Charter Hall Retail Reit · ASX:CQR
Charter Hall Retail Reit — Merger or Acquisition (October 2012)
25 slides from Charter Hall Retail Reit's merger presentation, Oct 18, 2012
Slide 1: Portfolio Acquisition and Equity Raising
For personal use only Charter Hall Retail REIT Portfolio Acquisition and Equity Raising Not for distribution or release in the United States
Slide 2: Disclaimer: Important Notice
Disclaimer Important Notice For personal use only This presentation has been prepared by Charter Hall Retail Management Limited (ABN 46 069 709 468) (AFS Licence No. 246996) as responsible entity of Charter Hall Retail REIT (CQR), in relation to a placement (Placement) of new fully-paid ordinary uni
Slide 3: Executive Summary
Executive Summary For personal use only − Charter Hall Retail REIT (CQR or the REIT) has contracted to acquire three high quality sub-regional shopping centres located in regional NSW (the Portfolio) − Consistent with strategy to acquire supermarket anchored shopping centres with strong income and c
Slide 4: Executive Summary
Executive Summary For personal use only − The Portfolio acquisition and Offer (the Transaction) offers a number of key benefits: − Increases exposure to sub-regional shopping centres − Improves the geographic diversity and quality of the REIT’s already strong Australian portfolio − Initially reduces
Slide 5: Outline
For personal use only Outline Portfolio Acquisition and Equity Raising 1 Transaction Rationale 2 Acquisition Portfolio 3 Redevelopment Pipeline 4 Transaction Impact 5 Details of the Offer Not for distribution or release in the United States or to US Persons
Slide 6: Transaction Rationale: Consistent with stated acquisition strategy
Transaction Rationale Consistent with stated acquisition strategy For personal use only − The Portfolio is consistent with strategy to acquire supermarket anchored shopping centres with strong income and capital growth potential LAKE DESCRIPTION TAMWORTH DUBBO MACQUARIE Sub-regional and Sector Neigh
Slide 7: Transaction Rationale: Increasing exposure to key regional NSW catchments
Transaction Rationale Increasing exposure to key regional NSW catchments For personal use only NSW regional catchment areas identified as having strong long term growth potential Regional Regional Population Growth Regional Unemployment Household Income (Five year Average 2006 - 11) $66,485 Average
Slide 8: Acquisition Portfolio: Strong income generating sub-regional centres
Acquisition Portfolio Strong income generating sub-regional centres For personal use only Increasing NSW Footprint Portfolio Metrics PROPERTY PRICE INITIAL PROP. OCCUPANCY WARR1 FORECAST ($M) YIELD WALE (%) (%) SETTLEMENT (%) (yrs) Tamworth City 35.0 10.1% 3.8 99.6% 4.0% Oct 12 Plaza, NSW Dubbo Shop
Slide 9: Property Overview – Tamworth City Plaza, NSW
Acquisition Portfolio Property Overview – Tamworth City Plaza, NSW For personal use only PROPERTY DETAILS Valuation $35.0m Initial yield 10.1% Occupancy 99.6% Property WALE 3.8 yrs Centre Moving Annual Turnover (MAT) $81.6m Gross Lettable Area (GLA) 13,766sqm Number of tenancies 40 Specialty sales p
Slide 10: Property Overview – Dubbo Shopping Centre, NSW
Acquisition Portfolio Property Overview – Dubbo Shopping Centre, NSW For personal use only PROPERTY DETAILS Valuation1 $30.5m Initial yield 10.2% Occupancy 100% Property WALE2 5.0 yrs Centre MAT $70.9m GLA 12,745sqm Number of tenancies 44 Specialty sales per sqm $7,376/sqm Specialty occupancy cost 1
Slide 11: Property Overview – Lake Macquarie and Mount Hutton, NSW
Acquisition Portfolio Property Overview – Lake Macquarie and Mount Hutton, NSW For personal use only (50% interest) PROPERTY DETAILS Valuation (50% interest) $35.2m Initial yield 8.6% Occupancy 97.4% Property WALE 6.2 yrs Centre MAT (100%) $136.1m GLA (100%) 20,336sqm Number of tenancies 75 Specialt
Slide 12: Redevelopment Pipeline: Commencement of Board Approved Redevelopments
Redevelopment Pipeline Commencement of Board Approved Redevelopments For personal use only − Transaction will generate liquidity that will enable the commencement of three accretive Board approved redevelopment opportunities − These opportunities are in addition to the $80.8 million current developm
Slide 13: Transaction Impact: Key Financial Metrics
Transaction Impact Key Financial Metrics For personal use only − Transaction is expected to be neutral to FY13 operating earnings per unit and accretive from FY14 onwards Operating Earnings Impact1 Pro - Forma Balance Sheet and Market Capitalisation NTA per Unit2 Balance Sheet Gearing3,4 − EPU neutr
Slide 14: Transaction Impact: Pro-Forma gearing
Transaction Impact Pro-Forma gearing For personal use only − Transaction initially reduces balance sheet gearing by 1.1% and provides financial capacity to commence three additional accretive redevelopment projects providing a year one average yield on cost of 10.2% − Cash and undrawn capacity post
Slide 15: Details of the Offer: Sources and Uses
Details of the Offer Sources and Uses For personal use only − Underwritten institutional placement to raise $100m − Management has received a credit approved term sheet1 for a $50m limit increase of the REIT’s Head Trust Debt Facility, at no increase in the all in cost SOURCE OF FUNDS $M USE OF FUND
Slide 16: Details of the Offer: Offer Pricing
Details of the Offer Offer Pricing For personal use only − Units will be issued at a fixed price of $3.45 per new unit (Offer Price) − Units will rank equally with existing CQR units and will be entitled to the full distribution for the six months ending 31 December 2012 KEY OFFER DETAILS METRIC Off
Slide 17: Details of the Offer: Indicative timetable
Details of the Offer Indicative timetable For personal use only INDICATIVE TIMETABLE Offer Opens 11:00am Thursday, 18 October 2012 Offer Closes 5:30pm Thursday, 18 October 2012 Settlement of Institutional Placement Units Wednesday, 24 October 2012 Allotment and trading of Institutional Placement Uni
Slide 18: Appendices
For personal use only Appendices Portfolio Acquisition and Equity Raising Not for distribution or release in the United States or to US Persons
Slide 19: Appendix A: Risk Factors
Appendix A Risk Factors For personal use only Investors should carefully consider the risks factors described below. Additional risk factors and uncertainties that are not known to the Responsible Entity, Charter Hall Retail Management Limited (CHRML) at the time of this Offer or which are considere
Slide 20: Appendix A: Risk Factors
Appendix A Risk Factors For personal use only Risks relating to CQR (continued) Capital expenditure CQR remains responsible for capital repairs for its share of the properties under the terms of the leases. CQR may incur capital expenditure for unforeseen structural problems arising from a defect in
Slide 21: Appendix A: Risk Factors
Appendix A Risk Factors For personal use only Risks relating to CQR (continued) Change of responsible entity If the Responsible Entity is replaced as the responsible entity of CQR by an entity that is not a subsidiary of the Charter Hall Group, there is the potential for adverse impacts on CQR. Rege
Slide 22: Appendix A: Risk Factors
Appendix A Risk Factors For personal use only General market risks Economic and market conditions CQR may be adversely impacted by many factors including changes in general economic conditions such as interest rates, inflation, retail spending levels, consumer confidence levels and general market le
Slide 23: Appendix B: International Offer Restrictions
Appendix B International Offer Restrictions For personal use only Hong Kong WARNING: The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this
Slide 24: Appendix B: International Offer Restrictions
Appendix B International Offer Restrictions For personal use only Norway This Memorandum does not constitute an invitation or a public offer of securities in the Kingdom of Norway. It is intended only for the original recipient and is not for general circulation in the Kingdom of Norway. The offer h
Slide 25: Appendix B: International Offer Restrictions
Appendix B International Offer Restrictions For personal use only New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under or in accordance with the Securities Act 1978 (New Zealand). The New Securities are not being offered or sold in N
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