Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — Investor Day (October 2016)
56 slides from Helios Re Socimi's investor day presentation, October 2016
Slide 1: Corporate Stands Investor Day
Corporate Stands www.larespana.com Investor Day October 2016
Slide 2: Corporate Stands – Presenting Team
2 Corporate Stands – Presenting Team Digital 360º Transformation Retail Investment Retail Development Lagasca99 Stand Stand Stand Stand Stand Cristina García Alvaro Ansorena Susana Cabrera Fernando Sánchez de las Luis Valdés Head of Marketing at Grupo Lar Senior Asset Manager Director Investment & M
Slide 3: Digital 360º
Digital 360º www.larespana.com Investor Day October 2016
Slide 4: Digital channels to be in
4 Digital channels to be in LAR ESPAÑA EXISTING CHANNELS • Our first goal is to KNOW our clients and their needs. We go from know or clients to CONNECT them. • Now, more than ever, many people are connected digitally to their ‘love brands’. Our brands need to be also in the digital environment. • We
Slide 5: El Centro shopping park website
ELCENTRO~ SERVICIOS TIENDAS EVENTOS PROMOCIONES CONTACTO DESCUBRE! LAS MEJORES MARCAS CERCA DE TI PARQUE COMERCIAL VISTAHERMOSA Tenemos claro lo que debe ser un parque comercial. Por eso, desde 2.002 nos _ esforzamos dia a dia en cumplir un objetivo claro: conseguir que las mejores marcas estén cerc
Slide 6: Digital channels to connect
6 Digital channels to connect SEEKETING SYSTEM • E-beacons installed in our Shopping Centres. • Thanks to this system, we are able to know more about the behaviour of our customers within the shopping centres. SEEKETING ALLOWS US TO: Count the number of people in each area Calculate the average visi
Slide 7: Digital channels to buy I
7 Digital channels to buy I NEXT STEP: SALES ONLINE • We want to offer our customers the type of services they are asking for. • Buying online is now a reality which is continuosly increasing. • Television did not kill radio; sales online wont kill sales offline. We need to be updated.
Slide 8: Digital channels to buy II
8 Digital channels to buy II SALES ONLINE: PROCESS • Shops from each shopping centres will get requests directly from customers or other market places. • The platform will receive visits from customers within the catchment area but also outsiders: new sales creation.
Slide 9: Online marketplace platform
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Slide 10: Investor Day
Investor Day Follow us: www.larespana.com Lar España Real Estate SOCIMI info@larespana.com Investor Day App
Slide 11: Transformation
Transformation www.larespana.com Investor Day October 2016
Slide 12: Asset Management Strategy Framework
12 Asset Management Strategy Framework ON-SITE RE-TENANTING SHOPPING CENTRE THROUGH LEASING MANAGEMENT REFURBISHMENT STRATEGIC MARKETING AND DEVELOPMENT PROJECTS
Slide 13: Fast Value Creation Cycle
13 Fast Value Creation Cycle ATTRACT NEW AND INNOVATIVE TENANTS RENTAL INCREASE INCREASE FOOTFALL CREATE A WELL-BALANCED AND SALES TENANT MIX VALUE CREATION INCREASE LENGTH OF STAY AND CUSTOMER LOYALTY
Slide 14: Leasing Strategy: Good Results
14 Leasing Strategy: Good Results +28% 36,000 sqm MGR Uplift GLA Leased 98 New Lettings 16,621 13,709 +€1.5 Mn of new rent in vacant units 95 Renewals 5,624 50% of tenants upgraded their image Up-to- date retailers Higher sales 2014 2015 H1 2016 Higher rents. 14 Relocations 14% of Total Portfo
Slide 15: Leasing Strategy: Good Results
15 Leasing Strategy: Good Results Txingudi As Termas Albacenter Portal de la Marina Portal de la Marina Portal de la Marina Las Huertas Megapark El Rosal Portal de la Marina Las Huertas Txingudi El Rosal Txingudi Txingudi El Rosal Las Huertas Megapark As Termas Albacenter Portal de la Marina Portal
Slide 16: Leasing Strategy: International Retailers
16 Leasing Strategy: International Retailers Portal de la Marina
Slide 17: Leasing Strategy: International Retailers
17 Leasing Strategy: International Retailers As Termas
Slide 18: Leasing Strategy: International Retailers
18 Leasing Strategy: International Retailers Portal de la Marina
Slide 19: Leasing Strategy: International Retailers
19 Leasing Strategy: International Retailers Albacenter Before
Slide 20: Leasing Strategy: International Retailers
20 Leasing Strategy: International Retailers Las Huertas Las Huertas
Slide 21: Leasing Strategy: International Retailers
21 Leasing Strategy: International Retailers Txingudi Before Now Txingudi
Slide 22: Leasing Strategy: International Retailers
22 Leasing Strategy: International Retailers Portal de la Marina Before Now
Slide 23: Leasing Strategy: International Retailers
23 Leasing Strategy: International Retailers Txingudi Before Now
Slide 24: Strategic Marketing
24 Strategic Marketing Partner: The New Marketing What do we aspire? • We want to become leaders in the minds of our customers How do we do it? • Locate inexistent markets and expand beyond saturated markets • Define new concepts, products and services • New pricing models
Slide 25: Shopping center Management
25 Shopping center Management Familiar Digital experience Memorable experiences Greenery Multisensorial Welcoming Services
Slide 26: Shopping center Management: Focus on unique experiences
Shopping center Management: Focus on 26 unique experiences Warm lighting Natural greenery Design furniture Charging Station Resting lounge concept implemented in As Termas… …soon to be rolled out to whole portfolio
Slide 27: Shopping center Management
27 Shopping center Management -Business intelligence based on mobile technology- Invisible detection of Building our Engagement at Our visitors Customers profiles the sale point
Slide 28: Shopping center Management: Events
28 Shopping center Management: Events ALBACENTER 9,000 visitors
Slide 29: Refurbishment Projects
29 Refurbishment Projects Las Huertas Before Now
Slide 30: Refurbishment Projects
30 Refurbishment Projects Albacenter Project Current 2016 status
Slide 31: Refurbishment Projects
31 Refurbishment Projects Txingudi Project Current 2016 status
Slide 32: Asset Management Strategy Framework
32 Asset Management Strategy Framework ON-SITE RE-TENANTING SHOPPING CENTRE THROUGH LEASING MANAGEMENT REFURBISHMENT STRATEGIC MARKETING AND DEVELOPMENT PROJECTS
Slide 33: Investor Day
Investor Day Follow us: www.larespana.com Lar España Real Estate SOCIMI info@larespana.com Investor Day App
Slide 34: Retail Investment
Retail Investment www.larespana.com Investor Day October 2016
Slide 35: The CRE Investment Context
35 The CRE Investment Context1 €9.9 Bn €8.0 Bn Last 15 Years Average: €4.8 Bn Forecast Others Logistics Offices Retail 2007 2014 2015 1H16 (1) Excluding high street, corporate and tenant transactions Source: Savills and BNP Paribas
Slide 36: Lar as one of the main retail players
36 Lar as one of the main retail players1 Last 3 Years Volume Net Initial Yield on Cost 2014 10% 2014 €2.4 Bn 2014 6.8% 6.6% 2015 13% 2015 €2.6 Bn 2015 6.4% 6.4% 2016 (YTD) 2016 2016 6.2% 5.8% 8% €2.8 Bn Corporate and tenant Rest of market transactions L3yrs 23% L3yrs 6.2% (1) Excluding high-street
Slide 37: Lar as one of the main retail players
37 Lar as one of the main retail players Lar España Retail Figures at a Glance (L3yrs) #1 investor 10% Controlling stake #2 investor Investment volumes #3 investor GLA acquired Retail investment Entry NIY (oC) GLA acquired Lar €793 Mn 10% of market Lar 6.5% vs 6.2% market Lar >350K sqm
Slide 38: What are we looking for?
38 What are we looking for? Asset Type Value-add Strategy 1. Dominant shopping centres 1. Previously under-managed assets 2. Strong retail parks with conservative rents 2. Requiring Capex efforts and strong asset 3. Development on a selective basis management 4% RP Ownership 96% SC 1. High level of
Slide 39: An investment example
39 An investment example Gran Vía de Vigo: Why we invested in it? Excellent Location: in Vigo´s main shopping street Above-average GDP per Low Retail Offer: >10% below capita: 2nd wealthiest city in national average Galicia Add-value Potential: Capex Dominant: 7.2Mn visitors and budgeted for upper-f
Slide 40: What have we achieved?
40 What have we achieved? El Rosal Las Huertas Dominant Convenience Megapark Barakaldo Low competition Prime Dominant Txingudi Low competition As Termas Avg. GDP Avg. GDP Avg. competition Dominant Dominant Low tourism Mid-high GDP Avg. competition Low tourism High tourism Low competition High GDP Av
Slide 41: Our Investment Positioning
41 Our Investment Positioning 2015-2016 Selected Transactions Entry NIY Good Performance 7.5% El Rosal León Distressed 6.5% Performance Megapark Bilbao As Termas Lugo Outstanding Performance 5.5% Gran Vía Vigo Pontevedra 4.5% Average Performance 3.5% €1,000 €1,500 €2,000 €2,500 €3,000 €3,500 € sales
Slide 42: How do we create value for shareholders?
42 How do we create value for shareholders? Investment Process Example Blind Example “The retail strategy of Lar España -strict asset selection and additional value creation through active asset management- results in outstanding returns to its shareholders”
Slide 43: How do we create value for shareholders?
43 How do we create value for shareholders? IPD 2015 – Standing Investments Total Return Income Return Capital Growth 0% 4% 8% 12% 16% Lar España Benchmark Source: IPD - MSCI
Slide 44: Investor Day
Investor Day Follow us: www.larespana.com Lar España Real Estate SOCIMI info@larespana.com Investor Day App
Slide 45: Retail Development
Retail Development www.larespana.com Investor Day October 2016
Slide 46: Development Team
46 Development Team Retail Development Director External Advisors Technical Assistant Technical Asset Manager Technical Manger Development Manager Existing Shopping New Developments centers Palmas Altas – Seville Vidanova Parc - Sagunto Project Management & Costs control Project Management & Costs c
Slide 47: Why Development?
47 Why Development? Generation of market opportunities for Lar España Land Market Opportunities in Target Locations Low competition: Market gap Tourism Attraction Retailers 'target location Target locations Minimum development risk Dominating Projects: High Quality & New Concept Traditiona
Slide 48: Ongoing Projects
48 Ongoing Projects PALMAS ALTAS VIDANOVA PARC SEVILLE SAGUNTO Excellent location Best possible location: urban site Best possible location: urban site Catchment area 1.5 Million people 250,000 people Tenants target location Low commercial offer in the Nearest similar retail park is Low competition
Slide 49: Development Process
49 Development Process FeasibilityReport Technical and commercial Due Diligences Meet LRE investment parameters Land Acquisition Opening Final quality control Retail targets Commissioning Master Planning Start Asset management Construction Layout alternatives Innovation Commercial Mix & Flows Archit
Slide 50: Projects Images
50 Projects Images Palmas Altas - Seville Palmas Altas has 100,000 sqm of commercial, leisure and green areas, including a 6,000 sqm lake, excellent for water activities, sailing, etc
Slide 51: Project Images
51 Project Images Vidanova Parc - Sagunto VidaNova Parc is a new concept of leisure, shopping, entertainment and life.
Slide 52: Investor Day
Investor Day Follow us: www.larespana.com Lar España Real Estate SOCIMI info@larespana.com Investor Day App
Slide 53: Lagasca 99
Lagasca 99 www.larespana.com Investor Day October 2016
Slide 54: Driver of value to Lar España Shareholders
54 Driver of value to Lar España Shareholders “Nowadays, Lagasca 99 is one of the reference projects in Europe and the most important residential project from the Salamanca’s neighborhood of Madrid“ Antonio Pan de Soraluce. Partner. Colliers Internacional After a major commercial success off market
Slide 55: A residential project in a unique location
55 A residential project in a unique location Acquisition Acquisition date: price: 30/01/2015 €50 Mn 1 Price per 26,203 Sqm sqm: 3,807/sqm 1 Price adjusted by Lar España’s 50% share in the JV
Slide 56: Investor Day
Investor Day Follow us: www.larespana.com Lar España Real Estate SOCIMI info@larespana.com Investor Day App
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