Stoneweg European Stapled Trust · SGX:SEB
Stoneweg European Stapled Trust — Cromwell European REIT — Shareholder Meeting (November 2018)
42 slides from Stoneweg European Stapled Trust's shareholder meeting presentation, Nov 15, 2018
Slide 1: Cromwell European REIT Extraordinary General Meeting Presentation
CROMWELL EUROPEAN REIT EXTRAORDINARY GENERAL MEETING PRESENTATION 15 NOVEMBER 2018
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumpti
Slide 3: Contents
Contents 1 Overview 2 Proposed Acquisition 3 Benefits of the Overall Transaction 4 Rights Issue and Pro Forma Financial Effects 5 Appendix A – The Proposed Acquisition at a Glance 6 Appendix B – Italian Acquisition and French Acquisition at a Glance 7 Appendix C – Benefits of the Italian Acquisition
Slide 4: Overview
CROMWELL EUROPEAN REIT SECTION 1 Overview CROMWELL EUROPEAN REIT
Slide 5: Existing Portfolio
Existing Portfolio Haagse Poort De Ruijterkade Hørskætten 5 Bischofsheim (An der Steinlach) Parc Des Grésillons Naverland 7-11 The Hague, The Netherlands Amsterdam, The Netherlands Copenhagen, Denmark Frankfurt, Germany Paris, France Copenhagen, Denmark Milano Piazza Affari Naverland 8 Parc Delizy C
Slide 6: New Properties (subject to unitholders' approval)
New Properties (subject to unitholders’ approval) Moeder Teresalaan 100-200 Willemsplein 2-4 Riverside Grojecka 5 Arkonska Business Park Utrech, The Netherlands ‘s-Hertogenbosch, The Netherlands Warsaw, Poland Warsaw, Poland Gdansk, Poland Plaza Vivace Liiketalo Myyrinraitti Plaza Forte Pakkalan Kar
Slide 7: Italian and French Properties (not subject to unitholders' approval)
Italian and French Properties (not subject to unitholders’ approval) 46-48 boulevard Dequevauvilliers 105 route d’Orléans ZI du Papillon Rue Charles Nicolle Gennevilliers, France Sully-sur-Loire, France Parcay-Meslay, France Villeneuve-lès-Béziers, France 54 avenue de Savigny Corso Lungomare Trieste
Slide 8: Overview: New Properties
Overview Acquisition of 3 portfolios of 23 properties to be funded by Rights Issue and Debt Financing 1. New Properties 16 Predominantly Office Properties €315.9 million Valuation(1) 6.2% Net Initial Yield(2) 7.4% Reversionary Yield(3) 100% Freehold or freehold-equivalent 4.7 years WALE 84.5% Occupa
Slide 9: Overview: Italian and French Properties
Overview Acquisition of 3 portfolios of 23 properties to be funded by Rights Issue and Debt Financing 2. Italian Properties 3. French Properties 2 Office 4 Logistics Properties Properties €37.5 million 1 DIY Purchase Price Home Improvement Centre 7.4% €34.4 million Net Initial Yield(1) Purchase Pric
Slide 10: Proposed Acquisition of New Properties
SECTION 2 Proposed Acquisition of New Properties 10
Slide 11: Rationale for the Proposed Acquisition
Rationale for the Proposed Acquisition 1 Consistent with the Manager’s Investment Strategy Opportunity to Invest in Attractive European Office Markets of the Netherlands, Finland 2 and Poland High Quality Portfolio Comprising Well-located and Predominantly Freehold 3 Properties 4 Portfolio Positione
Slide 12: Consistent with the Manager's Investment Strategy
1. Consistent with the Manager’s Investment Strategy Proposed Acquisition is well aligned with investment strategy and key objectives Good quality freehold and perpetual leasehold office assets Enhanced geographical diversification Objectives Enhanced tenant diversification • Delivering regular and
Slide 13: Opportunity to Invest in Attractive European Office Markets
2. Opportunity to Invest in Attractive European Office Markets of the Netherlands, Finland and Poland The acquisition will position CEREIT to benefit from attractive economic and office sector dynamics The Netherlands Finland Poland Outperformed Eurozone economic growth ▪ The Netherlands, Finland an
Slide 14: High Quality Portfolio of Well-Located, Predominantly Freehold Properties
3. High Quality Portfolio Comprising Well-Located and Predominantly Freehold Properties Strategically Located with Excellent Connectivity All on Freehold or Freehold-Equivalent Land Dynamic Cities with Very Good Accessibility to Increases Proportion of Freehold and Perpetual Leasehold Assets Major T
Slide 15: Portfolio Positioned for Long-Term Sustainable Growth
4. Portfolio Positioned for Long-Term Sustainable Growth Potential upside from rental reversions Growth upside from vacancy reduction ▪ Occupancy rate of 84.5% provides headroom for growth from vacancy reduction given strong demand for space 7.4% +18.6% Steady and relatively predictable rental growt
Slide 16: Increased Resilience from Size and Diversification of Enlarged Portfolio
5. Increased Resilience from Size and Diversification of CEREIT’s Enlarged Portfolio Enhanced Geographical Diversity ▪ Footprint expands from five countries to seven countries Enhanced Tenant Trade Sector Diversity Lower Tenant Concentration Risks ▪ Top 10 tenants’ contribution to CEREIT’s Gross Ren
Slide 17: Acquisition of New Properties at Attractive Yields
6. Acquisition of New Properties at Attractive Yields New Properties have attractive Net Initial Yield and offer further rental upside 7.4% +18.6% +0.6% 6.2% 5.6% (1) (1) (2) Net Initial Yield Net Initial Yield Reversionary Yield (Existing Office Portfolio) (New Properties) (New Properties) Notes: (
Slide 18: Leveraging the Sponsor's Integrated European Asset Management Platform
7. Leveraging the Sponsor’s Integrated European Asset Management Platform of 200 staff and 20 regional offices Sponsor’s Integrated European Asset Management Platform Locations ▪ On-the-ground asset management team across the Netherlands, Finland and Poland Helsinki ▪ Well-positioned to actively man
Slide 19: Benefits of the Overall Transaction
SECTION 3 Benefits of the Overall Transaction 19
Slide 20: Acquisitions Consistent with Investment Strategy (1/3)
Acquisitions are Consistent with CEREIT’s Investment Strategy (1/3) Enhanced Size, Scale and Deepening Presence in CEREIT’s Key Markets 75 16 7 98 French € 36.7 m € 1,780.4 m € 315.9 m Italian € 37.5 m € 1,390.4 m (1) Existing Portfolio Proposed Acquisition (2) French and Italian Properties (3) All
Slide 21: Acquisitions Consistent with Investment Strategy (2/3)
Acquisitions are Consistent with CEREIT’s Investment Strategy (2/3) Increased Diversification across 7 Countries Existing Portfolio All Portfolios Breakdown of Valuation(1)(2) by Country Breakdown of Valuation(1)(2)(3) by Country Denmark Poland 5.9% Denmark 4.0% Germany The Netherlands 4.6% 7.8% 33.
Slide 22: Acquisitions Consistent with Investment Strategy (3/3)
Acquisitions are Consistent with CEREIT’s Investment Strategy (3/3) Balanced Asset Class Exposure with Weighting Towards Attractive Office Sector Dynamics Existing Portfolio All Portfolios Breakdown of Valuation(1)(2) by Section Breakdown of Valuation(1)(2)(3) by Section Other Other 8.3% 10.1% Offic
Slide 23: CEREIT Post Acquisitions
CEREIT Post Acquisitions Unique opportunity to invest in scale and diversification across Europe 98 Properties €1,780.4 million Valuation(1) 1,385,990 Lettable Floor Area (sq m) 88.8% Occupancy Rate(2)(3) 5.0 / 4.1 years WALE / WALB(4) 90.4% Freehold(5) Notes: (1) Valuation as at 31 March 2018 for E
Slide 24: Rights Issue and Pro Forma Financial Effects
SECTION 4 Rights Issue and Pro Forma Financial Effects 24
Slide 25: Details of the Rights Issue
Details of the Rights Issue Underwritten and renounceable Rights Issue to raise gross proceeds of approximately € 224.1 million ▪ €0.373 for each Rights Unit ▪ 38 Rights Units for every 100 Units held ▪ Irrevocable undertaking for Cromwell Singapore Holdings Pte Ltd and its related corporations to s
Slide 26: Pro Forma Financial Effects
Pro Forma Financial Effects Net Property Income (€ million) Distributable Income (€ million) 10.5 61.9 3.7 8.8 51.7 47.7 2.8 40.1 Financial period Immediately after Immediately after Immediately after Financial period Immediately after Immediately after Immediately after from 30 November completion
Slide 27: New Properties
New Properties Moeder Teresalaan 100-200 Willemsplein 2-4 Riverside Grojecka 5 Arkonska Business Park Utrech, The Netherlands ‘s-Hertogenbosch, The Netherlands Warsaw, Poland Warsaw, Poland Gdansk, Poland Plaza Vivace Liiketalo Myyrinraitti Plaza Forte Pakkalan Kartanonkoski 3 Opus 1 Pakkalan Kartan
Slide 28: Cromwell European REIT Presentation
CROMWELL EUROPEAN REIT EXTRAORDINARY GENERAL MEETING PRESENTATION 15 NOVEMBER 2018
Slide 29: Appendix A: The Proposed Acquisition at a Glance
APPENDIX A The Proposed Acquisition at a Glance 29
Slide 30: Overview of the Proposed Acquisition
Overview of the Proposed Acquisition Valuation by Valuation Purchase LFA WALE Occupancy No. Property Land Tenure C&W by Colliers Price (sq m)(1) (years)(3) Rate (%)(4) (€ m)(2) (€ m)(2) (€ m) The Netherlands Leasehold plot 1 Moeder Teresalaan 100-200, Utrecht acquired in 21,922 50.1 51.5 50.7 6.3 86
Slide 31: Overview of the Proposed Acquisition (The Netherlands)
Overview of the Proposed Acquisition (The Netherlands) Moeder Teresalaan Willemsplein 2 Located in the Paleiskwartier CBD of Den Bosch, a key Key Information In close proximity to the CBD and the Utrecht Central Station office district outside of the Randstad conurbation Title Leasehold (acquired in
Slide 32: Overview of the Proposed Acquisition (Finland)
Overview of the Proposed Acquisition (Finland) Plaza Vivace Plaza Allegro Plaza Forte Pakkalan Kartanonkoski 3 Key Information Business Park developments in Helsinki Metropolitan Area; in close proximity to Helsinki Airport Title Freehold Freehold Freehold Freehold Address Äyritie 8c, Vantaa Äyritie
Slide 33: Overview of the Proposed Acquisition (Finland)
Overview of the Proposed Acquisition (Finland) Pakkalan Kartanonkoski 12 Grandinkulma Liiketalo Myyrinraitti Business Park development in close proximity Located in the main commercial hub and Adjacent to a large shopping centre and Key Information to Helsinki Airport and Jumbo Shopping Centre regio
Slide 34: Overview of the Proposed Acquisition (Finland)
Overview of the Proposed Acquisition (Finland) Kuopion Kauppakeskus Opus 1 Mäkitorpantie 3 Purotie 1 Close to the main market square Located next to the main road and Close to the Käpylä train station Located in a key office location Key Information in the city centre of Kuopio near a Metro train st
Slide 35: Overview of the Proposed Acquisition (Poland)
Overview of the Proposed Acquisition (Poland) Riverside Grojecka 5 Arkonska Business Park Close to the Warsaw city centre and at the Close to the CBD and on a key street Close to Gdansk International Fair Co. and Key Information crossroads of two important highways connecting the motorway University
Slide 36: Appendix B: Italian and French Acquisition at a Glance
APPENDIX B Italian Acquisition and French Acquisition at a Glance 36
Slide 37: Overview of the Italian Properties
Overview of the Italian Properties Bari Genova Master lease to Agenzia delle Entrate under a master lease to Key Information Master leased to Agenzia del Demanio (Italian government) Agenzia del Demanio Title Freehold Freehold Address Corso Lungomare Trieste N.23, Bari Via Camillo Finocchiaro Aprile
Slide 38: Overview of the French Properties
Overview of the French Properties Gennevilliers Sully-sur-Loire Parcay Meslay Villeneuve-lès-Béziers Aulnay-sous-Bois DIY Home Improvement big Large scale logistic asset Large scale logistic asset Large scale logistic asset Large scale logistic asset Key Information box retail asset located in locat
Slide 39: Appendix C: Details of the Italian and French Acquisition
APPENDIX C Details of the Italian Acquisition and French Acquisition 39
Slide 40: Acquisition of Italian Properties
Acquisition of Italian Properties Overview Key Benefits No. of Properties ▪ 2 office properties Enlarged Portfolio with Additional Cash Flow Visibility and Stability ▪ Master leased to Agenzia del Demanio, the Italian government agency in charge ▪ Freehold properties master-leased to government- of
Slide 41: Acquisition of French Properties
Acquisition of French Properties Overview Key Benefits ▪ 4 logistics properties Enlarged Portfolio with Increased Exposure to Greater Paris No. of Properties ▪ 1 DIY home improvement centre ▪ Increases CEREIT’s exposure to attractive Greater Paris logistics market ▪ Well located along strategic Fren
Slide 42: Thank You
Thank You If you have any queries, kindly contact: Cromwell EREIT Management Pte. Ltd., Chief Operating Officer & Head of Investor Relations, Ms Elena Arabadjieva at elena.arabadjieva@cromwell.com.sg
Cromwell European REIT — Shareholder Meeting (November 2018) on 6ix