Texton Property Fund Limited · JSE:TEX

Texton Property Fund — Vunani Property Investment Fund — IPO Roadshow (July 2011)

39 slides from Texton Property Fund's IPO roadshow presentation, July 2011

  1. Slide 1: Vunani Property Investment Fund Preliminary Private Placement Road Show

    Vunani Property Investment Fund Preliminary Private Placement Road Show July 2011

  2. Slide 2: Table of Contents

    Table of Contents Vunani Property Investment Fund Road Show Page Introduction 3 Overview of Fund 6 Financial Overview 19 Management & Board 23 Private Placement 27 Conclusion 30 Annexure 34

  3. Slide 3: Introduction: Vunani Property Investment Fund Background

    Introduction Vunani Property Investment Fund Road Show Vunani Property Investment Fund Background  Vunani Limited is a black owned and managed financial services company  Vunani Listed on the Johannesburg Stock Exchange (AltX) in November of 2007 Vunani Limited  With its broad range of corporate

  4. Slide 4: Investment Highlights

    Introduction Vunani Property Investment Fund Road Show Investment Highlights Existing A-grade Office Portfolio with 74% blue chip tenants Attractive Forward 5-Year Track Record Yield of between with the same Team 9% and 9.8% with who have significant underlying lease experience in the escalations in

  5. Slide 5: Table of Contents

    Table of Contents Vunani Property Investment Fund Road Show Page Introduction 3 Overview of Fund 6 Financial Overview 19 Management & Board 23 Private Placement 27 Conclusion 30 Annexure 34

  6. Slide 6: Strategy of The Fund

    Strategy of The Fund Vunani Property Investment Fund Road Show Efficient  Active management of existing assets (doing what we do well) Management of  Expertise in efficient refurbishment resulting in increased rentals and fair value Existing adjustments Assets  Focus on underlying property fundam

  7. Slide 7: Value Proposition

    Value Proposition Vunani Property Investment Fund Road Show VPIF Target Market Office Property Grade Characteristics  Limited availability, huge competition, fully priced, AAA very high rentals, limited Grade growth  Office rentals depressed  Limited building activity since 2008 will create A  I

  8. Slide 8: Fund Overview

    Fund Overview Vunani Property Investment Fund Road Show VPIF Highlights Key Fund Metrics Inception Late 2006 Number of Properties(1) 21 GLA 99,684m2 Undeveloped Bulk in Portfolio approximately 19,000m2 Property Portfolio Book Value(2) R943.2 million Vacancy 2.8% Planned Vacancy(3) 2.0% VPIF Total Va

  9. Slide 9: Property Portfolio: Summary of Property Portfolio

    Property Portfolio Vunani Property Investment Fund Road Show Summary of Property Portfolio Acquisition Cost Market value Gross Lettable Area (GLA) Lease Expiry and Major Tenants Implied Cap Rate Building % of total Weighted Average Property name Purchase Price m2 %of total portfolio Major Tenants Va

  10. Slide 10: Where is the Fund Positioned?

    Property Portfolio Vunani Property Investment Fund Road Show Where is the Fund Positioned ? No of Sectoral Spread Properties Retail Offices Industrial Management Focus Vunani Property Investment Fund 22 8% 92% - Sectoral Focus Newly Established Funds 2011 IPD Office Returns Investec Property Fund 29

  11. Slide 11: Tenant Spread

    Property Portfolio Vunani Property Investment Fund Road Show Tenant Spread Tenant Spread by Gross Rental Tenant Spread by GLA Government / 26% Government / National Tenants 26% National Tenants Large / Listed Large / Listed 53% Tenants 55% Tenants Other 21% 19% Other 74% Blue Chip Tenants 11

  12. Slide 12: Geographical Spread

    Property Portfolio Vunani Property Investment Fund Road Show Geographical Spread Geographical Spread by GLA Geographical Spread by Revenue 3% 1% 3% 1% 5% 3% Gauteng Gauteng 10% 10% Western Cape Western Cape Kwa-Zulu Natal Kwa-Zulu Natal Northern Cape Northern Cape 81% Eastern Cape Eastern Cape 83% 1

  13. Slide 13: Tenant Profile

    Property Portfolio Vunani Property Investment Fund Road Show Tenant Profile Top Tenants by GLA % Multi-Tenanted vs. Single Tenanted Government of South Africa 23.6 Standard Bank S.A Ltd 11.5 Vodacom Ltd 5.1 City of Cape Town 4.7 Aegis BPO Holdings SA Ltd 4.5 39% Multi Telesure Group Services Ltd 3.1

  14. Slide 14: Forecasted Revenue and Lease Expiry

    Property Portfolio Vunani Property Investment Fund Road Show Forecasted Revenue and Lease Expiry Forecast Revenue to June 2011 Forecast Revenue to June 2012 4.5% Historical Vacancy 4% of less than 5% 18% % Contracted % Contracted % Un-contracted % Un-contracted % Letter of Commitment 96% Un-contract

  15. Slide 15: Asset Overview: Office Property

    Property Portfolio Vunani Property Investment Fund Road Show Asset Overview: Office Property Athol Ridge Greenstone Park Loop Street  8,577m2  1,807m2  2,323m2  100% occupied  100% occupied  100% occupied  R110 per m2  R95 per m2  R118 per m2  Sandton  Greenstone Hill  Cape Town CBD  Na

  16. Slide 16: Asset Overview: Office Property

    Property Portfolio Vunani Property Investment Fund Road Show Asset Overview: Office Property Perseus Rynlal Building Under Redevelopment Benstra Building  7,818m2  13,838m2  5,874m2  100% occupied  100% occupied  84% occupied  R75 per m2  R85 per m2  R70 per m2  Pretoria CBD  Lynwood Ridg

  17. Slide 17: Asset Overview: Office & Retail Properties

    Property Portfolio Vunani Property Investment Fund Road Show Asset Overview: Office & Retail Properties Office Retail Development Opportunity Under Redevelopment Parathenon Park Parthenon Park Linger Longer  4,891m2  597m2  64% occupied  100% occupied  R72 per m2  R238 per m2  Pretoria East 

  18. Slide 18: Table of Contents

    Table of Contents Vunani Property Investment Fund Road Show Page Introduction 3 Overview of Fund 6 Financial Overview 19 Management & Board 23 Private Placement 27 Conclusion 30 Annexure 34

  19. Slide 19: Forecast Income Statement and Distribution

    Financial Highlights Vunani Property Investment Fund Road Show Forecast Income Statement and Distribution Forecast for the year ending 30 June 2012 R497.5 million R306.5 million subscription 0% subscription 20% LTV LTV R'000 R'000 Rental revenue 149 998 149 998 Straight line effect of leases 1 274 1

  20. Slide 20: Pro Forma Statement of Financial Position

    Financial Highlights Vunani Property Investment Fund Road Show Pro Forma Statement of Financial Position R497.5 million R306.5 million Statement of financial position subscription 0% subscription 20% LTV LTV R’000 R’000 ASSETS Non-current assets Investment properties 947 614 947 614 Other non-curren

  21. Slide 21: Bank Facility

    Financial Highlights Vunani Property Investment Fund Road Show Bank Facility  Uncommitted facility with Standard Bank of South Africa  Facility based on a maximum gearing level of 40% loan to value  Expiry date of facility is 31 May 2013 Standard Bank Facility  Risk Margin charged on the facilit

  22. Slide 22: Table of Contents

    Table of Contents Vunani Property Investment Fund Road Show Page Introduction 3 Overview of Fund 6 Financial Overview 19 Management & Board 23 Private Placement 27 Conclusion 30 Annexure 34

  23. Slide 23: Asset Management & Structure

    Fund Management Vunani Property Investment Fund Road Show Asset Management & Structure Vunani Management Hyprop 22% 78% Limited Vunani Structure Properties 100% Asset VPAM Management VPIF  The fund will be managed by Vunani Property Asset Management (“Manco”) which is BEE controlled  VPAM is wholl

  24. Slide 24: Board of Directors: Executive Directors

    Corporate Governance Vunani Property Investment Fund Road Show Board of Directors Executive Directors Rob Kane (CEO)  Rob has over 25 years‟ experience in all aspects of the property industry including construction, broking, financing, development and asset management. After completing his BSc Civ

  25. Slide 25: Board of Directors: Non-Executive Directors

    Corporate Governance Vunani Property Investment Fund Road Show Board of Directors Non-Executive Directors Pragalathan Dhanapalan Naidoo (Independent Non-Executive Chairman)  Dempsey is the founder, and Executive Chairman of PD Naidoo & Associates. He is acknowledged for his business acumen and gove

  26. Slide 26: Table of Contents

    Table of Contents Vunani Property Investment Fund Road Show Page Introduction 3 Overview of Fund 6 Financial Overview 19 Management & Board 23 Private Placement 27 Conclusion 30 Annexure 34

  27. Slide 27: Private Placement Transaction: Salient Features

    Salient Features Vunani Property Investment Fund Road Show Private Placement Transaction Pricing  Book build price range R7.00 –a R8.00  Forward Yield 9.0% –a 9.8%  Discount / Premium to NTAV - 7.8% –a 4.0% Offer Min Max  Subscription and sale: R366.7m –a R664.2m(3) – Subscription for new units

  28. Slide 28: Comparative Forward Yield Analysis

    Market Overview Vunani Property Investment Fund Road Show Comparative Forward Yield Analysis PUT PLS 15.00% 13.84% 14.00% VPIF yield between 9% -9.8% 13.00% 12.00% 10.71% 11.00% 10.00% 9.62% 9.57% 9.47% 9.39% 9.29% 9.16% 9.09% 8.55% 8.99% 8.73% 9.00% 8.36% 8.51% 7.97% 7.95% 8.06% 7.79% 8.00% 7.44% 7

  29. Slide 29: Table of Contents

    Table of Contents Vunani Property Investment Fund Road Show Page Introduction 3 Overview of Fund 6 Financial Overview 19 Management & Board 23 Private Placement 27 Conclusion 30 Annexure 34

  30. Slide 30: Conclusion: Summary Points

    Conclusion Vunani Property Investment Fund Road Show Summary Points  History of generating superior long term income growth and capital appreciation based on its stable A to B+ portfolio  Significant BEE shareholding in the Fund and BEE controlled Manco Key Selling  Yield enhancing growth strateg

  31. Slide 31: Contact Details

    Contact Details Vunani Property Investment Fund Road Show VPIF Rob Kane +27 11 263 9526 robkane@vunaniproperties.co.za Investec Corporate Nick Riley Finance +27 11 286 7773 nriley@investec.co.za Vunani Corporate Jasper Watson Finance +27 11 263 9575 jwatson@vunanicapital.co.za 31

  32. Slide 32: Disclaimer

    Disclaimer Vunani Property Investment Fund Road Show Strictly Private & Confidential This presentation has been prepared by Investec Bank Limited acting through Investec Corporate Finance (“Investec”) and Vunani Capital (Pty) Limited (“Vunani”). The information contained in this presentation is conf

  33. Slide 33: Table of Contents

    Table of Contents Vunani Property Investment Fund Road Show Page Introduction 3 Overview of Fund 6 Financial Overview 19 Management & Board 23 Private Placement 27 Conclusion 30 Annexure 34

  34. Slide 34: Portfolio Enhancement: Parthenon Park / Murrayfield

    Portfolio Enhancement Vunani Property Investment Fund Road Show Examples of Recent Re-developments Parthenon Park / Murrayfield (Pretoria) Before After  60% vacant  20% vacancy. Letting in hand  C / D grade property  R13 million upgrade (value add R23 million)  Tenants on monthly  Impala Plati

  35. Slide 35: Portfolio Enhancement: 4 Loop Street

    Portfolio Enhancement Vunani Property Investment Fund Road Show Examples of Recent Re-developments 14 Loop Street (Cape Town) Before After  Built in 1904  R8 million upgrade  Financial district of Cape Town  Valued at R37 million  Bought for R20 million  Refurbished as a “Green Building”  C g

  36. Slide 36: Portfolio Enhancement: ACS House

    Portfolio Enhancement Vunani Property Investment Fund Road Show Examples of Recent Re-developments ACS House (Rivonia) Before After  Lease expiring in late 2010  Foyer upgraded at a cost of R200 000  15,000m2 vacancy in Rivonia  TI allowance  C grade foyers and tenant area  Two 5-year leases 3

  37. Slide 37: Portfolio Enhancement: Wale Street Chambers

    Portfolio Enhancement Vunani Property Investment Fund Road Show Examples of Recent Re-developments Wale Street Chambers (Cape Town) Before After  Purchase price R25m  Value R55m, A grade  Rentals of R55/m2  Continual upgrading of exterior, foyers,  Poor quality tenants lobbies, bathrooms  B /

  38. Slide 38: Portfolio Enhancement: Redevelopments in progress

    Portfolio Enhancement Vunani Property Investment Fund Road Show Redevelopments in progress Motherwell (Port Elizabeth) Rynlal (East Pretoria)  Spar enlarged to a Super Spar  58 tenants, short term, R45/m2  Phase 1: 720m2 (at cost of R4 million)  16% vacancy  Phase 2: 800m2 (cost to be determine

  39. Slide 39: Portfolio Enhancement: Bulk Opportunities

    Portfolio Enhancement Vunani Property Investment Fund Road Show Bulk Opportunities Linger Longer (Sandton) Perseus Park (East Pretoria)  Currently 597m2  Located in the rapidly developing node  Bulk approx 15,000m2 on the N1 / Lynwood road offramp  2 blocks away from the Gautrain Station  4000m

Vunani Property Investment Fund — IPO Roadshow (July 2011) on 6ix