Charter Hall Retail Reit · ASX:CQR
Charter Hall Retail Reit — Merger or Acquisition (April 2019)
25 slides from Charter Hall Retail Reit's merger presentation, Apr 1, 2019
Slide 1: Charter Hall Retail REIT Acquisition and Placement
1 APRIL 2019 Charter Hall Retail REIT Acquisition and Placement
Slide 2: Important notice
Important notice Charter Hall Retail Management Limited ABN 46 069 709 468; AFSL 246996 (“CHRML”) has This presentation and the information contained in it is provided for information purposes only and issued this presentation in its capacity as the responsible entity of Charter Hall Retail REIT ARS
Slide 3: Table of contents
Table of contents 01 Transaction overview 02 Acquisition of Rockdale Plaza, NSW 03 Strategic rationale Greg Chubb 04 Portfolio impact Retail CEO and Executive Director 05 Sources and uses of funds 06 Placement 07 Indicative timetable Christine Kelly Head of Retail Finance and Deputy Fund Manager 08
Slide 4: Transaction overview
Transaction overview • Charter Hall Retail Management Limited, the responsible entity of Charter Hall Retail REIT (“CQR" or the "REIT"), has entered into an agreement to acquire a 100% interest in Rockdale Plaza, NSW for a total consideration of $142 million ("Acquisition") Acquisition – consistent
Slide 5: Acquisition of Rockdale Plaza, NSW
Acquisition of Rockdale Plaza, NSW Convenience Plus asset comprising the largest full-line supermarket in the primary trade area, strong performing mini-majors and convenience focused specialty stores Property details as at December 2018 Classification Convenience Plus Location 12km south west of Sy
Slide 6: Strategic rationale
Strategic rationale Rockdale Plaza is a dominant Convenience Plus asset situated in a strong, established and growing catchment Dominant convenience based centre servicing significant main trade area of 130,040 people (retail market spending ~$1.79 billion)1 Market Forecast population growth of
Slide 7: Portfolio impact
Portfolio impact Acquisition of Rockdale Plaza enhances CQR portfolio metrics Portfolio snapshot Pre Acquisition1 Post Acquisition Asset value by state post acquisition - increased exposure to NSW by 3% Number of assets 58 59 SA NT ACT 4% 1% Portfolio value $2,824 million $2,966 million 4% Vic 14% W
Slide 8: Sources and uses of funds
Sources and uses of funds Sources of funds $m The Acquisition and associated transaction costs will be funded by a $150 million Placement and $4 million of existing debt Placement 150 facilities UPP / Debt 4 Any proceeds raised under the non-underwritten UPP, which is expected to raise up to $10 mil
Slide 9: Placement
Placement • Fully underwritten institutional placement to raise $150 million Structure • A non-underwritten unit purchase plan to eligible unitholders in Australia and New Zealand • Fixed issue price of $4.51 per unit, representing a: Pricing – 3.0% discount to the last close price of $4.65 on 29 Ma
Slide 10: Indicative timetable
Indicative timetable Event Date (2019) Record date for UPP 7.00pm, 29 March Trading halt and announcement of the transaction 1 April Placement bookbuild 1 April Trading of units recommences on the ASX 2 April Settlement of units under the Placement 4 April Allotment and normal trading of units issue
Slide 11: Track record of active portfolio management
Track record of active portfolio management The acquisition of Rockdale Plaza represents a continuation of CQR's strategy to enhance portfolio quality by recycling out of lower growth properties into higher growth properties Since the beginning of FY18, CQR has acquired 4 properties for a total of $
Slide 12: Annexures
Rockdale Plaza Annexures FY18 Half Year Results
Slide 13: Annexures
Annexures A Pro forma balance sheet B Capital management C Key risks D Selling restrictions E Glossary Acquisition and Placement 12
Slide 14: Pro forma balance sheet
Pro forma balance sheet Pro forma as at Capital Pro forma as at Actual as at Post balance date 31 Dec 18 Acquisition and management 31 Dec 18 $m 31 Dec 18 adjustments1 (pre-transaction) Placement2 initiatives (post-transaction) Cash 10 10 10 Investment properties3 2,185 79 2,263 151 2,415 Investment
Slide 15: Capital Management
Capital Management As part of ongoing capital management initiatives, CQR has extended all existing interest rate swaps and increased near term hedging volumes to capitalise on the low interest rate environment Interest rate swaps will be reset enabling the REIT to decrease the weighted average hedg
Slide 16: Key risks
Key risks Investors should carefully consider the risks factors described below. Additional risk factors and uncertainties that are not known to the Responsible Entity, Charter Hall Retail Management Limited (CHRML) at the time of this Offer or which are considered immaterial, may in the future mate
Slide 17: Key risks
Key risks Property valuation risk The value of each property held by CQR, and those it may hold in the future, may fluctuate due to a number of factors affecting both the property market generally or CQR's properties in particular. These factors include, but are not limited to: • changes in market r
Slide 18: Key risks
Key risks Funding The Responsible Entity may fund future refinancing, capital expenditure and acquisitions from either debt or equity markets. CQR's ability to raise funds from either market on favourable terms is dependent on a number of factors including: • the general economic and political clima
Slide 19: Key risks
Key risks Compliance CQR is a managed investment scheme which means that the Responsible Entity is subject to strict regulatory and compliance arrangements under the Corporations Act 2001 (Cth) and its Australian Financial Services Licence. If the Responsible Entity fails to comply with the conditio
Slide 20: Key risks
Key risks Macro-economic (continued) • changes in the general level of prices in local and international share markets and general investor sentiment in these markets; and • significant industrial, contractual or political disturbances impacting CQR or the continuity of its business. Consequently th
Slide 21: Selling restrictions
Selling restrictions Selling restrictions This document does not constitute an offer of CQR Units in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the CQR Units may not be offered or sold, in any country outside Australia excep
Slide 22: Selling restrictions
Selling restrictions Switzerland The Units may not be distributed in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuan
Slide 23: Glossary
Glossary 1H 19 Six months from 1 July 2018 to 31 December 2018 FY 19 Twelve months from 1 July 2018 to 30 June 2019 Capitalisation rate The return of a property or portfolio of properties calculated by dividing the market level of net operating income of that property or portfolio by the assessed in
Slide 24: Further information
Further information Greg Chubb Christine Kelly Phillip Cheetham Retail CEO and Executive Director Head of Retail Finance and Head of Listed Investor Relations Deputy Fund Manager Charter Hall Retail REIT Charter Hall Retail REIT Charter Hall T: +61 2 8651 9355 T: +61 2 8651 9401 T: +61 2 8651 9214 g
Slide 25: Charter Hall Retail REIT office locations
Sydney Perth Level 20, No.1 Martin Place 225 St Georges Terrace Sydney, NSW, 2000 Perth, WA, 6000 T+ +61 2 8651 9000 T+ +61 8 9269 5900 Melbourne Adelaide Level 12, 570 Bourke Street, Level 2, 80 Pirie Street, Melbourne,Vic, 3000 Adelaide, SA, 5000 T: +61 3 9903 6100 T: +61 8 8417 5900 Brisbane Leve
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