Spring Real Estate Investment Trust · HKEX:1426
Spring Real Estate Investment Trust — Merger or Acquisition (March 2017)
13 slides from Spring Real Estate Investment Trust's merger presentation, March 2017
Slide 1: UK Acquisition and the Lease CCTs
UK ACQUISITION AND THE LEASE CCTS 0
Slide 2: Disclaimer
DISCLAIMER This presentation may contain information which is proprietary, confidential and/or legally privileged and has been prepared by Spring Asset Management Limited, in its capacity as the manager (the “Manager”) of Spring Real Estate Investment Trust (the “Trust”). This presentation is being
Slide 3: Background
BACKGROUND 1. On 17 March 2017, the Manager, on behalf of Spring REIT, has entered into a share purchase agreement to acquire a portfolio of 84 retails properties in the UK. 2. Completion in early July will be subject to: − Financing; and − the lease CCTs and the lease CCTs Waiver Application being
Slide 4: The Acquisition
THE ACQUISITION 1. The portfolio: 84 separate commercial properties in the UK, with a total gross internal area of 505,381 sq.ft. 2. Purchase price: £73,500,000 in line with appraised value of £73,566,000 3. Gross rental yield: 6.1% (unleveraged), with only upward rental adjustment every five year 4
Slide 5: Selected Properties
SELECTED PROPERTIES Ayr Maybole Road Blyth Chapel Allerton Leeds Chelmsford 4
Slide 6: Selected Properties (continued)
Edinburgh Corstorphine Road Glenrothes South Croydon Middlesbrough Portsmouth 5
Slide 7: Property rent map
MONTAGU EVANS KEY: © LARGE RENT © MEDIUM RENT @ SMALL RENT Kwikfit) SpringREIT
Slide 8: List of properties
Koike Fit (CM2 OPP Kwik Fit ‘Stonehaven: 110 Barclay Street ‘AB39 2AP_ ‘Tyre City Lichfield 8-9 Europa Way WS14 91Z Kwik Fit CR 6EW Non-Operational| Edinburgh AA Portobello Road EH8 7EH Budget Dumfries 40 Laurioknowe Road DG27 DA Yok Fe NIT ONK ik Ft Otley Benate 1521 3A8 vo Fa Bishop Auciond | Cock
Slide 9: The Transaction
THE TRANSACTION 1. Acquisition of holding company 2. Purchase Price: £73,500,000 (approximately USD93,345,000), in line with the appraised value. 3. Payment amount: £73,500,000 minus bank loan of approximately £36,100,000 (approximately USD45,800,000); subject to completion adjustment. 4. Source of
Slide 10: Lease Terms
LEASE TERMS 1. Term: 15 years remaining on the lease (save for the lease in respect of the property located in Islington). 2. The Lessee has an option to extend for a further term of 15 years. 3. No break clause and early termination requires payment of the rent in full for the remaining term. 4. Th
Slide 11: Leasee and its Parent
LEASEE AND ITS PARENT 1. Kwik-Fit (GB) Limited – The Leasee − established in 1970. − operates over 600 fast fit and automotive parts replacement centres in the UK. − engaged in the servicing of cars and automotive parts and the provision of safety tests on vehicles that are required by the relevant
Slide 12: Remarks
REMARKS 1. Financial merits: Stable and growing fixed income stream which offers 6.1% (unleveraged) gross yield for a duration of at least 15 years, subject to potential upward revision every five years. 2. Limited exposure to operation risk : 1. Itochu, rated A- by S&P, through its subsidiary, Kwik
Slide 13: Lease CCTs
LEASE CCTS 1. The lessee, Kwik-Fit (GB) Limited is an indirect wholly-owned subsidiary of Itochu Corporation. 2. Itochu Corporation is an associated company of Mercuria Investment, which in turn holds 90.2% of the Manager. As such, the transactions under the leases shall constitute connected party t
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