Banimmo Sa · EURONEXT:BANI
Banimmo Sa — Debt Investor Presentation (February 2015)
41 slides from Banimmo Sa's debt investor presentation, Feb 4, 2015
Slide 1: Investors Presentation – Bond offering
FEBRUARY 4TH, 2015 Investors Presentation – Bond offering Christian Terlinden – CEO Banimmo Cedric De Laet – CFO Banimmo www.banimmo.be
Slide 2: Agenda
1 / Description of Banimmo and its activities 2 / Evolution of the real estate market 3 / Evolution of the real estate portfolio in 2014 4 / Main projects 5 / Evolution of the equity stakes/joint ventures 6 / Financing 7 / Financial figures 8 / Forecasts 9 / Bond considerations 2
Slide 3: Banimmo is specialized in the redevelopment of assets and built-to-suits
Banimmo is specialized in the 1/ Description of Banimmo and its activities redevelopment of assets and built-to-suits Property company generating both capital gains and a diversified base of recurrent income • Specialized in the redevelopment of under-managed assets (retail) and the development of s
Slide 4: Well diversified portfolio
1/ Description of Banimmo and its Well diversified portfolio activities Diversification (based on total portfolio value of €356 M at 06/2014) Diversified real estate portfolio • Geographically: 27% Belgium o Belgium o France France o Luxemburg (Paris area) • Type of segment: 73% o Offices o Retail O
Slide 5: With a clear focus on sustainable developments
With a clear focus on sustainable 1/ Description of Banimmo and its activities developments 2009 2011 2014 2015 New Headquarters of Repositioning of an old New headquarters of Marsh Foreseen delivery of new Mobistar (29,500 sqm) building into a new (6,685 sqm) in Brussels headquarters of Deloitte in
Slide 6: Shareholdership and Corporate Governance
Shareholdership and Corporate 1/ Description of Banimmo and its activities Governance Shareholdership 27,2% Affine 49,5% Management Public (free-float) 23,3% • Affine and Management constitute a stable shareholdership • Management has aligned interest with public investors • Board of directors made
Slide 7: Agenda
1 / Description of Banimmo and its activities 2 / Evolution of the real estate market 3 / Evolution of the real estate portfolio in 2014 4 / Main projects 5 / Evolution of the equity stakes/joint ventures 6 / Financing 7 / Financial figures 8 / Forecasts 9 / Bond considerations 7
Slide 8: Good demand for offices in Brussels
GOOD DEMAND FOR OFFICES IN 2/ Evolution of the real estate market BRUSSELS Demand for offices nearly back to level of 2008… ….but with much lower development pipeline, leading to decrease in vacancy rate 8 Source: CBRE
Slide 9: Investors are back at historical low yields for core products
INVESTORS ARE BACK AT HISTORICAL 2/ Evolution of the real estate market LOW YIELDS FOR CORE PRODUCTS Total investment volume in 2014 highest since 7-year and at yields for core products below 5 % 9 Source: CBRE
Slide 10: Same trends for retail in France
2/ Evolution of the real estate market SAME TRENDS FOR RETAIL IN FRANCE Total investment volume in 2014 highest since 7-year and investment in retail still very important 10 Source: CBRE
Slide 11: Agenda
1 / Description of Banimmo and its activities 2 / Evolution of the real estate market 3 / Evolution of the real estate portfolio in 2014 4 / Main projects 5 / Evolution of the equity stakes/joint ventures 6 / Financing 7 / Financial figures 8 / Forecasts 9 / Bond considerations 11
Slide 12: Evolution of the portfolio in 2014
3/ Evolution of the real estate portfolio Evolution of the portfolio in 2014 Portfolio evolution • 1 new investment: land in Charleroi • 1 new built-to-suit: Tirou (for BNPParibas Fortis) realized in partnership • 1 new partnership: acquisition of land in Namur (Cauchy) allowing the development of 1
Slide 13: Agenda
1 / Description of Banimmo and its activities 2 / Evolution of the real estate market 3 / Evolution of the real estate portfolio in 2014 4 / Main projects 5 / Evolution of the equity stakes/joint ventures 6 / Financing 7 / Financial figures 8 / Forecasts 9 / Bond considerations 13
Slide 14: Brussels - Veridis
4/ Main projects BRUSSELS - VERIDIS Building of 6,685 sqm • 6,534 sqm offices • 151 sqm archives • 69 parking spots Lease contract and occupancy • Fully let to Marsh & McLennan • 15 years (fixed-indexed) Delivery date • End of 2014 – Beginning of 2015 Very good accessibility • Bus stop and undergrou
Slide 15: Ghent - Deloitte
4/ Main projects GHENT - DELOITTE Building of 7,400 sqm • 7,400 sqm offices • 160 parking spots Lease contract and occupancy • Fully let to Deloitte • 15 years (fixed - indexed) Timing • Permit obtained and works started this summer • Delivery and expected sale : end of 2015 Very good accessibility
Slide 16: Built-to-suit Charleroi
4/ Main projects BUILT-TO-SUIT CHARLEROI • Built-to-suit in Charleroi for +/- 8,000 sqm – 75 parkings • 15 years rental agreement (fixed - indexed) with Railway and BNPParibas Fortis bus station • In partnership with IRET group (50/50) • Timing: o Permits obtained o Works started in June 2014 o Deli
Slide 17: Land plot in Namur
4/ Main projects LAND PLOT in NAMUR Description • 52 acres land in the city center of Namur, capital of Railway and bus station Walloon Region • Located along the Boulevard Cauchy, close to railway and bus station • In partnership with Thomas & Piron (50/50) Strategy • Permits have been obtained Cit
Slide 18: Ghent – MAG Outlet Centre
4/ Main projects GHENT – MAG Outlet Centre Scheme of 52,800 sqm Tetris Business Park Ghent • 32,000 sqm McArthurGlen Outlet Centre • 14,500 sqm leisure Outlet Center • 6,300 sqm big box store Flanders Scheme Expo • Development and investment through a joint-venture (50/50) between Banimmo and McArth
Slide 19: Brussels – North Plaza
4/ Main projects BRUSSELS – NORTH PLAZA • Office building of 13,600 sqm • Start of renovation process at the beginning of 2015 Railway and • In the framework of a tender with European bus station Commission (15 y rental agreement), building has been retained amongst list of four buildings • Joint of
Slide 20: Paris – Marché Saint-Germain
4/ Main projects PARIS – MARCHE SAINT-GERMAIN • Acquisition made in 2009 for an amount of +/- € 30 M • Retail gallery of 3,200 sqm that will be extended in Louvre 4,400 sqm area • Located in 6th district of Paris, near Bld St Germain • All necessary permits have been obtained (executable) • Pre-lett
Slide 21: Paris – Halle Secrétan
4/ Main projects PARIS – HALLE SECRETAN • Old retail gallery of 4,200 sqm that is completely renovated Paris Nord • Located in 19th district of Paris • All necessary permits have been obtained and works have started at the end of 2013 (+/- €15 M project) • Creation of additional surfaces by creating
Slide 22: Rocquencourt
4/ Main projects ROCQUENCOURT • Acquisition made in 2012 of old Mercedes Benz France headquarters (27,000 sqm) • Located in Rocquencourt (Versailles) • Built-to-suit (subject to financing) for large international upperscale hotel operator • The procedure for obtaining permits is launched following t
Slide 23: Agenda
1 / Description of Banimmo and its activities 2 / Evolution of the real estate market 3 / Evolution of the real estate portfolio in 2014 4 / Main projects 5 / Evolution of the equity stakes/joint ventures 6 / Financing 7 / Financial figures 8 / Forecasts 9 / Bond considerations 23
Slide 24: 5 different equity stakes
5 DIFFERENT EQUITY 5/ Evolution of the equity stakes STAKES Banimmo has 5 different equity stakes which are the result of a strategic decision to invest in larger projects by limiting the financial exposure. Those 5 equity stakes are: 1. Conferinvest (49%): Conference Centers 2. Urbanove (49%): 2 ci
Slide 25: Equity Stake Investments: Conference Centres
Equity Stake Investments: 5/ Evolution of the equity stakes CONFERENCE CENTRES Two Conference centres in Conferinvest (49%) • Equity stake: 49% with 2 family offices • Two assets: o Dolce La Hulpe (Brussels) : 35,977 sqm ; reconstruction in 2007; green label o Dolce Chantilly (Paris): 17,000 sqm; re
Slide 26: Equity Stake Investments: Urbanove
Equity Stake Investments: 5/ Evolution of the equity stakes URBANOVE Two retail projects in Urbanove (49%) with Walloon public investment entities– Besix – Degroof. Major breakthru: Banimmo regained control of the 2 projects Verviers • Shopping mall of 29,700 sqm GLA with 1,150 parking spaces • Catc
Slide 27: Equity Stake Investments: The Loop
Equity Stake Investments: 5/ Evolution of the equity stakes THE LOOP Important landbank (25%) Deloitte • Banimmo has an historical participation of 25% in Tetris Business Park Ghent Grondbank The Loop (GBTL), owner of the land • Landbank enables development of more than 350,000 sqm in different phas
Slide 28: Agenda
1 / Description of Banimmo and its activities 2 / Evolution of the real estate market 3 / Evolution of the real estate portfolio in 2014 4 / Main projects 5 / Evolution of the equity stakes/joint ventures 6 / Financing 7 / Financial figures 8 / Forecasts 9 / Bond considerations 28
Slide 29: Funding sources - LTV evolution - financing cost
FUNDING SOURCES -LTV 6/ Financing EVOLUTION-FINANCING COST 450 120% Construction 404 loans 400 376 357 359 100% 6% 350 Bond 27% 300 80% Bilateral 250 234 asset loans 211 216 24% 195 60% 200 60,3% 56,1% 58,0% 150 54,7% 40% 100 20% 50 0 0% 2011 2012 2013 H1 2014 Syndicated loan 300,0 Value (in € Mio)
Slide 30: Most of Banimmo's financial debt is at fixed rate or hedged
MOST OF BANIMMO’S FINANCIAL 6/ Financing DEBT IS AT FIXED RATE OR HEDGED Hedging and fixed-variable mix (based on hedging Cap evolution instruments on 30/06/2014) 3,98% 56M @ 3,96% 4,0% 106 M 6M @ 3,60% Floating 3,5% 18% 3,0% Fixed 2,5% 34% 2014 2015 2016 2017 2018 2019 2020 Floor evolution 2,79% 3,
Slide 31: Impact of bond offering on debt maturity
IMPACT OF BOND OFFERING ON 6/ Financing DEBT MATURITY Debt maturity based on outstanding amount of funding sources (€ 198,2M € @ 12/2014) 100 90 80 70 60 65 50 40 41 0 30 20 34 TBD 34 10 15 0 5 0 0 H2 2014 2015 2016 2017 2018 2019 Club deal (Nominal amount of € 120 M) Contractual loan amortisation R
Slide 32: Agenda
1 / Description of Banimmo and its activities 2 / Evolution of the real estate market 3 / Evolution of the real estate portfolio in 2014 4 / Main projects 5 / Evolution of the equity stakes/joint ventures 6 / Financing 7 / Financial figures 8 / Forecasts 9 / Bond considerations 32
Slide 33: Consolidated Results
Consolidated Accounts 7/ Financial figures CONSOLIDATED RESULTS (Mio €) 30/06/14 Comments Gross rental income 6.7 Net rental income 4.9 Other income (commissions on JV) 0.4 Share in the result of companies accounted by the equity method (cash) 0.2 Recurrent income 5.5 General and administrative cost
Slide 34: Agenda
1 / Description of Banimmo and its activities 2 / Evolution of the real estate market 3 / Evolution of the real estate portfolio in 2014 4 / Main projects 5 / Evolution of the equity stakes/joint ventures 6 / Financing 7 / Financial figures 8 / Forecasts 9 / Bond considerations 34
Slide 35: Forecasts & goals for 2015
8/ Forecasts FORECASTS & GOALS FOR 2015 • Continue letting efforts to improve global occupancy rate of offices: o Alma Court has occupancy of 94% go for 100% o North Plaza (13,600 sqm) important tender ongoing o Arts 27: Increase current occupancy rate of 70% by letting last 2.5 levels Objective
Slide 36: Forecasts & goals for 2015
8/ Forecasts FORECASTS & GOALS FOR 2015 • Focus on retail will persist with: o Completion of Secrétan commercialization with delivery in H1 2015 o After having obtained final permits in November 2014, start of repositioning works on Saint- Germain in spring 2015 with a sale objective in late 2016. F
Slide 37: Improved liquidity of the portfolio (2015)
8/ Forecasts IMPROVED LIQUIDITY OF THE PORTFOLIO (2015) Likely sales Deloitte Corvettes (Paris) Rocquencourt Tirou Alma Court TOTAL Likely Sales ~ Related capital expenditures: ~10 M €100 M Arts 27 North Plaza Sales in function of commercialisation TOTAL Other sales ~ €65 mio Related capital expendi
Slide 38: Improved liquidity of the portfolio (2016)
8/ Forecasts IMPROVED LIQUIDITY OF THE PORTFOLIO (2016) Likely sales Marché Saint-Germain H5 Cauchy Dolce TOTAL Likely sales~ €110 M Related capital expenditures: ~35 M 38
Slide 39: Agenda
1 / Description of Banimmo and its activities 2 / Evolution of the real estate market 3 / Evolution of the real estate portfolio in 2014 4 / Main projects 5 / Evolution of the equity stakes/joint ventures 6 / Financing 7 / Financial figures 8 / Forecasts 9 / Bond considerations 39
Slide 40: Contemplated Bond Offering Term Sheet
9/ Contemplated Bond Offering Term Sheet • Issuer Banimmo NV/SA • Size of the offer TBD • Maturity 5 years • Denominations € 100,000 • Type Fixed Rate notes • Coupon TBD • Issuer rating Unrated • Listing Alternext Brussels • Ranking Unsubordinated and unsecured (pari passu with other unsecured and u
Slide 41: Questions
9/ Contemplated Bond Offering Questions 41