Goodman Group · ASX:GMG
Goodman — Investor Presentation (October 2007)
146 slides from Goodman's investor presentation, Oct 11, 2007
Slide 1: ASX cover letter: European Strategy Presentation
11 October 2007 For personal use only The Manager Company Notices Section Australian Securities Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir GOODMAN GROUP (“GOODMAN’) EUROPEAN STRATEGY PRESENTATION Please find attached the presentation given to Investors today. Yours si
Slide 2: European Strategy Presentation
For personal use only European Strategy Presentation 11 October 2007
Slide 3: Content
Content For personal use only + 01 – Introduction + 02 – Market Overview + 03 – Business Parks Introduction + 04 – UK Business Parks + 05 – European Business Parks + 06 – Goodman Property Investments + 07 – UK Logistics + 08 – European Logistics + 09 – Funds Management 11 October 2007 1
Slide 4: European Business Welcome
For personal use only European Business Welcome Michael O’Sullivan 11 October 2007
Slide 5: Introduction
Introduction For personal use only + Active in Europe since 2005 + Team of 450 people + Operating under global brand + 5 key businesses + Operating under common business ethos Logistics Business Parks UK √ √ GPI (Global) Europe √ √ Introduction 11 October 2007 3
Slide 6: European market overview
For personal use only European market overview Andrew Smith 11 October 2007
Slide 7: European economic overview
European economic overview For personal use only + Business investment and exports buoyant + Consumer prosperity still increasing + Inflation running below target + Headwinds from credit crunch + Interest rates have peaked 11 October 2007 5
Slide 8: Sharp slowdown in UK returns
Sharp slowdown in UK returns… For personal use only 30 25 3 month return annualised (%) 20 15 10 5 0 -5 Nov-04 Feb-05 May-05 Nov-05 Feb-06 May-06 Nov-06 Feb-07 May-07 Aug-04 Aug-05 Aug-06 Aug-07 All Property Retail Office Industrial Source: Goodman, IPD Monthly Index, August 2007 11 October 2007 6
Slide 9: Despite continued rental growth in all sectors
…despite continued rental growth in all sectors… For personal use only 10 8 3 month change annualised (%) 6 4 2 0 -2 Nov-04 Feb-05 May-05 Nov-05 Feb-06 May-06 Nov-06 Feb-07 May-07 Aug-04 Aug-05 Aug-06 Aug-07 All Property Retail Office Industrial Source: Goodman, IPD Monthly Index, August 2007 11 Oct
Slide 10: Still robust business confidence
…and still robust business confidence For personal use only 4.0 60 Business confidence index 3.5 % annual change in GDP 57 3.0 2.5 54 2.0 51 1.5 1.0 48 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2002 2003 2004 2005 2006 2007 GDP Business activity survey Source: Reuters E
Slide 11: Why the sudden slowdown?
Why the sudden slowdown? For personal use only + Long term structural re-pricing stalled + UK ahead of the European curve + UK institutions looking overseas + Pricing stretched, indiscriminate and vulnerable to shocks + Credit crunch provided the trigger + Seasonal timing didn’t help + Short, sharp
Slide 12: UK: shifting balance of investor activity
UK: shifting balance of investor activity For personal use only 5 4 Net investment (billions) 3 2 1 0 -1 -2 Q2 00 Q2 01 Q2 02 Q2 03 Q2 04 Q2 05 Q2 06 Q2 07 Institutions Overseas Investors Source: Propertydata 11 October 2007 10
Slide 13: UK REITs have had an inauspicious start
UK REITs have had an inauspicious start For personal use only 110 105 100 Index (1 Jan 2007 = 100) 95 90 FTSE REIT Index 85 FTSE All-Share 80 75 70 Mar-07 May-07 Apr-07 Jan-07 Feb-07 Aug-07 Sep-07 Jun-07 Jul-07 Source: Reuters EcoWin, Goodman 11 October 2007 11
Slide 14: UK REIT yields look too low
UK REIT yields look too low For personal use only UK France Netherlands Singapore REIT Yield Japan Bond Yield Australia US Canada 0 1 2 3 4 5 6 7 % Source: AME Capital / Goodman Figures at Q2 07 11 October 2007 12
Slide 15: European office yields: contrasting trends
European office yields: contrasting trends Comparison of yields Q1 and Q3 2007 For personal use only 8 7 Bordeaux Lille Nantes Rising Antw erp Marseille Toulouse Yield Q3 07 (% p.a.) Rotterdam Eindhoven 6 Lyon Lisbon Bratislava Gothenburg Reading Malmo Berlin Athens Amsterdam Leeds Helsinki Turin 5
Slide 16: European outlook: key themes
European outlook: key themes For personal use only + UK ‘short, sharp correction’ + Later and more muted in continental Europe + Buyers will be more selective: ex-growth and secondary markets vulnerable + Further yield convergence - Cross-border activity - ‘Institutionalising’ of provincial markets
Slide 17: Forecast year returns from Q3
Forecast 3 year returns from Q3 07 Total return (% p.a.) For personal use only 0 2 4 6 8 10 12 14 Norw ay Finland Portugal France Italy Spain Netherlands Sw eden Netherlands Netherlands Italy Spain Germany France Germany France Italy Sw eden United Kingdom Portugal Spain Ireland Portugal Retail Germ
Slide 18: European office markets strengthening
European office markets strengthening For personal use only London Madrid Barcelona Dublin Stockholm Oslo Helsinki Provincial France Paris MARKET MARKET EQUILIBRIUM EQUILIBRIUM SE UK Warsaw Munich Moscow Lisbon Zurich Milan Vienna Athens Amsterdam Berlin Brussels Frankfurt Prov.UK strong growth slow
Slide 19: Retail: still significant mispricing opportunities
Retail: still significant mispricing opportunities For personal use only 7 Barcelona 6 Valencia Amsterdam Dublin 5 Lille Marseille Rome Strasbourg Rental growth (% p.a.) Stockholm Nantes 4 Paris Warsaw Oslo Lisbon Copenhagen 3 Reading Dusseldorf Genoa Edinburgh Malmo London: Oxford St 2 Luxembourg G
Slide 20: Logistics market issues
Logistics market issues For personal use only Opportunities + Supply restrictions in existing hub locations + Redevelopment of strategic sites + New hubs emerging, especially in eastern Europe + Innovation and multimodality + Real estate outsourcing Risks + Speculative oversupply + Low cost competit
Slide 21: Logistics market yield convergence
Logistics market yield convergence For personal use only Yield (%) 2 3 4 5 6 7 8 9 10 11 Bucharest Athens Marseille Berlin Lisbon Bratislava Stuttgart Budapest Prague Munich Frankfurt Hamburg Warsaw Rome Milan Brussels Paris Madrid Rotterdam Barcelona Q3 05 Schiphol Manchester Q3 06 Birmingham Londo
Slide 22: Logistics market performance drivers
Logistics market performance drivers For personal use only 0.60 0.50 Losers Glasgow Leicester Growth 0.40 Leeds Birmingham Warsaw dependent 0.30 Manchester Prague 0.20 London: Heathrow Budapest 0.10 Berlin Hamburg Yield shift 5y (%) 0.00 Frankfurt Schiphol Dublin Athens Brussels Vienna Dusseldorf Lu
Slide 23: European investors are still looking to expand
European investors are still looking to expand How much will you invest over the next 12 months compared with the last 12? For personal use only 100% 80% 60% Less Same 40% More 20% 0% Q3 01 Q3 02 Q3 03 Q3 04 Q3 05 Q3 06 Q3 07 Source: Property Market Analysis 11 October 2007 21
Slide 24: Investor intentions by country / sector
Investor intentions by country / sector For personal use only Net responses -60% -40% -20% 0% 20% 40% 60% 80% Nordics Germany CEE France Office Retail Italy Benelux Iberia UK / Ireland Source: Property Market Analysis 11 October 2007 22
Slide 25: Investor trends and opportunities
Investor trends and opportunities For personal use only Growing importance: + Cross-border (direct and indirect) + Indirect unlisted + Listed real estate securities + CMBS + Derivatives and swaps Reducing importance: + Domestic-only investment + Direct-only mandates 11 October 2007 23
Slide 26: Thank you / Important Notice
For personal use only thank you+ 11 October 2007 Important Notice This presentation has been prepared by Goodman Group (Goodman International Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL 223621) as the Responsible Entity for Goodman Industrial Trust (A
Slide 27: Business Parks
For personal use only Business Parks Jeff Pulsford Jim Johnston Rob Wilkinson 11 October 2007
Slide 28: Overview
Overview For personal use only + Industry leader + Scale – Facilitates Own, Develop, Manage model – Differentiated offering for customers and Investors – Customer services relationship – Economies of scale + Specialised professional staff 11 October 2007 26
Slide 29: Business Parks
Business Parks For personal use only UK EuroZone Total Fund Arlington Business Parks Goodman European Partnership (ABPP) Business Parks Fund (GEBPF) Assets Under £1.9bn €0.4bn AUS$ 5.3bn Management Gearing 50% 47% N/A Number of Sites 22 6 28 Staff 121 38 159 GMG Cornerstone £155m €4.1m AUS$ 387m 11
Slide 30: UK Business Parks highlights
UK Business Parks For personal use only Highlights so far this year: + Extension of management agreement to 2020 from 2013 + £1.2bn debt re-finance completed + Annualised performance since inception of 25% + Major turn-keys and significant pre-lets achieved 11 October 2007 28
Slide 31: UK Business Parks key issues and objectives
UK Business Parks For personal use only Key Issues and Objectives: + Complete Equity Raising + Acquire further sites to complete network + Development land of 8m sq ft + Strategic planning initiatives (up to 4m sq ft) + Sustainability + Maintain pre-eminent position as leader in Business Parks 11 Oc
Slide 32: European Business Parks highlights
European Business Parks For personal use only Highlights so far this year: + New management team in place – teams established in France & Spain + Completion of first phase and first lettings in Barcelona + Upturn in activity in Val d’ Europe, France + Continued good letting activity in Madrid + Comp
Slide 33: European Business Parks key issues and objectives
European Business Parks For personal use only Key Issues and Objectives: + Turn promising pipeline of new site acquisitions into reality + Set up team in Germany which will leave 3 local teams in the 3 most important markets – Benelux? – Italy? + Transfer of Airpark de Paris to fund + Carry out equi
Slide 34: UK Business Parks
For personal use only UK Business Parks Jim Johnston 11 October 2007
Slide 35: Goodman UK Business Parks
Goodman UK Business Parks For personal use only + Primary Focus – UK Business Parks Fund (ABPP) – Core+ Wholesale Fund – Co-Investment with Investors (GMG 20% Cornerstone) – Fees combination of Base and Performance + Direct Investment – Colworth JV with Unilever and E3 site in Edinburgh Hatfield Bus
Slide 36: Oxford
Oxford For personal use only + Site Area 107 acres + Developed to date 1.256m sq ft + Under Construction 0 + To be Developed 379,000 sq ft + Occupiers 44 + Population 4,799 + Fund Value £219m UK Business Parks 11 October 2007 34
Slide 37: Hatfield
Hatfield For personal use only + Site Area 800 acres + Developed to date 3.5 million sq ft and 72 acres of residential development + Under Construction 344,000 sq ft + To be Developed 760,000 sq ft. + Occupiers 25 + Population 10,000 + Fund Value £240m UK Business Parks 11 October 2007 35
Slide 38: UK Business Parks Market
UK Business Parks Market For personal use only + Business Parks now an asset class in their own right + Broad cross section of occupiers + London and SE expected to see strongest employment growth over next 10 years + Occupier Demand – Driven by corporate consolidation, business efficiency, quality
Slide 39: UK Business Parks Market: landbank advantage
UK Business Parks Market + Landbank creates the key competitive advantage For personal use only – Planning system restrictive and expensive + Fragmented Ownership – Majority of ownership is regional / local – Value in having a truly national operator – Utilise network for repeat business + Rents at
Slide 40: Goodman UK Business Parks: market leader
Goodman UK Business Parks For personal use only + Market Leader + Largest Goodman managed Fund + ABPP Largest UK Office Fund - + Long term investment and £1.91bn development mix – core+ + Fund growth 2003/6 129% + Fund life extended from 2013 to 2020 + 3rd Largest specialist UK Fund in all sectors G
Slide 41: UK Business Parks market share
Goodman UK Business Parks market share For personal use only 16 14 12 Capital value (£bn) 10 8 6 4 2 0 2003 2004 2005 2006 ABPP S&P Business Parks IPD office parks IPD offices outside Greater London (fund benchmark) 2003 2006 S&P Business Park 22% 44% IPD Office Parks 15% 23% IPD Offices outside Gre
Slide 42: Goodman UK historic total returns
Goodman UK historic total returns For personal use only Ungeared Geared Benchmark Out Performance 2004 13.4 20.2 13.5 6.7 2005 23.2 39.2 17.7 21.5 2006 17.8 25.6 18.0 7.6 2007 (to June) 5.2 7.5 4.4 3.1 + Consistently outperformed Benchmark + Partners geared return since launch 25% pa + Reviews drive
Slide 43: ABPP Investment Portfolio
ABPP Investment Portfolio Investment For personal use only Top Ten Highest Rental Commitments + Modern prime office portfolio Rent £m pa % of Total + Sale non core assets – post Akeler Verizon UK Ltd 10.36 13.5% T-Mobile UK Ltd 9.48 12.3% NATS (En Route) Public 4.58 6.0% + Weighted average lease Lim
Slide 44: Reading International
Reading International For personal use only + Verizon UK HQ + Speculative – let during construction + 478,000 sq ft + Value £186m UK Business Parks 11 October 2007 42
Slide 45: Hatfield Business Park
Hatfield Business Park For personal use only + T-Mobile UK HQ + Prelet + 464,000 sq ft + Option for further 300,000 sq ft + Temporary offices 50,000 sq ft + Value £173m UK Business Parks 11 October 2007 43
Slide 46: Solent Business Park
Solent Business Park For personal use only + National Air Traffic Services (NATS) + Phase 1 - 130,000 sq ft + Phase 2 – 130,000 sq ft + Temp offices 40,000 sq ft + Value £92m UK Business Parks 11 October 2007 44
Slide 47: Goodman UK Portfolio Matrix
Goodman UK Portfolio Matrix For personal use only Fund Value £1909m Occupier Diversity Telecom 14% Financial and 14% Business Service 5% Government 12% 40% Investment 7% Development Pharmaceutical 74% Land 9% IT 25% Other UK Business Parks 11 October 2007 45 29 June 2007 45
Slide 48: Goodman UK Portfolio Matrix
Goodman UK Portfolio Matrix For personal use only 12 Business Park Network Geographic Distribution 15 4% 8% 18 4% South East London 10 East 9% 44% 22 13 Midlands South West 13% 19 North 4 Scotland 18% 2 20 14 1 11 17 5 9 6 8 3 16 21 7 UK Business Parks 11 October 2007 46
Slide 49: Goodman UK Landbank
Goodman UK Landbank Land For personal use only + Context: – A land bank reduced from 11.4m sq ft in 2000 to 4.6m sq ft in 2006 + Strategy: – CBRE research + UK Economy: – Lower UK economic growth 2006 – 2016 – Slower office jobs growth except for London and the South East – Lesser role for ICT in of
Slide 50: Goodman UK Landbank
Goodman UK Landbank For personal use only + Priority areas: Consented Development Potential (gross, million sq ft) 10 – Focused approach 8.2 8 – Key targets major provincial cities and 6.6 5.9 South East/London 6 4.7 4.6 – Evolution to mixed use and Urban 4 projects 2 + Outcome 0 2003 2004 2005 2006
Slide 51: Geographic Diversity
Geographic Diversity For personal use only 4% 6% 4% South East 27% 1 London 11% East Midlands South West 10% 38% North Scotland Future Locations 1 Edinburgh 2 Cambridge + Additional sites secured by option for up to 3 2 4m sq ft 3 Milton Keynes 4 5 4 Cardiff 6 + Realise value through planning – in h
Slide 52: Recent Land Banking Acquisitions: Ventureast
Recent Land Banking Acquisitions For personal use only + Ventureast, Birmingham + 1m sq ft mixed use + Edge CBD location + JV with Birmingham City Council and Advantage West Midlands + Land drawdown agreement + End value approx £300m Ventureast, Birmingham UK Business Parks 11 October 2007 50 50
Slide 53: Recent Land Banking Acquisitions: Hammersmith
Recent Land Banking Acquisitions For personal use only + Hammersmith + Acquired 100% + 11 acres + 230,000 sq ft developed to date + Value £115m + 615,000 sq ft to be developed + Value £330m Hammersmith UK Business Parks 11 October 2007 51
Slide 54: Strategic Planning Projects
Strategic Planning Projects For personal use only + Planning is significant value add to the portfolio + Active management to enhance existing approvals + 13 Strategic long term projects on land with no allocation / zoning + Influencing National and Regional policy – top down approach + Planning is
Slide 55: ABPP Planning
ABPP Planning For personal use only + Reading Business Park – Extension – Outline Planning for 200,000 sq ft extension + Gloucester Business Park – District Centre – Outline Planning for employment – Revised planning or retail, hotel, residential and leisure uses Hayes site, Reading UK Business Park
Slide 56: Development Program
Development Program Development + 2.5m sq ft committed development For personal use only since 2004 + Over 60% pre committed + Target 15% margin from development pipeline 1400 1200 Uxbridge Business Park 1000 000/sq ft 800 600 400 200 0 2004 2005 2006 2007 UK Business Parks 11 October 2007 54
Slide 57: Development – Leasing
Development – Leasing For personal use only + >50% provincial offices demand for SQ FT/000 business parks + Achieved largest prelet 2001 to 2005 Market Share 2003 2004 2005 2006 2007 Est inclusive + 25% repeat Business S&P Market take up 3870 4425 4218 5023 4750 + Secondary sale of FM and/or fit out
Slide 58: Development – Current Speculative
Development – Current Speculative For personal use only + Uxbridge – 82,000 sq ft (100% let to Cadbury Schweppes before PC) – Value £44m + Reading – 108,489 sq ft available – Value £41m + Gloucester – 62,140 sq ft (40% let) – Value £9.6m + Leicester – 50,000 sq ft (20% let before PC) – Value £11m UK
Slide 59: Development – Current Prelet
Development – Current Prelet For personal use only + Hatfield – 3 Valleys Water 88,000 sq ft – Sustainable/Green Building – Value £25m + Bracknell – GMAC 96,000 sq ft – Repeat business – £40m + Aberdeen – BP 190,000 sq ft – Site and prelet won in competition – Value £61m UK Business Parks 11 October
Slide 60: Development – Current Turnkey
Development – Current Turnkey For personal use only + Hatfield – Eisai 220,000 sq ft – European HQ, R&D and Manufacturing facility – Footloose UK requirement – Value £55m UK Business Parks 11 October 2007 58
Slide 61: Summary
Summary For personal use only + Market Leader + Stable well let investment portfolio + Akeler, Hammersmith and Ventureast acquisitions give ABPP replenished development pipeline + Selective new speculative development activity + Maintaining level of pre-commitments Reading International UK Business
Slide 62: European Business Parks
For personal use only European Business Parks Rob Wilkinson 11 October 2007
Slide 63: Overview
Overview + EBP created 5 years ago with acquisition of Val d’Europe in Paris For personal use only + Platform established with further acquisitions in Spain and France + Strategic entry to German market with acquisition in Düsseldorf + Existing portfolio of 6 business parks with a total value of €42
Slide 64: Strategic objectives
Strategic objectives + Growth of GEBPF to increase liquidity for investors and revenue stream for Goodman For personal use only + Grow team and infrastructure for EBP in core markets + Maximise returns in GEBPF – Enhance value of cornerstone investment – Potential to generate performance fees + Incr
Slide 65: Market overview
Market overview + Fragmented market – opportunity to leverage the Goodman model For personal use only – Few pan-European competitors – National champions (SILIC, IVG, Slough) – Specialist local developers/contractors (CODIC, Sogeprom, Calliston) + Under-serviced market – Typically developer/trader a
Slide 66: GEBPF overview
GEBPF overview For personal use only + Pan-European value-add fund investing in prime business parks + Current portfolio of 5 business parks valued at €380 million + Target portfolio of €1.5 billion over 5 years through acquisitions and development + Investment and development mix of 80/20 + Develop
Slide 67: GEBPF key figures
GEBPF key figures For personal use only 6 mths to 12 mths to 6mths to Financial highlights 30 Jun 06 31 Dec 06 30 Jun 07 GAV (€’000) 308,400 342,267 367,900 (2) NAV (€’000) 134,900 (1) 146,000 (1) 159,477 NAV per unit €1.06 €1.10 €1.20 Ungeared return 4.0% 7.3% 7.4% Geared return 4.6% 6.3% 12.2% (3)
Slide 68: Portfolio overview
Portfolio overview For personal use only Portfolio Values Total value (€’000) 379,756 Investments (€’000) 346,108 Land and WIP (€’000) 33,648 Total value / Portfolio (%) 100.0 Rents and Yields Office average rent / sq m p.a. (€) 153 Net equivalent yield (%) 6.53 Size Total net lettable area (sq m) 1
Slide 69: Portfolio overview – Val d'Europe, Paris
Portfolio overview – Val d’Europe, Paris For personal use only European Business Parks 11 October 2007 67
Slide 70: Portfolio overview – Viladecans, Barcelona
Portfolio overview – Viladecans, Barcelona For personal use only European Business Parks 11 October 2007 68
Slide 71: Portfolio overview: top ten rental commitments
Portfolio overview Top ten rental commitments For personal use only Rent % of Park Tenant €’000 pa income Madrid Dimetronic 783 5.4% Industria Turbo Madrid 770 5.3% Propulsores Lyon Gap Gemini 693 4.8% Madrid Trader Segundamano 671 4.6% Paris Still France 510 3.5% Paris Regus 498 3.4% Sitel Iberica
Slide 72: Acquisition strategy
Acquisition strategy For personal use only 10-15% 15-20% Brussels, Amsterdam, Utrecht, Luxembourg Düsseldorf, Munich, Cologne, Hamburg Lille Düsseldorf Paris 20-30% Lyon 5-10% Paris, Lyon, Aix, Nice, Toulouse Marseille Milan, Rome Toulouse, Marseille Barcelona Madrid Lisbon 20-30% 5-10% Madrid, Barc
Slide 73: Acquisitions
Acquisitions For personal use only + Currently treating on 7 sites + Contracted, negotiating or under review + France (4), Germany (2), Spain + On and off market + Corporate and real estate + 338,562sqm with built out value €650m+ European Business Parks 11 October 2007 71
Slide 74: Vallee Valentine Verte, Marseille
Vallee Valentine Verte, Marseille Summary For personal use only + 20 hectare former Nestle site + MOU agreed on 19 June 2007 + Net lettable area 86,000 sq m – 66,000 sq m office – 20,000 sq m activité + 12,500 sq m of activité (pre-let or under offer) + Potential JV between GEBPF and Vauban + GEBPF
Slide 75: Saint-André, Lille
Saint-André, Lille Summary For personal use only + 12 hectare former Rhodia site with river frontage + Exclusive negotiations with local developer – CIRMAD + GEBPF to jointly develop with CIRMAD + 60,000 sq m of buildable high quality office park + 5 kms from Lille centre and Eurostar/TGV station +
Slide 76: Summary
Summary For personal use only + Significantly improved performance at fund and portfolio level + Ambitious growth targets, but there are opportunities out there + Leverage off the Goodman European platform and brand + Establish GEBPF as the leading European business park fund in the market European
Slide 77: Thank you / Important Notice
For personal use only thank you+ 11 October 2007 Important Notice This presentation has been prepared by Goodman Group (Goodman International Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL 223621) as the Responsible Entity for Goodman Industrial Trust (A
Slide 78: Goodman Property Investors
For personal use only Goodman Property Investors John O’Connor 11 October 2007
Slide 79: Goodman Property Investors Business Overview
Goodman Property Investors Business Overview For personal use only International property specialist + £7.6bn under management globally + 30 years of fund management Specialist Investment Manager of the experience Year 2006 + Extensive market coverage – Direct, indirect, property derivatives, separa
Slide 80: Assets Under Management Summary
Assets Under Management Summary For personal use only Client Base Diversity (by AUM) + Assets under management 2007 (June) have grown strongly Pension funds 6% – 19.2% CAGR over 2.5 years 12% Local government pension funds + Diverse client base 15% 43% Co-investment & specialist funds Private + Stro
Slide 81: Historic Fund Performance
Assets Under Management Historic Fund Performance For personal use only Direct mandate performance Focused funds performance 30 30 25.1% 25 22.7% 25 22.5% 22.2% % 20 18.7% 18.4% % 20 19.1% 18.4% 17.4% 16.5% 15.6% 15.0% 15 15 10 10 1 year 3 years 5 years 1 year 3 years 5 years Fund Benchmark Fund Ben
Slide 82: Industry Structure and Challenges
Industry Structure and Challenges For personal use only + The market framework in which GPI operates is constantly evolving: + Weightings in UK property stabilised following strong period of outperformance + Less certain cap rate environment in UK and growth in UK property exposure losing some momen
Slide 83: Industry Structure and Challenges
Industry Structure and Challenges For personal use only + Relationship Driven Sector + Increasingly global approach to property investment – Competition building global capability – Gradual switch from domestic only to cross-border investment + Greater appetite for Indirect product outside UK and mo
Slide 84: How is GPI Positioned
How is GPI Positioned + Global Platform For personal use only – utilise a more international investor base and leverage existing relationships + Direct Property investment – Robust integrated deal sourcing, selection and asset allocation model + Strong proponent of indirect fund management represent
Slide 85: Geographic Locations
Goodman Property Investors Geographic Locations For personal use only + GPI has established offices in Glasgow key locations in Europe and Birmingham the Asia Pacific Reading Hamburg London Amsterdam Eindhoven Brussels Langenfeld Warsaw Luxembourg Paris Prague Munich Budapest Milan Madrid Barcelona
Slide 86: Direct Property Investment: Investment Process
Direct Property Investment Investment Process For personal use only Investment Committee Research: market forecasts and strategic themes Asset hold/sell Deal sourcing and Added value asset analysis stock selection management Client Client reporting: investment Portfolio strategy and investment plan
Slide 87: Direct Property Investment: Deal Sourcing
Direct Property Investment Deal Sourcing For personal use only £m 120,000 + Strong market presence + Comprehensive contacts network 100,000 + Dedicated transactions team 80,000 + Rapid response commitment 60,000 + Large deal flow 40,000 20,000 0 2004 2005 2006 2007* Source: GPI; * 2007 based on annu
Slide 88: Indirect Property Investment
Indirect Property Investment For personal use only + GPI is a Leading exponent of indirect investment in UK/Europe + £1.3bn mandates – 32% in UK, remainder in Continental Europe + Segregated clients + Fund of Funds UK and Eurozone – Asia Pacific Fund of Funds to launch in Q1 2008 – Global Opportunis
Slide 89: In-house Research
In-house Research What Makes Our Process Different? For personal use only Breadth of resource Depth of analysis Integrated application + International, multi-lingual team + Economic and market house views + Asset allocation advice + Access to full agency and broker and forecasts + Benchmarking netwo
Slide 90: Summary
Summary + Powerful presence in UK direct market For personal use only – Leveraging relationships with client appetite for European investment and new product + Access to clients and capital – Already part of a global business – Several key GPI clients are relationship clients of the group globally +
Slide 91: Thank you / Important Notice
For personal use only thank you+ 11 October 2007 Important Notice This presentation has been prepared by Goodman Group (Goodman International Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL 223621) as the Responsible Entity for Goodman Industrial Trust (A
Slide 92: UK Logistics
For personal use only UK Logistics Jason Dalby David Kier 11 October 2007
Slide 93: UK Logistics Market
For personal use only +UK Logistics Market +Goodman UK Logistics Strategy +Key Developments 11 October 2007 91
Slide 94: UK Logistics Market
UK Logistics Market For personal use only Market in UK has two main centres: + South East - Product into London + Midlands - National Distribution Four principal regional centres: + Manchester + Leeds + Bristol + Scotland 11 October 2007 92
Slide 95: UK Logistics Market
UK Logistics Market For personal use only Average take up of new units over 100,000 sq ft in UK is 12,000,000 sq ft per annum. +65% of this is in the Midlands and South East Key factors effecting development: +Limited land supply +Time taken to achieve planning permission Limited national players wi
Slide 96: Goodman UK Logistics Strategy
Goodman UK Logistics Strategy For personal use only + Goodman own approx 1,000 acres of land at various stages in planning process in key locations around the UK. + Goodman have a team of 30 people in Solihull which has, for the last 3 years, been developing 3-4million sq ft of new distribution spac
Slide 97: UK Logistics - Hoddesdon
For personal use only UK Logistics - Hoddesdon 11 October 2007 95
Slide 98: UK Logistics - Hoddesdon
For personal use only UK Logistics - Hoddesdon 11 October 2007 96
Slide 99: UK Logistics - Derby
For personal use only UK Logistics - Derby 11 October 2007 97
Slide 100: UK Logistics - Derby
For personal use only UK Logistics - Derby 11 October 2007 98
Slide 101: UK Logistics - Park Bristol
For personal use only UK Logistics - Park Bristol 11 October 2007 99
Slide 102: UK Logistics - Park Bristol
For personal use only UK Logistics - Park Bristol 11 October 2007 100
Slide 103: UK Logistics - Andover
For personal use only UK Logistics - Andover 11 October 2007 101
Slide 104: UK Logistics - Andover
For personal use only UK Logistics - Andover 11 October 2007 102
Slide 105: UK Logistics - Kingsnorth
For personal use only UK Logistics - Kingsnorth 11 October 2007 103
Slide 106: UK Logistics - Kingsnorth
For personal use only UK Logistics - Kingsnorth 11 October 2007 104
Slide 107: Thank you / Important Notice
For personal use only thank you+ 11 October 2007 Important Notice This presentation has been prepared by Goodman Group (Goodman International Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL 223621) as the Responsible Entity for Goodman Industrial Trust (A
Slide 108: European Logistics
For personal use only European Logistics Danny Peeters Werner Knan 11 October 2007
Slide 109: European Logistics
European Logistics For personal use only + Goodman European Logistics Platform + Progress update + Goodman European Logistics Fund + Implementation of a land-banking strategy + Projects under development 11 October 2007 107
Slide 110: Goodman European Logistics Platform
Goodman European Logistics Platform + Own-develop-manage For personal use only + 160 professionals Glasgow + Local teams with in-house expertise (technical, legal, …) Amsterdam Hamburg Birmingham Warsaw + Customer follow-up by local team London Eindhoven + Knowledge of local market practices Langenf
Slide 111: European Logistics
European Logistics For personal use only + Goodman European Logistics Platform + Progress Update + Goodman European Logistics Fund + Implementation of a land-banking strategy + Projects under development 11 October 2007 109
Slide 112: Achievements of the past year
Achievements of the past year For personal use only + Global brand aids customer service model (own-develop-manage) for logistics in continental Europe and UK + Launch of Goodman European Logistics Fund (GELF) with 650 million EUR equity commitments and a launch portfolio of 274 million EUR + Geogra
Slide 113: Opportunities
Opportunities For personal use only + Drive-up output volumes and enhance scale in the business and the GELF fund + Merge Celogix fund + Implement a land-banking strategy to secure the future development pipeline in a number of key markets + Further develop customer relationships 11 October 2007 111
Slide 114: European Logistics
European Logistics For personal use only + Goodman European Logistics Platform + Progress Update + Goodman European Logistics Fund + Implementation of a land-banking strategy + Projects under development 11 October 2007 112
Slide 115: GELF – Goodman European Logistics Fund
GELF – Goodman European Logistics Fund For personal use only + Reached Gross Portfolio Value of 450 million EUR in June 2007 (a 64,2% increase from launch) – 21 properties in portfolio in 8 countries + Solid tenant base and lease profile (100% occupation and WALE at 8,0 years) + Total return on June
Slide 116: European Logistics Progress Update
European Logistics For personal use only + Progress Update + Goodman European Logistics Fund + Implementation of a land-banking strategy + Projects under development 11 October 2007 114
Slide 117: Land-banking implementation
Land-banking implementation For personal use only + To further enhance market position and as a natural progression of the business, a measured land banking strategy can accelerate growth, especially in SP, IT, FR, PL CZ/SK and TR. + A number of markets have been identified as target areas for land-
Slide 118: Goodman Land-banking projects in CE so far
Goodman Land-banking projects in CE so far: GE – Herten GE – Glinde (Dortmund) (Hamburg) GE – Nauen (Berlin) NL – Venlo For personal use only PL – Modlniczka BE – Boom (Antwerp) (Krakow) SK – Senec (Bratislava) TR – Izmit (Istanbul) ES – Alcala de Henares (Madrid) 11 October 2007 116
Slide 119: European Logistics
European Logistics For personal use only + Goodman European Logistics Platform + Progress Update + Goodman European Logistics Fund + Implementation of a land-banking strategy + Projects under development 11 October 2007 117
Slide 120: Overview current projects under construction
Overview current projects under construction For personal use only Projects under development Land positions 11 October 2007 118
Slide 121: Saran Logistics, France
Current projects under development Saran Logistics, Saran, France – 46.053m² For personal use only + Pre-let to Amazon + Delivery timing: – Phase I August 2007 – 22.464m² + 1.616m² offices – Phase II August 2008 – 11.009m² – Phase III August 2009 – 10.964m² 11 October 2007 119
Slide 122: Saran Logistics, France
Current projects under development Saran Logistics, France – 46.053m² For personal use only 11 October 2007 120
Slide 123: Venlo Logistics, The Netherlands
Current projects under development Venlo Logistics, The Netherlands – 63.744m² For personal use only + 46.865m² pre-let to DSV Solutions + Delivery timing: March 2008 + 16.879m² built on spec basis 11 October 2007 121
Slide 124: Venlo Logistics, The Netherlands
Current projects under development Venlo Logistics, The Netherlands – 63.744m² For personal use only 11 October 2007 122
Slide 125: Waldlaubersheim Logistics, Germany
Current projects under development Waldlaubersheim Logistics, Germany – 46.600m² For personal use only + Pre-committed development fully let to Corporate Express + Delivery timing: January 2008 11 October 2007 123
Slide 126: Waldlaubersheim Logistics, Germany
Current projects under development Waldlaubersheim Logistics, Germany – 46.600m² For personal use only 11 October 2007 124
Slide 127: Torun Logistics, Poland
Current projects under development Torun Logistics, Poland – 23.637m² For personal use only + 23.637m² pre-let to NYK + Delivery: August 2007 11 October 2007 125
Slide 128: Torun Logistics, Poland
Current projects under development Torun Logistics, Poland – 23.637m² For personal use only 11 October 2007 126
Slide 129: Torun Logistics II, Poland
Current projects under development Torun Logistics II, Poland – 15.500m² For personal use only + 15.500m² pre-let to Nissin + Delivery timing: June 2008 11 October 2007 127
Slide 130: Nauen Logistics, Germany
Current projects under development Nauen Logistics, Germany – 50.892m² For personal use only + 20.873m² pre-committed facility, let to Bosch-Siemens Hausgerate + Delivery timing: November 2007 + 30.019m² spec development 11 October 2007 128
Slide 131: Nauen Logistics, Germany
Current projects under development Nauen Logistics, Germany – 50.892m² For personal use only 11 October 2007 129
Slide 132: Keckskemet Logistics Park, Hungary
Current projects under development Keckskemet Logistics Park, Hungary – 25.022m² For personal use only + Development of 10.030m² warehouse facility + Delivery timing: May 2008 11 October 2007 130
Slide 133: Keckskemet Logistics Park, Hungary
Current projects under development Keckskemet Logistics Park, Hungary – 25.022m² For personal use only + Sale & lease back with Bertrans of 15.036m² 11 October 2007 131
Slide 134: Kersdonk Logistics, Belgium
Current projects under development Kersdonk Logistics, Belgium – 88.241 For personal use only + 43.000m² pre-let to DHL + 44.241m² speculative development, under construction + Delivery timing: September 2008 11 October 2007 132
Slide 135: Kersdonk Logistics, Belgium
Current projects under development Kersdonk Logistics, Belgium – 88.241 For personal use only 11 October 2007 133
Slide 136: Hopi, Senec Slovakia
Current projects under development Hopi, Senec Slovakia – 14.700m² For personal use only 11 October 2007 134
Slide 137: Hopi, Budapest, Hungary
Current projects under development Hopi, Budapest, Hungary – 23.000m² For personal use only 11 October 2007 135
Slide 138: Thank you / Important Notice
For personal use only thank you+ 11 October 2007 Important Notice This presentation has been prepared by Goodman Group (Goodman International Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL 223621) as the Responsible Entity for Goodman Industrial Trust (A
Slide 139: Fund Management
For personal use only Fund Management Nick Kurtis and James Inwood 11 October 2007
Slide 140: Fund Platform Strategy
Fund Platform Strategy For personal use only + Create size and scale by providing a single focussed fund by geographic region – Target for each fund to be in the top 2 by type by region – Focus on maintaining alignment between real estate source and equity – Supported by full suite of property and d
Slide 141: European Funds Management
European Funds Management For personal use only + Goodman has established a range of GMG European funds management platform range of business space funds in the UK & European markets Business Logistics + The proposed UK Logistics Fund will be Parks the flagship logistics fund for GMG in the UK + It
Slide 142: Fund Platform Performance
Fund Platform Performance + 21.8%1 Average Total Return for the Funds Management platform For personal use only – 18.0% for European platform – 33.9% for Asia Pacific platform – All funds either met or exceeded Benchmark targets – Average portfolio cap rates remain within comfortable limits Europe A
Slide 143: Key Strategic Initiatives: Europe – business parks
Key Strategic Initiatives For personal use only Europe – business parks ABPP + Maintain focus on building out existing landbank – 358 acres owned or under control – Circa £2 billion of end value build out over 5-7 years + Continue to source new sites and opportunities – Venture east, Birmingham + Ma
Slide 144: Key Strategic Initiatives: Europe – Logistics
Key Strategic Initiatives For personal use only Europe – Logistics GELF + Focus on expanding fund asset size towards critical mass of €1billion + Consolidation of the Groups Continental European logistic investment products – terms agreed to merge GELF and Celogix – Results in GELF of circa €900 mil
Slide 145: Key Strategic Initiatives: Europe – logistics continued
Key Strategic Initiatives For personal use only Europe – logistics continued UKLF + Continue compilation of UK Logistics core portfolio and land bank/development capability – £0.6 billion currently warehoused + Existing land bank can deliver circa 2 million sqm of space – £2 billion in end value ove
Slide 146: Thank you / Important Notice
For personal use only thank you+ 11 October 2007 Important Notice This presentation has been prepared by Goodman Group (Goodman International Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL 223621) as the Responsible Entity for Goodman Industrial Trust (A