Challenger Limited · ASX:CGF
Challenger — Challenger Diversified Property Group — Merger or Acquisition (April 2007)
17 slides from Challenger's merger presentation, Apr 16, 2007
Slide 1: Challenger Diversified Property Group
Challenger Diversified Property Group Acquisition of €55.5 million French property portfolio Carmel Hourigan – Fund Manager Trevor Hardie – Portfolio Manager 16 April 2007 1
Slide 2: Important notice
Important notice Information contained in this publication is current as at 16 April 2007 unless otherwise specified and is provided by Challenger Listed Investments Limited (ABN 94 055 293 644) (AFSL 236887) (“Challenger”), as Responsible Entity of the Challenger Diversified Property Trust 1 (ARSN
Slide 3: Acquisition summary
Acquisition summary • Acquisition of French portfolio comprising five industrial assets and one retail asset for €55.5 million ($91.5 million*) including costs • All assets purchased from private French investors Pollen and Imfined S.à r.l. at independent valuation • Portfolio FY08 yield (post costs
Slide 4: Acquisition provides good strategic fit
Acquisition provides good strategic fit • Consistent with Fund strategy to invest up to 40% in offshore assets • Acquisition in line with European portfolio strategy – 25-50% mature markets (core Western Europe) – 25-60% established markets (Nordic, Southern and Central Europe) – 10-25% emerging mar
Slide 5: Financial impact of acquisition
Financial impact of acquisition • Acquisition price (incl. costs) €55.5 million reflecting FY08 net yield of 6.58% • Acquisition funded in Euro borrowings – Natural foreign exchange hedge on the value of the portfolio – 70% of borrowings will be hedged – Weighted average cost of debt forecast at 4.6
Slide 6: Portfolio summary
Portfolio summary Acquisition summary Property Purchase price €51.7 million Acquisition costs €3.8 million Total acquisition price €55.5 million Gross FY08 yield 7.07% Net FY08 yield 6.58% Portfolio summary Number of assets 6 Net lettable area 42,224.6sqm Occupancy 100% WALE 6.9 yrs Certain WALE* 6.
Slide 7: Impact of acquisition on CDI portfolio
Impact of acquisition on CDI portfolio CDI portfolio pre- CDI portfolio acquisition post-acquisition Value of investment properties $666.4m $753.8m Net lettable area 321,339sqm 363,564sqm Occupancy (by income) 98.3% 98.4% WALE (by income) 7.3 yrs 7.1 yrs Average age of assets 6.9 yrs 6.7 yrs Offshor
Slide 8: French property investment market
French property investment market • France is the world’s fifth largest economy – highly developed industrial sector eg motor vehicles, aerospace and pharmaceuticals – centrally located with strong transport links to Western Europe – fourth largest exporter of goods and third largest exporter of ser
Slide 9: Ongoing asset management by Protego
Ongoing asset management by Protego • Protego responsible for asset and property management • Base management fee of 50bps shared equally between Challenger and Protego • Asset performance fee aligns interests of Protego and CDI over long term – Portfolio based IRR hurdle – two-tier performance fee
Slide 10: Arvinmeritor – Sully sur Loire
Arvinmeritor – Sully sur Loire Address 105, Route d’Orleans, Sully sur Loire Completion date 2002 Property summary Modern factory and office headquarters located approximately 30km east of Orleans and 160km south of Paris NLA 14,622.1sqm Occupancy 100% WALE 10.7 yrs* Site coverage ratio 26% Purchase
Slide 11: Bricoman – Aulnay sous Bois, Paris
Bricoman – Aulnay sous Bois, Paris Address Avenue Savigny, Aulnay sous Bois Completion date 2003 Property summary Modern retail warehouse located in a suburban centre approximately 19km to the North-east of central Paris NLA 4,980.1sqm Car spaces 285 Occupancy 100% WALE 8.5 yrs Site coverage ratio 2
Slide 12: Exel – Beziers
Exel – Beziers Address Rue Charles Nicolle, Villeneuve les Beziers Completion date 2002 Property summary Modern chill store/ logistics facility located in Beziers prime logistics estate adjacent to the A9 - the main east/west road link between Spain, France and Italy NLA 9,054.5sqm Occupancy 100% WA
Slide 13: GDF – Gennevilliers, Paris
GDF – Gennevilliers, Paris Address 140, Avenue Marcel Paul, Gennevilliers Completion date 2003 Property summary Modern industrial warehouse facility located in established North Paris mixed commercial area of Zac de Louvresses NLA 7,403.8sqm Occupancy 100% WALE 4.9 yrs Site coverage ratio 19% Purcha
Slide 14: ATAC – Parcay-Meslay, Tours
ATAC – Parcay-Meslay, Tours Address Zac Papillon, Parcay-Meslay, Tours Completion date 2003 Property summary Modern chill store/ logistics facility centrally located in prime logistic park in Tours, the regional centre of the Indie et Loire NLA 5,493.6sqm Occupancy 100% WALE 5.4 yrs Site coverage ra
Slide 15: Primagaz – Toulouse
Primagaz – Toulouse Address 6 Rue Douladoure, Toulouse Completion date 2000 Property summary Modern office/high tech facility located within an established industrial zone south of Toulouse city centre with frontage to the A46 – 10km south of the city’s ring road NLA 670.5 sqm Occupancy 100% WALE 2.
Slide 16: Summary
Summary • CDI’s first offshore portfolio acquisition transacted at competitive pricing in mature/sought after French property market • Gearing capacity used to source quality ‘core’ assets with future growth potential • Transaction accretive to earnings and distributions from FY08 onwards • Acquisit
Slide 17: CDI contacts
CDI contacts Carmel Hourigan Fund Manager Tel: 02 9994 7875 Email: chourigan@challenger.com.au Trevor Hardie Portfolio Manager Tel: 02 9994 7546 Email: thardie@challenger.com.au Susie McPherson Investor Relations Tel: 02 9994 7958 Email: smcpherson@challenger.com.au 17
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