Eurocastle Investment Limited · EURONEXT:ECT

Eurocastle Investment — Debt Investor Presentation (February 2013)

13 slides from Eurocastle Investment's debt investor presentation, Feb 28, 2013

  1. Slide 1: Proposal to Convertible Debt Investors

    EUROCASTLE INVESTMENT LIMITED Proposal to Convertible Debt Investors February 28, 2013

  2. Slide 2: Disclaimer

    Disclaimer The information in this document has been prepared by Eurocastle Investment Limited (the "Company") solely for information in connection with the proposed consent solicitation by the Company with respect to the Convertible Securities as described in the enclosed Notice of Written Resoluti

  3. Slide 3: Executive Summary

    Executive Summary  Eurocastle Investment Ltd. (“Eurocastle”) is a publicly traded European property company externally managed by an affiliate of Fortress Investment Group (“Fortress”) with a current market cap of €34 million(1)  Eurocastle’s current financial situation does not accommodate the se

  4. Slide 4: Eurocastle Overview

    Eurocastle Overview(1)  Eurocastle has two distinct businesses:  German Commercial Real Estate - €2.1 billion of assets  Real Estate Debt Portfolio - €0.5 billion of assets Manager Eurocastle Commercial Real Estate Real Estate Debt Portfolio of 422 office and/or Portfolio of 67 bonds or retail pr

  5. Slide 5: Capital Structure

    Capital Structure(1) Capital Structure  Total NAV of €307.3 million(2), including 127.4mm Shares (€0.15bn Remaining  €161.7 mm(3) of convertible debt outstanding of which Shareholder Equity) €75.2 mm is accrued and deferred interest Total  Corporate cash of €38.8 mm Equity €0.31mm 539.1mm Diluted

  6. Slide 6: Effect of Continuing Convertible Debt

    Effect of Continuing Convertible Debt  Eurocastle’s current financial situation does not accommodate the servicing of its convertible debt on a current basis  The outstanding amount under the convertible has increased by ~€62 million since issue  Operating under prevailing conditions, the convert

  7. Slide 7: The Proposal

    The Proposal 1. Clean Up Capital Structure and Provide Liquidity to Convert Security Holders  Re-strike Conversion Price from €0.30 to €0.05 per share and convert all holders  Need 67% approval from all holders by written resolution  Post conversion the Convert holders will hold ~96% of the compa

  8. Slide 8: New Investment Focus

    New Investment Focus  Significant investment opportunities in Italian NPLs and Manager Presence in Italy other RE assets with potential to generate gross unlevered returns in excess of 15%  Compelling investment environment – Italian banks are MILANO VICENZA under pressure to sell €100+ billion of

  9. Slide 9: Italian NPL Market

    Italian NPL Market  Estimated volume of NPLs in the Italian banking system is €122 billion and rising(1)  Banks are under pressure to dispose of NPLs and deleverage  After several years of limited activity, we believe Italy may be entering a third wave of significant NPL sales  In 2004, an inven

  10. Slide 10: Italfondiario S.p.A.

    Italfondiario S.p.A.  Italfondiario is the leading credit collection company in Italy  Services 343,000 loans with GBV of €33.5 billion on behalf of Italian and international financial institutions  Long-term strategic relationships with Intesa Sanpaolo to manage their newly-generated NPLs  Ital

  11. Slide 11: Sample NPL Transaction

    Sample NPL Transaction(1)  Acquire portfolio at a discount to liquidation value  Resolve loans over time through legal proceedings and out-of-court negotiations with borrowers  Typical portfolio has an average life of 3 – 4 years and 7 – 8 years to final resolution Sample Transaction Economics(1)

  12. Slide 12: Italian RE Funds Market

    Italian RE Funds Market  Closed-end fund structure created in 1998 to attract institutional capital to Italian real estate  Last fund organized in 2006, prior to financial crisis  Today, 303 Italian real estate funds (listed and reserved to institutional investors) with total AUM of more than €40

  13. Slide 13: Process

    Process  The resolution contained in this pack needs to be passed by holders of convertible debt securities representing at least two-thirds in aggregate of the principal amount of both series of securities  On being passed by the requisite majority, the resolution binds all securityholders in tha

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