Sirius Real Estate Limited · LSE:SRE
Sirius Real Estate — Investor Presentation (February 2014)
27 slides from Sirius Real Estate's investor presentation, February 2014
Slide 1: Sirius Real Estate Business Presentation 2014
Providing space for business Sirius Real Estate Business Presentation 2014 1
Slide 2: Sirius Real Estate Group History
Sirius Real Estate Group History • Listed on the London AIM on 4 May 2007 • Acquired 38 business parks between 2006 and 2008 currently own 30 properties valued by DTZ at €434m in Sept 2013. • Currently financed by BerlinHyp (€115m), Macquarie (€61m), K-Bonds (€52m) • Externally managed by PCSREAM ti
Slide 3: Sirius Real Estate Ltd. Structure
SIRIUS REAL ESTATE LTD. STRUCTURE 19 February 2014 100% 99% | aaa aaa aaa aa Declaration of Trust in favour of Sirius me ‘oom Real Estates Limited. % bo i) i j TORO, TTT Su Marba HAG BV) ET (ttarba Dandelion| BV | TULL te * Marba HAG B.V. & Marba Troisdorf B.V. aro: - 94.9% owned by Sirius Four B.V.
Slide 4: Business Model
Business Model To acquire large under-utilised and under- occupied office/industrial properties (typically 30,000-100,000 m²) for conversion into improved higher yielding workspace in well-established business locations targeted specifically at the Small and Medium sized enterprises.
Slide 5: Business Model
Business Model • To purchase off-market directly from private investors, corporates, banks and institutions across the country • Retain or add core anchor tenants (Siemens, GKN, VAG) • Transforms the property through branding and renovation • Drive occupancy and rental growth through in-house sales
Slide 6: Typical Sirius Business Park
Typical Sirius Business Park • 40-50% of space let to core anchor tenant/tenants with long- term good covenanted income • 40% of space let on conventional basis to Mittelstand • 10-20% Flexible space housing Sirius product range • Market leading in-house letting/re-letting space in all categories ab
Slide 7: Sirius Product Range
Sirius Product Range Dec-13 Total Income Total Rate per SqM - Total Occupancy SqM - Vacant (All Inclusive) SqM SMSP Office 17,557 69% 5,500 1,596,534 11.03 SMSP Flexilager 32,318 33% 21,765 929,221 7.28 SMSP Storage 7,676 58% 3,211 419,398 7.83 SMSP Workbox 3,739 76% 899 264,460 7.76 Conferencing 5,
Slide 8: Sirius Product Range
Sirius Product Range
Slide 9: Operational Performance – Last 5 Years
Operational Performance – Last 5 Years (adjusted for post year end items) Mar-10 Mar-11 Mar-12 Mar-13 Sep-14 (6 mths) Rent 41.8 42.1 43.2 43.1 21.0 Surrender Premiums 0.0 1.7 0.9 1.0 1.7 Other Income 2.0 1.4 1.0 1.3 0.6 TOTAL INCOME 43.8 45.1 45.1 45.4 23.3 Service Charge Irrecs (10.9) (9.3) (8.2) (
Slide 10: The Team
The Team Senior Management Team Information Finance Asset Services Sales IT Operations Legal Marketing HR Tax Management SAP SAP Sales ROM Service Development Area Sales Conferencing Team In-bound Charge Manager Technical Operations Center Operations Technical Manager Manager Managers
Slide 11: The Operating Platform
The Operating Platform • Sales & Marketing division generating > 1,000 enquiries per month and converting 100,000sqm (circa €7m income) of new lettings per year • On-line Marketing team responsible for fully integrated online marketing strategy • Dedicated renewals team focused on tenant retention •
Slide 12: Sales & Marketing
Sales & Marketing • A Marketing division that has produced a 300% increase in enquiries over the last 4 years. • In-house expertise responsible for creating, developing and managing nearly 7,000 live on-line promotions. • Daily management of 150 live Google pay per click campaigns. • Managed presenc
Slide 13: Sales & Marketing (continued)
Sales & Marketing (continued) • A trainable and measurable 10 step Sirius specific structured sales process. • A 100 point mystery shopping formula that enables accurate measurement of sales activity. • A Customer Relationship Management System that can measure how quickly salespeople deal with sale
Slide 14: Service Charge
Service Charge • A dedicated in-house Service Charge Balancing team. • In-house tools & knowledge for management and control of external facility management suppliers. • In-house expertise and implementation of effective utilities metering and control. • Advanced tools for cost allocation to improve
Slide 15: Total SRE Portfolio at Feb 14
Total SRE Portfolio at Feb 14 Usage Split Business Parks 30 Industrial/Logistic/Storage 13% Usage Split Property value (DTZ) € 428m 13% Office 23% 64% Net lettable area 1.0 m Other 23% 64% Usage Split - by Revenue Annual rent €40.9m 15% Industrial/Logistic/Storage Average rate € 4.47 Office 29% 56%
Slide 16: Key Facts – Portfolio Lease Expiry
Key Facts – Portfolio Lease Expiry Portfolio - lease expiry by Annual Rent (Feb 14) to First Break Clause 14 € - Millions 12 10 8 6 29% 24% 4 18% 17% 2 6% 6% 0 < 1 Yr 1 - 2 Yrs 2 - 3 Yrs 3 - 4 Yrs 4 - 5 Yrs > 5 Yrs Feb-14 11,920,624 10,114,526 7,365,425 2,406,361 2,550,788 6,981,030
Slide 17: 30 Business Parks
30 Business Parks Bayreuth Magdeburg Berlin Maintal Bonn Mannheim Bremen Merseburg Düsseldorf München Hannover Nürnberg Kassel Offenbach Kiel Pfungstadt Kirchheim Rostock Köln Solingen Wuppertal
Slide 18: Current SRE Major Tenants
Current SRE Major Tenants Space - Sqm Monthly Rent % Of Total Rent Average Lease Length Remaining - Yrs 1 Siemens 40,646 195,879 5.6% 2.3 2 GKN Aerospace Deutschland GmbH 41,314 150,923 4.3% 7.7 3 MAN Diesel & Turbo SE 38,813 130,717 3.8% 2.9 4 Daimler AG 26,556 130,163 3.7% 2.4 5 VAG-Armaturen GmbH
Slide 19: Case Study - Gartenfeld
Case Study - Gartenfeld Details Acquisition Sep-13 Rental Income Analysis Acquisition Sep-13 Purchase Price/Valuation €5,670,000 €15,980,000 Sqm Occupied: Total SqM 29,686 30,929 Original Tenants 11,544 1,624 Occupancy 39% 79% New Tenants 22,808 Rate per SqM €3.17 €5.18 TOTAL 11,544 24,432 Capex €0
Slide 20: Case Study – Gartenfeld Pictures
Case Study – Gartenfeld Pictures 2 Smartspace Office & Conferencing Workbox Newbuild Branding/lb Before After Sirius Real Estate Limited Half year presentation 2013 20
Slide 21: Case Study - Maintal
Case Study - Maintal Details Acquisition Sep-13 Rental Income Analysis Acquisition Sep-13 Purchase Price/Valuation €18,762,000 €22,270,000 Sqm Occupied: Total SqM 34,910 38,018 Original Tenants 24,772 18,232 Occupancy 71% 87% New Tenants 14,976 Rate per SqM €5.21 €5.09 TOTAL 24,772 33,208 Capex 0 €5
Slide 22: Case Study – Maintal Pictures
Case Study – Maintal Pictures 2 Newbuild Office Refurbishment Other Refurbishment Branding/lb Before After Sirius Real Estate Limited Half year presentation 2013 22
Slide 23: Case Study – Munich Rupert Mayer Str.
Case Study – Munich Rupert Mayer Str. Details Acquisition Sep-13 Acquisition Sep-13 Rental Income Analysis Purchase Price/Valuation €57,496,694 €53,100,000 Sqm Occupied Total SqM 71,914 71,831 Original Tenants 71,914 11,608 Occupancy 100% 88% New Tenants 51,382 Rate per SqM €5.62 €6.95 TOTAL 71,914
Slide 24: Case Study – Munich Rupert Mayer Str. Pictures
Case Study – Munich Rupert Mayer Str. Pictures 2 Smartspace Office & Conferencing Refurbishment Flexilager Branding/lb Before After Sirius Real Estate Limited Half year presentation 2013 24
Slide 25: Access to Finance
Access to Finance • Secured €61m facility with Macquarie Bank in 2012-13; • Secured €52m facility with K-Bonds in August 2013; • Credit approved €115m facility with BerlinHyp/PBB – at documentation stage expected March 2014 close; • Significant interest with other banks for additional facilities for
Slide 26: Business Outlook
Business Outlook • Experienced management team that has successfully transformed the business • Asset management and property management techniques ready to produce significant profits for investors • Very attractive properties currently available in the market • Compelling returns for investors inc
Slide 27: Board of Directors and Senior Management
Board of Directors and Senior Management
Sirius Real Estate — Investor Presentation (February 2014) on 6ix