CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaMall Trust — Merger or Acquisition (September 2005)
21 slides from CapitaLand Integrated Commercial Trust's merger presentation, Sep 16, 2005
Slide 1: Proposed Acquisition of Parco Bugis Junction
Proposed Acquisition of Parco Bugis Junction 16 September 2005
Slide 2: Important Notice
Important Notice THIS PRESENTATION IS AVAILABLE ONLY TO PERSONS WHO ARE NON-U.S. PERSONS AND PERSONS WITH ADDRESSES OUTSIDE THE U.S., CANADA AND JAPAN The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicit
Slide 3: Important Notice
Important Notice IF YOU HAVE ACCESSED THIS DOCUMENT ON THE WEBSITE OF SINGAPORE EXCHANGE SECURITIES TRADING LIMITED. This document is not intended to be distributed or passed on, directly or indirectly, to any person in the United Kingdom or any other jurisdiction in which such action could not be l
Slide 4: Agenda
Agenda 1. Overview of Parco Acquisition and Equity Fund Raising 2. Benefits to Unitholders 3. Property Details and Potential Asset Enhancement Initiatives 4. Enlarged Portfolio Overview 5. Circular to Unitholders and Timetable 6. Singapore Retail Market Overview 7. Track Record of CMT 8. Overview of
Slide 5: Overview of Parco Acquisition and Equity Fund Raising
Overview of Parco Acquisition and Equity Fund Raising
Slide 6: Proposed Equity Fund Raising
Proposed Equity Fund Raising Part finance the Parco Bugis Junction Acquisition (“PBJ”)1 Proposed Parco Acquisition Part finance the Jurong Part refinance the bridge loans taken to finance Entertainment Centre the Sembawang Shopping Centre (“SSC”) and (“JEC”)2 Acquisition Hougang Plaza Units3 (“HP”)
Slide 7: Acquisition of PBJ and the New Properties are DPU Accretive
Acquisition of PBJ and the New Properties are Distribution Per Unit (“DPU”) Accretive Forecast Period1 Projection Year (1 November- 31 December 2005) (Financial year ending 31 Dec 2006) Existing Properties, Existing Property Existing Existing Target Property and Weighted Existing Target Property and
Slide 8: Higher Distribution Yield
Higher Distribution Yield Forecast Period Projection Year Max. No. of 1 Nov 05 – 31 Dec 05 (annualised) Financial year ending 31 Dec 06 Weighted New Units Average issued under Issue Price the Equity Existing DPU Existing DPU per New Unit Fund Raising1 Properties2 Entire Portfolio3 Accretion Properti
Slide 9: Proposed Financing Structure
Proposed Financing Structure Equity Fund Raising Debt Financing S$406.0 mil1 S$433.0 mil Part refinance SSC and Parco Acquisition JEC Acquisition HP bridging loans & S$588.1 mil S$69.0 mil2 refinance RCF3 S$151.0 mil Issuance Expenses Working Capital S$15.6 mil4 S$15.3 mil Notes: 1 The Manager propo
Slide 10: Proposed Equity Offer Structure
Proposed Equity Offer Structure “1-for-10” Non-Renounceable New Equity Preferential Offering1 • The Preferential Offering Issue Price will be at a • Issue of New Units so as to raise discount of up to 1% from the ATM and gross proceeds from up to Placement Issue Price 172.7 mil New Units or S$406 mi
Slide 11: Equity Fund Raising
Equity Fund Raising 9 The proposed Equity Fund Raising will only occur after the approval of Unitholders is obtained at the EGM scheduled on 6 October 2005 9 Cumulative distribution for income earned between 1 July 2005 to the day immediately prior to the New Units Issue Date in lieu of originally s
Slide 12: Efficient Debt Structure
Efficient Debt Structure 9 The Manager intends to borrow up to S$433.0 million from Silver Maple1 in the form of a seven-year term loan facility 9 Debt rating2 9 Optimise capital structure by increasing - AAA by Fitch and Standard & Poor’s gearing up to approximately 31.7% (well-below - Aaa by Moody
Slide 13: Benefits to Unitholders
Cap/taMall Benefits to Unitholders
Slide 14: Key Benefits To Unitholders
Key Benefits To Unitholders 9 Yield accretion 9 Competitive strengths of Parco Bugis Junction 9 Income and geographical diversification 9 Increase in free float and trading liquidity 14
Slide 15: Benefiting from Yield Arbitrage Opportunity
Benefiting from Yield Arbitrage Opportunity 6.0% 5.0% 130 bps spread 4.0% 5.3% 4.4% 3.0% 4.0% 4.0% 3.1% 2.0% Cost of equity¹ Cost of debt² Weighted Target Average Cost Property Yield³ of Capital Notes: 1 Based on an annualised FY06 DPU of 10.28 cents for the existing property and illustrative unit p
Slide 16: Higher DPU
Higher DPU 9 Attractive property acquisition yield contributes Higher DPU 9 Efficient capital structure to i ve e lat owth R gr 11.0 U 10.881 DP % 2.2 0.18 Sources of DPU improvement: 10.651 10.70 5.8% 2 10.5 0.22 Including the New Properties 0.42 10.43 5.1% 2 0.3 Including the Target Property 10.0
Slide 17: Competitive Strengths of Parco Bugis Junction
Competitive Strengths of Parco Bugis Junction 9 Strategic Location Situated in the central part of Singapore and strategically located above the Bugis MRT station, which is directly linked to the basement of PBJ Well served by many major bus routes, major roads and highways 9 Large Trade Area
Slide 18: Greater Income Diversification
Greater Income Diversification 9 Total net property income from any single property decreases from 29.8%1 to no more than 23.5%2 Existing Properties, Existing Properties PBJ and New Properties TM TM IMM 23.8% 18.8% 15.5% Plaza Sing IMM 29.8% Plaza Sing PBJ 19.6% 23.5% 15.7% J8 J8 Funan 13.6% 17.2% F
Slide 19: Further Geographical Diversification
Further Geographical Diversification 9 Acquisitions of HP and SSC extends CMT’s market presence to the north- eastern and northern regions of Singapore for the first time while PBJ and JEC will further expand CMT’s reach into the central and western shopping hubs Junction 8 1 Note: 1 Circle Line is
Slide 20: Increased Free Float and Liquidity
Increased Free Float and Liquidity 9 Access to a larger investor base because of its increased free float, liquidity and potentially higher index contribution CMT’s total assets increases from approx. S$2.6bn to approx. S$3.4bn, reinforcing its position as • Increased free float the largest Singapor
Slide 21: Potential Future Benefits for Unitholders
Potential Future Benefits for Unitholders 9 Manager has identified various opportunities for creating value with regards to PBJ and the New Properties 9 Implementation of innovative asset enhancement works, tenancy remix and proactive asset cum retail management on PBJ and the New Properties may pot
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