Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — Merger or Acquisition (October 2013)
33 slides from Growthpoint Properties Australia's merger presentation, Oct 30, 2013
Slide 1: Property Acquisitions & Equity Raising
GROWTHPOINT PROPERTIES AUSTRALIA (ASX CODE: GOZ) For personal use only Property Acquisitions & Equity Raising 30 October 2013 Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409
Slide 2: Important information
Important information Disclaimer Financial Information incorrect, there can be no assurance that actual outcomes will not differ For personal use only This presentation and its appendices (“Presentation”) is dated 30 October All information is in Australian dollars and all statistics are as at 30 Ju
Slide 3: Contents
Contents For personal use only Overview 4 Acquisitions 7 Transaction impact 10 Equity Raising 15 Appendix 1 – FY13 Key achievements 21 Appendix 2 – Control implications 24 Appendix 3 – Key risks 27 Appendix 4 – Foreign jurisdictions 31 Glossary 33 Timothy Collyer Aaron Hockly Managing Director Compa
Slide 4: Overview
For personal use only OVERVIEW GROWTHPOINT PROPERTIES AUSTRALIA – PROPERTY ACQUISITIONS & EQUITY RAISING OCTOBER 2013 4
Slide 5: Transaction overview
Transaction overview For personal use only • Acquisition of a modern industrial property in Melbourne, Victoria (Ravenhall) – Purchase price of $23.2 million, representing an initial yield of 8.5% 1 – WALE of 11.7 years2 with minimum of 3.0% annual fixed rental increases Acquisitions • Funding for t
Slide 6: Transaction meets Growthpoint's objectives
Transaction meets Growthpoint’s objectives For personal use only TRANSACTION IMPACTS Increases Growthpoint’s exposure to the industrial sector, in prime industrial markets Enhances Growthpoint’s portfolio metrics – WALE, occupancy, average asset age Use of efficient fund-through structure, which red
Slide 7: Acquisitions
For personal use only ACQUISITIONS GROWTHPOINT PROPERTIES AUSTRALIA – PROPERTY ACQUISITIONS & EQUITY RAISING OCTOBER 2013 7
Slide 8: New property acquisition – Ravenhall
New property acquisition – Ravenhall 213-215 Robinsons Road, Ravenhall, VIC For personal use only • High quality office/warehouse and production facility completed in July 2010 and located in the brand new, fully master-planned 30 hectare Orbis Business Park, providing excellent amenities and access
Slide 9: Acquisition – Victorian Industrial Portfolio
Acquisition – Victorian Industrial Portfolio For personal use only • In July 2013 Growthpoint announced the acquisition of three industrial properties under development in Melbourne, Victoria • Total acquisition cost of $60.2 million1, representing an initial portfolio yield of 8.0% – Upfront fundin
Slide 10: Transaction impact
For personal use only TRANSACTION IMPACT GROWTHPOINT PROPERTIES AUSTRALIA – PROPERTY ACQUISITIONS & EQUITY RAISING OCTOBER 2013 10
Slide 11: Portfolio overview
Portfolio overview For personal use only • The transaction continues Growthpoint’s portfolio and income enhancement strategy – Defensive portfolio with high occupancy, long WALE and strong lease covenants – 7.0 year portfolio WALE and 98% occupancy as at 30 June 2013 1 – 8.3% weighted average cap ra
Slide 12: Portfolio income security
Portfolio income security1 • Significant geographic, asset and tenant diversification GEOGRAPHIC DIVERSIFICATION2 For personal use only – Diversified across every state and the ACT TAS ACT – 48 assets WA 1% 3% 7% – 88 tenants VIC NSW 32% 12% • Strong lease covenants – 27% of income secured by A- rat
Slide 13: Pro forma balance sheet
Pro forma balance sheet For personal use only 30-Jun-13 Post balance date Jun-13 pro forma Transaction Jun-13 pro forma $m Reported adjustments2 (pre-transaction) adjustments3 (post transaction) Cash and cash equivalents 9.4 9.4 9.4 Investment properties 1,646.9 47.7 1,694.6 83.5 1,778.1 Other recei
Slide 14: Debt & capital management
Debt & capital management For personal use only • Growthpoint’s $825 million Syndicated Facility Agreement SUMMARY OF DEBT FACILITIES (SFA) was re-priced and extended in June 2013 SYNDICATED FACILITY BILATERAL • Including the $70m bilateral facility maturing in April 2016, the weighted average debt
Slide 15: Equity Raising
For personal use only EQUITY RAISING GROWTHPOINT PROPERTIES AUSTRALIA – PROPERTY ACQUISITIONS & EQUITY RAISING OCTOBER 2013 15
Slide 16: Equity Raising overview
Equity Raising overview For personal use only • Underwritten $150 million equity raising – $50 million institutional placement to new and existing institutional investors – $100 million 1 for 10.15 renounceable rights offer • Offer price of $2.45 under the Placement and Rights Offer – Represents a 4
Slide 17: Equity Raising structure
Equity Raising structure For personal use only Placement • Offered to existing and new institutional investors ($50 million) • Securities issued under the Placement will not be entitled to participate in the Rights Offer • Existing securityholders will be entitled to 1 new Security for every 10.15 S
Slide 18: Sources and applications of funds
Sources and applications of funds For personal use only • The Equity Raising will provide funding for the Acquisitions and accommodate Growthpoint’s capital management initiatives SOURCES APPLICATIONS Placement $50.0m Ravenhall acquisition $23.2m Rights Offer $100.0m Victorian Industrial Portfolio1
Slide 19: Equity Raising timetable
Equity Raising timetable For personal use only Trading halt and announcement of Equity Raising via ASX Wednesday, 30 October 2013 Trading recommences Thursday, 31 October 2013 Ex-date for Rights Offer and rights trading commences Friday, 1 November 2013 Rights Offer record date 7.00pm, Friday, 8 Nov
Slide 20: Growthpoint's strategy
Growthpoint’s strategy For personal use only Attractive risk adjusted • Provide defensive and sustainable income returns returns • Sustainable growth in earnings and distributions • High occupancy and long WALE Income security with quality • High proportion of leases to government, investment grade
Slide 21: Appendix 1: FY13 Achievements
For personal use only APPENDIX 1: FY13 ACHIEVEMENTS GROWTHPOINT PROPERTIES AUSTRALIA – PROPERTY ACQUISITIONS & EQUITY RAISING OCTOBER 2013 21
Slide 22: Significant acquisitions FY2013
Significant acquisitions FY20131 For personal use only Growthpoint once again proved its ability to source and execute large transactions for the benefit of securityholders Throughout FY13 these acquisitions have been smoothly transitioned into the GOZ portfolio The assets are providing accretive in
Slide 23: Leasing success
Leasing success For personal use only LEASE EXPIRY PROFILE • Industrial portfolio remains 100% occupied as at 30 June 20131 • Achieved successful Brisbane office leasing despite challenging market conditions – Attracted large corporate tenants from CBD and other fringe locations to SW1 (e.g. Toyota
Slide 24: Appendix 2: Control implications
For personal use only APPENDIX 2: CONTROL IMPLICATIONS GROWTHPOINT PROPERTIES AUSTRALIA – PROPERTY ACQUISITIONS & EQUITY RAISING OCTOBER 2013 24
Slide 25: Control implications
Control implications For personal use only • Growthpoint SA will not participate in the Placement • The Rights Offer is structured as a pro rata offer to all eligible Growthpoint securityholders • Growthpoint SA currently owns approximately 66.4% of the Securities on issue and has provided a commitm
Slide 26: Appendix 3: Key risks
For personal use only APPENDIX 3: KEY RISKS GROWTHPOINT PROPERTIES AUSTRALIA – PROPERTY ACQUISITIONS & EQUITY RAISING OCTOBER 2013 26
Slide 27: Key risks summary
Key risks summary For personal use only Property Acquisitions Property Market Risks Risk Associated with Development of the Victorian Debt Covenants Industrial Portfolio Litigation and Disputes Counterparty / Credit Risk Regulatory Issues and Changes in Law Tenant Risk Property Val
Slide 28: Key risks
Key risks Property Acquisitions Market Perception Risk For personal use only A key element of the Group’s future strategy will involve the acquisition of properties to add The extent to which the Equity Raising enhances value for Securityholders depends on the to its property portfolio. Whilst i
Slide 29: Key risks
Key risks Capital Expenditure Property Market Risks For personal use only There is a risk that unforeseen capital expenditure may be required under the terms of the The Group will be subject to the prevailing property market conditions in the sectors in current property leases. This may in turn
Slide 30: Key risks
Key risks Employees and Directors Land values For personal use only The Group is reliant on retaining its key directors, senior executives and other employees. Events may occur from time to time that affect the value of land which may then impact the The loss of any director, senior executive em
Slide 31: Appendix 4: Foreign jurisdictions
For personal use only APPENDIX 4: FOREIGN JURISDICTIONS GROWTHPOINT PROPERTIES AUSTRALIA – PROPERTY ACQUISITIONS & EQUITY RAISING OCTOBER 2013 31
Slide 32: Foreign jurisdictions
Foreign jurisdictions South Africa Hong Kong Singapore For personal use only The offer of new Securities under the Rights Offer WARNING: This document has not been, and will not This document, or any document issued in described in this presentation does not constitute an be, authorized by the Secur
Slide 33: Glossary
Glossary A-REIT Australian Real Estate Investment Trust For personal use only Acquisitions The acquisition of Ravenhall property and the Victorian Industrial Portfolio Balance Sheet Gearing borrowings divided by total assets BILAT means the loan facility agreement with National Australia Bank dated
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