PRE YEAR END UPDATE - Attacq · 2018. 6. 6. · 1. Eikestad Mall 2. MooiRivier 3. Mall of Africa 4....
Transcript of PRE YEAR END UPDATE - Attacq · 2018. 6. 6. · 1. Eikestad Mall 2. MooiRivier 3. Mall of Africa 4....
-
www.attacq.co.za
UPDATEPRE YEAR END
JUNE 2017
-
- 2 -
INTRODUCTION 3
VISION 5
STRATEGY 7
SOUTH AFRICAN PORTFOLIO 11
WATERFALL DEVELOPMENT 15
MAS REAL ESTATE INC. INVESTMENT 31
AFRICAN RETAIL INVESTMENT 33
CONCLUSION 35
QUESTIONS AND ANSWERS 37
AGENDA
INVEST GROWDEVELOP
SLIDE
-
Lynnwood Bridge Precinct
INTRODUCTION
-
- 4 -
Michael Clampett
Head: Retail Asset &
Prop Management
CA(SA)
Joined Jul 2015
12 yrs experience
EXPERIENCED MANAGEMENT TEAM
Morné Wilken
CEO
B Eng (Hons)
Joined Aug 2009
23 yrs experience
Melt Hamman
CFO
CA(SA)
Joined Jul 2013
24 yrs experience
Jackie van Niekerk
COO
BCom Acct
Joined Apr 2017
14 yrs experience
Tasja Kodde
Company Secretary
Chartered Secretary
Joined Mar 2015
16 yrs experience
Debbie Theron
Head: Off & Mixed Use
Asset & Prop Mgt
BA Law
Joined Jun 2014
26 yrs experience
Pieter Mackenzie
Head: Developments
BSc Blg Mgt, MBA
Joined Jan 2016
29 yrs experience
Raj Nana
Investment Officer
CA(SA)
Joined Apr 2014
12 yrs experience
Peter De Villiers
Head: International
Assets
CA(SA) CFA
Joined Jul 2013
17 yrs experience
-
Bridge at Lynnwood Bridge Precinct
VISION
-
- 6 -
ATTACQ’S VISION AND UNIQUE VALUE PROPOSITION
To be the premier property company
Delivering exceptional and sustainable growth through
real estate investments and developments
Through: • Focused approach• Waterfall development pipeline• Quality properties and investments
Owning and managing a quality portfolio and developing a City, both of
which deliver exceptional and sustainable capital and earnings growth.
“
“Morné Wilken
-
Mall of Africa
STRATEGY
-
- 8 -
STRATEGIC EXECUTION HIGHLIGHTS | 2017 FINANCIAL YEAR
Invested in partnershipswith Equites, Zenprop, Barrow, Atterbury,
and Sanlam Properties
Vacancies reduced to 2.6%
MAS revised itsinvestment strategy
Rebranded to communicate ourvision and offering to the market
11 bursaries via Atterbury TrustContributions made to
Columba Leadership Programme,
Fat Cats Cares and Bana Ba Rona Early
Childhood Development Centre
8 Green rated buildings(by design) and
1.2 million m² development rights in the centreof Gauteng, of which ±608 000 m² bulk is serviced
Further appointments made in Development team
DEVELOP GROWINVEST
completed buildings4in SA, adding primary GLA of
70 424 m²
Completed 3 rooftop PVplants with a total capacity of
Another 2 installations underway
5 909 kWp
A further
Of bulk jointly secured withSanlam Properties at Waterfall
665 425 m2
Appointed Jackie van Niekerk
as Chief Operating officer
first birthday celebrationMall of Africa
>1.1 million visitors per month
Average trading density of R2 630 m² (opening to 31 March 2017)
1 Gold LEED rated building
(as of 31 December 2016)
High qualitydirectly held
property portfolio
WALE 6.5 years(as of 31 December 2016)
Recognised in the
2017 VIVA global awards as one of the world’s most outstanding examples of
shopping centre design and development
Included in the FTSE / JSE
Responsible Investment Indexfrom 19 June 2017
Sold: Investment in Atterbury Europe, non-core African asset, 8 industrial buildings (Equites)
R1.7 bncapital recycled
In the pipeline: Nova Eventis (Competition Commission approval outstanding), Altech Building (subject to transfer)
-
- 9 -
FOCUSED APPROACH | FOUR COMPANY FUNDAMENTALS
1 Premium quality South African portfolio
2 Waterfall Development
3 Strategic investment in MAS Real Estate Inc.
4 African Retail InvestmentsReturn target:
15% return per share
over a 3 year period
-
- 10 -
ATTACQ’S JOURNEY
DEVELOPMENTS
SOUTH AFRICA
NON-SA: MAS
INCOME PRODUCING ASSETS VS TOTAL ASSETS
69%12%
5%
5%
9%
Dec 201658%
5%
6%
2%
29%
Dec 2013
Post December 2016 events, impacting the split
Recycling of non-core assets
• Non-core African asset – R45 million
• Atterbury Europe (Serbia / Cyprus) – R1.35 billion
• Altech building (transfer in process) – R50.5 million
• Nova Eventis (Competition Commission approval outstanding)
435 842 m2 primary GLA to 694 770 m2 primary GLA
NON-SA: Africa
NON-SA: Other
-
MooiRivier Mall
SOUTH AFRICAN
PORTFOLIO
69%
-
- 12 -
PORTFOLIO VALUE BY SECTOR
PREMIUM QUALITY SA PORTFOLIO
VACANCIES
2.6%Dec 2016: 2.6%Dec 2015: 3.4%
WALE* PROFILE
6.5 YEARSDec 2016: 6.5 yearsDec 2015: 6.8 years
COLLECTION RATE^
94.7%Dec 2016: 94.7%Dec 2015: 95.8%
RENTAL ESCALATIONS#
7.6%Dec 2016: 7.6%Dec 2015: 7.9%
RENTAL~ R / m²
R158.8Dec 2016: R158.8 / m²Dec 2015: R138.3 / m²
NON-GLA INCOME
+105%Dec 2016: R8.2 millionDec 2015: R4.0 million
58.4%
2.4%
6.1%
33.1%
Jun 2016
58.2%
34.6%
4.9%
2.3%Dec 2016LIGHT INDUSTRIAL
RETAIL
HOTEL
OFFICE AND MIXED-USE
-
- 13 -
# 100% of primary gross lettable area reflected above. Values provided above reflect Attacq’s undivided share in the property: ^80%; *25%
FEATURED PROPERTIES
1. Eikestad Mall 2. MooiRivier Mall 3. Mall of Africa
4. Garden Route Mall 5. Brooklyn Mall
Top 8 featured properties Primary Gross Lettable Area#
• Mall of Africa, Waterfall^ 123 348
• Lynnwood Bridge Precinct,
including Glenfair Boulevard, Pretoria 81 973
• Garden Route Mall, George 53 584
• MooiRivier Mall, Potchefstroom 49 054
• Cell C Campus, Waterfall 43 890
• Eikestad Mall, Stellenbosch^ 47 146
• Brooklyn Mall, Pretoria* 74 756
• Newtown Precinct, Johannesburg 78 305
-
- 14 -
MALL OF AFRICA
• Celebrates its 1st Birthday on the 28th April 2017
• >1.1 million average shoppers per month(opening to March 2017)
• R2 630 m² average trading density(opening to March 2017)
• Average rental (including anchors) R253 / m², resulting in a 16% below industry average rentals
• Excellent security statistics
• Dedicated Gautrain bus route
• National retailers indicated their Mall of Africabranch trades in top five of their SA portfolio
• Won 2016 Spectrum Award for the bestretail development in the category ofnew regional and super-regional shopping centres
• Recognised in the 2017 VIVA global awards as one of the world’s most outstanding examples of shopping centre design
and development
-
Gateway West
WATERFALL
DEVELOPMENT
12%
-
- 16 -
44 849
127 407
70 200 71 398 60 381
52 083
172 408
28 208
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200 000
2012 2013 2014 2015 2016 2017 2018 2019
Prim
ary
GLA
m2
Future vs historical pipeline
Historical Secured Potential (75%) Potential (50%) Potential (25%)
Parameters
• Analysis includes all Waterfall developments by financial year, since the land was acquired in 2008
• Mall of Africa excluded from the analysis
• Projects allocated to financial years based on start date of project
• 2017 secured projects (52 083m2): BMW, AEFMC (Corporate Campus), The Artria (Hotel) and Massbuild Extension
• 2018 secured projects (52 308m2): Deloitte, Waterfall Point and Burger King (Waterfall Lifestyle)
• Remainder of pipeline based on actual leads for space probability weighted using estimated chance of success
WATERFALL DEVELOPMENT HISTORY AND PIPELINE
Pre-internalisation Post-internalisation Totals
104 391 m2
GLA new
securedprojects
-
- 17 -
172 408
239 558
28 208
71 830
215 936
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200 000
220 000
240 000
260 000
2018 2018 2018 2018 2019 2019
m2
Current activity and actual vs weighted pipeline
Secured Potential 75% Potential 50% Potential 25%
Actual
enquiriesActual
enquiriesProbability
adjusted
Probability
adjusted
WATERFALL DEVELOPMENT PIPELINE: ACTUAL VS WEIGHTED
• Currently under construction: PwC, Gateway West, K101 warehouse, BMW, Massbuild Extension, Corporate Campus
• Secured & under planning: Deloitte, The Atria (Hotel and Residential), Waterfall Point, Burger King (Waterfall Lifestyle)
• Speculative developments currently under planning: Gateway East, The Artria (Offices), Polofields Retail
• Remainder of pipeline based on actual leads for space probability weighted using estimated chance of successFY
20
18
Spec & under planning
Under
construction
Secured &
under
planning
FY
20
19
Actual activities
-
- 18 -
Chantell Latilla-Campbell
Deal MakerCIPF, CCPP, Commercial Brokerage CertificateJoining 5 Jun 201725 yrs experience
BiancaBarnes
Broker LiaisonJoined Aug 20165 yrs experience
NicoBarnard
Town PlannerPr. Pln, CDFAJoined Sept 20168 yrs experience
EXPERIENCED DEVELOPMENT TEAM
PieterMackenzie
Head of DevelopmentsBSc, Bldg Mgt, MBAJoined Jan 201629 yrs experience
MornéWhitehead
Development ManagerBSc(QS), Hons: PRQSJoined June 201616 yrs experience
CarienStorm
Development ManagerBComJoined 201316 yrs experience
EnzoOosthuizen
Development ManagerJoined Aug 201613 yrs experience
LindaMeyburgh
PAJoined Aug 201615 yrs experience
MironNaidoo
Development ManagerProject Management, Civil EngineeringJoined 1 Jun 201711 yrs experience
DavidOosthuizen
Deal MakerSA Professional Valuers Ass, BScHonoursJoining 15 Jun 201710 yrs experience
-
- 19 -
WATERFALL MASTERPLAN EXPLAINED
• Catalyst for growth:
Mall of Africa and 1.3 Ha Waterfall Park
• 1.2 million m2 remaining bulk
• ±608 000 m2 serviced development rights
• Two focus areas:
Waterfall City and Waterfall Logistics Hub
• Benefits of Waterfall
• Central location
• Infill development
• Excellent access
• Unique urban designand infrastructure
• Corporate consolidation
• Economic benefit
-
- 20 -
WATERFALL FOCUSED APPROACH
Waterfall City – A city that works
• Work, live and play
• Sufficient and efficient infrastructure
• Smart technology
• Lifestyle offering
Waterfall Logistics Hub
• Distribution / warehousing in logistics park
• Light industrial
• Office, warehousing and industrialcombinations
N
-
- 21 -
DEVELOPMENTS UNDER CONSTRUCTION
Gateway West
• Primary gross lettable area: ±13 891 m²
• Segment: office
• Estimated value on completion: ±R387.6 million
• Estimated date of completion: November 2017
Gateway West
-
- 22 -
DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED
K101 Warehouse
• Primary gross lettable area: ±8 523 m²
• Segment: Light industrial
• Estimated value on completion: ±R93.0 million
• Estimated date of completion: September 2017
K101 warehouse
-
- 23 -
DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED
PwC Tower and Annex*
• Primary gross lettable area: ±45 223 m²
• Segment: office
• Estimated value on completion: ±R1.6 billion
• Estimated date of completion: February 2018PwC
-
- 24 -
DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED
BMW Group South Africa Regional Distribution Centre
• Primary gross lettable area: ±32 000m²
• Segment: Light industrial
• Estimated date of completion: December 2017
BMW
-
- 25 -
DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED
Massbuild extension
• Primary gross lettable area: ±9 643m²
• Segment: Light industrial
• Estimated date of completion: December 2017
MassbuildExtension
-
- 26 -
DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED
Corporate Campus
• Primary gross lettable area: ±30 000 m²
• Segment: office
• 50% JV partnership with Zenprop
• First tenant secured
• Development of Phase I commenced
• Estimated gross lettable area of
first building: ±5 800 m2
• Estimated date of completion of first building:
December 2017
CorporateCampus
-
- 27 -
CURRENT DEVELOPMENTS
The Atria
• Primary gross lettable area: ±35 000 m²
• Segment: office and mixed-use
› 2 office buildings
› 1 residential tower with ±120 apartments
› 1 hotel
• 50% JV partnership with Barrow Group
• Development of Hotel has commenced with
a gross lettable area of ±8 500m2
• Estimated date of completion of
Hotel: March 2019
The Atria
-
- 28 -
CURRENT DEVELOPMENTS | CONTINUED
Waterfall Point
• Total saleable area: ±9 584 m²
• Segment: sectional title - office
• Total development profit: ±R25.0 million
• Estimated date of completion: October 2018
• Development sold subject to conditions Waterfall Point
-
- 29 -
CURRENT DEVELOPMENTS | CONTINUED
Deloitte - corporate consolidation
• Primary gross lettable area: ±42 000 m²
• Segment: office
• Estimated date of completion: First quarter 2020Deloitte
-
- 30 -
MALL OF AFRICA
WATERFALL
CITY
LOGISTICS
PRECINCT
DISTRIBUTION
CAMPUS
FUTURE DEVELOPMENTS
Sanlam JV
• 100 Ha of additional land
• Attacq has the right to increase its shareholding to 50%
• Economies of scale
• Availability of bridging funding
• Attacq appointed as the developer and asset manager
RETAIL
JV DEAL
RETAIL AND INDUSTRIAL / WAREHOUSING
INDUSTRIAL / WAREHOUSING
-
MAS properties: Germany and Scotland
MAS REAL ESTATE INC.
INVESTMENT
9%
-
- 32 -
MAS
• Attacq’s sole entry point into Central and Eastern European markets
• 30.57% held by Attacq at 31 March 2017
• Attacq equity accounts for MAS as at 31 December 2016
› R2.4 billion equity accounted value vs market value of R3.3 billion
• MAS strategy: focus on income; distribution per share guidance of 30%
per annum through to 2019
• Historical markets: Western Europe; Germany, UK and Switzerland
• Expanded investment focus to Central and Eastern Europe via Prime
Kapital Investment JVs:
› Development JV focusing on new developments
› Investment JV focusing on accretive acquisitions
HIGHLIGHTS as at 31 DECEMBER 2016
• Distribution per share increased by 19.0%
• Rental income increased by 80.9% vs December 2015
• 72.9% increase in investment property vs December 2015
• Nova Park acquisition in Poland under Prime Kapital JV
• Balance sheet optimisation - drew down on
€80.4 million debt
MAS’ Lewes development
-
West Hills Mall
AFRICAN RETAIL
INVESTMENT
5%
-
- 34 -
AFRICA
• 6 operational malls as at 31 May 2017
• Portfolio includes dominant assets in major cities of Accra, Lusaka and Lagos:
› Accra Mall
› Manda Hill
› Ikeja City Mall
› Kumasi City Mall (opened 10 May 2017)
• Weak commodity cycle, strong USD and high inflation challengescontinue
• Focus remains:
› Settling West Hills Mall, Achimota Mall
– and the newly opened Kumasi City Mall
› Managing assets through the cycle
› Improving liquidity in the portfolio
PROPERTY GLAVALUATION (USD’000)
ATTACQ SHARE(USD’000)
VALUE(USD’000)
VACANCY%
Operational portfolio summary* 127 660 m² 544 718 101 796 4 267 / m² 4.0
West Hills Mall* Data provided at 100% levelAttacq owns 31.25% of AttAfrica and 25% of Ikeja City MallInformation above correct as at 31 December 2016
-
Eikestad Mall
CONCLUSION
-
- 36 -
2
SUMMARY GOING FORWARD
1
3
Focussed approach – four company fundamentals
Target return: to achieve a 15% return per share over a 3 year period
Continual optimisation of balance sheet
-
Brooklyn Mall
QUESTIONS
AND ANSWERS