Grit Real Estate Income Group Limited · LSE:GR1T
Grit Real Estate Income — Mara Delta Property Holdings — Investor Presentation (2016)
48 slides from Grit Real Estate Income's investor presentation, 2016
Slide 1: Mara Delta Property Holdings Investor Presentation 2016
Mara Delta Property Holdings Investor Presentation 2016
Slide 2: Disclaimer
Disclaimer This document, which is personal to the recipient, has been prepared by Delta International Property Holdings (the “Company”), solely for use at a presentation to potential investors. For the purposes of this disclaimer, the presentation shall mean and include the slides that follow, any
Slide 3: Disclaimer (continued)
Disclaimer (continued) This Presentation does not constitute an offer to sell or a solicitation of an offer to purchase any securities in any jurisdiction in which such offer or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of an
Slide 4: Proceedings
Proceedings Introduction Mission Statement Introduction to Mara Delta Mara Delta at a Glance Strategy Company Structure Management Structure Corporate Structure Shareholder Profile Financial Overview Portfolio Overview Potential Acquisition Portfolio Key Investment Points
Slide 5: Vodacom Building & KPMG / Hollard Building, Mozambique
Vodacom Building & KPMG / Hollard Building, Mozambique
Slide 6: Introduction
eRmaradeta Introduction
Slide 7: Mission Statement
Mission Statement “To be the leading real estate owner on the African continent, outside of South Africa, within the next five years and to create significant value for our shareholders, ensuring consistent growth by creating strong partnerships, while making a real and meaningful impact in the coun
Slide 8: Introduction to Mara Delta
Introduction to Mara Delta First Pan-African focused real estate fund, listed on both the JSE and SEM Mara Delta is promoted by Pivotal, Delta, Mara, Carlisle and Abland. Each provide an unrivalled blend of commercial experience and expertise in SSA: Pivotal and Delta are JSE listed property f
Slide 9: Mara Delta at a Glance
Mara Delta at a Glance Pre Pivotal Investment Post Pivotal Investment Market capitalisation US$ 218.9 million US$ 276.9 million No. of properties 10 12 Morocco; Mozambique; Zambia; Mauritius; Kenya; Location of properties Morocco; Mozambique; Zambia; Mauritius Nigeria Independent valuation of the US
Slide 10: Anfa Place, Morocco
Anfa Place, Morocco
Slide 11: Strategy
bi RTY HOLDINGS oY Ne ae Strategy
Slide 12: Strategy
Strategy Targeted total return in excess of 15% in USD Leverage on existing knowledge base and experience in Mozambique and Morocco Immediate REIT conversion in Morocco – REIT legislation expected Q1 2016 Asset acquisitions in Mauritius (focus on properties with strong counter party tenants)
Slide 13: Company Structure
eRmaradeta Company Structure
Slide 14: Management Structure
Management Structure BRONWYN CORBETT CEO LEON VAN DE COO MOORTELE CFO KAREN JEREMY GREG ASHWIN PAUL SIMPSON BRAMLEY COOPER PEARSON METURJEET COUNTRY EXECUTIVE - COUNTRY EXECUTIVE- HEAD OF FINANCE MANAGER - HEAD OF INVESTMENTS MOROCCO EAST AFRICA DEVELOPMENTS MAURIITIUS MOHAMED MIKE SEWELL EDSON NEVE
Slide 15: Corporate Structure
Corporate Structure Delta Africa Property Holdings Limited (Mauritius) (SEM and JSE Listed) 100% Delta International Mauritius Limited (Mauritius) 97% 100% 100% 100% 100% 100% 100% BH Property Delta International HM & K Properties SAL Investment Zimpeto Investment Investments DIF 1 Limited Bahrain L
Slide 16: Shareholder Profile
Shareholder Profile As at 22 September 2015 Units held Holding Delta Property Fund 23 405 584 31.78% Government Employees Pension Fund 19 054 810 25.87% Stanlib 6 639 793 9.01% Bowwood and Main* 5 746 061 7.80% Anchor Capital 3 365 318 4.57% Subtotal 58 211 566 79.03% Other 15 444 880 20.97% Total 7
Slide 17: Anadarko Building, Mozambique
Anadarko Building, Mozambique
Slide 18: Financial Overview
eRmaradeta Financial Overview
Slide 19: Financial Overview
Financial Overview Full Year Quarterly 30 June 2015 30 Sept 2015 Dividend per share (USD cents) 11.28 - Cost to income ratio 24.5% 15.3% LTV 48.7% 47.8% NAV per share (excl. deferred tax) (USD cents) 168.91 164.69 Weighted average rental/m² US$27 -
Slide 20: Statement of Financial Position
Statement of Financial Position (extract) 30 June 2015 30 Sept 2015 USD ‘000 USD ‘000 Assets Non-Current assets 210 698 222 682 Investment property 210 391 222 545 Other non-current assets 307 137 Current assets 25 343 33 666 Total assets 236 041 256 348 Equity and liabilities Total Equity 124 413 1
Slide 21: Property Portfolio
eRmaradeta Property Portfolio
Slide 22: Portfolio Overview (Pre-pipeline and Pivotal)
Portfolio Overview (Pre-pipeline and Pivotal) Modern retail and office assets with attractive tenant mix located in African countries with strong fundamentals Portfolio Metrics Retail Office Total Top 10 Tenants (by income) Number of Properties 2 3 5 20% Vodacom Anadarko Acquisition Cost (US$m) 121
Slide 23: KPMG / Hollard Building, Mozambique
KPMG / Hollard Building, Mozambique
Slide 24: Geographic Spread
Geographic Spread Morocco Kenya Population (million) 33.0 Population (million) 45.6 GDP (USDbn) 104.1 GDP (USDbn) 60.94 Real GDP growth rate (%) 4.4 Real GDP growth rate (%) 3.8 GDP / Capita (USD) 3 155.2 GDP / Capita (USD) 649.0 CPI (%) 1.9 CPI (%) 6.72 Credit rating BBB- Credit rating B+ Nigeria M
Slide 25: Acquisition Portfolio
eRmaradeta Acquisition Portfolio
Slide 26: Vale Compound (Transfer January 2016)
Vale Compound (Transfer January 2016) Location: Tete, Mozambique Anchor tenants: Vale and Barloworld Sector: Commercial / Residential Land title: Leasehold (50 + 50 years) 83 x 3 bed villas GLA: 40 x 2 bed apartments Anchor lease term: 7 years Vale, 3 years Barloworld Anchor tenant lease expiry: 202
Slide 27: Bollore Warehouse (Transfer January 2016)
Bollore Warehouse (Transfer January 2016) Location: Pemba, Mozambique Anchor tenants: Bollore Africa Logistics Sector: Light industrial Land title: Leasehold GLA: 6 400m2 Parking bays: 10 Anchor lease term: 4.5 years Anchor tenant lease expiry: March 2020 Average escalation: 0% Vacancies: 0% Valuati
Slide 28: Kafubu Mall (Transferred)
Kafubu Mall (Transferred) Location: Ndola, Zambia Anchor tenants: Shoprite Sector: Retail Land title: Leasehold GLA: 11 964m2 Anchor lease term: 8.5 years Anchor tenant lease expiry: April 2024 Average escalation: USD CPI p.a. Valuation: US$24.8 million (100%) Acquisition yield: 7.75% (7.20% in Maur
Slide 29: Mukuba Mall (Transferred)
Mukuba Mall (Transferred) Location: Kitwe, Zambia Anchor tenants: Shoprite, Game, Pick n Pay Sector: Retail Land title: Freehold GLA: 28 235m2 Anchor lease term: 4.5 years Anchor tenant lease expiry: March 2020 Average escalation: USD CPI p.a. Valuation: US$68.7 million Acquisition yield: 7.75% (7.2
Slide 30: Barclays House (Transfer January 2016)
Barclays House (Transfer January 2016) Location: Ebene, Mauritius Anchor tenant: Barclays Bank Sector: Office Land title: Leasehold GLA: 7 700m2 Parking bays: 150 Anchor lease term: 12 years Anchor tenant lease expiry: 2028 Average escalation: CPI Vacancies: 0% Valuation: US$13.4 million Equity requ
Slide 31: Cosmopolitan Mall (Transfer April 2016)
Cosmopolitan Mall (Transfer April 2016) Location: Lusaka, Zambia Anchor tenants: Shoprite, Game Sector: Retail Land title: Freehold GLA: 25 900m2 Parking bays: 1 300 Anchor lease term: 10.0 years Anchor tenant lease expiry: 2026 Average escalation: US CPI p.a. Vacancies: 0% Valuation: US$80.0 millio
Slide 32: Buffalo Mall (Transfer March 2016)
Buffalo Mall (Transfer March 2016) Location: Naivasha, Kenya Ownership interest: 50.0% Anchor tenant: Tuskys Sector: Retail Land title: Leasehold GLA: 5 300m2 Parking bays: 250 Anchor lease term: 15.0 years Anchor tenant lease expiry: 2030 Average escalation: 3% p.a. Vacancies (GLA): 1.9% Valuation:
Slide 33: Wings Office Towers
Wings Office Towers (completion & transfer September 2016) Location: Lagos, Nigeria Ownership Interest: 37.1% Anchor tenant: Oando PLC Sector: Office Land title: Leasehold GLA: 27 000m2 Parking bays: 700 Anchor lease term: 10.0 years Anchor tenant lease expiry: 2026 Average escalation: 3% p.a. (4.5%
Slide 34: Anfa Place, Morocco
Anfa Place, Morocco
Slide 35: Key Investment Points
Key Investment Points Positive asset management activities to drive NAV growth › Letting of retail vacancies in Morocco › Planned CAPEX/Expansion projects › Pre-let development pipeline Yield enhancing acquisitions to increase distributions › Pipeline of developed assets to bulk up core portfoli
Slide 36: Thank You
eRmaradeta Thank You
Slide 37: x [c HOLDINGS
x [c HOLDINGS oY PRC
Slide 38: Annexure A – Directors and Management
Annexure A – Directors and Management
Slide 39: Directors and Management
Directors and Management Sandile Nomvete Sandile is the founder and CEO of Delta Property Fund, a REIT listed on the JSE with a portfolio of assets valued at ~US$700m. Chairman Sandile serves as a director on a number of other boards and has more than a decade of experience in executive and non exec
Slide 40: Directors and Management (continued)
Directors and Management (continued) Paul David Simpson Paul has had close involvement in providing architectural input on three hundred new shopping centres across South Africa, Africa and Chief Operating Officer the Middle East. Paul’s experience ranges from major tenant input through to mall plan
Slide 41: Directors and Management (continued)
Directors and Management (continued) Ian Mcleod Ian holds a BCom (Honours) in Real Estate Investment, Valuation and Development and has over 41 years of experience with financial Non-Executive Director institutions, including Standard Bank of South Africa and Nedbank with a specific focus on Real Es
Slide 42: Directors and Management (continued)
Directors and Management (continued) Dave Savage Dave is an Executive Director of The Pivotal Fund Limited. Dave has 27 years’ experience in the property industry, 25 years of which Non-Executive Director have been dedicated to the growth of the Abcon Group. Dave has been involved in all aspects of
Slide 43: Annexure B - Existing Portfolio
Annexure B - Existing Portfolio
Slide 44: Anfa Place Shopping Centre
Anfa Place Shopping Centre Location: Casablanca, Morocco Carrefour, M&S, H&M, Virgin Megastore, Anchor tenants: McDonalds, Starbucks, Burger King Sector: Retail Land title: Freehold GLA: 30 879m2 Parking bays: 1148 Anchor lease term: 3 + 3 + 3 years Anchor tenant lease expiry: 2021 Average escalatio
Slide 45: Anadarko Building
Anadarko Building Location: Maputo, Mozambique Anchor tenant: Anadarko Petroleum Sector: Office Land title: Leasehold (50+50 years) GLA: 7 805m2 (plus 4 000m2 second phase) Parking bays: 185 Anchor lease term: 15 years Anchor tenant lease expiry: May 2028 Weighted average escalation: PPI + 2.5% Vaca
Slide 46: KPMG / Hollard Building
KPMG / Hollard Building Location: Maputo, Mozambique Anchor tenant: KPMG, Hollard & BP Sector: Office Land title: Leasehold (50+50 years) GLA: 4 945m2 Parking bays: 99 Anchor lease term: 3.5 years Anchor tenant lease expiry: Feb 2018 Weighted average escalation: 4.1% Vacancies: 0% Valuation: US$ 18.
Slide 47: Vodacom Building
Vodacom Building Location: Maputo, Mozambique Anchor tenant: Vodacom Sector: Office Land title: Leasehold (50+50 years) GLA: 10 660m2 Parking bays: 336 Anchor lease term: 10 years Anchor tenant lease expiry: Dec 2020 / 5.9 years Weighted average escalation: 5.0% Vacancies: 0% Valuation: US$ 43.4 mil
Slide 48: Zimpeto Square
Zimpeto Square Location: Maputo, Mozambique Anchor tenant: Retail Masters, Edcon Sector: Retail Land title: Leasehold (50+50 years) GLA: 4,764m2 Parking bays: 136 Anchor lease term: 10 years Anchor tenant lease expiry: May 2024 / 6.5 years Weighted average escalation: 4.2% Vacancies: 0% Valuation: U
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