GARDA Property Group · ASX:GDF
GARDA Property — Garda Diversified Property Fund — Merger or Acquisition (September 2019)
25 slides from GARDA Property's merger presentation, Sep 20, 2019
Slide 1: Property Acquisition, Equity Raising and Proposal to Internalise
For personal use only GARDA DIVERSIFIED PROPERTY FUND (ASX CODE: GDF) Property Acquisition, Equity Raising and Proposal to Internalise 20 September 2019 1 Property Acquisition, Equity Raising and Proposal to Internalise
Slide 2: Contents
For personal use only Contents Property Acquisition, Equity Raising and Proposal to Internalise Transactions Overview 3 Property Acquisition 5 Equity Raising 8 Proposal to Internalise 11 Key Risks 18 Foreign Holders 23 2 Property Acquisition, Equity Raising and Proposal to Internalise
Slide 3: Acquisition, Equity Raising and Proposal to Internalise
Acquisition, Equity Raising and Proposal to Internalise For personal use only Transaction –– GARDA Capital Limited, as responsible entity of the GARDA Diversified Property Fund (GDF), announces the acquisition of two warehousing and distribution facilities on a 4 hectare site, located 4.5 kilometres
Slide 4: Transformation of GDF
Transformation of GDF Since its IPO with $140m in assets, GDF has grown to approximately $404m in assets. GDF is now well positioned for its next phase of growth as an internalised property group. For personal use only 01 August 2016 02 03 04 05 06 07 08 June 2017 July 2017 April 2018 June 2019 June
Slide 5: Property Acquisition
For personal use only Property Acquisition 01
Slide 6: Morningside property overview, Thynne Road
326 & 340 Thynne Road, Morningside The asset comprises two warehousing and distribution facilities on a 4 hectare site, located 4.5 kilometres east of the Brisbane CBD. For personal use only –– The assets are less than 5 kilometres to the Brisbane CBD, only a few minutes from the Gateway arterial ro
Slide 7: Portfolio Post Transaction
Portfolio Post Transaction GDF overview post Morningside acquisition For personal use only Geographic Composition PRE POST Number of properties 16 17 3% Portfolio valuation ($m) $362.8 $403.8 7% Weighted average cap rate 6.79% 6.68% 36% WALE 5.3 years 5.1 years 14% NLA (m²) 135,322 152,301 39% Melbo
Slide 8: Equity Raising
For personal use only Equity 02 Raising
Slide 9: Source and Use of Funds
Source and Use of Funds The acquisition of Morningside will be funded through a placement and new debt For personal use only SOURCE OF FUNDS $M Placement proceeds 31.5 Drawn debt 12.5 Total Sources 44.0 USE OF FUNDS $M Acquisition 41.0 Acquisition transaction costs 2.5 Transaction costs 0.5 Total Us
Slide 10: Details of the Placement
Details of the Placement For personal use only Structure –– Institutional placement to raise approximately $31.5 million. Pricing –– Issue price of $1.40 per GDF security represents a: –– 3.9% discount to the distribution-adjusted last close price of $1.46 on Thursday 19 September 2019. –– 3.3% disc
Slide 11: Proposal to Internalise
For personal use only Proposal to Internalise 03
Slide 12: Overview of the new GARDA Property Group
Overview of the new GARDA Property Group Creation of an integrated, commercial and industrial property platform For personal use only –– GARDA Capital Group (GCM), through GARDA Capital Limited (GCL), has acted as responsible entity (RE) of GDF since its IPO in July 2015. Cairns 7-19 Lake Street, Ca
Slide 13: Strategic Rationale for GDF Unitholders
Strategic Rationale for GDF Unitholders Compelling financial and strategic value For personal use only Financially compelling –– 12.6% value1 accretion for GDF unitholders in FY20. transaction –– Gearing to reduce from 36.7% to 36.0%. Aligned interests and –– Common ownership of investment and prope
Slide 14: The Internalisation: Key transaction terms
The Internalisation Key transaction terms For personal use only Independent –– As GCL is both the RE of GDF and part of GCM, strict governance and information protocols have been adopted to ensure independent process consideration of the Internalisation. –– Two non-executive Directors, Philip Lee an
Slide 15: Key Transaction Metrics
Key Transaction Metrics For personal use only 8.6 10.1 9.0 1.18 36.0% FY20 FFO (cps) FY20 Value1 (cps) FY20 DPU (cps) NTA ($) Gearing % Reduced Accretive FY20 DPS Reduced Reduced 3.4% 12.6% guidance 14% 0.7% maintained 1. ‘Value’ is the term used to describe GARDA Property Group’s FFO after adjustin
Slide 16: Proposed Transaction Timetable
Proposed Transaction Timetable Internalisation proposal (subject to change) For personal use only KEY EVENT – GARDA DIVERSIFIED PROPERTY FUND DATE GCM and GDF/GHL enter scheme implementation deed and announce 20 September 2019 Despatch of Notice of Meeting, Explanatory Memorandum and Prospectus to G
Slide 17: Snapshot Post Transactions
Snapshot Post Transactions Overview of GARDA Property Group For personal use only 6.1% 6.4% 404m 6.68% $ FY20 FFO Yield1 FY20 Distribution Portfolio Value Portfolio Cap Rate Yield1 17 5.1 years 84% $319m High Quality Assets Portfolio WALE Portfolio Implied Market Occupancy3 Capitalisation2 1. B ased
Slide 18: Key Risks
For personal use only Key Risks 04
Slide 19: Key Risks
Key Risks Key risks for equity raising participants For personal use only 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 risks, and their consequences, are beyond the control of the RE. You shou
Slide 20: Key Risks
Key Risks Key risks for equity raising participants For personal use only Development and GDF is currently undertaking development projects at the Botanicca 9, Berrinba and Wacol (Progress Road). GDF may undertake further developments. It is construction possible that one or more of these projects w
Slide 21: Key Risks
Key Risks Key risks for equity raising participants For personal use only Distribution payments While distribution guidance may be given, distributions are not guaranteed by the RE. GDF may be unable to generate sufficient free cash flow from operations or raise required equity/debt to meet targeted
Slide 22: Key Risks of the internalisation
Key Risks Key risks of the internalisation For personal use only Completion risk Completion of the internalisation is subject to a number of conditions, including court approvals, approvals from ASX and ASIC, material counterparty consents, and the approval of both GCM securityholders and GDF securi
Slide 23: Foreign Holders
Foreign Holders For personal use only –– GDF securityholders with a registered address for GDF outside of Australia or New Zealand (GDF Foreign Securityholders) will not be eligible to receive GHL shares under the internalisation due to regulatory restrictions. –– Instead, GDF Foreign Securityholder
Slide 24: Disclaimer
Disclaimer For personal use only 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 Prese
Slide 25: Thank you
For personal use only Thank you gardacapital.com.au info@gardacapital.com.au Level 21, 12 Creek Street, Brisbane QLD 4000 +61 7 3002 5300 GPO Box 5270, Brisbane QLD 4001 25 Property Acquisition, Equity Raising and Proposal to Internalise
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