Globalworth Real Estate Investments Limited · LSE:GWI
Globalworth Real Estate Investments — Investor Presentation (September 2016)
45 slides from Globalworth Real Estate Investments's investor presentation, Sep 28, 2016
Slide 1: Company Update
Company Update 28 September 2016 11
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE The Presentation does not constitute, or form part of, any offer or invitation to sell or issue any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, or act as
Slide 3: Company snapshot
Company snapshot Company Snapshot 2016 – YTD Highlights • Globalworth (“GWI”) is a leading fully integrated real estate investment • Commercial standing GLA increased by c.22% at end of H1-16 to company focused on acquiring, developing and managing predominantly c.370,033sqm office properties in Rom
Slide 4: Our Journey So Far
Our Journey So Far … €840m of Investments Undertaken Since Inception 19 Properties Currently Worth €1.0bn & €1.1bn upon Completion of Developments FEB ‘13 JUL ‘13 SEP ‘13 DEC ‘13 FEB ‘14 FEB ‘14 APR ‘14 JUN ‘14 JUL ‘14 DEC ‘14 Listing of Acquisition of Acquisition of GWI on Acquisition of Acquisit
Slide 5: Evolution of Portfolio Since YE-15
Evolution of Portfolio Since YE-15 Increase in value as a result of the revaluation of the Globalworth Tower and Gara Herastrau office properties following their completion in H1-16 and of additional value accretive capex invested on development projects. “As Is”: Dec ‘15 “As Is”: June ‘16 “Completi
Slide 6: Portfolio overview
Portfolio overview Standing and operational assets4 Developments Value “As is”1 €878mn Value “As is”1 €66mn Total Commercial GLA (sqm) 2: 370,033 Value at “Completion”1 €189mn Contracted occupancy2: c.82.3% Total Commercial GLA (sqm) 2: 130,680 WALL2 6.5 yrs 2018 expected rental income 3 €16.3mn 201
Slide 7: Key company highlights
Key company highlights 1 Fully-integrated real estate investment company with significant scale in our core market 2 Well-positioned in a favourable macroeconomic and attractive real estate environment 3 High quality commercial real estate portfolio in attractive Bucharest locations 4 Robust rental
Slide 8: Fully-integrated real estate investment company with significant scale in our core market
Fully-integrated real estate investment company with significant scale in 1 our core market Fully-integrated platform of c.70 With proven capabilities in leasing out substantial And attracting some of the most professionals in the fragmented commercial real estate space in a short period of well kno
Slide 9: Favorable Country and Real Estate market fundamentals
2 Favorable Country and Real Estate market fundamentals … ● One of the highest real GDP growth rates recorded in Europe: – FY 2015: 3.7% Strong Macroeconomic – Q2 2016: 6.0% (year-on-year), the highest growth rate recorded since Q3-08 Fundamentals ● Private consumption growth of 5.9% ● Low unemplo
Slide 10: Improving market dynamics in the office sector
2 … and improving market dynamics in the office sector Bucharest remains the principal real estate market in Investment Volume - Romania Yield Evolution Romania Romania 1,500 14.0% 12.0% Demand for office space remains strong and continues to 1,200 10.0% outweigh supply 8.0% 900 € million H1-2
Slide 11: High quality portfolio in the most attractive Bucharest locations
Globalworth benefits from a high quality portfolio in the most attractive 3 Bucharest locations… Majority of Globalworth’s portfolio is located in the “New CBD” Targeted sub-markets benefit from lower vacancy rates compared to the city average The portfolio provides top quality assets includin
Slide 12: Significant value growth potential
3 …with significant value growth potential GAV upon completion¹ GAV bridge to value upon completion¹ Total GAV: € 1,086mn Total uplift on currently owned portfolio: €124mn 180 16% 1,200 160 14% 1,086 21 13% 103 1,000 - 962 140 120 10% 800 100 € million € million 80 7% 600 6% 5% 5% 60 5% 5% 5% 4% 400
Slide 13: Robust rental growth and very attractive NOI yield profile
4 Robust rental growth and very attractive NOI yield profile … Acquisition & Development Cost NOI (€ m) NOI Asset Name Status Investment Cost to Remaining Total Acq./Dev . Aug-16 Q3-17(E)2 Q3-18(E)2 Yield3 Jun-16 (€ mn) 1 Cost (€ mn) Cost (€ mn) BOB Completed 42.0 - 42.0 3.6 3.7 3.9 9.3% BOC Complet
Slide 14: Triple-net lease terms, secure and visible cash flows
4 ...supported by triple-net lease terms, secure and visible cash flows Predictable, stable cash flows… … secured on a long term basis 1 Expenses covered by tenants Approximately 90% of the leases expire in or after 2020 Tax Insurance 90% Maintenance Triple net lease 2 Euro-denominated, ma
Slide 15: Attracting high quality, diversified tenants from around the world
5 Attracting high quality, diversified tenants from around the world Major Tenants in the Portfolio Other Selected Tenants A highly diversified tenants base both by country of origin… …and by business sector Based on annualized contracted rental income as of 31 Aug., 2016 Based on annualized contrac
Slide 16: Top management with unique track record in the real estate sector
6 Top management with unique track record in the real estate sector… Senior Management Ioannis Papalekas Founder & CEO • 18yrs (16yr in Romania) real estate track record • Involved in multiple investments in Romania and SEE • Realised IRR of 175% and an equity multiple of 4.7x Andreas Papadopoulos D
Slide 17: A clear and proven strategy
6 …and a clear and proven strategy Clear, focused strategic guidelines… …with a proven investment strategy 1 Key • Acquisition, development and management of commercial Commercial real estate assets assets Sector • Active management of underperforming / mispriced assets 2 Key • Value creation via ca
Slide 18: Selected financials: NAV Evolution
Selected financials : NAV Evolution Audited Consolidated Audited Consolidated Audited Consolidated Unaudited Consolidated Figures in € million 31st December 2013 31st December 2014 31st December 2015 30th June 2016 NAV to ordinary equity holders 119.7 392.7 499.7 512.2 Adj. Deferred Tax Liability, G
Slide 19: Appendix: Profiles of Selected Assets
Appendix: Profiles of Selected Assets 19 19
Slide 20: Globalworth Tower
Standing Assets Globalworth Tower Overview External View • Landmark Class “A” multi-tenanted office building located in the Northern part of Bucharest. • Delivered in 2016, is currently the 2nd tallest office property in Bucharest with a height of 120m • The property, extends over 26 floors above gr
Slide 21: Globalworth Tower
Standing Assets Globalworth Tower 21 21
Slide 22: BOB
Standing Assets BOB Overview External View • Modern Class “A” multi-tenanted office building located in the Northern part of Bucharest. • Delivered in 2008 and received both BREEAM In-use / Excellent and LEED Gold certifications (for part of the property) in 2014. • Extends over 7 floors above groun
Slide 23: BOB
balworth PPP glo Standing Assets BOB
Slide 24: BOC
Standing Assets BOC Overview External View • Modern Class “A” multi-tenanted office building located in the Northern part of Bucharest. • Delivered in 2009 and received BREEAM In-use / Excellent certification in 2014 – Nominated for the best Green “Office: In-Use” property in the 2015 BREEAM awards
Slide 25: BOC
Standing Assets BOC 25 25
Slide 26: Green Court Building A
Standing Assets Green Court Building “A” Overview External View • Modern Class “A” multi-tenanted office building located in the Northern part of Bucharest. • GCA was developed by Skanska, was completed in 2014 and received LEED Gold certification in 2015. • Extends over 12 floors above ground and 3
Slide 27: Green Court Building A
Standing Assets Green Court Building “A” 27 27
Slide 28: Green Court Building B
Standing Assets Green Court Building “B” Overview External View • Modern Class “A” multi-tenanted office building located in the Northern part of Bucharest. • GCB was developed by Skanska, was completed in 2015 and received LEED Gold certification in 2016. • Extends over 12 floors above ground and 3
Slide 29: Green Court Building B
Standing Assets Green Court Building “B” 29 29
Slide 30: TCI
Standing Assets TCI Overview External View • Landmark Class “A” multi-tenanted office building located in Bucharest’s historical CBD, at Victoriei Square. • Delivered in 2012, is currently the 3rd tallest office property in Bucharest with a height of 106m • The property, comprises of 2 interconnecte
Slide 31: TCI
balworth PPP glo Standing Assets TCl
Slide 32: UniCredit HQ
Standing Assets UniCredit HQ Overview External View • Landmark Class “A” single-tenanted office building located in the Northern part of Bucharest. • Delivered and received BREEAM In-Use / Very Good Green certification in 2012 • The property extends over 16 floors above ground and 2 underground leve
Slide 33: UniCredit HQ
Standing Assets UniCredit HQ 33 33
Slide 34: Globalworth Plaza
Standing Assets Globalworth Plaza Overview External View • Modern Class “A” multi-tenanted office building located in the Northern part of Bucharest. • Delivered in 2010 and partially refurbished during 2014-15. • The property extends over 21 floors above ground and 3 underground levels, offering to
Slide 35: Globalworth Plaza
Standing Assets Globalworth Plaza 35 35
Slide 36: City Offices
Standing Assets City Offices Overview External View • Mixed-use property comprising two connected buildings, a commercial building and multi-level parking, located in the southern part of Bucharest in the densely populated area of Eroii Revolutiei • Commercial building was entirely refurbished by Gl
Slide 37: City Offices
Standing Assets City Offices 37 37
Slide 38: Gara Herastrau
Standing Assets Gara Herastrau Overview External View • Class “A” multi-tenanted office building located in the Northern part of Bucharest. • Delivered in 2016, the property, extends over 12 floors above ground and 3 underground levels, offering total GLA of 12,037sqm and 157 parking spaces. • Curre
Slide 39: Upground Towers
Standing Assets Upground Towers Overview External View • Modern residential complex located in the northern part of Bucharest on Fabrica de Glucoza Street • The property was delivered in 2011 and comprises 2 buildings with a total GBA of 101,354sqm. • In total, Upground Towers offers 571 residential
Slide 40: Upground Towers
Standing Assets Upground Towers 40 40
Slide 41: TAP (with Expansion Potential)
Standing Assets (with Expansion Potential) TAP Overview External View • Modern light-industrial complex located in the North-East of Timisoara. • The complex has been developed in phases and it currently offers a total GLA of 81,349sqm which is almost exclusively let to Valeo, Continental and Elster
Slide 42: Timisoara Airport Park
Standing Assets (with Expansion Potential) Timisoara Airport Park 42 42
Slide 43: Developments: Globalworth Campus
Developments Globalworth Campus Overview External View • Class “A” office campus which upon completion will comprise of 3 office towers and other amenities, located in the Northern part of Bucharest. • Phase “A”, under construction, will comprise two (side) towers facing the main street offering, up
Slide 44: Globalworth Campus
Developments Globalworth Campus 44 44
Slide 45: globalworth
globalworth PPP
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