Hammerson Plc · LSE:HMSO
Hammerson — Merger or Acquisition (September 2015)
21 slides from Hammerson's merger presentation, Sep 29, 2015
Slide 1: Hammerson: retail real estate specialists – Market-leading platform in Ireland
Hammerson: retail real estate specialists Market-leading platform in Ireland 29 September 2015
Slide 2: Major new platform of high quality retail real estate in Europe's fastest growing economy
Major new platform of high quality retail real estate in Europe’s fastest growing economy Strategic acquisition of loan portfolio secured against market-leading Dublin retail mall portfolio for €1.85 billion • Opportunity to become Ireland’s leading retail property owner • Joint venture with Allianz
Slide 3: Acquisition in line with Hammerson's strategy
Acquisition in line with Hammerson’s strategy Hammerson strategy Transaction rationale Premium retail and leisure space, minimal vacancy, high reversionary potential High quality retail Positioned to deliver long-term resilient rental growth Incremental 2.2 million sq ft of retail and leisure,
Slide 4: Ireland offers fastest GDP growth in Eurozone
Ireland offers fastest GDP growth in Eurozone Real GDP growth: Strong growth is returning to Ireland(1) 1. Compelling macro indicators • GDP growth rate of +5% in 2014 & 15F 6% 4% • Unemployment is falling, fiscal deficit continues to narrow 2% and public debt is on a downward path 0% (2%) Real GDP
Slide 5: Pick up in prime rents in Dublin, but with considerable capacity for further reversion
Pick up in prime rents in Dublin, but with considerable capacity for further reversion Highest forecast rental growth in Europe(1) Considerable capacity for retail rental growth in Dublin (2) Change in Retail Property Capital Values, Q1 2015H – Q4 2019F Dublin Retail Property, Zone A Rent (€/m2) Dub
Slide 6: Platform encompasses key retail centres in Dublin
Platform encompasses key retail centres in Dublin Central Swords Pavilions Development Airport Site Ilac Jervis Blanchardstown Centre M50 Parliament Square M50 M50 Ilac Liffey Valley Dublin Central Development Site Jervis The central sites are located close to the prime retail streets of Dublin Dund
Slide 7: 2.2 million sq ft of prime space and sustainable development opportunities
2.2 million sq ft of prime space and sustainable development opportunities Contracted rent (1) Hammerson portfolio (2) Ultimate Hammerson / Allianz 50:50 JV 5% 1% 11% 17% 66% Dundrum Town Centre Dundrum Phase 2 Development Site Dundrum Swords Pavilions Ilac Shopping Centre Dublin Central Development
Slide 8: Dundrum Town Centre: Ireland's premier retail and leisure destination
Dundrum Town Centre: Ireland’s premier retail and leisure destination • Award-winning Irish retail destination, located 5km Area south of Dublin city centre, opened in 2005 1.5 million sq ft • 120 shops, 38 restaurants, 12 screen VIP cinema and 3,400 parking spaces Catchment • Attracts prominent glo
Slide 9: Applying Hammerson's depth of expertise and wide-reaching tenant relationships to drive value
Applying Hammerson’s depth of expertise and wide-reaching tenant relationships to drive value Rising Dublin prime headline rents support Selection of retailers in Hammerson portfolio not reversion potential at Dundrum (1) yet represented at Dundrum 7,000 Hugo Boss 6,000 & Other Stories 5,000 € PSF Z
Slide 10: Financial details of transaction
Financial details of transaction EUR GBP (1) JV loan purchase price €1.85 billion £1.37 billion Initial loan acquisition Hammerson share €0.93 billion £0.69 billion Upon Hammerson overall cost of property property €1.23 billion £0.91 billion ownership portfolio(2) • Underlying property assets have i
Slide 11: Clear financing strategy and programme of capital recycling
Clear financing strategy and programme of capital recycling Funding plan Impact on LTV (%) • Consideration €1.23 billion (£0.91 billion) 45% 40% LTV guidance 40% 38% • Existing financial resources 36% 35% 33% • Bridge facility of €1.0 billion (£0.74 billion), repayable within 18 months, to be refina
Slide 12: Conclusion
Conclusion Strategic acquisition of loan portfolio secured against market- leading Dublin retail mall portfolio for €1.85 billion Dundrum shopping centre is an exceptional 1.5 million sq ft super-prime retail asset with significant rental reversion potential Gain exposure to fast-growing consumer ec
Slide 13: Appendix I
Appendix I NAMA overview 14 Dundrum Town Centre – floor plans 15 Further details on collateral assets 16-19 Proforma portfolio analysis 20 13
Slide 14: NAMA
NAMA Background • Established in 2009 by the Irish Government to address the Irish banking system crisis • Acquired c.12,000 loans (with c.60,000 properties as security) with a nominal value of over €74.2 billion • In purchasing these loans NAMA has issued senior and subordinated debt of €31.8bn Key
Slide 15: Dundrum Town Centre Floor Plans
Dundrum Town Centre Floor Plans 1 2 3 15
Slide 16: Dundrum Phase 2 development
Dundrum Phase 2 development Large strategic development located adjacent to Dundrum Town Centre • Site lies within the ‘MTC – Major Town Land Area Centre’, and is fully zoned for future 6 acres mixed-use / commercial development • Planning process estimated at 18-24 months to complete, if pursued Le
Slide 17: Swords Pavilions
Swords Pavilions Thriving convenience and well-connected shopping centre in North Dublin Investment stake • Prime location: in Swords, North Dublin, adjacent to main regional motorway 50% (1) (IPUT (25%) and Irish Life (25%)) – Over 600m of prime road frontage, allowing excellent visibility Lettable
Slide 18: Ilac Shopping Centre
Ilac Shopping Centre Situated at the heart of Dublin’s retail core Investment stake • Prime location: In the heart of Dublin’s premier shopping area on Henry Street 50% • Diverse mix of 80+ retailers and catering units, (Irish Life (50%)) with footfall supported by two large anchors (Dunnes Stores a
Slide 19: Dublin Central Development
Dublin Central Development Unique Dublin development site adjoining The Ilac Centre • Rare opportunity: One of the largest and best- Land area positioned urban development sites in Europe 5.3 acres • Prime location: Positioned at the entrance to the prime Henry Street retail area Area (inc. in curre
Slide 20: Pro-forma portfolio analysis
Pro-forma portfolio analysis Hammerson shopping centres by size Portfolio breakdown by value (pro-forma as at Shopping centre Size (m2) 30 June 2015) (1) Dundrum Town Centre, Dublin 139,900 Bullring, Birmingham 126,300 Other / Cabot Circus, Bristol 109,600 developments Highcross, Leicester 105,600 6
Slide 21: Disclaimer
Disclaimer This presentation contains certain statements that are neither financial results nor other historical information. These statements may be forward- looking in nature and are subject to risks and uncertainties. Actual future results may differ materially from those expressed or implied by