Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Frasers Centrepoint — Merger or Acquisition (July 2014)
22 slides from Singapore Exchange's merger presentation, Jul 1, 2014
Slide 1: Proposed Acquisition of Australand Property Group
Proposed Acquisition of Australand Property Group 1 July 2014 Confidential
Slide 2: Important notice
Important notice Certain statements in this Presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual res
Slide 3: Contents
Contents Section 1 Frasers Centrepoint Limited (“FCL”) overview 1 2 Transaction overview 4 3 Transaction rationale 6 4 Pro forma financial impact 12 5 Conclusion 13 Confidential
Slide 4: Frasers Centrepoint Limited ("FCL") overview
Section 1 Frasers Centrepoint Limited (“FCL”) overview Confidential
Slide 5: Full-fledged international real estate company
Full-fledged international real estate company Residential Commercial Hospitality Retail, Office and Business Asset Management Serviced Residences Singapore Overseas Space One of the Top One of the Largest Growing Globally Scalable Residential Retail mall Asset Management Hospitality Operator Develo
Slide 6: Frasers Property Australia
Frasers Property Australia • FCL entered Australia in 2000 for residential development • Currently has about A$1.2bn(a) of development portfolio Current projects Location Description About 2,200 apartments, 900 student dwellings, 14,000 sqm Central Park Chippendale, NSW retail, 25,000 sqm commercial
Slide 7: Recap: Growth strategies and plans
Recap: Growth strategies and plans Development Segment Commercial and Hospitality Segments (50% - 60% of Properties PBIT) (40% - 50% of Properties PBIT) Singapore China and Australia Commercial Hospitality Earnings supported by Maintain momentum in Enhance capital Continue with global pre-so
Slide 8: Transaction overview
Section 2 Transaction overview Confidential
Slide 9: Transaction summary
Transaction summary Transaction – Conditional Cash Offer for up to 100% of the issued stapled securities of Australand Property Group (“Australand” or the “Securities”) Offer price – A$4.48 cash per stapled security(a) Key Offer – FCL to have more than 50% of Australand on a fully diluted basis cond
Slide 10: Expected transaction timeline
Expected transaction timeline Event Date Signing of Bid Implementation Agreement 1 July 2014 Announcement of Offer 1 July 2014 Scheduled Commencement of Offer 7 July 2014 Earliest closing date of the Offer (unless otherwise extended) 7pm (Sydney time) on 7 August 2014 – A general meeting for FCL sha
Slide 11: Transaction rationale
Section 3 Transaction rationale Confidential
Slide 12: Transaction rationale
Transaction rationale Enhanced residential capabilities Increased contribution from outside of in Australia Singapore 5 1 Attractive commercial & Increased contribution from industrial (“C&I”) portfolio with development capabilities 4 2 recurring income 3 Quality platform with immediate scale in Aus
Slide 13: Increased contribution from outside of Singapore
1 Increased contribution from outside of Singapore Increase in asset contribution from Australia Sustaining growth through overseas strategy (S$ millions) 15,439 • Overseas markets will constitute 57% of FCL’s +48% 10,445 6,687 43% total assets, of which Australia represents 43% 1,693 16% • PBIT fro
Slide 14: Increased contribution from recurring income
2 Increased contribution from recurring income Increase in PBIT from recurring income Increases stability and visibility of FCL’s (S$ millions) earnings 415 • 122% increase in PBIT from recurring income +122% • Recurring income to constitute 54% of FCL’s 187 PBIT post transaction Greater ability and
Slide 15: Quality platform with immediate scale in Australia
3 Quality platform with immediate scale in Australia Australand offers a well diversified portfolio of Australian assets – A$1.2bn portfolio offering NLA of 269,367 Office sqm across 17 assets in Victoria and New Corporate portfolio South Wales 3% – Cap rate of 7.5% with WALE of 4.8 years Residentia
Slide 16: Attractive C&I portfolio with development capabilities
4 Attractive C&I portfolio with development capabilities Increased sector & development capabilities Sector breakdown by asset value(a) Pre transaction Post transaction Ownership of attractive C&I properties in Industrial Retail 25% Australia 27% Office 46% Retail Acquisition of a leading C&I develo
Slide 17: Enhanced residential capabilities in Australia
5 Enhanced residential capabilities in Australia Residential Pipeline breakdown Australand Housing & Land medium density High density Projects 22 14 5 41 4 Development life(a) 14.3 yrs 5.7 yrs 3.8 yrs - - A$3.9bn(b) A$2.6bn(b) A$1.1bn(b) A$7.5bn(b) A$1.2bn(c) Australand’s pipeline breakdown by produ
Slide 18: Pro forma financial impact
Section 4 Pro forma financial impact Confidential
Slide 19: Pro forma financial impact
Pro forma financial impact EPS before fair value change and exceptional items (S$ cents) Net asset value per share (S$) 14.7 2.12 2.08 13.9 (b) (a) (b) FY13(a) FY13 FY13 FY13 (Pre Transaction) (Post Transaction) (Pre Transaction) (Post Transaction) Net debt / total equity (%) Net debt / (total asset
Slide 20: Conclusion
Section 5 Conclusion Confidential
Slide 21: Affirms rationale & strategic fit to FCL
Affirms rationale & strategic fit to FCL Development Segment Commercial and Hospitality Segments (50% - 60% of Properties PBIT) (40% - 50% of Properties PBIT) Singapore China and Australia Commercial Hospitality • Earnings supported by pre- Maintain momentum in Enhance capital productivity • Con
Slide 22: Conclusion
Conclusion Increased contribution from outside of Singapore Increased contribution from recurring income Quality platform with immediate scale in Australia Attractive C&I portfolio with development capabilities Enhanced residential capabilities in Australia 14 Confidential
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