Centuria Office Reit · ASX:COF
Centuria Office Reit — Centuria Metropolitan REIT — Merger or Acquisition (December 2017)
38 slides from Centuria Office Reit's merger presentation, Dec 5, 2017
Slide 1: Centuria Metropolitan REIT: Strategic Acquisitions and $60m Equity Raising
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 Centuria Metropolitan REIT Strategic Acquisitions and $60m Equity Raising 201 & 203 Pacific Highway, St Leonards, NSW
Slide 2: Agenda
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 1 Executive summary 2 Market update 3 The Acquisitions 4 Equity Raising 5 Appendices 201 & 203 Pacific Highway, St Leonards, NSW
Slide 3: Executive summary
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 Section 1 Executive summary
Slide 4: Acquisitions and Equity Raising Overview
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 ACQUISITIONS AND EQUITY RAISING OVERVIEW • Centuria Metropolitan REIT (CMA) has: – entered into an agreement to acquire a 50% freehold interest1 in 201 Pacific Highway, St Leonards, NSW for $85.8 million – acquired a 100%
Slide 5: Strategic Rationale
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 STRATEGIC RATIONALE Highly complementary properties to CMA’s existing portfolio and in line with its investment strategy to acquire quality, fit for purpose, metropolitan office assets Stable and secure income streams und
Slide 6: Market update
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 Section 2 Market update
Slide 7: Milestones and Achievements
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 MILESTONES AND ACHIEVEMENTS Actively managing the portfolio to drive performance and deliver on strategy Inclusion in the S&P ASX300 index as of 18 September 2017, significantly improving the liquidity of CMA securities
Slide 8: Operational Update – Q1 FY18
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 OPERATIONAL UPDATE – Q1 FY18 Active management drives performance from multi-tenant assets Portfolio snapshot 30 Sep 20171 30 Jun 2017 Occupancy2 99.0% 97.8% 4.3 years FY18 expiries2 3.6% 6.0% Portfolio WALE1,2 WALE2 4.3
Slide 9: Operational Update – Q1 FY18: Leasing
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 OPERATIONAL UPDATE – Q1 FY18 Focus on leasing to maximise occupancy and income No. of Property transactions NLA leased (sqm) 54 Marcus Clarke Street, Canberra, ACT 3 1,167 60 Marcus Clarke Street, Canberra, ACT 2 861 42-4
Slide 10: Market Update – Independent Valuations
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 MARKET UPDATE – INDEPENDENT VALUATIONS Centuria Property Funds Limited as responsible entity of CMA (CPFL) has undertaken independent valuations of the full CMA portfolio1 • CPFL has undertaken independent valuations of t
Slide 11: The Acquisitions
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 Section 3 The Acquisitions
Slide 12: Acquisitions Overview
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 ACQUISITIONS OVERVIEW The Acquisitions are complementary to CMA’s portfolio and in line with its investment strategy • Acquisitions are of two properties off-market from separate vendors for $119.1 million1 – delivering s
Slide 13: Portfolio Impact
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 PORTFOLIO IMPACT1 The Acquisitions increase CMA’s portfolio occupancy and weighting to the high performing NSW metro office market Geographic diversification3,6 Prior to Post WA WA Portfolio2 12% 10% Acquisitions Acquisit
Slide 14: Tenant Diversification
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 TENANT DIVERSIFICATION Introduction of NASDAQ listed Cisco Systems Inc. as a tenant1 Top 10 tenants % of income Insurance Australia Group 6.8% Target Australia 5.6% Austar Entertainment 5.2% Bluescope Steel 4.4% Hatch & A
Slide 15: Property Details: 201 Pacific Highway, St Leonards
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 PROPERTY DETAILS: 201 PACIFIC HIGHWAY, ST LEONARDS, NSW (CMA ACQUIRING 50%) • A-grade building with 10 floors of office spanning 13,841sqm of net lettable area and 20 retail tenancies across 2,658sqm of net lettable area
Slide 16: Property Details: 77 Market Street, Wollongong
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 PROPERTY DETAILS: 77 MARKET STREET, WOLLONGONG, NSW • A-grade, modern commercial office building constructed in 2008 with five levels of office spanning, 6,755sqm of net lettable area, 131 car parks and a 4.0 star NABERS
Slide 17: Equity Raising
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 Section 4 Equity Raising
Slide 18: Equity Raising Overview
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 EQUITY RAISING OVERVIEW $60 million underwritten Equity Raising at an Issue Price of $2.39 per CMA security • The Equity Raising comprises a 1 for 8.65 accelerated pro-rata non-renounceable entitlement offer • Equity rais
Slide 19: Details of the Equity Raising
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 DETAILS OF THE EQUITY RAISING • 1 for 8.65 accelerated non-renounceable entitlement offer to raise approximately $60 million • Record date is 7 December 2017 Equity Raising • Equity Raising will comprise an accelerated in
Slide 20: Indicative Timetable
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 INDICATIVE TIMETABLE Key event Date1 Trading Halt and announcement of the Acquisitions and Equity Raising Tuesday, 5 December 2017 Institutional entitlement offer opens and closes Tuesday, 5 December 2017 Record date for
Slide 21: Appendix A: Pro forma balance sheet
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 Section 5 Appendix A Pro forma balance sheet
Slide 22: Pro Forma Balance Sheet
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 PRO FORMA BALANCE SHEET 30 June 2017 pro 30 June 2017 30 June 2017 pro forma July Nov-17 pro forma for ($m) Equity Raising Acquisitions forma for acquisitions and Revaluations Transaction and Transaction equity raising1 N
Slide 23: Appendix B: CMA property portfolio key features
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 Section 5 Appendix B CMA property portfolio key features
Slide 24: CMA Property Portfolio
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 CMA PROPERTY PORTFOLIO1 Property Ownership Sector Valuation ($m)2 Cap rate2 NLA (sqm) WALE (years) 3,4 Occupancy4 9 Help Street, Chatswood, NSW 100% Office 68.5 6.50% 9,394 3.0 100.0% 5 203 Pacific Highway St Leonards, NS
Slide 25: Appendix C: Material contracts
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 Section 5 Appendix C Material contracts
Slide 26: Material Contracts: First Component Purchase Contract
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 MATERIAL CONTRACTS First Component Purchase Contract CMA is purchasing a 50% interest (First Component) in 201 Pacific Highway, St Leonards (Property) for $85.5 million. The 5% deposit is payable on exchange. CMA will acq
Slide 27: Material Contracts: CCL Put and Call Option Deed
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 MATERIAL CONTRACTS CCL Put and Call Option Deed The CMA board has resolved that CMA should purchase a 50% interest in the Property. As the Vendor was seeking a 100% exit, Centuria Capital Limited (CCL) has agreed that one
Slide 28: Material Contracts: Joint Owner Agreement
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 MATERIAL CONTRACTS Joint Owner Agreement CMA will enter into a joint owners agreement (Joint Owner Agreement) with the Vendor of the First Component which will operate after completion of the purchase of the First Compone
Slide 29: Material Contracts: Cost Recovery Deed
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 MATERIAL CONTRACTS Cost Recovery Deed CMA will acquire its 50% interest in 201 Pacific Highway, St Leonards directly as a tenant in common. CCL has entered into a 6 month put and call arrangement to acquire the remaining
Slide 30: Appendix D
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 Section 5 Appendix D
Slide 31: Key Risks: Acquisition risks
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 KEY RISKS Acquisition risks CMA may suffer losses if: • CMA fails to complete the acquisition of the First Component, which would result in CMA forfeiting the 5% deposit of $4.8 million it has already paid (and CMA would
Slide 32: Key Risks: Market risks
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 KEY RISKS Market risks Investors should be aware that the market price of CMA Securities and the future distributions made to CMA Securityholders may be influenced by a number of factors that are common to most listed inv
Slide 33: Key Risks: Insurance and force majeure
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 KEY RISKS Insurance A-REITs purchase insurance, customarily carried by property owners, managers, developers and construction entities, which provides a degree of protection for their assets, liabilities and people. Such
Slide 34: Key Risks: Returns from investment
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 KEY RISKS Returns from investment Returns from property investment assets largely depend on the rental income generated from the property and the expenses incurred in the operation of that property, including the manageme
Slide 35: Appendix E
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 Section 5 Appendix E
Slide 36: Offer Jurisdictions
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 OFFER JURISDICTIONS This document does not constitute an offer of new securities ("Securities") of CMA in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person,
Slide 37: Disclaimer
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 DISCLAIMER This presentation has been prepared by Centuria Property Funds Limited (ABN 11 086 553 639) (CPFL or Responsible Entity) as responsible entity of Centuria Metropolitan REIT (ARSN 124 364 718) (CMA or REIT). All
Slide 38: Disclaimer
CENTURIA METROPOLITAN REIT I Investor presentation I CMA:ASX I 5 December 2017 DISCLAIMER An investment in CMA securities is subject to investment and other known and unknown risks, some of which are beyond the control of CPFL. CPFL does not guarantee any particular rate of return on the performance
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