung - Long History of Success of Over 50 Years
Nan Fung - Long History of Success of Over 50 Years With a Track Record of Over 150 Projects Completed Nan Fung has expanded to become one of the leading multi-disciplinary conglomerates and major developers in Hong Kong, with a strong credit history 1954 1970 1978 1993 1999 2007 2010 2011 2012 2013
Slide 7: Nan Fung - More Than 150 Developments in Hong Kong
Nan Fung - More Than 150 Developments in Hong Kong Summit Terrace Providence Bay Residential 2003 2013 Residential Nan Fung Centre Tai Po Courtyard By Commercial 1985 Marriott Hotel 2012 Kowloon Chek Lap Kok International Airport Kwun Tong Kwai Chung Plaza Victoria Harbour Octa Tower Residential & R
Slide 8: Nan Fung - Solid Financial Position and Well Capitalised
Nan Fung - Solid Financial Position and Well Capitalised Mar-13 (HK$m) Investment Properties 21,086 Properties for sale 13,518 Investment in JCE and Associates 15,307 Financial Investment Portfolio 17,748 Cash and Bank Balances 13,718 Total Assets 94,394 Total Debt 14,188 Total Equity 71,233 8
Slide 9: Nan Fung - PRC Property Land Bank
Nan Fung - PRC Property Land Bank Nan Fung Group’s GFA(1): 10.5m sq. ft. 35.0m sq. ft. Attributable from Sino Ocean Land(2): 24.5m sq.ft. Status *Approx GFA (sq. ft.) % Under construction – for sales 5.3mn 50% Under construction – for leasing 3.5mn 34% Completed for leasing 1.4mn 13% Completed for s
Slide 10: Nan Fung - Major Development Properties and Project Pipeline in PRC
Nan Fung - Major Development Properties and Project Pipeline in PRC Information updated as of March 2013 Appx. attr. GFA Project Name Location Type (sq. ft.) 1. The Place Guangzhou Office, Commercial 401K 2. Nan Fung International Convention and Exhibition Centre / Guangzhou Exhibition Centre, Hotel
Slide 11: Nan Fung - High Quality Property Investments in PRC
Nan Fung - High Quality Property Investments in PRC Completed rental properties and upcoming rental projects in PRC Appx. attr.GFA Expected Project Name Location Type (sq. ft.) Completion Date (i) Completed 1. The Place Guangzhou Office, Commercial 401K Completed 2. International Logistics Centre Da
Slide 12: Nan Fung – Selected Projects (North China)
Nan Fung – Selected Projects North China Grade – A Office Tower, CBD, Beijing Logistic Center, Dalian Fushun Beijing Dalian Diamond Bay, Dalian Tianjin Wuxi Chengdu Shanghai Lifespace Mall, Qinhuangdao Guangzhou Lifespace Mall, Anshan Sanya Lifespace Mall, Fushun 12
Slide 13: Nan Fung – Selected Projects (East China)
Nan Fung – Selected Projects East China Premier Residential Tower, Shanghai Palazzo Del Lago, Wuxi Fushun Beijing Dalian Tianjin Wuxi The Place, Yansha - Wuxi Chengdu Shanghai Grade – A Office Tower, Shanghai Zhabei Guangzhou Sanya 13
Slide 14: Nan Fung – Selected Projects (South China)
Nan Fung – Selected Projects South China The Place, Guangzhou Mountain Creek, Sanya Fushun Beijing Dalian Tianjin Wuxi Hotel & Exhibition Complex, Guangzhou Shanghai ANG Tower, Guangzhou¹ Chengdu Guangzhou Sanya 1. Already sold 14
Slide 15: About Forterra Trust
About Forterra Trust Listed in Singapore in June 2010, Forterra Trust is a leading owner, manager and developer of commercial real estate in China. With operations headquartered in Shanghai, Forterra has made significant progress in building a high quality retail and office portfolio comprising
Slide 16: Forterra Trust Structure
Forterra Trust Structure Unitholders Holding of Units Provision of Management Services The Trustee-Manager Forterra Real Estate Pte. Ownership of Assets Ltd Trustee & Management Fees SPV Structure Offshore Provision of Property Onshore Management Services Chinese Operating Companies Property Manager
Slide 17: Forterra - Major Milestones
Forterra - Major Milestones A UK AIM Listed Vehicle Delisted in AIM & listed on the SGX as a business trust 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1 2 3 4 5 6 7 8 9 10 Initial foray into Initial Commercial Portfolio Oct 2010: June 2009: Oct 2011: April 2012: Stabilized Re-launched Ce
Slide 18: Forterra - The Shanghai Portfolio
Forterra - The Shanghai Portfolio All Forterra’s assets in Shanghai are centrally located and easily accessible via metro 3 1 2 1 The HQ 2 Forterra House 3 Huai Hai Mall 18
Slide 19: Forterra - A High Quality Property Portfolio
Forterra - A High Quality Property Portfolio Stabilized Assets Transitional Assets Development Assets Property Forterra House Beijing Logistics The HQ Huai Hai Mall Central Park Mall The HQ Central Park Mall Park (Existing) (Phase I) (Extension) (Phase II-IV) Historic French Beijing Airport Central
Slide 20: Forterra - Portfolio Valuation
Forterra - Portfolio Valuation As 30 June 2013 , the real estate portfolio was valued at RMB11.090 billion (S$2.28 billion1), representing 2.5% increase for the 6 months period from 31 December 2012. Properties As at As at % (RMB million) 30/06/2013 31/12/2012 Variance Stabilized Assets Forterra Hou
Slide 21: Forterra Trust’s Vision
Forterra Trust’s Vision Owning, investing in and proactively managing for optimum unitholder return, income-producing real estate used primarily for commercial purposes located in the Greater China region; Acquiring, owning, repositioning and developing land, under-performing assets or incomplet
Slide 22: Opportunities Presented by Nan Fung’s Ownership
1 Introduction to Nan Fung and Forterra 2 Opportunities Presented by Nan Fung’s Ownership 3 Portfolio Update & Financial Results 4 Market Outlook 22
Slide 23: Nan Fung’s Contribution to a Board that Remains Majority Independent
Nan Fung’s Contribution to a Board that Remains Majority Independent Mr. Graham Sugden¹ ² Chairman & Lead Independent Non-Executive Director Mr. Steven Xu² Mr.Yoon Wai Nam² Dr.Tan Khee Giap² Mr. Eric Chung Mr.Vincent Cheung Mr. Richard David Deputy Chairman & Independent Non-Executive Independent No
Slide 24: Opportunities Presented by Nan Fung's Ownership
Opportunities Presented by Nan Fung's Ownership The quality and strength of the Nan Fung organization provides significant advantages to be enjoyed by the Trust and its Unitholders. The Board intends to review thoroughly the following areas, inter alia, in which ongoing value can be delivered as par
Slide 25: Unit Price Performance
Unit Price Performance For the Period from 1 March to 31 August 2013 22 July : 29 Aug : Announcement of Nan Fung’s Announcement of conditional acquisition of 29.98% Completion of of Forterra Trust and 100% of its Acquisition by Closing on 01 Mar: 1.660 Trustee Manager and Nan FungS$ Property Manager
Slide 26: Portfolio Update & Financial Results
1 Introduction to Nan Fung and Forterra 2 Opportunities Presented by Nan Fung’s Ownership 3 Portfolio Update & Financial Results 4 Market Outlook 26
Slide 27: Highlights of the Period
Highlights of the Period Portfolio Update Huai Hai Mall Secured a head lease over an additional 3,404sqm of retail space at Huai Hai Mall resulting in the expansion of the total retail GFA to 11,024sqm for a 20 + 10 years lease term Central Park Mall Restructured the original financial acquisiti
Slide 28: Additional Space Secured for Huai Hai Mall
Additional Space Secured for Huai Hai Mall A head lease agreement signed to secure additional 3,404 sqm of retail space comprising level 4 and 5 Total retail GFA expanded to 11,024sqm Lease term of 20 years with an option at Forterra’s discretion for an additional 10 years The lease agreemen
Slide 29: Update on Central Park Mall
Update on Central Park Mall Restructure of the Original Financial Acquisition Arrangements Successfully negotiated a one-off payment of RMB54.7million (S$11.3 m) to TRIO, which was made on 29 Aug 2013 in full satisfaction of: The final RMB78.5million deferred payment; The RMB 36million Convert
Slide 30: The HQ
The HQ The Overwhelming Focus for the Short to Medium Term The HQ1 Facade Construction The HQ1 Refurbishment Progress on The HQ1 Ceiling Installation Schedule Atrium Escalator Removal 30
Slide 31: The HQ
The HQ The Overwhelming Focus for the Short to Medium Term The development program for the HQ3 construction continues to advance 31
Slide 32: Completion of Sale Of Central Plaza, Shanghai
Completion of Sale Of Central Plaza, Shanghai On 23 May 2013, Forterra Trust announced the completion of disposal of Central Plaza. In accordance with Circular to Unitholders in relation to this disposal dated 22 April 2013, the sale consideration was US$266.73 million (equivalent to RMB1.67 bil
Slide 33: NPI & EPU Analysis
NPI & EPU Analysis (S$’000) 2nd Qtr 2013 2nd Qtr 2012 YTD 2013 YTD 2012 Gross Revenue 20,505 26,433 43,825 52,405 Total Property Operating Expenses (7,035) (9,462) (14,865) (19,449) Net Property Income 13,470 16,971 28,960 32,956 Total Profit After Tax Attributable to 24,185 17,071 7,244 24,781 Trus
Slide 34: Gross Revenue – Q2 2013 vs Q2 2012
Gross Revenue – Q2 2013 vs Q2 2012 (RMB million) 0 20 40 60 80 100 120 140 100.8 Gross Revenue 131.3 8.2 Forterra House 9.5 7.9 Beijing Logistics Park 1 n.a. 51.1 The HQ Existing 73.3 4.6 Huai Hai Mall 6.8 Central Park Mall 13.6 (Existing Phase) 14.3 15.3 2 Q2 2013 Central Plaza 2 27.3 Q2 2012 1. Be
Slide 35: Consolidated Balance Sheet of Forterra
Consolidated Balance Sheet of Forterra (S$ million, except otherwise stated) As at 30 June 2013 As at 31 Dec 2012 Investment Properties 2,402 2,237 Trade and Other Receivables 66 100 Cash & Cash Equivalents 187 42 Assets held for Sale 77 437 Total Assets 2,732 2,817 Bank Loans 728 673 Convertible Bo
Slide 36: A Healthy Debt Profile
A Healthy Debt Profile (S$ million) 500 77.5% RMB 450 Denominated USD Loans 400 Denominated 28% Loans 350 72% 300 250 Total borrowings for stabilised and transitional assets as at 30 June 2013 200 is equivalent to S$672.6 million. 13.2% 150 9.3% 100 0.0% 0.0% 50 0 2013 2014 2015 2016 2017 onward U
Slide 37: Strong Leasing Momentum Continues
Strong Leasing Momentum Continues 26 new lettings/renewals (excluding Central Plaza transactions) were successfully negotiated for the quarter encompassing both new lettings and renewals producing an aggregated per square metre rental which represents a 7.53% increase over the expiring leases. T
Slide 38: Committed Portfolio Occupancy
Committed Portfolio Occupancy Upon the successful sale of Central Plaza Shanghai, the committed occupancy of the property portfolios still remains steady and high with detailed committed occupancy of individual property set out as below. Stabilized Assets Transitional Assets 1. Includes the office
Slide 39: High Grade, Institutional Quality Tenants
High Grade, Institutional Quality Tenants 39
Slide 40: Lease Expiry Profile
Lease Expiry Profile Leasing Expiring Portfolio 2013-2015 (as % of Gross Lettable Area) 50% 40% 35.43% 27.56% 30% 17.22% 16.06% 20% 11.13% 10.90% 7.87% 10% 1.17% 0.00% 0.23% 0.00% 0.00% 0% 2013 2014 2015 Income Producing Assets Office Retail Warehouse 40
Slide 41: Recent Awards & Accolades
Recent Awards & Accolades Showcase Project of Green Construction Outstanding China Enterprise Awards Mariam Im, CFO of Forterra, received the award on behalf of Forterra The HQ Extension has been awarded Forterra Trust has been awarded “the 8th “Showcase Project of Green Construction” Outstanding Ch
Slide 42: Market Outlook
1 Introduction to Nan Fung and Forterra 2 Opportunities Presented by Nan Fung’s Ownership 3 Portfolio Update & Financial Results 4 Market Outlook 42
Slide 43: Macro Economics
Macro Economics China’s economic growth slowed to 7.5% year-on-year (“YoY) in the second quarter, down from 7.7% in the first, matching the government’s 7.5% target for the year but giving rise to concerns of a further slowdown across the remainder of 2013. The slowdown reflected a sharp decelerat
Slide 44: Shanghai Office Market
Shanghai Office Market Shanghai Grade A office market exhibited stable conditions in the second quarter. On the demand side, domestic companies, in particular those from the finance industry, played a greater role in office space net absorption. Meanwhile, the expansion demand from Multi-National
Slide 45: Shanghai Retail Market
Shanghai Retail Market The Shanghai retail market continued to post stable performance in the second quarter. Fast fashion tenants were still keen to expand. Meanwhile, high-end brands continued their expansion especially in prime locations. On the supply side, K11, which announced its grand ope
Slide 46: Thank you!
Thank you! Forterfa Bik