Hyprop Investments Limited · JSE:HYP
Hyprop Investments — Hystead — IPO Roadshow (March 2018)
26 slides from Hyprop Investments's IPO roadshow presentation, March 2018
Slide 1: Hystead Limited Early Look March Presentation 2018
HYSTEAD LIMITED Early Look March Presentation 2018
Slide 2: Contents
Contents Hystead at a Glance 1 Relationship with Hyprop and PDI 6 Investment Case 2 Management Team 7 Macro-economic Comparison 3 Board of Directors 8 Portfolio Overview 4 Growth and Prospects 9 Financial Overview 5 Capital Raise 10 2 HYSTEAD LIMITED
Slide 3: Hystead at a Glance
Hystead at a Glance 1 High quality dominant shopping centres Six shopping centres in capital cities in SEE Hyprop and PDI are strategic shareholders Income growth Continental Europe with focus on SEE / Balkans Internally managed by in-country people (property management, asset management and executi
Slide 4: Investment Case
Investment Case 2 Favourable macroeconomics in SEE • Markets catching up in terms of development to Western peers • EU member countries (or candidates for inclusion) • Strong macroeconomics and favourable retail environment • Stable currencies closely linked to Euro (or Euro itself) • Political stab
Slide 5: Macroeconomic Comparison
Macroeconomic Comparison 3 Nominal GDP per Capita Unemployment(1) Inflation(2) USD % % Real GDP Growth Government Bond Yields Credit Ratings % % S&P Moody’s Fitch Croatia BB (positive) Ba2 (stable) BB+ (stable) Serbia BB- (stable) Ba3 (stable) BB- (stable) Montenegro B+ (negative) B1 (negative) - Bu
Slide 6: Portfolio Overview
Portfolio Overview 4 Sofia, Zagreb, Zagreb, Belgrade, Skopje, Podgorica, EUR million Bulgaria Croatia Croatia Serbia Macedonia Montenegro CCO CCO Skopje City Property name The Mall Delta City Delta City West East Mall Acquisition date Oct-17 Mar-18 Mar-18 Apr-16 Oct-16 Feb-16 Croatia Ownership % 100
Slide 7: Financial Overview
Financial Overview 5 Weighted ave. cost of GAV(1) Target LTV(3) at listing debt EUR741 million c.35% 3.9% Leases indexed Euro based or WALE to CPI or fixed linked leases 5.4 years escalations 99% 72% Notes: (1) Weighted for ownership (2) Attributable to Hystead shareholders (i.e. excl. minorities) (
Slide 8: Relationship with Hyprop and PDI
Relationship with Hyprop and PDI 6 Long-term strategic relationships with founders Hyprop and PDI (associated with Louis Norval) Hyprop and PDI have extensive real estate and shopping centre experience, and proven track records in South Africa and SEE Strategic Hyprop and PDI currently own 60%
Slide 9: Management Team
Management Team Executive Management 7 Executive and Asset Management • Three senior, experienced executives, based in Europe Property management (excl. Croatia) • Internally managed by Hystead • Experienced in-country teams retained • 70 employees Property management (Croatia) Alex Papageorgiou Rab
Slide 10: Board of Directors
Board of Directors 8 Alex Papageorgiou Rabia Shihab Kenneth Ford Pieter Prinsloo Louis Norval James Huckle Wessel Hamman Independent Independent Independent Executive director Executive director Non-executive Non-executive non-executive non-executive non-executive CEO CFO director director director
Slide 11: Growth and Prospects
Growth and Prospects 9 • Combination of organic and acquisitive growth • Organic growth − Positive rent reversions − Contractual escalations − Extensions and active asset management (as further detailed in the property slides) − Continuously improving tenant profile − Leverage portfolio and platform
Slide 12: Capital Raise
Capital Raise 10 Listing by private placement (incl. Hyprop and PDI) aims to raise c.EUR410million Hyprop and PDI will not realise any cash on listing, and are committed to be long-term shareholders Hyprop and PDI to commit c.EUR240 million in capital raise Sourcing additional underwrite/ pre-commit
Slide 13: The Mall – Sofia, Bulgaria
The Mall – Sofia, Bulgaria A GLA (m²) 51 211 Stores 182 Parking bays 1 840 Occupancy(1) 99.2% Croatia Footfall 8.7 million p.a. | Daily ave. = 24 012 Trading density (EUR/m²) 1 780 Serbia Bulgaria Rent-to-sales 12.3% Catchment area 0.5 million people within a min drive Montenegro 1.7 million people
Slide 14: The Mall – Sofia, Bulgaria (continued)
The Mall – Sofia, Bulgaria (continued) A Growth and asset management opportunities Redevelopment of the -2 level • Exclusive right to purchase the vacant and separately owned hypermarket space, formerly occupied by Carrefour, which forms part of the complex. GBA is 14 500m², adding approximately 12
Slide 15: City Center One (West) – Zagreb, Croatia
City Center One (West) – Zagreb, Croatia B GLA (m²) 46 759 Stores 140+ Parking bays 2 100 Occupancy(1) 99.9% Footfall 5.5 million p.a. | Daily ave. = 15 280 Croatia Trading density (EUR/m²) 3 421 Rent-to-sales 7.4% Catchment area 0,4 million people within a 15min drive Staff (employed by CC Real) 5
Slide 16: City Center One (West) – Zagreb, Croatia (continued)
City Center One (West) – Zagreb, Croatia (continued) B Growth and asset management opportunities Extension potential CCO West has extension potential of 13 600m² GLA (including the first “high class boulevard” for upper-class brands in Croatia) By utilising this extension potential, CCO West Zag
Slide 17: City Center One (East) – Zagreb, Croatia
City Center One (East) – Zagreb, Croatia C GLA (m²) 48 574 Stores 140 Parking bays 2 400 Occupancy(1) 99.5% Footfall 6.5 million p.a. | Daily ave. = 18080 Croatia Trading density (EUR/m²) 3 211 Rent-to-sales 7.1% Catchment area 0.3 million people within a 10 min drive 0.35 million people within a 30
Slide 18: City Center One (East) – Zagreb, Croatia (continued)
City Center One (East) – Zagreb, Croatia (continued) C Growth and asset management opportunities Extension potential Construction of an extension to CCO (East) is expected to be completed in 2019. It will increase GLA by 10 000m² and include a larger entertainment area, an extended food court and
Slide 19: Delta City – Belgrade, Serbia
Delta City – Belgrade, Serbia D GLA (m²) 29 850 Stores 124 Parking bays 1 135 Occupancy(1) 100% Footfall 10 million p.a. | Daily ave. = 27 470 Trading density (EUR/m²) 3 673 Serbia Rent-to-sales 12.5% Catchment area 0.6 million people within a 15 min drive 4.1 million people with a 1 hour drive Staf
Slide 20: Delta City – Belgrade, Serbia (continued)
Delta City – Belgrade, Serbia (continued) D Growth and asset management opportunities • Hystead is exploring the opportunity of increasing the GLA by closing some voids, and • Relocating and right-sizing tenants on the second floor to further strengthen the tenant mix 20 Belgrade, Serbia
Slide 21: Skopje City Mall – Skopje, FYR Macedonia
Skopje City Mall – Skopje, FYR Macedonia E GLA (m²) 37 000 Stores 135 Parking bays 920 Occupancy(1) 100% Footfall 8.0 million p.a. | Daily ave. = 22 400 Trading density (EUR/m²) 2 937 Rent-to-sales 10.1% Catchment area 0.3 million people within a 15 min drive 3.0 million people with a 1 hour drive R
Slide 22: Skopje City Mall – Skopje, FYR Macedonia (continued)
Skopje City Mall – Skopje, FYR Macedonia (continued) E Growth and asset management opportunities Increasing GLA • Hystead plans to convert common area to leasing area in Skopje City Mall creating c.930m² retail space • Further opportunities exist to: – enlarge key anchor tenant to make a flagship st
Slide 23: Delta City – Podgorica, Montenegro
Delta City – Podgorica, Montenegro F GLA (m²) 23 245 Stores 80 Parking bays 950 Occupancy(1) 100% Footfall 5.8 million p.a. | Daily ave. = 16 140 Trading density (EUR/m²) 3 204 Rent-to-sales 11.5% Catchment area 0.2 million people within a 15 min drive Montenegro 0.8 million people with a 1 hour dri
Slide 24: Delta City – Podgorica, Montenegro (continued)
Delta City – Podgorica, Montenegro (continued) F Growth and asset management opportunities Expansion Plans to expand the GLA by 9 000m² of retail space (growth of 37.5%) and 10 000m² of parking space - planning approval pending Special attention paid to the expansion’s design, in order to retain
Slide 25: Regional Snapshot
Regional Snapshot G Population GDP EU Status Schengen Currency Language Capital (1)million (1)USDbn 1 Baltics 1 Estonia Joined ‘04 Yes EUR Estonian Tallinn 1.3 26 2 2 Latvia Joined ‘04 Yes EUR Latvian Riga 2.0 30 3 Lithuania Joined ‘04 Yes EUR Lithuanian Vilnius 2.9 47 3 Central Europe 4 Poland Join
Slide 26: Thank You Contact
Alex Papageorgiou +3592 878 7810 CEO Hystead alex@hysteadlimited.com Wilhelm Nauta +2711 447 0090 Investment Executive Hyprop Wilhelm@hyprop.co.za Carl Esterhuysen +2711 722 3025 Director Java Capital cesterhuysen@javacapital.co.za Kevin Joselowitz +2711 722 3052 Director Java Capital kjoselowitz@ja