Keppel REIT · SGX:K71U
Keppel REIT — K-REIT Asia — Merger or Acquisition (October 2010)
20 slides from Keppel REIT's merger presentation, Oct 11, 2010
Slide 1: Proposed Acquisition of Marina Bay Financial Centre Phase I and Divestment of Keppel Towers and GE Tower
Proposed Acquisition of Marina Bay Financial Centre Phase I (one-third interest) and Divestment of Keppel Towers and GE Tower 11 October 2010 1
Slide 2: Important Notice
Important Notice The past performance of K-REIT Asia is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, uncertainties and assumptio
Slide 3: Contents
Contents 1. Transaction Summary 2. Key Benefits of Transaction 3. Funding Structure 4. K-REIT Asia Post-Transaction 5. Conclusion 3
Slide 4: Transaction Summary
<-REITasia Transaction Summary
Slide 5: Transaction Summary
Transaction Summary To acquire Keppel Land’s one-third interest in Proposed Acquisition Marina Bay Financial Centre Phase 1 (MBFC 1) for $1,426.8 million Proposed To divest Keppel Towers and GE Tower (KTGE) to Divestment Keppel Land for $573 million No Equity Fund Raising required Acquisitio
Slide 6: Key Benefits of Transaction
Key Benefits of Transaction 6
Slide 7: Key Benefits of Transaction
Key Benefits of Transaction Expand and upgrade portfolio without additional Equity Fund Raising Pro-active acquisition & portfolio optimisation Increase Singapore property portfolio in the Raffles Place and Marina Bay areas from 60% to 90% Enhance tenant base and improve cashflow resilience
Slide 8: Marina Bay Financial Centre
Marina Bay Financial Centre One Raffles Quay Tower 1 Tower 2 Marina Bay Sands MBFC Ph 1 Marina Bay Suites Marina Bay Tower 3 Residences Located in Singapore’s Marina Bay financial and business district Subterranean pedestrian link to the Raffles Place MRT Station, the upcoming Downtown MRT Stati
Slide 9: One-third interest in MBFC 1
One-third interest in MBFC 1 Cheung Kong (Holdings) Hong Kong Land K-REIT Asia Ltd & Hutchison Holdings Ltd Whampoa Ltd BFC Development Pte. Ltd. MBFC MBFC Marina Bay Tower 1 Tower 2 Link Mall 9
Slide 10: MBFC 1
MBFC 1 Acquisition comprises MBFC Towers 1 & 2 and Marina Bay Link Mall Key property information1 as at 30 September 2010 99 years Leasehold Tenure wef 2005 Agreed value2 $1,426.8 million Total 1,747,100 sf Net Lettable Area Weighted Average 10.3 years Lease Expiry 1. The information shown is based
Slide 11: MBFC 1
MBFC 1 Office Towers 1 & 2 tenanted to leading corporations Long weighted average lease expiry of 10.3 years Top ten tenants occupy 89.7% of leased NLA Key property information1 Committed Description NLA (sf) Occupancy 33-storey Office Tower 1 620,800 Office Fully Let 50-storey Office Tower 2 1,031,
Slide 12: Keppel Towers & GE Tower
Keppel Towers & GE Tower Keppel Towers Key property information as at 30 June 2010 Ownership Interest 100% Keppel Towers (19 Years) Age of buildings GE Tower (17 Years) Tenure Freehold 27-storey Keppel Towers Number of storeys and 13-storey GE Tower Total NLA 430,112 sf GE Tower Committed occupancy
Slide 13: Funding Structure
<-REITasia Funding Structure
Slide 14: Funding Structure
Funding Structure No equity fund raising required All-in cost of borrowings expected to from 3.54%1 to approximately 3.05% post-Transaction Proceeds from Divestment2: $570 million Funding sources Bank borrowings: $821 million Rights issue proceeds3: $41.5 million Unencumbered assets from 54.
Slide 15: K-REIT Asia Post-Transaction
K-REIT Asia Post-Transaction 15
Slide 16: Enlarged Asset Size & Improved Debt Expiry Profile
Enlarged Asset Size & Improved Debt Expiry Profile $2.5 billion portfolio asset size $3.4 billion portfolio asset size as at 30 June 20101 Post-Transaction2 Australia Australia 14% 11% Singapore Singapore 86% 89% Debt Expiry Profile Debt Expiry Profile as at 30 June 2010 1 Post-Transaction2 100% 100
Slide 17: Enhanced Portfolio WALE
Enhanced Portfolio WALE Portfolio Lease Terms by Net Lettable Area Long-term Short-term leases leases 40.5% 36.0% Short-term Long-term leases3 leases3 59.5% 64.0% As at 30 June 20101 Post-transaction2 Portfolio Weighted Average Lease Expiry (WALE) 10 7.8 8 5.7 6 4 2 0 No. of Years As at 30 June 2010
Slide 18: Conclusion
K-REITasia Conclusion
Slide 19: Conclusion
Conclusion Unique arrangement enables portfolio renewal and expansion without additional Equity Fund Raising Pro-active acquisition, portfolio optimisation, & upgrading of K-REIT Asia’s portfolio Deliver sustainable returns to Unitholders 19
Slide 20: Thank you
Thank you For queries, please contact Ms Casiopia Low Investor Relations & Research Tel: 6433 7622 Fax: 6835 7747 Email: casiopia.low@kreitasia.com http://www.kreitasia.com 20