Brookfield Property Partners L.p. - 5.750% · NASDAQ:BPYPN

Brookfield Property Partners L.p. - 5.750% — Brookfield Property Partners — Non-Deal Roadshow (May 2015)

108 slides from Brookfield Property Partners L.p. - 5.750%'s roadshow presentation, May 19, 2015

  1. Slide 1: London Investor Presentation & Tour

    2015 LONDON INVESTOR PRESENTATION & TOUR BROOKFIELD PROPERTY PARTNERS L.P. May 19-20

  2. Slide 2: Overview of Brookfield Property Partners

    Overview of Brookfield Property Partners Diversified, global owner and operator of high-quality real estate $61.4 billion1 $28.791 $0.265/unit ~$6 billion2 68% ownership3 72% ownership Total Assets Equity per Unit Quarterly Distribution Public Float Brookfield Asset Management INVESTMENT PORTFOLIO C

  3. Slide 3: Global Portfolio of Premier Properties

    Global Portfolio of Premier Properties1 NORTH AMERICA UK AUSTRALIA OTHER TOTAL2 $47.2B $7.8B $4.7B $1.7B $61.4B CANADA Office: $4.9B UNITED KINGDOM & WESTERN EUROPE Office: $7.8B Industrial: $0.3B AUSTRALIA, INDIA & CHINA UNITED STATES Office: $4.7B Office: $22.1B Retail: $0.2B Retail: $15.9B BRAZIL

  4. Slide 4: Diversified by Geography and Property Sector

    Diversified by Geography and Property Sector Total Invested Capital of $29B1 Sector Geography Opportunistic, Other, 3% 8% Canada, 7% U.K., 14% Retail, 31% Office, 61% Australia, 7% U.S., 69% (1) As of March 31, 2015 and excludes corporate. 4

  5. Slide 5: Real Estate Investment Profile

    Real Estate Investment Profile

  6. Slide 6: Core Office

    Core Office A leading global owner and operator of premier office properties PROFILE ► Premier CBD assets in New York, Toronto, London, Los Angeles, Washington D.C., Calgary, Sydney and other gateway global cities ► Portfolio includes Brookfield Places in New York and Toronto; Bank of America Plaza

  7. Slide 7: Core Retail

    Core Retail One of the highest-quality, fastest-growing retail platforms in North America PROFILE ► Highly productive, best-in-market malls primarily in the United States ► Portfolio includes Ala Moana1 in Honolulu, Fashion Show1 in Las Vegas HIGHLIGHTS ► Interests in 171 regional malls and urban re

  8. Slide 8: Opportunistic

    Opportunistic Includes multifamily, industrial, hotel, suburban office and triple net lease assets PROFILE ► Office, retail, multifamily, industrial, hotel and triple net lease properties in North America, Europe, Australia, India and China ► Assets held predominantly in Brookfield-managed real esta

  9. Slide 9: BPY's Operating Strategy

    BPY’s Operating Strategy DF ere £ THE BCA *

  10. Slide 10: Our Value Creation Model

    Our Value Creation Model Acquire high- quality assets on a value basis Recycle capital by Leverage monetizing operating interests in platforms to stabilized assets enhance value 10

  11. Slide 11: BPY's Investment Strategy

    BPY’s Investment Strategy Acquire ► Concentrate on most dynamic global markets High-Quality ► Acquire high-quality assets at discount to replacement Assets cost ► Focus on multi-faceted transactions that capitalize on Invest structuring capability, including recapitalizations On a Value ► Allocation

  12. Slide 12: Our Operating Strategy

    Our Operating Strategy ► Maximize revenues by:  Increasing occupancy  Marking-to-market rents  Optimizing tenants  Capitalizing on synergies ► Execute re-developments within existing assets  Core Office: Repositioning assets  Core Retail: Converting big-boxes to in-line space  Opportunistic:

  13. Slide 13: Redevelopment Pipeline

    Redevelopment Pipeline BPY currently has $1.4B of redevelopment projects underway which will generate an average yield on cost of 12%1 Total (US$ millions) Sector Cost2 Yield on Cost 5 Manhattan West Office $ 312 18% Brookfield Place New York Retail Retail 315 11% 2001 M. Street Office 98 11% 7 West

  14. Slide 14: Redevelopment: 5 Manhattan West

    Redevelopment: 5 Manhattan West ► With 100,000+ SF floor plates and 16-foot ceilings, property is ideally suited for tech and media tenants ► Investing $312M to upgrade building, incorporating it into Manhattan West project  New glass façade  New lobby  Replacing elevators/HVAC  Anticipated conn

  15. Slide 15: Redevelopment: Brookfield Place New York Retail

    Redevelopment: Brookfield Place New York Retail ► 25-year-old WFC built for different era ► $315M redevelopment of common and retail areas ► Transformational program including:  New entry pavilion, lobbies and entry façades  ‘Hudson Eats’ dining terrace  ‘Le District’ French marketplace  40+ lux

  16. Slide 16: Our Development Program

    Our Development Program ► BPY has assembled a portfolio of developable land in high-value, supply constrained markets ► Opportunistically pursuing developments to:  Earn premium risk-adjusted returns compared to acquisitions  Upgrade portfolio in key strategic markets ► Development strategy is low

  17. Slide 17: Active Development Projects

    Active Development Projects Yield on Date of (US$ Millions) SF 000’s % Leased Cost1 Own % Cost Stabilization Office Projects Brookfield Place Calgary East Tower 1,400 71% 630 100% 7% Q3 2018 Principal Place – Office, London 621 69% 550 100% 8% Q4 2019 Bay Adelaide East, Toronto 980 69% 365 100% 7% Q

  18. Slide 18: Next Phase of Growth – Development

    Next Phase of Growth – Development Over 5 million sq. ft. of new development to come online between 2019-2022 will generate stabilized NOI of $270 million and yields on cost averaging 7% Yield on Date of (US$ Millions) SF 000’s % Leased Cost1 Own % Cost Stabilization Underway One Manhattan West, New

  19. Slide 19: Development – Manhattan West: Office, Residential, Hotel

    Development – Manhattan West: Office, Residential, Hotel ► Brookfield is creating a new, premium mixed- use neighborhood at Manhattan West in the Hudson Yards District ► Manhattan West includes:  Two 2 million-square-foot class A office towers  A 844-unit high-rise luxury residential tower  A mix

  20. Slide 20: Accretive Execution of Asset Sales

    Accretive Execution of Asset Sales Over the past five+ years, have sold $5.7B of office assets1, generating ~$1.3B of realized gains and ~$93M of IFRS gains2,3 Office Sales (US$ Millions) $2,019 $1,325 $871 $657 $511 $397 $357 $405 $190 $141 $40 $55 $104 $16 $36 $4 $(17) $(1) 2010 2011 2012 2013 201

  21. Slide 21: Update on Asset Sales

    Update on Asset Sales Asset Status Net Proceeds Timing 75 State Street, Boston Closed $250M Q2 Washington DC portfolio Finalizing $350M Q2 99 Bishopsgate, London In process $300M Q3 Other Office Assets Ongoing $600M Q4 $1,500M 21

  22. Slide 22: BPY's Value Proposition

    BPY’s Value Proposition DF ere £ THE BCA *

  23. Slide 23: BPY Value Proposition – Current Yield Plus Growth

    BPY Value Proposition – Current Yield Plus Growth1 With a ~4.5% yield and targeted annual distribution growth of 5%-8%, BPY offers investors an attractive total return $670 ($140) ~$3,600 $90 (US$ millions) $350 $160 $2,452 Leases not Currently Producing NOI Mark-to-Market of Expiring Leases Occupan

  24. Slide 24: BPY's Value Proposition – Capital Appreciation

    BPY’s Value Proposition – Capital Appreciation1,2 BPY’s net asset value has significant upside driven by visible growth initiatives within its existing asset base $46.00 $2.50 $6.00 $2.00 $7.50 $28.00 Mark-to-Market of Expiring Leases Occupancy Gains Development/ Redevelopment IFRS value Mark-to-Mar

  25. Slide 25: City of London Office Market

    City of London Office Market DF ere L THE BCA *

  26. Slide 26: London Executive Summary

    London Executive Summary • The Central London office market comprises of 224.4 m sq. ft. (all classes) and Q1 2015 vacancy is 4.8%. The City of London office market, including Southbank, consists of 111.6 m sq. ft. (all classes) and Q1 2015 vacancy is 5.7%. • Q1 2015 take-up for Central London was 2

  27. Slide 27: London City – Demand remains strong. Limited new supply post-2017.

    27 London City – Demand remains strong. Limited new supply post-2017. Availability: Central London: 4.8%; City: 5.7%; Docklands: 7.2% Strong occupier demand levels evidencing consistent take-up volumes even with new supply entering the market. The strength of leasing activity had led to a decrease i

  28. Slide 28: Central London Vacancy Rates, City Vacancy, Take-up & New Supply

    28 Central London Vacancy Rates City Vacancy, Take-up & New Supply Central London City West End Midtown (City) 10 20% 16.0% 9 18% 14.0% 8 16% 12.0% 7 14% 10.0% 6 12% 8.0% 5 10% 6.0% 4 8% 4.0% 3 6% 2.0% 2 4% 0.0% Q3 2011 1 2% Q1 2005 Q3 2005 Q2 2006 Q3 2006 Q1 2007 Q3 2007 Q1 2008 Q3 2008 Q1 2009 Q3

  29. Slide 29: Total Occupational Costs

    29 Total Occupational Costs City (psf) West End (psf) Docklands (psf) Headline Rent £62.50 £115.00 £40.00 Rates £20.00 £47.50 £15.50 Service Charge £10.00 £10.50 £15.501 Total Occupation Costs £92.50 £173.00 £71.00 Discount for net effective 17.5% 15% 20% rent2 Net effective rent £51.56 £97.75 £32.0

  30. Slide 30: City Office Pipeline: Under Construction

    Sq ft (millions) 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.0 Sutton Yard, Dallington Street C-Space (Maple House), 45 City Road, EC1 40 Chancery Lane, WC2 12-14 New Fetter Lane, Spec: 0.3 m 2015 Total: 1.7 m Committed: 1.4 m 1 New Ludgate, EC4 2015 The Bower 207-211 Old Street, EC1 2 New Ludgate, EC4 Alphab

  31. Slide 31: City Office Pipeline: Proposed

    Sq ft (millions) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 54 Cannon Street, EC4 Herball House, 6 Back Hill, EC1 150 Holborn, EC1 2016 148 Old Street, EC1 33 Central, EC4 20 Farringdon Street, EC1 150 Aldgate High Street The Bower - The Tower, Old Street,… 2017 Roman Wall House, Vine Street, EC3 20 Old Bailey, EC

  32. Slide 32: City Office Pipeline: Proposed Office Developments >100k sq ft

    City Office Pipeline: Proposed Office Developments >100k sq ft Earliest Address Proposed sq ft Ownership Delivery Date 150 Holborn 2016 142,100 Ocubis 148 Old Street 2016 145,300 Great Portland Estates 33 Central 2016 230,800 HB Reavis The Bower - The Tower 2017 165,400 Helical Bar plc / Crosstree R

  33. Slide 33: City: Major Investment Deals

    City: Major Investment Deals Building Sq. Ft. Price £m Price £psf Cap Rate Buyer Seller 63 St Mary Axe 72,000 £70.0m £972 5.25% AXA Real Estate Rockspring / National Pension Service Monument Place 75,000 £100.0m £1,333 4.00% CERN Rockspring Milton Gate 201,666 £198.0m £982 5.00% Taikang Life AGC Equ

  34. Slide 34: City: Major Leasing deals

    City: Major Leasing deals Address Market Occupier Size sq ft Rent psf Term (yrs) Rent free Date New Street Square (pre-let) EC4 Deloitte 258,000 £64.00 20 Confidential Mar-15 Moor Place EC2 WeWork 167,900 £57.77 20 4 months Feb-15 Investec Asset 30 Gresham Street EC2 61,100 £60.00 13 26 + 6 months F

  35. Slide 35: Brookfield's City of London Business

    Brookfield’s City of London Business

  36. Slide 36: London Portfolio

    London Portfolio Operating Properties 4 Total Leasable Sq. Ft. 686,165 Portfolio Vacancy 2.4% Market Vacancy (City of London) 5.7% Development Properties 4 Total Sq. Ft 2,088,000 Vacancy / Rollover Exposure - as at March 31, 2015 500,000 450,000 63.3% 400,000 350,000 300,000 Sq. ft. 250,000 200,000

  37. Slide 37: Brookfield London Timeline

    Brookfield acquired 50% stake in 100 Bishopsgate Mar 2010 Brookfield exchange on Hammerson Office Portfolio Jun 2012 Brookfield sign 50/50 JV with Oxford Properties for Jul London Wall Place development 2012 Sell Puddle Dock Complete on HMSO purchase Enter JV with Concord Pacific for Principal Place

  38. Slide 38: London Portfolio Map

    Moor Place 100 100 Leadenhall Leadenhall Principal Bishopsgate Bishopsgate Principal Court Court Place Place 99 99 Bishopsgate 125 Old Bishopsgate 125 Old Broad St Broad St London London Wall Wall Place Place 38

  39. Slide 39: 99 Bishopsgate

    99 Bishopsgate Key Attributes  26-storey Grade A office building (336,000 sf) centrally located within the City of London’s cluster of tall towers  On acquisition 2012, 62% leased  In 2013, Brookfield completed major refurbishment works to the façade, lobby, terrace and common areas  2015 occupa

  40. Slide 40: Leadenhall Court

    Leadenhall Court Key Attributes  7-storey 109,000 sf office building (including 7,000 sf ground floor retail space). Acquired as part of the Hammerson portfolio in June 2013  Held leasehold from City of London until 2139  Constructed in 1988 and occupies a prime City of London location, especiall

  41. Slide 41: Moor Place

    Moor Place Key Attributes  Moor Place is a 236,000 sf Grade A office building located adjacent to Brookfield’s 500,000 sf London Wall Place office development project (75% pre-let) and the future Moorgate Crossrail entrance.  Brookfield acquired Moor Place on 18 December 2014, with 7% occupation (

  42. Slide 42: 100 Bishopsgate

    100 Bishopsgate Key Attributes  40-storey Grade A office development (930,000 RSF) centrally located within the City of London’s cluster of tall towers.  100% ownership from 4 December 2015.  Cleared 2 acre site held under four 225-year leases from The Leathersellers Livery Company .  Obligation

  43. Slide 43: Principal Place Commercial

    Principal Place Commercial Key Attributes  15-storey Grade A office development (620,000 sf) located on the City of London/Shoreditch border, immediately north of Broadgate in the London Borough of Hackney  100% owned by Brookfield. On completion, this will be held leasehold under a 987 year lease

  44. Slide 44: Principal Place Residential

    Principal Place Residential Key Attributes  Principal Place Residential is located on the City of London / Shoreditch border adjacent to Broadgate in the London Borough of Hackney (LBH)  The site has planning consent for a Foster + Partners designed 50-storey residential tower and affordable housi

  45. Slide 45: London Wall Place

    London Wall Place Key Attributes  1.8 acre site with planning consent for two office buildings totaling 500,000 sf of offices  Prominent City of London location (c.500m west of 100 Bishopsgate); strategically positioned by a major new Crossrail station (London transport system due 2018)  1LWP - 3

  46. Slide 46: City Gate House

    City Gate House Key Attributes  Seven-story, 161,711 sq ft building which currently serves as Bloomberg’s European headquarters  Located on Finsbury Square, which is in close proximity to public transportation links at Moorgate Station and the future CrossRail stop at Moorgate/Liverpool Street  B

  47. Slide 47: Property Tenants

    Property Tenants Size sq ft Timing of deal Moor Place WeWork 167,000 sq ft April 2015 CHP Consulting 19,250 sq ft April 2015 Pure Gym 8,700 sq ft April 2015 Sub Total 194,950 sq ft *125 Old Broad Street was sold by 125 Old Broad Street* Landmark Plc 11,100 sq ft Feb 2014 Brookfield in July 2014 Eato

  48. Slide 48: Canary Wharf Group Portfolio

    BROOKFIELD PROPERTY PARTNERS Canary Wharf Group Por/olio May 2015

  49. Slide 49: Canary Wharf Backgrounder

    Canary Wharf Backgrounder • The Canary Wharf estate is a 97-­‐acre business and shopping district in East London, consisPng of 37 buildings and five retail malls that total 16 million square feet with over 105,000 workers in major Financial Services, Law, Professional Services and TMT businesses. • C

  50. Slide 50: Canary Wharf Estate - Operating Assets

    Canary Wharf Estate -­‐ Opera8ng Assets # Property BPY Stake1 Occupancy Square feet 1 20 Canada Square2 100% 100% 610,000 2 One Churchill Place 50% 100% 1,038,500 3 10 Cabot Square 50% 100% 634,100 4 20 Cabot Square 50% 100% 558,100 5 One Canada Square 50% 97% 1,220,500 6 33 Canada Square 50% 100% 5

  51. Slide 51: Canary Wharf Estate - Operating Assets

    Canary Wharf Estate -­‐ Opera8ng Assets One Canada Square One Churchill Place 10 Cabot Square 20 Cabot Square 1,220,500 square feet 1,038,500 square feet 634,100 square feet 558,100 square feet 97% Leased 100% Leased 100% Leased 100% Leased Key Tenants: Moody’s, Bank Key Tenants: Barclays, Key Tenan

  52. Slide 52: Canary Wharf Estate - Operating Assets

    Canary Wharf Estate -­‐ Opera8ng Assets 20 Canada Square 25 Churchill Place 7 Westferry Circus 15 Westferry Circus 610,000 square feet 545,000 square feet 177,700 square feet 171,000 square feet 100% Leased 90% Leased 8% Leased 100% Leased Key Tenants: BP, McGraw-Hill Key Tenants: EMA, EY Key Tenant

  53. Slide 53: Canary Wharf Estate - Operating Assets

    20 Bank Street 546,500 Canary Wharf Estate -­‐ Opera8ng Assets square feet 100% Leased Key Tenant: Morgan Stanley 20 Bank Street 33 Canada Square 40 Bank Street 546,500 square feet 562,700 square feet 606,000 square feet 100% Leased 100% Leased 94% Leased Key Tenant: Morgan Stanley Key Tenant: Citi

  54. Slide 54: Canary Wharf Estate - Operating Assets

    20 Bank Street 546,500 Canary Wharf Estate -­‐ Opera8ng Assets square feet 100% Leased Key Tenant: Morgan Stanley Cabot Place Mall Canada Place Mall Jubilee Place Mall 141,600 square feet 71,300 square feet 134,560 square feet 100% Leased 100% Leased 100% Leased Key Tenants: Tiffany & Co., Key Tenan

  55. Slide 55: Canary Wharf Estate - Operating Assets

    20 Bank Street 546,500 Canary Wharf Estate -­‐ Opera8ng Assets square feet 100% Leased Key Tenant: Morgan Stanley Canada Place Building Canada Place Link Mall Reuters Plaza 208,242 square feet 7,960 square feet 8,900 square feet 100% Leased 100% Leased 100% Leased Key Tenants: Waitrose, Reebok Key T

  56. Slide 56: Canary Wharf Estate - Operating Assets

    20 Bank Street 546,500 Canary Wharf Estate -­‐ Opera8ng Assets square feet 100% Leased Key Tenant: Morgan Stanley Churchill Place Park Pavilion West Wintergarden 34,900 square feet 22,900 square feet 2,940 square feet 100% Leased 100% Leased 100% Leased Key Tenants: Barclays, Key Tenants: Roka, Lloy

  57. Slide 57: Canary Wharf Estate - Operating Assets

    20 Bank Street 546,500 Canary Wharf Estate -­‐ Opera8ng Assets square feet 100% Leased Key Tenant: Morgan Stanley East Wintergarden Crossrail Place (Phase 1) Canary Wharf’s Premier Venue 95,000 square feet 7,341 square feet Retail: 94% Leased Key Tenants: Big Easy, Everyman Cinema, Sports Bar & Gril

  58. Slide 58: Canary Wharf Estate - Operating Assets

    20 Bank Street 546,500 Canary Wharf Estate -­‐ Opera8ng Assets square feet 100% Leased Key Tenant: Morgan Stanley Car Park Perimeter Retail / Restaurants1 2,894 Spaces 57,000 square feet Key Tenants: Iberica, Cat & Canary, Bang & Olufsen (1) Included within total building NIAs on page 3 11

  59. Slide 59: Canary Wharf Group - Development Programme

    Canary Wharf Group -­‐ Development Programme • Canary Wharf Group has a current development pipeline of 11 million square feet. • Over the last 21 months the Group has secured over 8 million square feet of new planning permissions including a new permission for a 4.9 million square foot mixed use de

  60. Slide 60: Canary Wharf Group - Development Programme

    Canary Wharf Group -­‐ Development Programme Phase 1 of the Development Programme will be delivered through a combina8on of: • Office pre-­‐lets • Retail pre-­‐lets • Limited speculaPve office development to establish the Wood Wharf office district • Forward sales • Sales of residenPal apartments • CreaPo

  61. Slide 61: Shell Centre Summary

    Shell Centre Summary Total: 1,415,000 square feet Office: 530,000 square feet Residential: 820,000 square feet Retail: 55,000 square feet Apartments: 863 units 14

  62. Slide 62: Shell Centre Buildings B1 and B2

    Squire & Partners - B1 KPF - B2 Office and Retail: 269,000 square feet Office and Retail: 291,000 square feet 15

  63. Slide 63: Shell Centre Buildings B3, B4a, B4b

    Patel Taylor - B3 Squire & Partners - B4a Squire & Partners - B4b PRS: 151,000 square feet Residential for sale: Residential for sale: Units: 203 175,000 square feet 140,000 square feet Affordable: 74,000 square feet Units: 98 Units: 199 Units: 158 16

  64. Slide 64: Shell Centre Buildings B5, B6/7

    Stanton Williams - B5 Grid - B6/7 Residential for sale: 177,000 square feet Residential for sale: 130,000 square feet Units: 108 Units: 97 17

  65. Slide 65: Development Programme - 5 Year Pipeline

    Development Programme -­‐ 5 Year Pipeline Newfoundland One Bank Street Ten Bank Street Private Members Club Wood Wharf 18

  66. Slide 66: Development Programme - 5 Year Pipeline

    Development Programme -­‐ 5 Year Pipeline Horden Cherry Lee - One Bank Street Ten Bank Street Newfoundland 700,000 square feet of offices Up to 700,000 square feet of PRS: 534,000 square feet 40% leased offices Units: 611 Key Tenant: Societe Generale 19

  67. Slide 67: Wood Wharf Phase 1

    Wood Wharf Phase 1 Wood Wharf Phase 1 Total: 1,670,000 square feet Office: 289,000 square feet Residential: 1,260,000 square feet Retail: 85,000 square feet Units for sale: 811 units PRS units: 461 units 20

  68. Slide 68: Wood Wharf Buildings A1 and A3

    Herzog & de Meuron - A1 Stanton Williams - A3 Residential and Retail: 413,000 square feet Residential and Retail: 262,000 square feet Units: 468 Units: 343 21

  69. Slide 69: Wood Wharf Buildings A2 and E1/2

    Stanton Williams - A2 Grid - E1/2 PRS and Retail: 127,000 square feet PRS and Retail: 226,000 square feet Units: 174 Units: 287 22

  70. Slide 70: Wood Wharf Buildings G3 and Affordable Housing

    Allies & Morrison - G3 Patel Taylor / Darling Associates - Affordable Housing Intermediate Rent and Retail: 120,000 square feet Affordable Rent and Retail: 179,000 square feet1 Units: 176 Units: 169 (1) Includes Community Space 23

  71. Slide 71: Wood Wharf Buildings B3 and D1

    Allies & Morrison - B3 Allies & Morrison - D1 Office and Retail: 101,000 square feet Office and Retail: 223,000 square feet 24

  72. Slide 72: Development Programme - Future Pipeline

    Development Programme -­‐ Future Pipeline Park Place North Quay Wood Wharf Future Phases 680,000 square feet 2,400,000 square feet 3,300,000 square feet 25

  73. Slide 73: Canary Wharf Group - Development Portfolio

    Canary Wharf Group -­‐ Development Portfolio Project BPY Stake1 Leased % Use NIA (square feet) Target Comple8on Year Projects in development Crossrail StaPon (Phase 2) 50% 0% Retail 18,000 2018 One Bank Street 50% 40% Office 700,000 2019 Ten Bank Street 50% Office 700,000 2020 Private Members Club 50% 1

  74. Slide 74: 27

    27

  75. Slide 75: Forecast Average Annual Housing Supply vs. Demand

    Forecast Average Annual Housing Supply vs. Demand 29

  76. Slide 76: Shift Of Tenure From Ownership To Rental In London

    Shia Of Tenure From Ownership To Rental In London 30

  77. Slide 77: Growth In PRS Households 2001 - 2011

    Growth In PRS Households 2001 -­‐ 2011 31

  78. Slide 78: Ten Year Residential Growth

    Ten Year Residen8al Growth London & Prime London 32

  79. Slide 79: The Grid Building

    The Grid Building - - «Mil \] 2a fe V

  80. Slide 80: The Grid Building

    The Grid Building 2 Bed Apartment Plan 87m2 34

  81. Slide 81: Showing rail and air connections

    Showing rail and air connetions — ng rail services. Step-free trav tance will be required to get om Luton Airport Parkway Station to aes Ww \ \ CAMDEN \s via an accessible bus. | SN EALING _ | ee Ealin; | West F Drayton _ Hanwell Broadway Hayes & Harlington Totcrkads en = “71 A ~~

  82. Slide 82: Canary Wharf Estate Leasing Overview

    20 Bank Street 546,500 Canary Wharf Estate Leasing Overview square feet 100% Leased Key Tenant: Morgan Stanley • 15.5 million square feet of offices • 866,045 square feet available, of which 134,434 square feet is CWG space • 5.58% vacancy rate • Rental levels • ConPnuing diversificaPon 36

  83. Slide 83: Canary Wharf - Leasing Strategy - Operating Assets

    20 Bank Street 546,500 Canary Wharf -­‐ Leasing Strategy -­‐ Opera8ng Assets square feet 100% Leased Key Tenant: Morgan Stanley One Canada Square 40 Bank Street 25 Churchill Place 1,204,000 square feet of offices 606,000 square feet of offices 545,000 square feet of offices 97% leased 94% leased 90%

  84. Slide 84: Canary Wharf - Leasing Strategy - Developments

    20 Bank Street 546,500 Canary Wharf -­‐ Leasing Strategy -­‐ Developments square feet 100% Leased Key Tenant: Morgan Stanley One Bank Street Ten Bank Street 700,000 square feet of offices Up to 700,000 square feet of 40% leased offices Key Tenant: Societe Generale 38

  85. Slide 85: Canary Wharf - Leasing Strategy - Developments

    20 Bank Street 546,500 Canary Wharf -­‐ Leasing Strategy -­‐ Developments square feet 100% Leased Key Tenant: Morgan Stanley 1 Park Place 7 Westferry Circus Up to 680,000 square feet of 160,000 square feet of offices offices Under refurbishment 39

  86. Slide 86: Wood Wharf - Leasing Strategy - Developments

    Wood Wharf -­‐ Leasing Strategy -­‐ Developments Phase 1 Building 3 Building D1 87,000 square feet of offices 202,000 square feet of offices 40

  87. Slide 87: City - Leasing Strategy - Operating Assets

    City -­‐ Leasing Strategy -­‐ Opera8ng Assets 20 Fenchurch Street 682,000 square feet of offices 93% Leased Key Tenant: 41

  88. Slide 88: Canary Wharf Group - Retail Overview

    20 Bank Street 546,500 Canary Wharf Group -­‐ Retail Overview square feet 100% Leased Key Tenant: Morgan Stanley • 812,000 square feet of exisPng retail • Up to 878,000 square feet of future development • 0% vacancy rate 42

  89. Slide 89: Canary Wharf Group - Retail Development

    Canary Wharf Group -­‐ Retail Development Crossrail Phase I - 2015 Crossrail Phase II - 2018 Total NIA of 95,000 square feet 18,000 square feet at level -3 43

  90. Slide 90: Canary Wharf Group - Retail Development

    Canary Wharf Group -­‐ Retail Development C2 Building Wood Wharf 200,000 square feet 45

  91. Slide 91: UK & London Economic & Property Market Prospects

    UK & LONDON ECONOMIC & PROPERTY MARKET PROSPECTS Dr Neil Blake Head of EMEA Research, CBRE 19th May 2015

  92. Slide 92: The UK Economy in Context

    1984 = 100 95 115 135 155 175 195 215 235 255 275 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Source: Oxford Economics 1996 1997 1998 1999 2000 2001 2002 2003 USA 2004 2005 THE UK ECONOMY IN CONTEXT 2006 2007 Euro Area 2008 2009 2010 2011 2012 UK 2013 2014 2015 2016 2017 2018 2019 20

  93. Slide 93: Back to the 1990s?

    BACK TO THE 1990S? Is the 1992-1997 Major Government any guide to what’s next? 1992 2015  Growth picking up after a damaging  Growth picking up after a damaging recession recession  Conservatives with slim or no majority  Conservatives with slim or no majority  Europe top of the agenda  Europe

  94. Slide 94: Uncertainties We Still Have

    UNCERTAINTIES WE STILL HAVE We are mostly dealing with ‘known unknowns’ Generally…  Whether Cameron’s slim majority will be enough to keep a hold on power?  Could the Government be pulled off track by minor interests?  Whether there could be a second general election (unlikely?) Specifically…  W

  95. Slide 95: Brexit: What Do Investors Think?

    BREXIT: WHAT DO INVESTORS THINK? Q. The UK may decide to hold a Referendum on EU Membership: how would it affect the attractiveness of property investment in the UK if they voted to leave the EU? 38% 31% 27% 4% 1% Makes the UK a much Makes the UK a slightly Makes no difference Makes the UK a slightl

  96. Slide 96: Zero Inflation Is Temporary

    ZERO INFLATION IS TEMPORARY Interest Rates have turned? 6 5 10-year Gilt Yields 4 3 2 CPI Inflation 1 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Oxford Economics, CBRE

  97. Slide 97: The London Phenomena: Office-Based Jobs in Central London

    thousands 1100 1300 1500 1700 1900 2100 2300 500 700 900 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Source: Oxford Economics, CBRE 2001 2002 THE LONDON PHENOMENA Office-Based Jobs in Central London 2003 2004 2005 2006 2007 2008 2009 2010 2011 17.7% growth 20

  98. Slide 98: Consultancy & TMT Lead the Way

    CONSULTANCY & TMT LEAD THE WAY Change in employees in 2009-14 Head offices; management consultancy Computer Programming Advertising & MR Office admin & support Employment agencies Legal & Accounting Building services Telecommunications Programming & broadcasting Architecture & engineering services R

  99. Slide 99: London's Growth Amongst the Best

    LONDON’S GROWTH AMONGST THE BEST Office-based employment growth since the peak (2009-2014) Warsaw London (inner) Shanghai Hong Kong Munich San Francisco (metro) Stockholm Berlin Frankfurt New York (metro) Milan Paris Madrid -5 0 5 10 15 20 25 Source: Oxford Economics

  100. Slide 100: No Boom in London Supply - Yet

    000’s square feet; 4 quarter rolling total 10000 12000 14000 16000 18000 0 2000 4000 6000 8000 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Office completions in Central London 2004 2005 2006 2007 2008 2009 2010 NO BOOM IN LONDON SUPPLY - YET 2011 20

  101. Slide 101: London Rents on the Rise

    LONDON RENTS ON THE RISE London Office Prime Rents 180 160 140 120 £ per square foot West End, 25.8% growth 3 years to 2019Q1 100 80 60 40 City, 14.6% growth 3 years to 2019Q1 20 0 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

  102. Slide 102: Real Rents Look More Stable

    £ per square foot, at 2015Q1 prices 20 40 60 80 0 100 120 140 160 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 London Office Prime Rents 1998 *deflated by the UK GDP deflator 1999 2000 Source: CBRE (soft landing scenario); 2001 2002 2003 2004 2005 2006 2007 2008 2009 REAL RE

  103. Slide 103: How Long Will Central Areas Remain Affordable?

    HOW LONG WILL CENTRAL AREAS REMAIN AFFORDABLE? Average grade A office costs Average Grade A Rent Average Grade A Business Rate Cost increase by 2018 Mayfair and St James's Knightsbridge Soho Victoria Covent Garden Fitzrovia City core Midtown (Holborn) Paddington King's Cross Farringdon Southbank Sho

  104. Slide 104: Yields But Relative Pricing Still Attractive

    YIELDS BUT RELATIVE PRICING STILL ATTRACTIVE London Office Yields vs Gilt Yields 8 7 London Financial Area Prime Office Yields* 6 5 4 Nominal 10 year Gilt yields per cent 3 2 Real 10 year Gilt yields 1 0 -1 -2 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 *Weig

  105. Slide 105: Current Spreads a Cushion Against Future Interest Rate Increases

    CURRENT SPREADS A CUSHION AGAINST FUTURE INTEREST RATE INCREASES Prime City Office Yields & 10-year Gilt yields 8 7 City Offices 6 5 4 Nominal Gilts 3 2 1 0 Real Gilts -1 -2 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

  106. Slide 106: Rental Growth & Economic Optimism to Narrow Yield Spreads?

    RENTAL GROWTH & ECONOMIC OPTIMISM TO NARROW YIELD SPREADS? Spread between City Office and Real 10-year Gilt Yields 7 6 5 4 3 2 1 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

  107. Slide 107: Summary

    SUMMARY Optimism following election Extra-ordinary growth of the London is a global city; result to be balanced by London economy over the growing caution over the EU past 30 years No immediate reason for a referendum slowdown if the world economy continues to recover New government still faces poli

  108. Slide 108: Brookfield Property Partners

    Brookfield Property Partners 2015

Brookfield Property Partners — Non-Deal Roadshow (May 2015) on 6ix