Globalworth Real Estate Investments Limited · LSE:GWI

Globalworth Real Estate Investments — Investor Presentation (February 2015)

53 slides from Globalworth Real Estate Investments's investor presentation, Feb 16, 2015

  1. Slide 1: Company Update: February 2015

    3 Company Update: February 2015 11

  2. Slide 2: Disclaimer

    Disclaimer IMPORTANT NOTICE NOT FOR PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. This Presentatio

  3. Slide 3: Company snapshot

    Company snapshot Company overview Portfolio primarily focused on the office sector2  Globalworth (“GWI”) is a leading real estate investment company Pro-forma “As Is” Valuation of €752mn focused on acquiring, developing and managing predominantly office properties in Romania  GWI is listed on Lond

  4. Slide 4: A long journey in a short time

    A long journey in a short time … Jul. 2013 Dec. 2013 Mar. 2014 Dec 2014 SPA for TCI, Acquisition of Acquisition of SPAs for Bucharest One Bucharest One BOB, BOC & Upground Unicredit HQ and Upground & GAM Towers SPA for BOB & BOC Nusco Tower BOC / Honeywell TAP / Continental BOC / Intel pre-lease of

  5. Slide 5: Portfolio overview (31st Dec 2014)

    Portfolio overview(*) (31st Dec 2014): Targeting building contracts with contractors on “turnkey” basis Developments Standing and operational assets4 Value “As is”1 €121mn Value “As is”1 €613mn Value at “Completion”1 €411mn Value at “Completion”1 €613mn Total Commercial GLA (sqm): 244,634 Total Comm

  6. Slide 6: Standing Assets: Owned Vs Pro-Forma (31st Dec 2014)

    Standing Assets: Owned Vs Pro-Forma (31st Dec 2014) Category Owned Announced(2) Pro-Forma “As Is”(1) Value  € 460.0mn(4) € 152.8mn € 612.8mn(5) Total Commercial GLA (sqm)(3)  171,263 sqm 57,640 sqm 228,903 sqm c.77.2% Contracted Occupancy(3)  c.96.6% c.82.1% WALL(3) (4)  6.2 yrs 5.2 yrs 5.8 yrs

  7. Slide 7: Key company highlights

    Key company highlights 1 Fully-integrated real estate investment company with significant scale in our core market 2 Well-positioned in a favourable macroeconomic and attractive real estate environment 3 High quality commercial real estate portfolio in attractive Bucharest locations 4 Robust rental

  8. Slide 8: Fully-integrated real estate investment company with significant scale in our core market

    Fully-integrated real estate investment company with significant scale 1 in our core market Fully-integrated platform with scale in the fragmented …with proven capabilities in leasing out substantial space in a Bucharest office market… short time frame GWI cumulative leased space by month sqm Office

  9. Slide 9: Favorable Country and Real Estate market fundamentals

    2 Favorable Country and Real Estate market fundamentals … Strong Macroeconomic Fundamental Vs EU and CEE averages Favourable Environment for Investment • 2015E GDP growth above CEE average at 3.8% • One of the lowest cost of labor in the EU • Low unemployment ($5.2/h in 2013) (2013: 5.7% Vs 10.9%-EU

  10. Slide 10: … and improving market dynamics …

    2 … and improving market dynamics …  Investment volumes reached c.€1.1bn in 2014, the highest level since 2007 Investment Volume - Romania 1,500  Bucharest remains the principal real estate market in Romania 1,200  Demand for office space remains strong, continue to outweigh supply in the market

  11. Slide 11: … in the office sector

    2 … in the office sector Structural supply/demand imbalance for commercial ...with over 56% of the take up comprising new space in Bucharest... occupation / pre-leases ’000, Sqm Supply Demand Demand by type of transactions, Q4 2014 New 450 Demand - Relocation 400 Renewal 19% 35% 350 300 New Demand 2

  12. Slide 12: High quality portfolio in the most attractive Bucharest locations

    Globalworth benefits from a high quality portfolio in the most attractive 3 Bucharest locations…  Majority of Globalworth’s portfolio is located in the “New CBD”  Targeted sub-markets benefit from lower vacancy rates compared to the city average  The portfolio provides top quality assets includin

  13. Slide 13: …with significant value growth potential

    3 …with significant value growth potential GAV upon completion¹ GAV bridge to value upon completion¹,2 Total GAV: € 1,043mn Total uplift on currently owned portfolio: €291mn 25% 1,200 1,043 20% 1,000 102 18% 188 800 752 15% - 15% € million 14% 600 10% 10% 400 7% 5% 6% 6% 5% 5% 5% 4% 200 3% 0% 1% 1%

  14. Slide 14: Robust rental growth and very attractive NOI yield profile

    3 Robust rental growth and very attractive NOI yield profile Acquisition & Development Cost NOI (€ m) NOI Asset Name Status Investment Cost to Remaining Total Acq./Dev . Jan-152 1Q16(E)3 1Q17(E)3 Yield4 Dec-14 (€ mn) 1 Cost (€ mn) Cost (€ mn) BOB Completed 42.0 - 42.0 3.3 3.9 3.9 9.3% BOC Completed

  15. Slide 15: Triple-net lease terms, secure and visible cash flows

    4 ...supported by triple-net lease terms, secure and visible cash flows… Predictable, stable cash flows… … secured on a long term basis 1 Expenses covered by tenants Approximately 75% of the leases expire in or after 2020 Tax  75% Insurance  Maintenance  Triple net lease  2 Euro-denominated, m

  16. Slide 16: Favourable contract terms in development projects protecting against cost over-run

    …and by favourable contracts terms in development projects ensuring 4 protection against cost over-run and unexpected project delays The turn-key contracts with contractors provide the highest protection to GWI and no space GWI selects best-in-class contractors with for downside cash flow exposure a

  17. Slide 17: Attracting high quality, diversified tenants from around the world

    5 Attracting high quality, diversified tenants from around the world Major Tenants in the Portfolio Other Selected Tenants A highly diversified tenants base both by country of origin… …and by business sector Based on Pro-forma annualized contracted rental income as of Dec 31 , 2014 Based on Pro-form

  18. Slide 18: Top management with unique track record in the real estate sector

    6 Top management with unique track record in the real estate sector… Ioannis Papalekas Founder & CEO • 16yrs (14yr in Romania) real estate track record • Involved in multiple investments in Romania and SEE • Realised IRR of 175% and an equity multiple of 4.7x Andreas Papadopoulos Dimitris Raptis Adr

  19. Slide 19: … ability to execute …

    6 … ability to execute …  Globalworth since its IPO in July 2013 acquired 11 properties  +175k sqm of GLA have been leased since April 2013 including the and signed SPA’s for an additional 3 properties in Romania with landmark leases for: a total appraised value upon completion of c.€1.1bn  Conti

  20. Slide 20: …and with a clear and proven strategy

    6 …and with a clear and proven strategy Clear, focused strategic guidelines… …with a proven investment strategy 1 Key • Acquisition, development and management of commercial Commercial real estate assets assets Sector • Active management of underperforming / mispriced assets 2 Key • Value creation v

  21. Slide 21: Appendix: Unaudited NAV

    Appendix: Unaudited NAV 21 21

  22. Slide 22: Selected financials: NAV Evolution

    Selected financials : NAV Evolution Audited Consolidated Unaudited Consolidated Unaudited Consolidated Figures in € million 31st December 2013 30th June 2014 31st December 2014 Net Assets 120.3 378.2 392.7 Minority Interests (0.6) (0.5) (0.0) NAV to ordinary equity holders 119.7 377.7 392.7 Adj. Def

  23. Slide 23: Appendix: Profiles of Selected Assets

    Appendix: Profiles of Selected Assets 23 23

  24. Slide 24: Standing Assets BOC

    Standing Assets BOC Description Location  Class “A” multi-tenanted office building completed in 2009  Is located in the Northern part of Bucharest on Dimitrie Pompeiu area  Offers 56,647sqm (GLA) on 8 floors above ground and 895 parking spaces  BREEAM In-Use / Excellent certification Tenants Sta

  25. Slide 25: Standing Assets BOC

    Standing Assets globalworth’ BOC PPP

  26. Slide 26: Standing Assets BOB

    Standing Assets BOB Decrisption Location  Class “A” multi-tenanted office building, completed in 2008,  Located in the Northern part of Bucharest on Dimitrie Pompeiu area  Offers 22,391sqm (GLA) on 7 floors above ground and 161 parking spaces  LEED/Platinum certification for DB space  BREEAM In

  27. Slide 27: Standing Assets BOB

    Standing Assets globalworth’ BOB PPP

  28. Slide 28: Standing Assets TCI

    Standing Assets TCI Description Location  Landmark class “A” multi-tenanted office building completed in 2012  Located in Bucharest’s Historical CBD area at Victoriei Square  Consists of two interconnected buildings and is currently the 2nd tallest building in Bucharest.  Offers 22,228sqm GLA ov

  29. Slide 29: Standing Assets TCI

    Standing Assets globalworth’ PPP

  30. Slide 30: Standing Assets City Offices

    Standing Assets City Offices Description Location  Mixed-use property comprising of two connected buildings, a Commercial Building and a Multilevel Parking (1,019 spaces)  Located at the southern part of Bucharest in the densely populated area of Eroii Revolutiei  Former retail mall recently re-d

  31. Slide 31: Standing Assets City Offices

    Standing Assets City Offices 31 31

  32. Slide 32: Standing Assets – Announced Nusco Tower

    Standing Assets – Announced Nusco Tower Decrisption Location  Class “A” multi-tenanted office building, completed in 2010,  Located in the Northern part of Bucharest at the crossroad of Pipera Road / Gara Herastrau Street  Offers 22,972sqm (GLA) on 20 floors above ground and 336 parking spaces 

  33. Slide 33: Standing Assets – Announced Nusco Tower

    Standing Assets – Announced Nusco Tower 33 33

  34. Slide 34: Standing Assets – Announced UniCredit HQ

    Standing Assets – Announced UniCredit HQ Description Location  Class “A” office building completed in 2012  Headquarter of UniCredit Tiriac Bank  Ranked 17th on the list of the 30th most architecturally impressive banks in the world  Located in Presei Libere Square on Expozitiei Boulevard  Offe

  35. Slide 35: Standing Assets – Announced UniCredit HQ

    Standing Assets – Announced UniCredit HQ 35 35

  36. Slide 36: Standing Assets – Announced Green Court Building “A”

    Standing Assets – Announced Green Court Building “A” Description Location  Class “A” multi-tenanted office building delivered in Q1-’15  Located on Gara Herastrau Street in the New CBD of Bucharest  Offers 19,168sqm (GLA) on 12 floors above ground and 278 parking spaces  Part of a complex involv

  37. Slide 37: Standing Assets – Announced Green Court Building “A”

    Standing Assets – Announced Green Court Building “A” 37 37

  38. Slide 38: Standing Assets Upground Towers

    Standing Assets Upground Towers Description Location  Modern residential complex located in the Northern part of Bucharest on Fabrica de Glucoza Street  The complex was completed in 2009 and Globalworth currently owns 445 residential units (in 2 towers of 17 floors each), retail space of 6,555sqm

  39. Slide 39: Standing Assets Upground Towers

    Standing Assets Upground Towers 39 39

  40. Slide 40: Standing Assets (with Expansion Potential) Timisoara Airport Park

    Standing Assets (with Expansion Potential) Timisoara Airport Park Description Location  Light-industrial property located in the North-East of Timisoara in the vicinity of the international airport  Benefits of easy access towards the 4th European Corridor  TAP is leased to Valeo, Continental and

  41. Slide 41: Standing Assets (with Expansion Potential) Timisoara Airport Park

    Standing Assets (with Expansion Potential) Timisoara Airport Park 41 41

  42. Slide 42: Developments Bucharest One

    Developments Bucharest One Description Location  Flagship class “A” multi-tenanted office development project under construction (est. completion Q4 2015)  Located in the northern part of Bucharest in the Floreasca/Barbu Vacarescu area  Upon completion, the building will be the 2nd tallest tower

  43. Slide 43: Developments Bucharest One

    Developments Bucharest One 43 43

  44. Slide 44: Developments Globalworth Campus

    Developments Globalworth Campus Description Location  Globalworth Campus project, is set to become upon completion one of the largest business parks in Romania offers 87,808sqm (GLA) and 758 parking spaces  Unique development to be constructed on top of one of the busiest metro stations in Buchare

  45. Slide 45: Developments Globalworth Campus

    Developments Globalworth Campus 45 45

  46. Slide 46: Developments Gara Herastrau

    Developments Gara Herastrau Description Location  “Gara Herastrau” is an office development project to be constructed in the northern part of Bucharest in the Floreasca/Barbu Vacarescu area (on Gara Herastrau)  The site was acquired in December 2014 and the building is expected to comprise of 10,7

  47. Slide 47: Developments Gara Herastrau

    Developments Gara Herastrau 47 47

  48. Slide 48: Appendix: Romania; Country Update

    Appendix: Romania; Country Update 48 48

  49. Slide 49: Romania is a large CEE country with solid economic fundamentals

    Romania is a large CEE country with solid economic fundamentals and a legal environment favourable to investors Strong macroeconomic fundamentals Favourable environment for real estate investments GDP growth above the CEE average One of the lowest cost of labour in the EU Romania CEE EU Forecast USD

  50. Slide 50: Subsidies from national government and the EU support FDI in Romania

    A comprehensive program of subsidies from both the national government and the EU provides substantial support to FDIs in Romania A successful track record of absorption of funds... ...position Romania as a top FDI destination Increase of reimbursements from the EU in 2013 compared to the 2008 - 201

  51. Slide 51: Appendix: Glossary

    Appendix: Glossary 51 51

  52. Slide 52: Glossary

    Glossary: Term Definition Assets: "Standing” and operational Comprises of i) the 6 owned properties, BOB, BOC, TCI, City Offices, Upground Towers and TAP (c.27,474 sqm) and ii) the 3 announced properties (on a Pro-forma or adjusted basis only), Unicredit HQ, Nusco Tower and Green Court Building "A"

  53. Slide 53: globalworth

    globalworth PPP

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