Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — Merger or Acquisition (August 2016)
19 slides from Calgro M3's merger presentation, Aug 30, 2016
Slide 1: SA Corporate Real Estate | Calgro M3
SA Corporate Real Estate | Calgro M3 30 August 2016
Slide 2: Joint Venture Partners
Joint Venture Partners SA Corporate Real Estate is a corporate real Calgro M3 is a diversified residential property estate investment trust (REIT) specialist, with developer and contractor with a 20 year track a proven track record of raising capital and record of consistent growth, making it one of
Slide 3: Residential Portfolio Market
Residential Portfolio Market South Africa has a housing shortage of approximately 4 million homes, as a result there are: • 2.1 million subsidised opportunities, • 0.7 million bonded opportunities, and • 1.5 million rental opportunities. The housing shortage is further compounded by a absence of Pub
Slide 4: Outline of the Transaction
Outline of the Transaction Phase Acquisition of property portfolio from Calgro M3, valued at R1.6 1 billion Future acquisitions from Calgro Phase M3’s pipeline and other developers, as well as acquiring 2 established portfolios Portfolio in excess of R10 billion Target to R15 billion 4
Slide 5: AFHCO – The Brand
AFHCO – The Brand • Has been managing affordable rental housing since 1998 • Is a trusted and established brand of quality, affordable rental accommodation • Only manages property that is owned by the group. This vested interest provides for total focus, effort and commitment • Currently manages ove
Slide 6: AFHCO – Our Achievements
AFHCO – Our Achievements AFHCO has been recognized on numerous occasions as a respected contributor to a better life for all. • National Business Award for the category “Sustainability and Beyond” - 2008 • Certificate of Appreciation by Johannesburg Central SAPS • Halala Jo’burg Award for the catego
Slide 7: Calgro M3 – The Brand
Calgro M3 – The Brand • Calgro M3 is a property developer with its primary focus on: • the lower segment of the affordable residential market • specialising in integrated developments and Memorial Parks • established brand with a track record of delivering quality, affordable homes • Good working re
Slide 8: Calgro M3 - Business Model
Calgro M3 - Business Model Secure land hip Township establishment Identify project & Due diligence Determine market mental funding CALGRO M3 Turnkey Approach ff SA CORPORATE AFHCO REAL ESTATE CALGRO M3 —_ BULDING LEGACIES, CHANGING VES.
Slide 9: Details of Phase 1
Details of Phase 1 The total transaction value is R1.6 billion The total number of residential units is 3 852 The units consist of various specification levels, with rentals starting at R4 400 per month on completion Net rental income yields of approximately 11% of the property acquisition cost is t
Slide 10: Details of Phase 1
Details of Phase 1 Property Area Rentable Area (m2) Johannesburg West 33 720 Soweto 11 520 Johannesburg South 43 068 Kraaifontein 33 760 Belhar 40 000 Total 162 068 The above rentable area excludes all parking to be separately let and all common areas such as dry yards, walkways, staircases and priv
Slide 11: Calgro M3 – A Uniquely Differentiated Portfolio
Calgro M3 – A Uniquely Differentiated Portfolio A fundamental shift in thinking – We create homes that clients can take pride in! Portfolio is environmentally sound • Energy conservation with solar & gas installations • Homes are insulated and windows are coated for temperature control • Water effic
Slide 12: Strategic aim of the Transaction – SA Corporate
Strategic aim of the Transaction – SA Corporate To partner with an experienced developer trusted by JSE investors to: • Achieve portfolio scale in a sector with underweight listed exposure and defensive characteristics due to its non-discretionary nature. • Access a pipeline of stock that needs to b
Slide 13: Strategic aim of the Transaction – Calgro M3
Strategic aim of the Transaction – Calgro M3 To partner with an established REIT and leader in the field to: • Add their experience in management of residential portfolio’s, allowing the Group to remain focused on development • Address the rental housing shortage of 1.5 million units, by creating su
Slide 14: Transaction Terms
Transaction Terms limited recourse debt target of 35% Equity contribution 65% SA Corporate (AFHCO) responsible for day-to-day operations and management of the portfolio / company 100% distribution of pre-tax income to shareholders AFHCO brand to be marketed and the brand which will trade Subject to
Slide 15: Disclaimer
Disclaimer Calgro M3 and SA Corporate have acted in good faith and made every reasonable effort to ensure the accuracy and completeness of the information contained in this presentation, including all information that may be defined as 'forward- looking statements'. Forward-looking statements may be
Slide 16: Appendix
Appendix SA CORP: 7 | ieateccecaaae AFHCO
Slide 17: Calgro M3 Integrated Development
Calgro M3 Integrated Development Scottsdene Cape Town, Western Cape 17
Slide 18: Calgro M3 Integrated Development
Calgro M3 Integrated Development Fleurhof Johannesburg, Gauteng 18
Slide 19: Calgro M3 Affordable Housing Development
Calgro M3 Affordable Housing Development Summerset Johannesburg, Gauteng 19
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