ZAMBIA ROADSHOW - Grit Real Estate Income...

ZAMBIA ROADSHOWOCTOBER 2016

CURRENT ASSET UNDER TRANSFER

3

Location: Lusaka, Zambia

Anchor tenant(s): Shoprite, Game

Sector: Retail

Land title: Leasehold

GLA: 25 900m2

Parking bays: 1 300

Anchor lease term: 10 years

Anchor tenant lease expiry: 2026

Average escalation: US CPI

Vacancies: 0%

Valuation (100%): US$ 74.2 million

Acquisition yield: 7.80% (9.84% in Mauritius)

Cosmopolitan Mall (50% ownership)

EXISTING PORTFOLIO ASSETS

5

Location: Kitwe, Zambia

Anchor tenant(s): Shoprite, Game, Pick ‘n Pay

Sector: Retail

Land title: Freehold

GLA: 28 229m2

Parking bays: 670




Vacancies: 0%


Mukuba Mall (50% ownership)

6

Location: Ndola, Zambia

Anchor tenant: Shoprite

Sector: Retail

Land title: Leasehold

GLA: 12 141m2

Parking bays: 180




Vacancies: 0%


Kafubu Mall (50% ownership)

KEY PORTFOLIO PERFORMANCE METRICS

Key Portfolio Performance Metrics

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VACANCY AND LEASE EXPIRY Mukuba Mall Kafubu Mall Cosmo Mall

No. of tenants 69 42 66

Vacancy (m2) 58 0 0

Vacancy (%) 0.21% 0.00% 0.00%

% m2 expiring in the next 12 months 0% 0% 0%

% m2 expiring in the next 24 months 1% 0% 0%

TENANT COMPOSITION Mukuba Mall Kafubu Mall Cosmo Mall

% National Tenants (by GLA) 83% 86% 78%

% Local Tenants (by GLA) 17% 14% 22%

% USD Leases (by Rent Income) 71% 38% 80%

% ZMW Leases (by Rent Income) 29% 62% 20%

Note: Information sourced from most recently finalised Property Management Packs


9

TURNOVER AND TRADING DENSITY Mukuba Mall Kafubu Mall Cosmo Mall

Total Centre Average Monthly Turnover (US$) 2 941 397 1 982 236 N/A*

Average Centre Trading Densities YTD (US$)(Jan - Aug 2016)

104.20 163.27 N/A*

Turnover Growth % YOY (2015-2016) 20% 8% N/A*

RENTAL, OPERATING EXPENSES AND ARREARS Mukuba Mall Kafubu Mall Cosmo Mall

Total Centre Average Rental per m2 (US$) 17.43 16.60 24.99

Cost to Income Ratio (%) 15% 21% 14%

Total Arrears (% of Total Monthly Billings) 11% 7%Final figure unavailable

due to trading and rental liability recons in progress

* Turnover figures are currently unavailable for Cosmopolitan Mall as the centre only started operating this year



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GROCERY ANCHOR PERFORMANCE (SHOPRITE) Mukuba Mall Kafubu Mall Cosmo Mall

Grocery Anchor GLA (m2) 4262 4144 3422

Grocery Anchor Rent per m2 (US$) 9.61 15.03 16.69

Grocery Anchor Total Average Turnover per month (US$)

1 347 835 1 021 386 1 094 269

6 month Average Trading Density per m2 of Grocery Anchor (US$)

316.24 246.47 319.77

Kafubu Mall (US$)

1. DSTV 917.73

2. Hungry Lion 525.71

3. American Swiss 358.34

4. Shoprite 195.07

5. E Plus 181.01

Mukuba Mall (US$)

1. Mobile City 898.01


3. MTN 555.61

4. Gigibonta Zambia 532.74

5. Vodafone 492.55

Cosmo Mall (US$)


2. Umoyo 555.30

3. American Swiss 496.54

4. Mobile City 364.22

5. The Cake Bar 316.05


TOP 5 TRADING DENSITIES FOR LATEST REPORTING MONTH

FINANCIAL PERFORMANCE(SHARE OF PROFITS)

Financial Performance (Share of Profits)

12Note: Cosmopolitan Mall is still under transfer

COUNTRY RISK ANALYSIS

Gross Domestic Product Ave Medium Term Forecast Growth

per annum

Nominal Per Capita

Urbanization Rate

Resource Dependency

Urbanized Population

4%

$2,404

4.3%

41%

78%

2013

Top 3 Exports as % of the Total Exports (2012)

Ave Medium Term Forecast

PPP in USD

2013

Credit RatingCredit Rating Outlook

Fitch B Negative

Moody’s B3 Negative

S&P B Negative

IHS Connect B- Negative

21.4 mill

16.2 mill

20152025

16.1 People per km2

2005 2013

21.8 People per km2

Source: World Bank, IHS Connect, BBC, Mara Delta (2016)

Capital Lusaka

Population

Population Density

Key Facts

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Source: Data from IHS Connect and IMF (2016)

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Nominal GDP (USD) Real GDP, Growth Rate (%)

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Int. Reserves Excluding Gold, USD Int. reserves, import cover

Gross Domestic Product International Reserves Key Points

1. After consecutive years of strong GDP growththat made Zambia one of the best-performingeconomies in southern Africa, the countryreached low-middle-income status in 2010.

2. Zambia’s GDP growth expectations marginallymore positive than expected after recentslump.•Zambia's economy has been affected by lowcommodity prices . The country is one of theworld's largest exporters of copper (75% oftotal exports) and the lackluster commodityprice environment will continue to exertpressure on Zambia’s mining sector, which isunlikely to significantly recover until 2018.•The drought at the end of 2015 has severelyimpacted the agriculture production and hydropower supply, slowing economic growth .•Nevertheless, Zambia’s GDP growthexpectations have marginally increased for2016/17, following expectations of a morefavorable agricultural outcome for the farmingseason and copper production increased by9.6% year on year.•The economy will remain vulnerable to externalshocks such as the weather and developmentsin international commodity prices.

Foreign DebtDomestic Credit

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Foreign Debt: Total, USDTotal Foreign Debt as % of GDP

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Domestic Credit - LCUGrowth Rate: Domestic Credit in LCU

Economic Outlook

15

Source: Data from IHS Connect and IMF (2016)

Exchange Rate Policy Interest Rate

Key Points

1. Zambia continues to be one of the most politically stable countries in the sub-Saharan region.2. The governing Patriotic Front's (PF's) Edgar Lungu, who served the remainder of former president Michael Sata's term from January 2015, won his

first full term in office at the August 2016 presidential election.3. The PF adheres to investor and business-friendly policies which attracted significant private investment into the country’s mining and agricultural

sectors. Attracting more than USD8.5 billion in foreign direct investment inflows during 2010–14, driving growth’4. Zambia’s headline inflation rate reached a peak of 22.9% year on year in February 2016 and has since been trending down slowly. A steep drop in

headline inflation from the fourth-quarter 2016 onward is expected.5. Further monetary responses are expected if pressure on the Zambian kwacha re-emerges. The Bank of Zambia has shown its commitment to

shield the kwacha exchange rate from further depreciation following the 800-basis-point rise in the bank’s overnight lending facility rate inNovember 2015. Scope to lower the Bank of Zambia's policy rate from 2017 onward is considered highly likely.

6. The fiscus has shown a deterioration in the wake of large spending commitments and slowing government revenue flows.7. Nevertheless, Zambia has made significant progress and reached broad consensus with the International Monetary Fund on a planned support

package. The government hopes to secure a bailout that could exceed USD1.2 billion to support the nation’s budget and top-up foreign reserves.

Inflation

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Political & Governance Overview

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Source: IMF (2016)

KEY STRENGTHS KEY RISKS

Strong economic growth prospects. High urbanization rate.

PF-led government maintains an anti-corruption stance. Proceeds from Eurobond issuance are to be channelled into

infrastructural development. Zambia enjoys a relatively secure environment. Business friendly policy. IMF support package planned to support foreign reserves.

Uncertainty caused by policy reviews. Operational challenges including power-rationing. Near-term growth prospects of the Zambian economy remain

precarious due to slow copper prices recovery and weather related risk.

Gradually subsidies cuts expected.

1. Mara Delta’s management has maintained close and robust ties with its local in-country partners in order to comprehensively monitor economic

and political stability.

2. Mara Delta continues to maintain a policy limiting any local currency exposure, utilising natural hedging of currency risk by matching the

currency of expenditure to the currency of income.

3. Mara Delta has a robust ability to manage flow of funds through the Group liquidity facilities in Mauritius, careful manages cashflows

surrounding investments and the strength of the counter parties (tenants).

4. All Mara Delta assets in country are equipped with power generators when and if power supply issues occur.

Mitigation measures in place

Key Strengths & Weaknesses

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EXECUTIVE & MANAGEMENT TEAM

Bronwyn Anne CorbettChief Executive Officer

BCom (Acc) (Univ. of Natal, PMB), CA(SA)

Bronwyn is the Chief Executive Officer of Mara Delta Property Holdings, the largest pan African focused real estate fund listed onthe Johannesburg Stock Exchange and in Mauritius. Corbett has significant corporate finance and deal making experience. Sheplayed an instrumental role in the JSE listing of Delta Property Fund Limited in 2012 where she held the positions of Chief FinancialOfficer and Chief Operating Officer prior to taking up the leadership role at Mara Delta. During her tenure at Delta Property FundLimited, Corbett spearheaded the diversification of the REIT’s funding sources into the debt capital markets, leading to theestablishment of a ZAR2 billion Domestic Medium Term Note Programme (DMTN programme). She led the team responsible forobtaining a national scale issuer rating from Global Credit Ratings as part of the DMTN programme. In addition, Bronwyn co-headedthe team responsible for growing assets under management from ZAR 2.2 billion at listing to ZAR 11.8 billion in May 2016. Bronwynis a founder member and served as non-executive director on the board of Delta International Property Fund Limited (nowMara Delta Property Holdings) where she played a significant role in the listing and conversion of the fund to its current pan-Africanfocus, underpinned by dollar based leases. She assumed the role of Chief Executive Officer in the lead-up to the fund’s merger withPivotal/Mara to form Mara Delta. She has grown the fund from $220 million to approximately $450 million in under 2 years.

Leon van de MoorteleChief Finance Officer

Bcompt (Hons), CA(SA)

After completing articles with PwC, Leon moved to the Global Risk Management Services within PwC, where he become the SeniorManager in charge of Data Management. In 2004, he moved to Solenta Aviation where he became Group Finance Director within18 months. During his tenure as Group Finance Director, the group expanded from 12 aircraft to 48 aircraft, operating in 8 Africancountries (including South Africa, Mozambique, Algeria, Ghana, Gabon, Kenya, Tanzania and Cote d’Ivoire). He joined Mara Delta inApril 2015, as CFO, where he has continued to utilise his tax structuring knowledge and experience in operating in Africa to expandthe asset base of the group.

Greg PearsonHead of Developments and New Business

MCMI, Elec Eng

A graduate of Kingston University, London, Greg studied Business Management and Project Management and is registered with theChartered Management Institute. Greg was formerly an executive with AECOM, a global provider of Design, Development,Engineering and construction services having had the responsibility of expanding the footprint for the ‘Rest of Africa’ business from2006 (outside of South Africa). He gained his basic training and experience in London working mostly on commercial, retail andresidential mixed use projects. Greg’s expertise includes development management, cost planning, procurement, timemanagement and traditional project management of major engineering and building projects. His market sector knowledgeincludes: office, retail, Leisure, education and healthcare schemes and he has experience in over 40 African countries.

Heidi RixChief Operational Officer

Bcom LLB

Heidi Rix joined Mara Delta as Chief Operating Officer on 1 May 2016. Heidi brings 18 years of commercial and real estateexperience and holds BComm LLB degrees with further studies in the real estate industry including an Advanced Diploma inProperty Practice (cum laude). Heidi joins Mara Delta from the Broll Property Group where she was a Director of the Group andheld the position of Managing Director Investor Services with overall responsibility and accountability for the Asset Management,Property Management and Retail Leasing businesses. Prior positions held by Heidi include Director of Atterbury Asset Managers(Pty) Ltd and General Manager Rand Merchant Bank Properties (Pty) Ltd.

Moira van der WesthuizenChief Integration Officer

Bcom (Hons), CA(SA)

Moira joined MaraDelta in May 2016 as the Chief Integration Officer. She holds a B Com (Honours) degree from the University ofSouth Africa and is a qualified Chartered Accountant.

She has over 20 years of experience in finance, business and auditing, which included running her own business and then in 2005going into partnership as the Audit Partner in an Audit and Accounting practice. In 2008 she moved to Mauritius and worked forInvestec Bank and later the CCI Group as the Group Financial Controller. 19

Executive Team

Trevor MatthewsSenior Operations Asset Manager

Trevor has over 30 years industry experience beginning his career in 1979 as a property assistant, a position he held for six years, in which he established the building blocks to a long and successful career in the sector. By 1985, he joined BanKorp Properties as a manager of collections. Following this, Trevor joined Liberty Group Properties as the Leasing Manager. In 2001, he managed a R1.5 billion portfolio for Allan Gray Shopping centres, thereafter progressing to Canal Walk Management as the Leasing Manager. Hewas the Retail Asset Manager of the Fountainhead Property Trust where he was responsible for the full asset management of a retail portfolio of 10 shopping centres.

Mike SewellHead of Acquisitions

Mike is a charted management accountant with over eight years’ international experience in real estate, having worked on a crosssection of deal structures, asset sectors and jurisdictions. His previous position as Fund Finance Manager at Axa Real EstateInvestment Managers (London) centred on deals, managing fund finances, fund maintenance and tax structuring and investmentmanagement strategies.

Chanel van Zyl-SwartCountry Risk Analyst

Chanel joined MaraDelta in 2016 as a Country Risk Analyst.

She holds a BComm with Law, as well as a BComm Honours Degree in Economics, both from the University of Stellenbosch. Aftergraduating, she joined the Department of Trade and Industry within South Africa as a Policy Analyst. Thereafter, she became aCountry Risk Analyst at the Development Bank of Southern Africa in 2010 where she specialized in economic development, politicalrisk and finance in Africa. She has a strong background in research, empirical analysis and statistical modeling in order to do in-depth risk assessment in guidance of major infrastructure projects.

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Management Team (in attendance)

For professional advisers or Qualified Institutional Buyers only. This material is not suitable for retail clients.

Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.The data contained in this presentation has been sourced by Mara Delta Property Holdings Limited (“Mara Delta”) and should be independently verified before further use. This presentation is intended to be for informationpurposes only and it is not intended as promotional material in any respect.

The material in this presentation is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or taxadvice, or investment recommendations. Information herein is believed to be reliable but Mara Delta does not warrant its completeness or accuracy. No responsibility can be accepted for error of fact or opinion.

This presentation is restricted and is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the Australia, Canada, Japan or any other jurisdiction in which such release, publication ordistribution would be unlawful. This presentation is for information purposes only, does not purport to be full or complete, is subject to change and shall not constitute or form part of an offer or solicitation of an offer topurchase, sell, issue or subscribe for securities in the United States of America or any in other jurisdiction nor shall there be any sale of securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior toregistration or qualification under the securities laws of any such jurisdiction. Any failure to comply with these restrictions may constitute a violation of securities laws of such jurisdictions.

The distribution of this presentation in certain jurisdictions may be restricted by law.

No action has been taken by Mara Delta or any of its affiliates that would permit an offering of securities or possession or distribution of this presentation or any other offering or publicity material relating to securities in anyjurisdiction where action for that purpose is required. Persons into whose possession this presentation comes are required to inform themselves about, and to observe, such restrictions.

Mara Delta securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold, directly or indirectly, in the United States ofAmerica, absent registration or an exemption from, or transactions not subject to, the registration requirements of the Securities Act. Mara Delta does not intend to register its securities under the Securities Act or to conduct apublic offering of the securities in the United States of America. Should securities be offered in the future, in the United States of America, any offering of securities will be made only to qualified institutional buyers inaccordance with Rule 144 A under the Securities Act or in other transactions exempt from, or not subject to, the registration requirements of the Securities Act and applicable state or local securities laws. Outside the UnitedStates of America, any future offering of securities will be made in accordance with Regulation S under the Securities Act.

In member states of the European Economic Area (“EEA”) which have implemented the Prospectus Directive (each, a “Relevant Member State”), this presentation is directed exclusively at persons who are qualified investorswithin the meaning of the Prospectus Directive (“Qualified Investors”). For these purposes, the expression Prospectus Directive means Directive 2003/71/EC (and amendments thereto, including Directive 2010/73/EU, to theextent implemented in a Relevant Member State), and includes any relevant implementing measure in the Relevant Member State.

In the United Kingdom this presentation is only being distributed to, and is only directed at, Qualified Investors who are (i) investment professionals falling within Article 19(5) of the UK Financial Services and Markets Act 2000(Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order, or (iii) other persons to whom it may otherwise be lawfully communicated (all such persons togetherbeing referred to as “relevant persons”). Persons who are not relevant persons should not take any action on the basis of this presentation and should not act or rely on it.

Nothing in this presentation should be viewed, or construed, as "advice", as that term is used in the South African Financial Markets Act, 2012, and/or Financial Advisory and Intermediary Services Act, 2002 and/or theequivalent legislation in the United States of America.

This presentation contains (or may contain) certain forward-looking statements which reflect Mara Delta’s intent, beliefs or current expectations about the future and can be recognized by the use of words such as “expects,”“plans,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. These forward-looking statements are not guarantees of future performance and are based on assumptions about Mara Delta’s operations andother factors, many of which are beyond the Mara Delta’s control, and accordingly, actual results may differ materially from these forward-looking statements. Forward-looking statements contained in this presentationregarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Except as required by the JSE, the SEM or applicable law, Mara Delta expressly disclaims anyobligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this presentation to reflect any changes in Mara Delta’s expectations with regard thereto or any changes inevents, conditions or circumstances on which any such statement is based.

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Disclaimer

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