Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — Merger or Acquisition (October 2024)
14 slides from Vukile Property Fund's merger presentation, Oct 7, 2024
Slide 1: Special Announcement: Lar España disposal
SPECIAL ANNOUNCEMENT Lar España disposal Monday, 7 October 2024 1
Slide 2: Introduction: A solid investment case
01 Introduction: A solid investment case 2
Slide 3: Investing in Lar España 2022: The strategy
01 INTRODUCTION LAR ESPAÑA DISPOSAL 7 OCTOBER 2024 Investing in Lar España 2022: The strategy The purchase of Lar España offered Vukile the opportunity to take a position in an easy-to- understand business (despite an external management company) that offered a unique, high- quality, retail portfoli
Slide 4: Investing in Lar España in 2022: Salient points at the time
01 INTRODUCTION LAR ESPAÑA DISPOSAL 7 OCTOBER 2024 Investing in Lar España in 2022: Salient points at the time Vukile ideally positioned to underwrite the deal given the high similarity between Castellana and Lar España Attractive pricing relative to the direct market Market was ignoring retail and
Slide 5: Deriving the best outcome for all stakeholders
02 Deriving the best outcome for all stakeholders 5
Slide 6: Considered all options to ensure the best outcome and value
02 BEST OUTCOME LAR ESPAÑA DISPOSAL 7 OCTOBER 2024 Considered all options to ensure the best outcome and value The offer put to market by the consortium (involving Hines European Real Estate Partners III and Grupo Lar Inversiones Inmobiliarias, Lar España's asset manager), of EUR8.10 per Lar España
Slide 7: Exceptional value creation for shareholders
03 Exceptional value creation for shareholders 7
Slide 8: R1.5 billion of value created through the disposal
03 VAUE CREATION LAR ESPAÑA DISPOSAL 7 OCTOBER 2024 R1.5 billion of value created through the disposal ▪ The disposal allows Vukile (via Castellana) to realise a significant return from the investment in Lar España, generating an internal rate of return of c.45% p.a. since January 2022 in ZAR terms
Slide 9: Driving Vukile's strategic agenda of growth
04 Driving Vukile’s strategic agenda of growth 9
Slide 10: Redeployment of proceeds
04 DRIVING GROWTH LAR ESPAÑA DISPOSAL 7 OCTOBER 2024 Redeployment of proceeds ▪ The negotiated offer price presents us with an opportunity to redeploy capital into other strategically aligned and financially accretive deals with potentially better yields at significantly lower operational and deal e
Slide 11: What next?
04 DRIVING GROWTH LAR ESPAÑA DISPOSAL 7 OCTOBER 2024 What next? ▪ Castellana continues to actively and consistently source opportunities that are strategically aligned and financially accretive in Spain and Portugal ▪ Using 35 - 40% asset-backed debt, we are targeting attractive cash-on-cash returns
Slide 12: In Conclusion
05 In Conclusion 12
Slide 13: Conclusion
05 GUIDANCE LAR ESPAÑA DISPOSAL 7 OCTOBER 2024 Conclusion ▪ Our expert on-the-ground asset management skills, combined with our astute corporate finance and deal making abilities and expertise will allow us to continuously identify opportunities and deploy the capital across the Iberian Peninsula, t
Slide 14: Questions and answers
06 Questions and answers 14
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