Emira Property Fund Ltd. · JSE:EMI
Emira Property Fund — Investor Presentation (April 2014)
130 slides from Emira Property Fund's investor presentation, April 2014
Slide 1: Investor Presentation and Site Visit
Investor Presentation and Site Visit APRIL 2014
Slide 2: Agenda
Agenda Office South Emira Top 8 Conclusion Portfolio African Nodes Statistics Office Mkt › Value › Market GLA › Market share › Number › Regional GLA › SAPOA vacancies › Regional › Vacancies › Emira vacancies › Vacancies › Developments › Developments in › Grade › Trends node › Sales and capex › SWOT
Slide 3: Office Portfolio Statistics
Office Portfolio Statistics APRIL 2014
Slide 4: Office Portfolio Statistics
OFFICE PORTFOLIO STATISTICS Value Split per Sector GLA Split per Sector 16% Office 31% 5% 37% Retail & Urban Retail Industrial 47% = 53% Rural Retail 32% Industrial 7% 25% Office = R4.6bn Office = 415,082m2 75 74 74 70 68 67 64 65 60 55 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Number of office p
Slide 5: Office Portfolio Statistics
OFFICE PORTFOLIO STATISTICS Average Value 200 156.0 150 Rm 100 72.7 69.0 50 30.8 36.5 0 Office Urban Retail Rural Retail Industrial Total Office Geographic Spread by value 4% 7% Bloemfontein Durban 12% 41% Cape Town Johannesburg Pretoria 36% 4
Slide 6: Office Portfolio Statistics: Office below SAPOA levels
OFFICE PORTFOLIO STATISTICS 25% 19.8% 20% 18.4% 18.6% 14.4% 15% 10.7% 10.5% 10% 5% 0% Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Office below Vacancies almost Total lowest SAPOA levels halved in the past 2 since Dec 2008 years 5
Slide 7: Office Portfolio Statistics – By Brokers All Sectors
OFFICE PORTFOLIO STATISTICS – BY BROKERS ALL SECTORS 01 Jul 13 – 28 Feb 14 Number of deals m2 Vacant space as at 01 Jul 13 60 043 133 78 794m² (76% of vacancy) 01 Jul 12 – 28 Feb 13 Number of deals m2 Vacant space as at 01 Jul 12 60 709 116 121 891m² (50% of vacancy) 6
Slide 8: Office Portfolio Statistics
OFFICE PORTFOLIO STATISTICS Office B 54% Office A 39% Office P Office C 6% 1% 7
Slide 9: Office Capex Projects
OFFICE CAPEX PROJECTS Capital projects not yet complete m2 Value (Rm) Completion 267 West Parkade 9 427 18.1 Jul 14 Various 9 additional projects 66 005 57.9 various Major projects being considered m² Value (Rm) Construction time Podium Phase 2, Menlyn 9 000 165 15 months 122 Pybus Rd, Sandton 12 00
Slide 10: Office Disposals
OFFICE DISPOSALS 11 R365.8m Forward buildings yield sold since 6.8% 2009 9
Slide 11: Nodal Vacancy and Committed New Developments
NODAL VACANCY AND COMMITTED NEW DEVELOPMENTS (SAPOA) 25% 20% Hyde Park Cape Town CBD NODE VACANCY 15% Centurion 10% Menlyn Bryanston Newlands Brooklyn 5% Umhlanga 0% 0% 5% 10% 15% 20% 25% 30% COMMITTED NEW DEVELOPMENTS IN RELATION TO TOTAL NODAL STOCK 10
Slide 12: Emira Nodal Exposure
EMIRA NODAL EXPOSURE 55 000 50 000 45 000 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 Centurion Menlyn Cape Town Bryanston Hyde Park Brooklyn Newlands Umhlanga CBD (Pta) CPT 11
Slide 13: South African Office Market
South African Office Market APRIL 2014
Slide 14: Market Overview – Stock Inventory by Grade
MARKET OVERVIEW – STOCK INVENTORY BY GRADE (SAPOA) B Grade 33% C Grade A Grade 11% 51.1% P Grade 5.5% SAPOA TOTAL GLA: 16.2 MILLION m² 13
Slide 15: Office Market – Location of Market
OFFICE MARKET – LOCATION OF MARKET (SAPOA) Western Cape 15.0% Gauteng 76.0% Kwa-Zulu Natal 8% Eastern Cape 1% 14
Slide 16: Market Demand: SAPOA National Vacancies
MARKET DEMAND: SAPOA NATIONAL VACANCIES (SAPOA) 16% Avg GDP = +2.0% 14% 12% 10% 8% 6% Avg GDP = +4.5% 4% Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 › GDP growth rate of 4.5% p.a. between 2002 and 2008 › Vacancies declined from 14.7% to 5.5% › Since 2008 growt
Slide 17: Market Demand: Drivers
MARKET DEMAND: DRIVERS 9 90 8 7 80 6 5 70 4 60 3 2 50 1 0 40 -1 -2 30 -3 20 -4 -5 10 -6 -7 0 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 GDP Growth RMB/BER Business Confidence Index Adcorp Employment Index › Business confidence impacts demand for new sp
Slide 18: Market Demand: Vacancies by Office Grade
MARKET DEMAND: VACANCIES BY OFFICE GRADE (SAPOA) 25% 21.2% 20% 15% 13.3% 10% 8.2% 5.4% 5% 0% P-Grade A-Grade B-Grade C-Grade › Higher quality properties, lower vacancies 17
Slide 19: Market Supply: New Developments
MARKET SUPPLY: NEW DEVELOPMENTS (SAPOA) 1 000 000 80% 900 000 70% 800 000 700 000 60% 600 000 500 000 50% 400 000 40% 300 000 200 000 30% 100 000 0 20% Aug-02 Jan-03 Jun-03 Nov-03 Apr-04 Jul-05 Dec-05 May-06 Oct-06 Aug-07 Jan-08 Jun-08 Nov-08 Apr-09 Jul-10 Dec-10 May-11 Oct-11 Aug-12 Jan-13 Jun-13 N
Slide 20: Market Demand and Supply
MARKET DEMAND AND SUPPLY 2013 2014 2015 2016 2017 JOHANNESBURG CAPE TOWN DURBAN Tenant favourable Neutral / Balanced Landlord Favourable Source: JLL › Certain areas undergoing heightened building activity › Competition is evident › New supply provides choice in the market › Tenant driven market is l
Slide 21: Office Global and Local Market Trends
OFFICE GLOBAL AND LOCAL MARKET TRENDS › Global efficiencies from 46.4m²/person to 18.5m²/person, likely to reduce further › Trend to more flexible working environment in SA e.g. work hours, hot desking, working from home › For companies: Cost optimisation & productivity benefits, reduced parking req
Slide 22: Emira Top 8 Nodes
EMIRA PROPERTY FUND SN, sisaesauiiraarararniisisma Emira Top 8 Nodes APRIL 2014
Slide 23: Nodal Analysis: Menlyn
Nodal Analysis: Menlyn APRIL 2014
Slide 24: Emira Building Locations: Menlyn
EMIRA BUILDING LOCATIONS MENLYN 23
Slide 25: Menlyn
MENLYN EMIRA MARKET SHARE BY GLA 93.5% 6.5% SAPOA GLA: 728,560m² NODE DESCRIPTION: Menlyn is bounded by Brooklyn Rd to the west, the N4 Freeway to the north, General Louis Botha to the east and Garsfontein Rd to the south. PTA Eastern Suburbs: Includes all suburbs in the east of PTA which are not al
Slide 26: Menlyn: Vacancies
MENLYN : VACANCIES VACANCIES SAPOA EMIRA 91.5% 90.8% 8.5% 9.2% 25
Slide 27: Menlyn – Vacancies
MENLYN - VACANCIES VACANCIES EXCEEDING 1000M² PER BUILDING Property GLA (m²) Vacancy Vacancy % Gross asking Comments (m²) rental/m² • Owner-Growth Point Corporate Corner (P) 10,000 4,909 49.1% R165 • LL does offer incentives to broker market • Owner Investec 34/36 Ingersol (A) 3,200 2,376 74.3% R120
Slide 28: Menlyn - New Developments
MENLYN - NEW DEVELOPMENTS Developments GLA (m²) Developer Tenanted / Gross asking Completion Comments Speculative rental/m² • Multiple phases • Retail component under Menlyn Maine 80,000 Menlyn Maine Partial R 165 Various construction • Casino planned for site Still to be Podium Phase 2 9,800 Emira
Slide 29: Menlyn – New Developments
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Slide 30: Menlyn - SWOT Analysis
MENLYN - SWOT ANALYSIS STRENGTHS: Content WEAKNESSES: › Location of blue-chip companies such as FNB, SAGE › Strong rate payers association VIP, Deloitte, Grant Thornton, PIC, Investec, Nedbank › High rates account increased cost to tenants › Tshwane’s most dominant commercial node › Traffic congesti
Slide 31: Podium at Menlyn
PODIUM AT MENLYN MENLYN Located: multi story building located at the corners of Atterbury and Lois Streets Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R170.9m 9 090m2 10 R153/m² R155/m² P Comments › Highly desirable office building with excellent visibi
Slide 32: Corobay Corner
COROBAY CORNER MENLYN Located: multi story building located at the corners of Aramist and Corobay Roads Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R361.6m 13 865m2 4 R153/m² R155/m² P Comments › Highly desirable office building with excellent visibilit
Slide 33: Faerie Glen Office Park
FAERIE GLEN OFFICE PARK MENLYN Located: modern office park with exposure to Atterbury Road Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R139.5m 9 851m2 14 R115/m² R118/m² A Comments › Highly desirable office park with excellent visibility from Atterbury
Slide 34: Menlyn Square
MENLYN SQUARE MENLYN Located: multi story building located at the corners of Aramist and Lois Avenue Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R126.4m 9 852m2 18 R108/m² R115/m² B Comments › Well located multi building office park › Well located in th
Slide 35: Rigel Office Park
RIGEL OFFICE PARK MENLYN Located: 2 building office park located at the N1/Rigel Avenue intersection Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R68.2m 4 417m2 7 R130/m² R136/m² A Comments › Highly desirable office building with excellent visibility fro
Slide 36: Menlyn – Performance of Emira's Properties
MENLYN – PERFORMANCE OF EMIRA’S PROPERTIES Compound 3 Yr % Gross rental growth 6% % Rental (R/m²) growth 5% % Value growth (static) 4% 35
Slide 37: Nodal Analysis: Brooklyn
Nodal Analysis: Brooklyn APRIL 2014
Slide 38: Emira Building Locations: Brooklyn
EMIRA BUILDING LOCATIONS BROOKLYN 37
Slide 39: Brooklyn
BROOKLYN EMIRA MARKET SHARE BY GLA 93.0% 7.0% SAPOA GLA: 236,157m² NODE DESCRIPTION: Brooklyn is bounded by the Fountains Circle, Lynnwood Road, Dely Road North and Sibelius Street 38
Slide 40: Brooklyn: Vacancies
BROOKLYN VACANCIES SAPOA EMIRA 93.9% 94.6% 6.1% 5.4% 39
Slide 41: Brooklyn - Vacancy Analysis
BROOKLYN - VACANCY ANALYSIS VACANCIES EXCEEDING 1000M² PER BUILDING Property GLA (m²) Vacancy (m²) Vacancy % Gross asking Comments rental/m² • Owner-New listing: Cherry Lane Shopping Centre (B) 5 127 5 127 100.0% R110 • Brokers comment space is old • Owner-CJ Irons Weavind Forum (B) 8 094 8 094 100.
Slide 42: Brooklyn - New Developments
BROOKLYN - NEW DEVELOPMENTS Developments GLA (m²) Developer Tenanted / Gross asking Completion Comments Speculative rental/m² Speculative-start Not available • 40 storey mixed use development Hatfield Gardens 100,000 Growthpoint Mid 2017 date Aug 2015 as yet next to the Hatfield Station • Mix use de
Slide 43: Brooklyn – New Developments
BROOKLYN – NEW DEVELOPMENTS 42
Slide 44: Brooklyn - SWOT Analysis
BROOKLYN - SWOT ANALYSIS STRENGTHS: Content WEAKNESSES: › Auditor General and SARS are the dominant tenants › Traffic congestion at the Brooklyn Circle › Well established office adjacent to Brooklyn Mall › Strong rate payers association › Several Law Chambers located in Brooklyn › Few new opportunit
Slide 45: Brooklyn Forum
BROOKLYN FORUM BROOKLYN Located: Fehrsens Road, Brooklyn Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R74.4m 7,382m2 19 R118/m² R115/m² B Comments › Well located multi story building next to Brooklyn Mall › Low vacancy of 50m² Major tenants › Newtons Att
Slide 46: Brooklyn Office Park
BROOKLYN OFFICE PARK BROOKLYN Located: Nicholson Street, Brooklyn Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R57.0m 5,171m2 22 R118/m² R115/m² B Comments › Secured office park with redevelopment opportunity › Demand for smaller space Major tenants › Sh
Slide 47: Waterkloof House
WATERKLOOF HOUSE BROOKLYN Located: Waterkloof Street, Brooklyn Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R58.9m 4,090m2 1 R121/m² R121/m² A Comments › Well located modern building › SARS as single tenant on 5 year lease 46
Slide 48: Brooklyn – Performance of Emira's Properties
BROOKLYN – PERFORMANCE OF EMIRA’S PROPERTIES Compound 3 Yr % Gross rental growth 2% % Rental (R/m²) growth 1% % Value growth (static) 7% 47
Slide 49: Nodal Analysis: Centurion
Nodal Analysis: Centurion APRIL 2014
Slide 50: Emira Building Locations: Centurion
EMIRA BUILDING LOCATIONS CENTURION 49
Slide 51: Centurion
CENTURION EMIRA MARKET SHARE BY GLA 94.1% 5.9% SAPOA GLA: 879,875m² NODE DESCRIPTION: Bounded by Main Road to the east, Nelmapius Drive to the south, Ben Schoeman Highway to the west and Jean Ave to the north 50
Slide 52: Centurion: Vacancies
CENTURION VACANCIES SAPOA EMIRA 89.0% 85.8% 11.0% 14.2% 51
Slide 53: Centurion – Vacancy Analysis
CENTURION – VACANCY ANALAYSIS VACANCIES EXCEEDING 1000M² PER BUILDING Gross Property GLA (m²) Vacancy (m²) Vacancy % asking Comments rental/m² Byl’s Bridge,Eco Court, Eco Glades, • Owner-M&T 75,000 38,240 51.0% R90-165 South Downs (A,B) • Various amount of spec buildings by developer • Owner-MMI • U
Slide 54: Centurion - New Developments
CENTURION - NEW DEVELOPMENTS Developments GLA Developer Tenanted / Gross asking Completion Comments (m²) Speculative rental/m² 12 months Sentinel 11,000 Abland Tenant driven R 166 • 2 Phases – 7 000 & 4 000 from signature West End 27,000 Abland Tenant driven R 151 Unknown • 6 Buildings Cricket Stadi
Slide 55: Centurion – New Developments
CENTURION – NEW DEVELOPMENTS 54
Slide 56: Centurion - SWOT Analysis
CENTURION - SWOT ANALYSIS STRENGTHS: Content WEAKNESSES: › Gautrain’s most dominant station after Sandton › Fragmented office node › Convenient access to various major arterial roads › Poor infrastructure maintenance and frequent flooding › Nearby regional shopping centre › Poor soil conditions and
Slide 57: 267 West
267 WEST CENTURION Located: 267 West Street, Centurion Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R156.3m 9 427m2 10 R128/m² R130/m² A Comments › Highly visible building located in close proximity to Gautrain Station and close to major shopping centre
Slide 58: Corporate Park 66
CORPORATE PARK 66 CENTURION Located: located at the corners of Lenchen and Von Willich roads Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R231.5m 13 566m2 6 R135m² R135m² A+ Comments › Highly visible and prominent office park off Lenchen Ave, close to GP
Slide 59: Tuinhof Office Park
TUINHOF OFFICE PARK CENTURION Located: 265 West Street, Centurion Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R108.8m 8 816m2 8 R118/m² R118/m² B Comments › Highly visible building opposite Gautrain station Major tenants › TCTA (3790m² on 5 year lease)
Slide 60: High Grove Office Park
HIGH GROVE OFFICE PARK CENTURION Located: located in Olievenhoutbos Avenue, Techno Park, Highveld Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R102.85m 7 991m2 2 R130/m² R130/m² A Comments › 5 of 13 buildings located in a very prominent office park off J
Slide 61: Discovery House
DISCOVERY HOUSE CENTURION Located: located in Olivenhoutbos Avenue, Techno Park, Highveld Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R55m 3 863m2 1 R116/m² R118/m² A Comments › Highly visible building in growing node, conveniently located close to N1 i
Slide 62: Lake Buena Vista
LAKE BUENA VISTA CENTURION Located: located next to Centurion Shopping Centre Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R59.3m 6 196m2 2 R94.70/m² R100/m² B Comments › Highly visible building in convenient location next to shopping centre › On sales l
Slide 63: Centurion – Performance of Emira's Properties
CENTURION – PERFORMANCE OF EMIRA’S PROPERTIES Compound 3 Yr % Gross rental growth 5% % Rental (R/m²) growth 5% % Value growth (static) 6% 62
Slide 64: Nodal Analysis: Cape Town CBD
Nodal Analysis: Cape Town CBD APRIL 2014
Slide 65: Emira Building Locations: Cape Town CBD
EMIRA BUILDING LOCATIONS CAPE TOWN CBD 64
Slide 66: Cape Town CBD
CAPE TOWN CBD EMIRA MARKET SHARE BY GLA 96.7% 3.3% SAPOA GLA: 999,582m² NODE DESCRIPTION: Chiappini St to West, Gardens suburb to South, Tennant St to East and Harbour Freeway to North 65
Slide 67: Cape Town CBD: Vacancies
CAPE TOWN CBD VACANCIES SAPOA EMIRA 83.8% 89.0% 16.2% 11.0% 66
Slide 68: Cape Town - Vacancy Analysis
CAPE TOWN - VACANCY ANALYSIS VACANCIES EXCEEDING 1000M² PER BUILDING Property GLA (m²) Vacancy Vacancy % Gross asking Comments (m²) rental/m² • Owner Old Mutual Portside (P) 53,200 18,790 35.3% R150 • New development incl 1200m² Retail • Owner Ascension recent purchase Atterbury House (B) 26,236 9,1
Slide 69: Cape Town CBD - New Developments
CAPE TOWN CBD - NEW DEVELOPMENTS Developments GLA Developer Tenanted / Gross Completion Comments (m²) Speculative asking rental/m² • 52,000 Office space spread over 50% Portside 53,200 Old Mutual R150 Completed 33 floors 37,000 available Speculative • 1,200 retail space Roggebaai • Rental guarantee
Slide 70: Cape Town CBD - New Developments
CAPE TOWN CBD - NEW DEVELOPMENTS 69
Slide 71: Cape Town CBD - SWOT Analysis
CAPE TOWN CBD - SWOT ANALYSIS STRENGTHS: Content WEAKNESSES: › Public Transport (Train, Bus, Taxi) › Traffic congestion › Pleasant street environment for pedestrians › Low parking ratio in existing buildings › Shopping facilities for staff › Cape Town CID and partnership Content OPPORTUNITIES: THREA
Slide 72: The Pinnacle
THE PINNACLE CAPE TOWN CBD Located: Cnr of Strand / Castle and Burg Streets Close to CT Station and Golden Acre Shopping Centre Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R107.0m 11,867m2 39 R77/m2 R78/m² B+ Grade Comments › Refurbished Entrance and Lo
Slide 73: Wesbank House
WESBANK HOUSE CAPE TOWN CBD Located: Cnr Long & Riebeek Streets and Waterkant Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R88.175m 9,320m2 12 R92/m² R80/m2 B+ Comments › Refurbished 2010 › Larger floor plates 1500m² › Good CBD parking ratio 2.5 bays/100
Slide 74: 80 Strand Street
80 STRAND STREET CAPE TOWN CBD Located: Cnr Strand, Bree, Loop & Waterkant Streets, Cape Town CBD Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R65m (50% Share) 12,792m2 35 R88/m2 R85/m² B+ Comments › Good CBD parking ratio 3.2 bays/100m² › Bree Street cu
Slide 75: Harbour Place
HARBOUR PLACE CAPE TOWN CBD Located: Cnr Christian Barnard and Martin Hammarschlag Avenues, CT Foreshore Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R52.5m 5,015m2 8 R79/m2 R85/m² B+ Comments › Medium-term redevelopment opportunity Major tenants › Hyund
Slide 76: Cape Town CBD – Performance of Emira's Properties
CAPE TOWN CBD – PERFORMANCE OF EMIRA’S PROPERTIES Compound 3 Yr % Gross rental growth 2% % Rental (R/m²) growth 4% % Value growth (static) 3% 75
Slide 77: Nodal Analysis: Claremont / Newlands
Nodal Analysis: Claremont / Newlands APRIL 2014
Slide 78: Emira Building Locations: Claremont / Newlands
EMIRA BUILDING LOCATIONS CLAREMONT / NEWLANDS 77
Slide 79: Claremont / Newlands
CLAREMONT / NEWLANDS EMIRA MARKET SHARE BY GLA 94.1% 5.9% SAPOA GLA: 211,385m² NODE DESCRIPTION: Claremont Highwick/Pine to the South, Protea/Campground Rd to the North, Palmyra to the East and the M3 to the West Newlands/Rondebosch Protea/ Campground Rd to the South, Woolsack Rd to the North, Campg
Slide 80: Claremont / Newlands: Vacancies
CLAREMONT / NEWLANDS VACANCIES SAPOA EMIRA 90.5% 100.0% 9.5% 0.0% 79
Slide 81: Claremont / Newlands - Vacancy Analysis
CLAREMONT / NEWLANDS - VACANCY ANALYSIS VACANCIES EXCEEDING 1000M² PER BUILDING Property GLA (m²) Vacancy Vacancy % Gross asking Comments (m²) rental/m² • Owner Nedbank Brookside Office Park (A) 9,627 7,500 77.9% R110 • Vacancy problem since Deloittes left in 2011 • Owner Atterbury and Leaf Great We
Slide 82: Claremont / Newlands - New Developments
CLAREMONT / NEWLANDS - NEW DEVELOPMENTS Various projects in planning, nothing material being marketed or in the ground 81
Slide 83: Claremont / Newlands - SWOT Analysis
CLAREMONT / NEWLANDS - SWOT ANALYSIS STRENGTHS: Content WEAKNESSES: › Located in heart of Southern Suburbs › Limited potential for further growth › Good shopping in walking distance › Traffic congestion in mornings › Major Gyms in walking distance › Congestion during rugby & cricket games › Close to
Slide 84: Boundary Terraces
BOUNDARY TERRACES NEWLANDS Located: Corner of Campground and Travers Roads, Newlands (Opposite WP Cricket Ground) Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R131.5m 8,023m2 14 R126/m2 R135/m2 A Comments › Office park environment Major tenants › ASISA (
Slide 85: Newlands Terraces
NEWLANDS TERRACES NEWLANDS Located: Boundary Road, Newlands (opposite Newlands Rugby Stadium) Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R73.45m 4,531m2 4 R117/m2 R120/m2 A Comments › >5/100m² parking ratio › Newlands Stadium future development Major t
Slide 86: Claremont / Newlands – Performance of Emira's Properties
CLAREMONT / NEWLANDS – PERFORMANCE OF EMIRA’S PROPERTIES Compound 3 Yr % Gross rental growth 5% % Rental (R/m²) growth 1% % Value growth (static) 5% 85
Slide 87: Nodal Analysis: Umhlanga Ridge
Nodal Analysis: Umhlanga Ridge APRIL 2014
Slide 88: Emira Building Locations: Umhlanga Ridge
EMIRA BUILDING LOCATIONS UMHLANGA RIDGE 87
Slide 89: Umhlanga Ridge
UMHLANGA RIDGE EMIRA MARKET SHARE BY GLA 95.4% 4.6% SAPOA GLA: 273,068m² NODE DESCRIPTION: N2 in west, M4 in east, Armstrong and Douglas Saunders in South and Umhlanga Rocks Drive and Umhlanga Ridge Boulevard in North 88
Slide 90: Umhlanga Ridge: Vacancies
UMHLANGA RIDGE VACANCIES SAPOA EMIRA 97.0% 94.8% 3.0% 5.2% 89
Slide 91: Umhlanga Ridge - Vacancy Analysis
UMHLANGA RIDGE - VACANCY ANALYSIS VACANCIES EXCEEDING 1000M² PER BUILDING Property GLA Vacancy Vacancy % Gross asking Comments (m²) (m²) rental/m² • Sectional title Ridge 5 (A) 6,418 1,023 15.9% R145 • Small pockets per owner La Lucia Ridge (A) 10,846 1,800 8.3% R130 • Private owners EMIRA Gateview
Slide 92: Umhlanga Ridge - New Developments
UMHLANGA RIDGE - NEW DEVELOPMENTS Developments GLA (m²) Developer Tenanted / Gross asking Completion Comments Speculative rental/m² FNB Acacia House 16,000 FNB/Eris Tenanted N/A Oct 14 • FirstRand Occupied Illovo Sugar Head • 6000m² to be occupied by 9,000 Growthpoint Tenanted Not Known Mar 15 Offic
Slide 93: Umhlanga Ridge - New Developments
UMHLANGA RIDGE - NEW DEVELOPMENTS 92
Slide 94: Umhlanga Ridge - SWOT Analysis
UMHLANGA RIDGE - SWOT ANALYSIS STRENGTHS: Content WEAKNESSES: › “Sandton” of Durban › Lack of public transport › Development of Corporate Regional Head Offices › Parking shortages (no on street parking) › Continuing growth of the node › Ideal for commercial and business only › Management of Precinct
Slide 95: East Coast Radio House
EAST COAST RADIO HOUSE UMHLANGA RIDGE Located: Cnr Sugar Road and Sugar Close Umhlanga Town Centre Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R60.95m 4,426m2 4 R124/m2 R130/m2 A Comment › Refurbished 2013 › Prominent Location › Close to Gateway Major t
Slide 96: 100 Armstrong
100 ARMSTRONG UMHLANGA RIDGE Located: Cnr of Armstrong Avenue and Ridgeside Drive Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R38.5m 2,871m2 10 R125/m2 R125/m2 A Comments › Tranquil Office Park › Quick access to M41 Major tenants › Nedbank (1,023m2) 1yr
Slide 97: 2 Frosterley
2 FROSTERLEY UMHLANGA RIDGE Located: Cnr Armstrong Avenue and Umhlanga Rocks Drive Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R32.9m 2,312m2 1 R150/m2 R130/m2 A Comments › Prominent Corner Location Major tenants › Telesure Group (2,312m2) 5yr 96
Slide 98: Gateview
GATEVIEW UMHLANGA RIDGE Located: Sugar Close, Umhlanga Town Centre Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R25.7m 2,796m2 7 R104/m2 R95/m2 B Comments › High visibility from M41 Umhlanga Rocks Drive off-ramp Major tenants › Bytes (931m2) 3yr › Aspen
Slide 99: Umhlanga Ridge – Performance of Emira's Properties
UMHLANGA RIDGE – PERFORMANCE OF EMIRA’S PROPERTIES Compound 3 Yr % Gross rental growth 2% % Rental (R/m²) growth 2% % Value growth (static) 3% 98
Slide 100: Nodal Analysis: Bryanston
Nodal Analysis: Bryanston APRIL 2014
Slide 101: Emira Building Locations: Bryanston
EMIRA BUILDING LOCATIONS BRYANSTON 100
Slide 102: Bryanston
BRYANSTON EMIRA MARKET SHARE BY GLA 95.6% 4.4% SAPOA GLA: 568 110m² NODE DESCRIPTION: Bryanston / Epsom Downs: This area adjacent to the intersection between the Western Bypass and William Nicol Drive, including Peter Place 101
Slide 103: Bryanston: Vacancies
BRYANSTON VACANCIES SAPOA EMIRA 91.5% 98.7% 8.5% 1.3% 102
Slide 104: Bryanston – Vacancy Analysis
BRYANSTON – VACANCY ANALYSIS VACANCIES EXCEEDING 1000M² PER BUILDING Property GLA (m²) Vacancy Vacancy % Gross asking Comments (m²) rental/m² • Owner: Leaf Property Fund Hampton Office Park (A) 18,933 6,469 34.2% R123 • Brokers indicate asking rental is too high • Owner: Leaf Property Fund R147 Silv
Slide 105: Bryanston - New Developments
BRYANSTON - NEW DEVELOPMENTS Developments GLA (m²) Developer Tenanted / Gross asking Completion Comments Speculative rental/m² • Sectional Title sale at R22 000/m² • 3 of 12 remaining pockets in Building A Brydens Property 4 on Anslow 8,800 Semi-speculative R118 Aug 14 (2700m²) remain to be sold Gro
Slide 106: Bryanston – New Developments
BRYANSTON – NEW DEVELOPMENTS 105
Slide 107: Bryanston - SWOT Analysis
BRYANSTON - SWOT ANALYSIS STRENGTHS: Content WEAKNESSES: › Location of blue-chip companies › Age of properties / extent of B Grade properties › Self-contained with easy access to offices, › Condition of roads retail/restaurants (Nicolway Shopping Centre) and schools from residential areas › Traffic
Slide 108: Turnberry Office Park
TURNBERRY OFFICE PARK BRYANSTON Located: 2 Buildings located within Turnberry Office Park, cnr Cumberland & Grosvenor Roads Avg. gross Market Value at 31 Dec 2013 GLA No. of tenants Building grade rentals gross/m² R90.5m 5 670m2 4 R118.62/m² R115/m² A Comments › Good quality tenants » Amadeus (2 800
Slide 109: Epsom Downs Office Park
EPSOM DOWNS OFFICE PARK BRYANSTON Located: 13 Sloane Street Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R76.9m 9 496m2 36 R83.63/m² R90/m² B Comments › Top 3 tenants » Angor (1 270m²) - 3 yr lease » Bensure (605m²) - 5 yr lease » Marelle Trust – (598m²)
Slide 110: Knightsbridge Manor
KNIGHTSBRIDGE MANOR BRYANSTON Located: 33 Sloane Street Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R88.2m 9 880m2 29 R95.50/m² R90/m² B Comments › Re-zoning application submitted with no objections lodged; bulk will increase to 0.65 (additional 19 320m
Slide 111: Bryanston – Performance of Emira's Properties
BRYANSTON – PERFORMANCE OF EMIRA’S PROPERTIES Compound 3 Yr % Gross rental growth 9% % Rental (R/m²) growth 0% % Value growth (static) (1)% 110
Slide 112: Nodal Analysis: Hyde Park / Dunkeld
Nodal Analysis: Hyde Park / Dunkeld APRIL 2014
Slide 113: Emira Building Locations: Hyde Park / Dunkeld
EMIRA BUILDING LOCATIONS HYDE PARK / DUNKELD 112
Slide 114: Hyde Park / Dunkeld
HYDE PARK / DUNKELD EMIRA MARKET SHARE BY GLA 77% 23% SAPOA GLA: 103 748m² NODE DESCRIPTION: The node of the intersection of Jan Smuts Ave and William Nicol Drive including Dunkeld West, Hyde Park and the upper part of Craighall Park 113
Slide 115: Hyde Park / Dunkeld: Vacancies
HYDE PARK / DUNKELD VACANCIES SAPOA EMIRA 81% 92% 8% 19% 114
Slide 116: Hyde Park / Dunkeld - Vacancy Analysis
HYDE PARK / DUNKELD - VACANCY ANALYSIS VACANCIES EXCEEDING 1000M² PER BUILDING Property GLA (m²) Vacancy Vacancy % Gross asking Comments (m²) rental/m² • Owner: Vunani Property Investment Fund • Recently refurbished. Vacant for +-12 months. Broker Investment Place, 2nd Road (B) ±6,330 4,020 64% 123
Slide 117: Hyde Park / Dunkeld – New Developments
HYDE PARK / DUNKELD – NEW DEVELOPMENTS Developments GLA (m²) Developer Tenanted / Gross Completion Comments Speculative asking rental/m² • Prefer a sale: R22,000/m² or 1 Bompas 5,750 Stuart Grant Speculative 200 Mid 14 R25,000/m² penthouse unit • 4 bays/100m² stand alone building Chris Harris • Adja
Slide 118: Hyde Park / Dunkeld - New Developments
HYDE PARK / DUNKELD - NEW DEVELOPMENTS 117
Slide 119: Hyde Park - SWOT Analysis
HYDE PARK - SWOT ANALYSIS STRENGTHS: Content WEAKNESSES: › Seven Gautrain bus stops between 2nd Ave & › Not immediately adjacent to a highway or Gautrain Bompas Station › Close Sandton, Rosebank, Illovo, Melrose Arch › Traffic congestion › Established Hyde Park Shopping Centre › Area attracts only t
Slide 120: Hyde Park Lane
HYDE PARK LANE Hyde Park Located: Corner William Nicol Drive and Jan Smuts Avenue Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R204,0m 15,546m2 37 R117/m2 R120/m² A Comments › Secure garden setting office park › Consistently low vacancies › 47% of leases
Slide 121: Albury Office Park
ALBURY OFFICE PARK HYDE PARK Located: Albury Road, fronting William Nicol Drive, Dunkeld West Avg. gross Market Value at 31 Dec 2013 Size No. of tenants Building grade rentals gross/m² R98,9m 8,208m2 22 R119/m2 R120/m² A Comments › A grade office park › Secure garden setting office park › Low vacanc
Slide 122: Hyde Park / Dunkeld – Performance of Emira's Properties
HYDE PARK / DUNKELD – PERFORMANCE OF EMIRA’S PROPERTIES Compound 3 Yr % Gross rental growth 8% % Rental (R/m²) growth 4% % Value growth (static) 2% 121
Slide 123: Conclusion
Conclusion APRIL 2014
Slide 124: Conclusion: Offices
CONCLUSION: OFFICES › SA office market is closely linked to GDP growth › Expect market to be competitive for next 12-24 months › Emira market share in top 8 nodes = 5.6% › Emira vacancies in top 8 nodes of 8.6% < SAPOA vacancies at 10.8% › Emira income and capital growth of 4.8% and 3.7% in past 3 y
Slide 125: Emira Financial Outlook
EMIRA FINANCIAL OUTLOOK › Significantly improved performance as evidenced by DPS growth and vacancy decline › Buybacks of R115m recently concluded, to add 1.2% to FY14 DPS › Based on i-Net consensus rolling forward yield of 9.1% vs sector of 7.6% 124
Slide 126: Annexures
EMIRA PROPERTY FUND SN, N Annexures a APRIL 2014
Slide 127: Portfolio: Vacancy by Category and Grade by GLA
PORTFOLIO: VACANCY BY CATEGORY AND GRADE BY GLA 18% 16.0% 16% 14% 12.2% 12% 11.7% 11.1% 9.9% 10% 9.2% 7.8% 8% 5.3% 6% 5.6% 5.1% 4% 3.3% 3.4% 3.0% 2.2% 2% 1.3% 0.7% 0.9% 0.7% 0% Office A Office B Rural Retail Urban Retail Industrial Grand Total Dec-12 Jun-13 Dec-13 126
Slide 128: Portfolio: Escalations
PORTFOLIO: ESCALATIONS 9.0% 8.6% 8.6% 8.5% 8.5% 8.0% 8.0% 7.9% 7.7% 7.7% 7.7% 7.8% 7.5% 7.0% Office Retail Industrial Dec 2012 June 2013 Dec 2013 › Total escalation for fund 8.0% 127
Slide 129: Portfolio: Emira Net Rentals
PORTFOLIO: EMIRA NET RENTALS (EXCL. PARKING, STORES AND VACs) Avg. net No. of Occupied rental Sector buildings GLA (R/m²) Office: A Grade 26 143 169 104.70 Office: B Grade 36 213 275 86.91 Office: C Grade 1 5 447 68.00 Retail: Urban 20 272 828 104.58 Retail: Rural 15 76 968 75.47 Industrial 43 336 0
Slide 130: Reversions – Total (Gross Rentals)
REVERSIONS – TOTAL (GROSS RENTALS) Avg. Avg. new Increase / Sector Area expiry rental lease rental (Decrease) Office 37 868 110.51 104.31 (5.5%) Retail 39 229 111.37 116.38 4.5% Industrial 63 273 44.99 39.36 (12.5%) Total 1H14 140 370 81.13 78.41 (3.4%) Total FY13 (6.0%) 129
Emira Property Fund — Investor Presentation (April 2014) on 6ix