Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — Shareholder Meeting (June 2015)
38 slides from Frasers Property's shareholder meeting presentation, Jun 22, 2015
Slide 1: Frasers Commercial Trust Extraordinary General Meeting
Artist’s impression of the Hotel 357 Collins Street, Melbourne, Australia Frasers Commercial Trust Extraordinary General Meeting 22 June 2015
Slide 2: Important Notice
Important Notice 2 The information contained in this Presentation is for information purposes only, and is qualified in its entirety by, and should be read in conjunction with, the full text of a circular to Unitholders dated 3 June 2015 (the “Circular to Unitholders”). Certain statements in this Pr
Slide 3: Contents
Contents 3 I Proposed Entry into the Building Agreement for the development of the Hotel and the Grant of a Long Lease at the China Square Central Property (“China Square Central Hotel Transaction”) II Proposed Acquisition of 357 Collins Street, Melbourne, Victoria, Australia (“357 Collins Street Ac
Slide 4: I China Square Central Hotel Transaction
I China Square Central Hotel Transaction
Slide 5: Contents: China Square Central Hotel Transaction
Contents 5 5 I China Square Central Hotel Transaction Overview of the China Square Central Hotel Transaction Valuation Location of the Hotel Rationale and Benefits
Slide 6: Overview of the China Square Central Hotel Transaction
Overview of the China Square Central Hotel Transaction 6 6 FCOT(1) proposes to enter into a building agreement with FHCS Trustee(2) to enable FHCS Trustee to undertake the development of a 16 storey Hotel with 16,000 sq m of Additional GFA (“Hotel”) and Commercial Project at China Square Central
Slide 7: Overview of the China Square Central Hotel Transaction
Overview of the China Square Central Hotel Transaction 7 Certain spaces at China Square Central will be relocated to new spaces due to the Hotel Project An estimated 1,081 sq m of new lettable spaces to be created at China Square Central under the Commercial Project with better frontage and vi
Slide 8: Overview of the China Square Central Hotel Transaction - Valuation
Overview of the China Square Central Hotel Transaction - Valuation 8 Hotel Consideration of S$44.8 million is in line with the independent valuations(1) S$45.0 mil S$44.8 mil S$44.6 mil Colliers' valuation Savills' valuation Hotel Consideration Taking into account: Appraised values as at 20 Ap
Slide 9: China Square Central Hotel Transaction – Location of Hotel
China Square Central Hotel Transaction – Location of Hotel 9 16 storey Hotel to be constructed over the existing open square between 20 and 22 Cross Street and in front of 18 Cross Street 2 Upon completion, 3 the Hotel would be assigned its own separate strata lot for the Leasehold 2 Term (1) 1 1
Slide 10: China Square Central Hotel Transaction – Location of Hotel
China Square Central Hotel Transaction – Location of Hotel 10 Hotel China Square Central Hotel Artist’s impression of the Hotel Artist’s impression of the Hotel is subject to changes.
Slide 11: China Square Central Hotel Transaction – Rationale and Benefits
China Square Central Hotel Transaction – Rationale and Benefits 11 Rationale Enhance and create a more vibrant retail, entertainment and hospitality destination Crystalise the value of the Additional GFA Consistent with the proactive asset management strategies of FCOT FCL is a full-fledge
Slide 12: China Square Central Hotel Transaction – Rationale
China Square Central Hotel Transaction – Rationale 12 Enhance and create a more vibrant retail, entertainment and hospitality destination Hotel to further rejuvenate and enhance vibrancy and liveliness of China Place Raise the profile of China Square Central as an integrated development, compr
Slide 13: China Square Central Hotel Transaction – Rationale
China Square Central Hotel Transaction – Rationale 13 FCL is a full-fledged international real estate company with an established track record Multi-segment capabilities across residential, commercial, Listed on the Main Board of SGX- industrial and hospitality properties ST Management exper
Slide 14: China Square Central Hotel Transaction – Benefits
China Square Central Hotel Transaction – Benefits 14 Realise the value of S$44.8 mil Hotel Consideration to paid in cash to FCOT is approx. 7.7% the Additional GFA of the value of China Square Central(1) Further rejuvenation to create a vibrant retail and hospitality destination Further rejuve
Slide 15: II 357 Collins Street Acquisition
II 357 Collins Street Acquisition
Slide 16: Contents: 357 Collins Street Acquisition
Contents 16 II 357 Collins Street Acquisition Overview of 357 Collins Street Valuation Rationale and Benefits Proposed Financing Structure
Slide 17: Overview of 357 Collins Street
Overview of 357 Collins Street 17 357 Collins Street - Grade A office located in the heart of the Melbourne CBD Description 25 storey office building with Grade A specifications Tenure Freehold NLA 31,920 sqm (30,095 sq m office; 1,825 sq m retail) Purchase Consideration A$222.5 million Vendor Aus
Slide 18: Overview of 357 Collins Street
Overview of 357 Collins Street 18 357 Collins Street has a diversified tenant base comprising of well-established corporations and multinational corporations Trade sector mix by gross rental income as at 31 March 2015
Slide 19: 357 Collins Street – Valuation
357 Collins Street – Valuation 19 Purchase consideration of A$222.5 million is in line with the independent valuations(1) The valuations take into consideration that Australand Holdings Limited(2) will bear all outstanding incentives granted by the Vendor Australand Holdings Limited will reimb
Slide 20: 357 Collins Street – Rationale and Benefits
357 Collins Street – Rationale and Benefits 20 Rationale and benefits Strategic addition of a Grade A office in the heart of the Melbourne CBD Enhance FCOT’s overall portfolio Accretive transaction Consistent with the Manager’s strategy Increased trading liquidity and investor interest
Slide 21: Grade A office in the heart of Melbourne CBD
357 Collins Street Acquisition – Grade A office in the heart of Melbourne CBD 21 Grade A specifications and well served by amenities Food hall at lower ground floor Retail tenant Office lobby Modern lobby with contemporary façade Upper floors have attractive views of Yarra River and Southbank
Slide 22: Strategic location with good connectivity
357 Collins Street Acquisition – Grade A office in the heart of Melbourne CBD 22 Strategic location with good connectivity Collins Street is regarded as a prime office location in the Melbourne CBD Well established pedestrian, vehicle and public transport access Within walking distance to:
Slide 23: Well-established and quality tenants
357 Collins Street Acquisition – Grade A office in the heart of Melbourne CBD 23 Well-established and quality tenants High occupancy rate of 95.0%(1) Commonwealth Bank of Australia One of the ‘Big Four’ Australian banks Listed on the Australian Stock Exchange (ASX) Wilson HTM Services Pty
Slide 24: Long WALE of 6.0 years provides income stability
357 Collins Street Acquisition – Grade A office in the heart of Melbourne CBD 24 Long WALE of 6.0 years provides income stability No leases expiring until FY2018 Increase the WALE of FCOT’s existing portfolio from 3.5(1) to 3.9 years Lease expiry by gross rental income of 357 Collins Street as
Slide 25: Maiden entry into the Melbourne CBD office market
357 Collins Street Acquisition – Enhance FCOT’s overall portfolio 25 Maiden entry into the Melbourne CBD office market Expand FCOT’s Australian footprint to 3 cities Northern Territory Queensland Western Australia South Australia New South Wales Central Park, Perth Caroline Victoria Chisholm Cen
Slide 26: Gain exposure into the Melbourne CBD office market
357 Collins Street Acquisition – Enhance FCOT’s overall portfolio 26 Gain exposure into the Melbourne CBD office market and benefit from the future growth of Melbourne Melbourne CBD is the second largest office market in Australia Stronger growth outlook in net absorption Prime gross effecti
Slide 27: Enlarge FCOT's existing portfolio and greater income diversification
357 Collins Street Acquisition – Enhance FCOT’s overall portfolio 27 Enlarge FCOT’s Existing Portfolio and greater income diversification FCOT’s portfolio size will increase 14.2% from S$1.8 billion to S$2.0 billion 357 Collins Street will contribute 12.8% of Enlarged Portfolio’s forecast NPI
Slide 28: Leases with fixed annual increments provide organic growth
357 Collins Street Acquisition – Enhance FCOT’s overall portfolio 28 Leases with fixed annual increments provide organic growth and stable income 97.1% of leases at 357 Collins Street have fixed annual increments between 3.75% to 4.00% In FY2016, average fixed annual increment for 357 Collins
Slide 29: 357 Collins Street Acquisition – Accretive transaction
357 Collins Street Acquisition – Accretive transaction 29 Unitholders can expect to see higher DPU Leases with average fixed annual increment of 3.9% in FY16 will increase DPU further Forecast DPU for 4Q2015(cents) (1,2) Annualised Yield for FY2015(%) 0.02% 0.8% 3.9% average fixed annual incre
Slide 30: Increased trading liquidity and investor interest
357 Collins Street Acquisition – Rationale and benefits 30 Consistent with the Manager’s strategy to build a strong and balanced portfolio of quality commercial properties Deliver stable and sustainable distribution to Unitholders Increased trading liquidity and investor interest FCOT Free F
Slide 31: Proposed financing structure
357 Collins Street Acquisition – Proposed financing structure 31 357 Collins Street Acquisition will be funded by a combination of debt and equity financing to provide DPU accretion while maintaining an optimum gearing level 357 Collins Street Acquisition Purchase Consideration: A$222.5m Total Acq
Slide 32: III Proposed Placement of New Units to the FCL Group
III Proposed Placement of New Units to the FCL Group
Slide 33: Proposed Placement of New Units to the FCL Group
Proposed Placement of New Units to the FCL Group 33 Proposed Placement of New Units to the FCL Group under the Private Placement To demonstrate the alignment of interest and support of the FCL Group for FCOT, the Manager is seeking Unitholders’ approval for the proposed issue of New Units to the
Slide 34: IV Illustrative Pro Forma Financial Effects
IV Illustrative Pro Forma Financial Effects
Slide 35: Illustrative pro forma financial effects
Illustrative pro forma financial effects 35 Pro forma DPU (1) (S$ cents) Pro forma Gearing (%) (2) Unitholders can expect to see a higher Gearing to remain below 40% DPU 4.0% 1.6% 1) The pro forma financial effects on DPU for FY2014, as if the proposed transaction(s) was/were entered into on 1 Oct
Slide 36: V Extraordinary General Meeting
V Extraordinary General Meeting
Slide 37: Summary of Extraordinary General Meeting Resolutions
Summary of Extraordinary General Meeting Resolutions 37 The Proposed Entry into the Building Agreement for the Resolution 1 Development of the Hotel and the Grant of a Long Lease at the China Square Central Property The Proposed Acquisition of 357 Collins Street, Melbourne, Resolution 2 Victor
Slide 38: Thank you
Thank you Frasers Centrepoint Asset Management (Commercial) Limited Level 21 | 438 Alexandra Road | Alexandra Point | Singapore 119958 Tel: +65 6276 4882| Fax: +65 6276 8942| Email: fcot@fraserscentrepoint.com www. fraserscommercialtrust.com
Frasers Commercial Trust — Shareholder Meeting (June 2015) on 6ix