GARDA Property Group · ASX:GDF
GARDA Property — GARDA Diversified Property Fund — Investor Presentation (November 2017)
32 slides from GARDA Property's investor presentation, Nov 13, 2017
Slide 1: Garda Diversified Property Fund $30 Million Entitlement Offer
For personal use only GARDA DIVERSIFIED PROPERTY FUND (ASX CODE: GDF) $30 MILLION ENTITLEMENT OFFER 13 NOVEMBER 2017
Slide 2: The Offer
THE OFFER • GDF is undertaking a fully underwritten 1-for-4.3 traditional non- KEY OFFER METRICS renounceable entitlement offer to raise approximately $30 million. For personal use only • The Offer will provide GDF with further capital for the Acquisitions1. Entitlement Offer • Offer price of $1.15
Slide 3: Details
DETAILS EQUITY RAISING DETAILS An Entitlement Offer of approximately 26.1 million new GDF Units, raising approximately $30.0 million in equity funding. For personal use only ENTITLEMENT OFFER 1-for-4.3 traditional non-renounceable fully underwritten Entitlement Offer. Record date for Unitholder enti
Slide 4: Offer Timetable
OFFER TIMETABLE INDICATIVE TIMETABLE For personal use only Event Date1 Announcement of the Entitlement Offer Monday, 13 November 2017 Record date for the Entitlement Offer (7.00pm AEST) Friday, 17 November 2017 Entitlement Offer Opens Tuesday, 21 November 2017 Entitlement Offer documents despatched
Slide 5: Purpose: Acquisitions and Capital Management
PURPOSE: ACQUISITIONS AND CAPITAL MANAGEMENT For personal use only • GDF settled the Pinkenba Property in June 2017 and construction of the pre-leased facility at Pinkenba is expected to be completed by May 2018. • GDF expects to settle the Wacol Property (construction partially completed) in Decemb
Slide 6: Acquisition – Botanicca 9, Richmond, VIC
ACQUISITION – BOTANICCA 9, RICHMOND, VIC For personal use only • GDF currently owns Botanicca 7, a 6,587m2 A-grade commercial office building. • Botannica 9 will be approximately 7,254m2 A-Grade commercial office building designed to a NABERS 5 Star energy rating. • GDF will settle the 3,621m2 (Zone
Slide 7: Acquisition – Botanicca 9, Richmond, VIC (cont.)
ACQUISITION – BOTANICCA 9, RICHMOND, VIC (CONT.) For personal use only • GDF has actively sought immediate leasing opportunities in the tightly held Melbourne city fringe office market, with the building to be offered to the market for lease in 2018. • The Melbourne city fringe market has the lowest
Slide 8: Botanicca 9, Richmond, VIC
BOTANICCA 9, RICHMOND, VIC PROPERTY INFORMATION1 For personal use only Type Office Independent Valuation $62.5 million (net of incentives) Capitalisation Rate 5.75% Fully Leased Net Income $3,966,019 Total Costs excluding $52.0 million Incentives Site Area (m²) 3,621 Net lettable Area (NLA) (m²) 7,2
Slide 9: Botanicca 9, Richmond, VIC – Location
BOTANICCA 9, RICHMOND, VIC For personal use only 5km LOCATION • Only 4 kilometres from the Melbourne CBD in the highly sought after city fringe suburb of Richmond, the property forms part of the Botanicca Corporate Park. • GDF currently owns Botanicca 7 a 6,587m² A-Grade office building located in t
Slide 10: Melbourne City Fringe Market Overview
MELBOURNE CITY FRINGE MARKET OVERVIEW MARKET OVERVIEW – VACANCY AND SUPPLY For personal use only SUBURBAN MARKET COMPOSITION SUBURBAN PRECINCT COMPOSITION 177,026m2 Precinct NLA (m²) NLA (%) City Fringe 965,000 31.3% Inner East 576,547 18.7% Outer East 856,046 27.7% 461,204m2 267,549m 2 South East 4
Slide 11: Market Overview – Vacancy Rates
MELBOURNE CITY FRINGE MARKET OVERVIEW MARKET OVERVIEW – VACANCY RATES For personal use only 14% 13.1% 12% 10.7% 10% 7.5% 8% 6.4% 6.3% 6.2% 5.9% 6% 4% 3.5% 2% 0% City Fringe Inner East Outer East South East North and Total Melbourne Sydney West Suburbs CBD CBD 11 | GARDA DIVERSIFIED PROPERTY FUND $30
Slide 12: Market Overview – Future Supply and Pre-Commitment
MELBOURNE CITY FRINGE MARKET OVERVIEW MARKET OVERVIEW – FUTURE SUPPLY AND PRE-COMMITMENT • The adjoining graph shows what we believe to be the most likely/definite developments which will reach practical completion over the For personal use only next three years. • Neither 9-11 Cremorne Street or 60
Slide 13: Leasing Activity and Trends
MELBOURNE CITY FRINGE MARKET OVERVIEW LEASING ACTIVITY AND TRENDS Recent leasing deals in the city fringe market, including in the GDF owned Botanicca 7, reinforce the increasing rents achieved. For personal use only BOTANICCA BUSINESS PARK LEASING BY GARDA CAPITAL Building LCD Tenant Net Rent ($/m²
Slide 14: Wacol and Pinkenba Update
WACOL AND PINKENBA UPDATE For personal use only Metroplex Westgate, Wacol, QLD 70-82 Main Beach Road, Pinkenba, QLD (Brisbane) • $35.25m acquisition on a capitalisation rate of 6.25%. • $19.0m acquisition on a capitalisation rate of 7.37%. • 10 year pre-committed lease to Volvo Group Australia. • 15
Slide 15: $295M Portfolio Upon Completion
$295M PORTFOLIO UPON COMPLETION For personal use only PORTFOLIO VALUE (by sector) CAIRNS 7-19 Lake Street, Cairns ($48.0m) Industrial 31% Commercial 69% MACKAY 69-79 Diesel Drive, Mackay ($29.5m) BRISBANE GOLD COAST 747 Lytton Road, Murarrie ($14.1m) 142 Benjamin Place, Lytton ($8.8m) Lot 2001 Metro
Slide 16: Property Portfolio
PROPERTY PORTFOLIO INDEPENDENT CAP PORTFOLIO For personal use only PROPERTY PORTFOLIO TYPE NLA (m2) WALE5 OCCUPANCY5 NABERS VALUATION¹ ($m) RATE VALUE 572-576 Swan Street, Richmond, VIC Office 41.0 6.50% 6,587 5.9 100% 5.0 14% 436 Elgar Road, Box Hill, VIC Office 25.0 7.75% 5,725 3.2 100% 2.5 9% 7-1
Slide 17: At Risk Income
AT RISK INCOME For personal use only 42% QLD Government (DTMR) 6% Botanicca 9 17% SERCO 3% Other 1% Other 3% 18% 14% 12% 5% 5% 4% VACANT FY2018 H1 FY2019 H2 FY2019 FY2020 FY2021 FY2022+ 17 | GARDA DIVERSIFIED PROPERTY FUND $30 MILLION ENTITLEMENT OFFER
Slide 18: Balance Sheet
For personal use only BALANCE SHEET 18 | GARDA DIVERSIFIED PROPERTY FUND $30 MILLION ENTITLEMENT OFFER
Slide 19: Pro Forma Balance Sheet
PRO FORMA BALANCE SHEET GDF1 MOVEMENTS PRO FORMA GDF 30-JUN-17 SINCE EOFY* ADJUSTMENTS** COMPLETION OF OFFER $000's $000's $000's $000's ASSETS For personal use only Cash and cash equivalents 11,389 (10,250) - 1,139 Investment properties 188,100 47,450 - 235,550 Other assets 1,155 - - 1,155 Total as
Slide 20: Current Debt Facilities
CURRENT DEBT FACILITIES • Proceeds of the Offer will be applied to Current Debt Metrics the acquisition of the Botanicca 9 Property For personal use only Facility Limit $83,599,500 and to short term debt reduction (or cash Drawn Amount1 $61,600,000 holdings). Undrawn Capacity $21,999,500 • Undrawn c
Slide 21: GDF Performance
For personal use only GDF PERFORMANCE 21 | GARDA DIVERSIFIED PROPERTY FUND $30 MILLION ENTITLEMENT OFFER
Slide 22: GDF v S&P/ASX A-REIT and Index
GDF V S&P/ASX A-REIT 200 AND 300 INDEX 9.57% and 8.77% respective outperformance against the S&P/ASX A-REIT 200 & 300 indices since IPO on 2 July 2015. For personal use only 15.97% and 15.37% respective outperformance against the S&P/ASX A-REIT 200 & 300 indices in the last 12 months. GDF.ASX XPK.AS
Slide 23: GDF – Recent Performance
GDF – RECENT PERFORMANCE Net Tangible Assets ($ per Unit) For personal use only WALE (years) $1.30 6 5.6 $1.21 5.5 $1.20 $1.13 5 $1.10 4.5 4.1 $1.02 $1.00 4 3.5 3.5 $0.90 3 $0.80 2.5 2015 2016 2017 2015 2016 2017 Occupancy (%) Cap Rate (%) 8.90% 100% 95% 93% 94% 9.00% 8.50% 8.13% 90% 8.00% 80% 7.37%
Slide 24: Risks
For personal use only RISKS 24 | GARDA DIVERSIFIED PROPERTY FUND $30 MILLION ENTITLEMENT OFFER
Slide 25: Key Risks
KEY RISKS For personal use only • An investment in New Units under this Entitlement Offer is subject to both known and unknown risks, some of which are beyond the control of GDF and the Responsible Entity. • These risks include the possible loss of principal invested and income. • The Responsible En
Slide 26: Key Risks (Property)
KEY RISKS (PROPERTY) Risks Key investment risks The Directors currently believe these to be the key risks associated with an investment in GDF. It is not exhaustive. Many of these For personal use only risks, and their consequences, are beyond the control of the RE. You should carefully consider all
Slide 27: Key Risks (Continued)
KEY RISKS (CONTINUED) Risks Development and construction GDF is currently undertaking development projects at the Pinkenba Property, the Wacol Property and the Botanicca 9 Property. For personal use only GDF may undertake further developments. It is possible that one or more of these projects will t
Slide 28: Key Risks (Continued)
KEY RISKS (CONTINUED) For personal use only Risks Ranking Unitholders rank behind secured and unsecured creditors. If there is a shortfall of funds upon the winding up of GDF, Unitholders may receive less than NTA or their New Units and original investment. Forward looking statements There can be no
Slide 29: Definitions
DEFINITIONS Term Definition For personal use only Acquisitions The combined acquisitions and construction of the Pinkenba Property, Wacol Property and Richmond Property. Botanicca 9 Property Property located at 588 Swan Street, Richmond (Melbourne, VIC). Closing Price Closing ASX trading price as of
Slide 30: Definitions (cont.)
DEFINITIONS (CONT.) Term Definition For personal use only The theoretical ex-rights price (TERP) is the theoretical price at which Units should trade immediately after the ex-date for the Entitlement Offer. TERP is a theoretical calculation only and the actual price at which Units trade immediately
Slide 31: Disclaimer
DISCLAIMER This presentation (Presentation) has been prepared on behalf of GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) (GARDA) as responsible entity of the GARDA Diversified Property Fund ARSN 104 391 273 (GDF or the Fund). The information and statements in this Presentation were prepared
Slide 32: Financial Results
For personal use only 01 FINANCIAL RESULTS GARDA DIVERSIFIED PROPERTY FUND $30 Million Entitlement Offer | 13 November 2017
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