CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — Merger or Acquisition (March 2006)
24 slides from CapitaLand Integrated Commercial Trust's merger presentation, Mar 20, 2006
Slide 1: Proposed Acquisition of Raffles City Key Highlights
Proposed Acquisition of Raffles City Key Highlights 20 March 2006
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumpti
Slide 3: Agenda
Agenda 1. Raffles City 2. Joint Ownership 3. Benefits to Unitholders 4. Indicative Timeline Page 3
Slide 4: In Summary
In Summary CCT to acquire Raffles City from Tincel Properties (Private) Limited Under the Collaboration Agreement: Joint ownership by CCT(60%) and CMT(40%) CCTML will lead manage the acquisition process and asset management of Raffles City Property purchase price of S$2.085 billion Acquisition is yi
Slide 5: Raffles City
Raffles City Cap/taMall Cap/taCommercial
Slide 6: Location
Location In the heart of CBD with direct access to City Hall MRT, one of the two interchange stations Easy access via East Coast Parkway Expressway and Central Expressway Raffles City Tower 20-mins drive to and from Changi International Airport Shopping Centre Raffles The Plaza Direct connection to
Slide 7: A Landmark
A Landmark Raffles City is an integrated development comprising: 42-storey Raffles City Tower (Office) Raffles City Shopping Centre Raffles City Convention Centre 73-storey Swissotel The Stamford 28-storey Raffles The Plaza Page 7
Slide 8: Property Details
Property Details 1 Land Tenure : 99 years wef 16 July 1979 Remaining Land Tenure : About 72 years Land Area : 352,000 sq ft GFA : 3.45 million sq ft Valuation : S$2.166 bn2 (CB Richard Ellis (Pte) Ltd) S$2.151 bn2 (Jones Lang LaSalle Property Consultants Pte Ltd3) Notes: 1. Information as at 28 Febr
Slide 9: Raffles City Components
Raffles City Components 1 Raffles City Tower (Office Component) Net Lettable Area 375,000 sq ft Occupancy Close to 100% Raffles City Shopping Centre (Four Levels of Retail) Net Lettable Area 302,000 sq ft Occupancy Close to 100% Raffles City Convention Centre Brief Description 70,000 sq ft of meetin
Slide 10: Contribution based on 2005 NPI
Contribution based on 2005 NPI Raffles City 2005 Total Net Property Income contribution from the different components Office 16% Hotels Raffles The Plaza and 40% Raffles City Tower Swissotel The Stamford Others Retail 4% 40% Convention Centre Raffles City Shopping Centre Page 10
Slide 11: Major Tenants
Major Tenants Leased Area % of NLA of respective (sq ft) component Office Economic Development Board 117,593 31.3 Phillip Securities 55,585 14.8 Accenture 47,964 12.8 Retail Robinson & Company 96,260 31.9 Cold Storage 22,658 7.5 Hotels 20-year lease term to RC Hotels (Pte) Ltd commencing from 1996 e
Slide 12: Joint Ownership
Joint Ownership Cap/taMall Cap/taCommercial
Slide 13: Total Purchase Consideration
Total Purchase Consideration S$’million Property Purchase Price 2,085 Add: Certain property related liabilities 40 Asset enhancement expenditure 41 1 Total Purchase Consideration 2,166 Note: 1. CB Richard Ellis (Pte) Ltd’s open market value of Raffles City is S$2,166 million as at 16 March 2006. Pag
Slide 14: Transaction in Line with Market
Transaction in Line with Market Raffles City expected to provide projected annualised property yield of 4.9%1 in 2006 and 5.1% in 2007 based on total purchase consideration of approximately S$2.166 billion Name of Property Date Transacted Price Estimated Yield Retail Transactions Bugis Junction Oct-
Slide 15: System of Joint Ownership
System of Joint Ownership The joint ownership of a property is permissible under the updated MAS Property Funds Guidelines of 20 Oct 2005 Veto rights over key operational issues of the joint ownership are incorporated to protect interests of respective unitholders. Operational issues include: amendm
Slide 16: Management Committee
Management Committee A Management Committee will be set-up to oversee day-to-day operations Comprise representatives to be appointed by CCTML and CMTML in proportion to their interest in Raffles City Chairman of the Management Committee to be appointed by CCTML Page 16
Slide 17: Joint Ownership Structure
Joint Ownership Structure CCTML CMTML 60% 40% 60% 40% Joint Joint ownership Management ownership Committee vehicle vehicle 100% Page 17
Slide 18: Benefits to Unitholders
Benefits to Unitholders Benefits
Slide 19: Key Benefits
Key Benefits Accretion Projected annualised property yield of 4.9%1 in 2006 and 5.1% in 2007 based on total purchase consideration of approximately S$2.166 billion Premium Asset Strategically located in Central Business District Near financial centre at Raffles Place and prime retail area at Orchard
Slide 20: Enhanced Scale & Liquidity
Enhanced Scale & Liquidity S$b 4.3 5.0 Top 2 Largest S-REITs 3.5 4.0 by asset size: 3.0 Portfolio diversification 2.0 0.9 Economies of scale 1.0 0.0 IPO (2002) Current Size After Raffles City Investors benefit : Grow th of CMT's Asset Size S$b Increased market 3.5 4.0 capitalisation & liquidity 2.0
Slide 21: Indicative Timeline
Indicative Timeline Timeline
Slide 22: Indicative Timeline
Indicative Timeline Signing of Conditional Put & Call Option 18 Mar 2006 Despatch of circulars to unitholders May/Jun 2006 EGMs’ approval Jun/Jul 2006 Raffles Holdings CMT CCT Completion of Acquisition End-Aug 2006 Page 22
Slide 23: Page 23
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Slide 24: Q&A
Q&A Raffles City Acquisition
CapitaLand Integrated Commercial Trust — Merger or Acquisition (March 2006) on 6ix