Grit Real Estate Income Group Limited · LSE:GR1T
Grit Real Estate Income — Mara Delta Property Holdings — Corporate Update (January 2017)
41 slides from Grit Real Estate Income's corporate update, January 2017
Slide 1: Mauritius Site Visit Presentation
Mauritius Site Visit Presentation JANUARY 2017
Slide 2: Proceedings
Proceedings 1. Introduction 3-6 Barclays House, Mauritius 2. Highlights 7-16 3. Mauritius Assets 17-22 4. Looking Ahead 23-26 5. Annexure A: Existing Property Portfolio 28-32 6. Annexure B: Investment Strategy & Criteria 33-35 7. Annexure C: Management Team 36-40 MAURITIUS SITE VISIT – JANUARY 2017
Slide 3: Introduction
Moafa INTRODUCTION
Slide 4: Presenting Today
Presenting Today Bronwyn Anne Corbett Bronwyn is the Chief Executive Officer of Mara Delta Property Holdings, the largest pan African focused real estate fund listed on Chief Executive Officer the Johannesburg Stock Exchange and in Mauritius. Bronwyn has significant corporate finance and deal making
Slide 5: Introduction to Mara Delta
Introduction to Mara Delta First African income fund focused on real estate in Africa (excluding South Africa) 1 listed on the Stock Exchange of Mauritius and the Johannesburg Stock Exchange Diverse asset portfolio focused on strength of counterparty and located in 2 African countries with solid fun
Slide 6: Mara Delta Timeline
Mara Delta Timeline July 2014 July 2014 March 2015 April 2015 June 2015 October 2015 December 2015 May 2016 October 2016 Acquired Acquisition of Acquisition of Acquisition of Paid distribution Anadarko Debut on Hollard/KPMG Acquired Kafubu Anfa Place Acquisition of Buffalo Mall of US$5.58 cents Buil
Slide 7: Highlights
Moafa HIGHLIGHTS
Slide 8: Highlights (Q1 ended September 2016)
Highlights (Q1 ended 30 September 2016) 49.3% INCREASE COST OF DEBT 139.68% INCREASE IN GROSS INCOME DOWN 0.57% IN PROFIT US$8.3 million 5.65% US$4.3 million Q1 FY2015: US$5.6 million FY2016: 6.22% Q1 FY2015: US$1.8 million OPERATING COST HARD CURRENCY OCCUPANCY DOWN 1.40% RENTALS RATE 24.3% 87% 98%
Slide 9: Vacancies (Q1 ended September 2016)
Vacancies (Q1 ended 30 September 2016) PORTFOLIO PRIMARY STRATEGIC VACANCY CONTRIBUTOR VACANCY Anfa Place holds strategic 2% Anfa Place vacancies due to upgrade to FY2016: 9% Shopping Centre the centre commencing in January 2017 NEW ANFA EXPRESSIONS OF VACANCY EXCL. TENANT SECURED INTEREST ANFA PLAC
Slide 10: Mara Delta at a Glance
Mara Delta at a Glance Mara Delta is a dual-listed (JSE and SEM) pan-African property income fund, focusing on African real estate assets (excluding South Africa), underpinned by predominantly US Dollar denominated long-term leases, with high quality tenants, delivering strong sustainable income. Co
Slide 11: Diversified Portfolio Overview (Post Pipeline)
Diversified Portfolio Overview (Post Pipeline) Modern retail and office assets with attractive tenant mix located in African countries with strong fundamentals Portfolio Metrics Light Corporate Regional Diversification (GAV) POST PIPELINE Retail Commercial Hospitality Total Industrial Accomm. Maur
Slide 12: High Quality Tenant Base
High Quality Tenant Base In line with its focus on counter party strength, Mara Delta has a blue chip tenant base with a weighted average lease term of 7.8 years Anchor Tenants Tenancy Grading A+ (Global Corporates) 10% 45% A (National or African 45% Continent Corporate) B (Local Tenancy) Weighted
Slide 13: Subsequent Events: Tamassa Acquisition (Lux Resorts) Mauritius
Subsequent Events (Q1 ended 30 September 2016) TAMASSA ACQUISITION (LUX RESORTS) MAURITIUS Binding sale agreement signed with Néréide Limited (wholly owned subsidiary of Lux Island Resorts Limited) for a purchase consideration of US$40 million Approval from Board of Investment and Prime Minister
Slide 14: Subsequent Events: Beachcomber Acquisition Mauritius
Subsequent Events (Q1 ended 30 September 2016) BEACHCOMBER ACQUISITION MAURITIUS Mara Delta acquired a 44.4% interest in BHI, an entity owning three hotel assets in Mauritius, namely Le Victoria, Le Canonnier and Le Mauricia Euro denominated earnings from a 15 year triple net lease from NMH, wit
Slide 15: Subsequent Events: Imperial Warehouse Kenya
Subsequent Events (Q1 ended 30 September 2016) IMPERIAL WAREHOUSE KENYA Mara Delta has acquired the Imperial Health Sciences Logistics Warehouse in Nairobi, Kenya The facility will be leased back to Imperial on a 10 year triple net basis, with annual escalations of 3%, denominated in USD and gua
Slide 16: Subsequent Events: Pipeline Conversion Mozambique & Zambia
Subsequent Events (Q1 ended 30 September 2016) PIPELINE CONVERSION MOZAMBIQUE & ZAMBIA The Vale accommodation compound in Tete, Mozambique and the Cosmopolitan Mall in Lusaka, Zambia are awaiting transfer pending regulatory approvals MAURITIUS SITE VISIT – JANUARY 2017 INTRODUCTION HIGHLIGHTS MAUR
Slide 17: Mauritius Assets
Moafa MAURITIUS ASSETS
Slide 18: Le Cannonier Resort & Spa
Le Cannonier Resort & Spa Pointe aux Canonniers, Location: Mauritius Anchor tenant: Beachcomber Sector: Hospitality (4 star) Land title: Leasehold (18 July 2068) No. of rooms: 284 Anchor lease term: 15 years Anchor tenant lease expiry: 2031 Average escalation: Euro CPI (1% floor) Occupancy rate: 100
Slide 19: Le Victoria Resort & Spa
Le Victoria Resort & Spa Location: Pointe Aux Piments, Mauritius Anchor tenant: Beachcomber Sector: Hospitality (4 star plus) Land title: Leasehold (30 June 2069) No. of rooms: 254 Anchor lease term: 15 years Anchor tenant lease expiry: 2031 Average escalation: Euro CPI (1% floor) Occupancy rate: 10
Slide 20: Le Mauricia Resort & Spa
Le Mauricia Resort & Spa Location: Trou-aux-Biches, Mauritius Anchor tenant: Beachcomber Sector: Hospitality (4 star) Land title: Leasehold (18 July 2068) No. of rooms: 238 Anchor lease term: 15 years Anchor tenant lease expiry: 2031 Average escalation: Euro CPI (1% floor) Occupancy rate: 100% (no v
Slide 21: Tamassa Resort
Tamassa Resort Location: Bel Ombre, Mauritius Anchor tenant: Lux* Resorts & Hotels Sector: Hospitality (4 star) Land title: Leasehold (30 June 2064) No. of rooms: 214 Anchor lease term: 10 years Anchor tenant lease expiry: 2026 Average escalation: Variable rental in place Occupancy rate: 100% (no va
Slide 22: Barclays House
Barclays House Location: Ebene, Mauritius Anchor tenant: Barclays Bank Sector: Office Land title: Leasehold GLA: 7 700m2 Anchor lease term: 12 years Anchor tenant lease expiry: 2028 Average escalation: Mauritian CPI Vacancy: 0% Valuation (100%): US$14 million Vendor: Jade Group Type of purchase: Pur
Slide 23: Looking Ahead
Moafa LOOKING AHEAD
Slide 24: Mara Delta Growth Platform
Mara Delta Growth Platform High quality asset management platform with deep market knowledge Core experienced management team & corporate governance structure Board Risk Committee Audit Committee Investment Committee Remuneration Committee CEO Bronwyn Corbett CIO CFO COO Head of New Business Moira
Slide 25: Risk Mitigation
Risk Mitigation The Fund continues to mitigate perceived risk associated with the continent and real estate investments: Currency Risk Prioritise assets with USD or EUR leases Prioritise long-term leases with blue chip multinational Tenancy Risk tenants (i.e. strength of counterparty) Maintaining
Slide 26: Prospects
Prospects DISTRIBUTION TOTAL COST CURRENT GROWTH (US$) RETURN OF DEBT PIPELINE 2% - 4% 12% 5% - 6.5% US$183.6m FORECAST Long term leases & FORECAST TARGETED A-Grade counterparties (Dividend Return: 7% - 8%) ACCESS TO RISK COMPETITIVE SEM10 PIPELINE MITIGANT ADVANTAGE Multi-banked Ahead of peers
Slide 27: Thank You
Moafa THANK YOU
Slide 28: Annexure A: Existing Property Portfolio
ANNEXURE A: EXISTING PROPERTY PORTFOLIO
Slide 29: Geographic Spread
Geographic Spread Kenya (2 assets) Population (million) 43.2 Morocco (1 asset) GDP (USDbn, 2015) 60.9 1 Population (million) 33.0 Real GDP growth rate (2016 ave forecast) 6% GDP (USDbn, 2015) 110 GDP / Capita (USD, 2015) 1 331 Real GDP growth rate (2016 ave forecast) 1.8% CPI (2016 ave forecast) 5.4
Slide 30: Property Portfolio
Property Portfolio Anadarko Building KPMG/Hollard Building Vodacom Building Maputo, Maputo, Maputo, Location: Location: Location: Mozambique Mozambique Mozambique Anchor Anadarko Anchor KPMG, Hollard & Anchor Vodacom tenant: Petroleum tenants: BP tenant: Sector: Office Sector: Office Sector: Office
Slide 31: Property Portfolio
Property Portfolio Kafubu Mall (50% ownership) Mukuba Mall (50% ownership) Buffalo Mall (45.5% ownership) Location: Ndola, Zambia Location: Kitwe, Zambia Location: Naivasha, Kenya Anchor Anchor Shoprite, Game, Anchor Shoprite Tuskys tenant: tenants: Pick n Pay tenant: Sector: Retail Sector: Retail S
Slide 32: Property Portfolio
Property Portfolio Le Mauricia Resort & Spa (44.4% ownership) Tamassa Resort Cosmopolitan Mall (50% ownership) Trou-aux-Biches, Bel Ombre, Location: Location: Location: Lusaka, Zambia Mauritius Mauritius Anchor Anchor Anchor Beachcomber Lux Island Resorts Shoprite, Game tenant: tenant: tenants: Sect
Slide 33: Annexure B: Investment Strategy & Criteria
ANNEXURE B: INVESTMENT STRATEGY & CRITERIA
Slide 34: Investment Strategy
Investment Strategy Investment Strategy Leverage on existing knowledge base and experience in Mozambique, Morocco, Zambia, Mauritius and Kenya Grow portfolio based on quality USD based leases and strong counterparties Focus on countries with existing/pending REIT structures Develop and maint
Slide 35: Investment Criteria
Investment Criteria The Fund considers key criteria such as: ability to conduct business in hard currency, repatriation of funds, political risk, currency risk, land tenure and debt raising ability in the first instance before proceeding further with any investment opportunity Investment opportu
Slide 36: Annexure C: Management Team
Moafa ANNEXURE C: MANAGEMENT TEAM
Slide 37: Executive Team
Executive Team Bronwyn Anne Corbett Bronwyn is the Chief Executive Officer of Mara Delta Property Holdings, the largest pan African focused real estate fund listed on Chief Executive Officer the Johannesburg Stock Exchange and in Mauritius. Bronwyn has significant corporate finance and deal making e
Slide 38: Management Team (Continued)
Management Team (Continued) INVESTMENT MANAGEMENT Mike Sewell Mike is a charted management accountant with over eight years’ international experience in real estate, having worked on a cross Head of Acquisitions section of deal structures, asset sectors and jurisdictions. His previous position as Fu
Slide 39: Management Team (Continued)
Management Team (Continued) FINANCE Jaco van Zyl Jaco holds a BCom Degree from the North-West University, a BCompt Honours Degree from the University of South Africa and he is a Group Finance Manager: Mauritius qualified Chartered Accountant. After completing articles he’s moved to Federal Airlines
Slide 40: Management Team (Continued)
Management Team (Continued) OPERATIONS Trevor Matthews Trevor has over 30 years industry experience beginning his career in 1979 as a property assistant, a position he held for six years, in Senior Operations Asset Manager which he established the building blocks to a long and successful career in t
Slide 41: Disclaimer
Disclaimer For professional advisers or Qualified Institutional Buyers only. This material is not suitable for retail clients. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may
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