Jadwa REIT Saudi Fund

Transcription

1 Jadwa REIT Saudi Fund Teaser January 2018 Real Estate Public Markets Private Equity Investment Banking Investment Management Advisory

2 Offering Summary Net Yield 7.30% Size SR 1.58bn Quarterly Distribution Public Offer SR 474mn 7.5 Years WAULT Major Cities Annual Growth Jadwa Investment SR 89.5mn 100% Occupancy 100% Freehold Five Assets 100% Equity Educational Commercial Industrial Residential Valuation Advisory Commercial Due Diligence Legal Due Diligence Technical Due Diligence WAULT= Weighted Average unexpired Lease Terms 2

3 Portfolio Summary The initial portfolio consists of five assets in the Central and Eastern Provinces. The properties occupy prominent locations within proximity to key demand drivers that are expected to ensure organic income growth. The assets are predominantly leased to blue-chip tenants and subject to enforceable bank and corporate guarantees from strong counterparties. Riyadh 66.4% of value 66.2% of rent Eastern Province 33.6% of value 33.8% of rent 4 Al Yaum Tower 1 Al Maarefa College Al Fanar Complex 2 Marvella Complex 3 Sulay Industrial facility 3

4 Attractive Yield Jadwa REIT Saudi offers the highest yield amongst REITs Offerings 7.30% 7.22% 7.00% 6.80% 6.60% 6.50% 6.43% 6.36% 6.10% 6.10% 6.10% 5.53% Listed REITs Upcoming REITs REIT Sector 5.26% 5.20% 5.15% 6.24% 5.84% Jadwa REIT Saudi REIT 1 REIT 2 REIT 3 REIT 4 REIT 5 REIT 6 REIT 7 REIT 8 REIT 9 REIT 10 REIT 11 REIT 12 REIT 13 REIT 14 Avg. REITs Avg. REITs Initial Yields Current Yields* Yield Above TASI s Relevant Benchmarks Tadawul s Largest REIT (Market Cap) 7.30% 4.7% 4.1% 2.9% 1.7% 13.3% Jadwa Saudi REIT 3.35% 2.98% 4.8% 5.1% 4.8% 11.5% AlAhli REIT * Prices as of 31/12/2017 **S&P Saudi MidSmall Cap Shariah Index 31/12/ % Jadwa REIT Saudi TASI Index Mid-Cap Index ** TASI RE Index Jadwa REIT AlHaramain 5.7% 5.8% 7.3% 9.0% 9.1% 10.3% AlRajhi REIT 4

5 Quarterly Distribution Annual Distribution Semi-Annual Distribution Quarterly Distribution REIT REIT REIT REIT REIT REIT REIT REIT REIT REIT REIT REIT REIT REIT 8 REITs (listed and upcoming) distribute dividends once a year. 6 REITs (listed and upcoming) distribute dividends twice a year. Jadwa REIT Saudi is the only REIT that distributes dividends FOUR times a year. 5

6 Value Investment With Diversified Exposures Value breakdown by sector Revenue breakdown by property 14.3% 12.9% 12.3% 18.3% 27.7% 100% freehold 45.1% 15.4% 100% contracted 9.7% 5.8% 38.5% Educational Residential Commercial Industrial Al Yaum Tower AlFanar commercial AlFanar residential Marvela compound Sulay Industrial AlMarefah Colloge 13.30% Acquisition Prices vs. Average of Two Independent Valuations 11.00% 9.40% 7.60% Average discount of 8.6% 6.10% AlYuam Newspaper 12.7% AlMarefah College 7.6% REIT Ownership Breakdown Jadwa Investment 5.7% Public Investors 30.0% Sulay Industrial Facility Al Mareefa College Al Youm Tower Al Fanar Complex Marvella Compound AlMuhaidib Group 19.2% *Al Athear is 70% Owned by Al Muhaidib Group Al Athear* 24.9% 6

7 Sustainable Performance Strong Covenants Blue-chip Tenants Promissory Notes Corporate Guarantees Bank Guarantees Pledge of REIT Units Fund Manager Track Record Jadwa is the only fund manager with prior REIT experience in the Saudi market Jadwa s existing REIT fund, Jadwa REIT Al-Haramain, has already secured bank debt and executed multiple accretive acquisitions Jadwa has a dedicated Real Estate Department with 7 specialized professionals responsible for developing and executing the REIT s growth strategy Jadwa s real estate team has extensive experience of investing locally and internationally in both development and income-generating real estate assets 7

8 Key Fund Terms Fund Name Jadwa REIT Saudi Fund Net Yield 7.30% - Quarterly Distribution Fund Term 99 years - which can be extended for another 99 years Shariah Status Shariah compliant Equity / Debt Initial funding: 100% equity / 0% debt Fund Size 158,000,000 Units (SAR 1,580,000,000) Jadwa Investment s participation in the Fund Subscription Fees 8,944,700 Units (SAR 89,447,000) - Equivalent to 5.7% Ownership Stake 2.0% of the cash equity raised, paid once and inclusive of VAT Acquisition/Divestment Fess 0.75% of the acquisitions/divestment price (including Initial Portfolio) + VAT Management Fees Third Parties Fees 0.75% of the NAV per annum + VAT Custody fees, administrative fees, audit fees, Tadawul fees, transaction fees, property management fees, independent fund board member fees, and other fees. Fees are subject to VAT. 8

9 Key Offering Terms Offering Period 03/January/2018G - 23/January/2018G Tadawul Listing 1Q 2018 Publicly Offered Ownership 30% of REIT s Capital Publicly Offered Units 47,400,000 Units Offer Price SAR 10 / Unit Public Offer Value SAR 474,000,000 Minimum Subscription 50 Units / SAR 500 Maximum Subscription 7,884,200 Units / SAR 78,842,000 Eligible Investors Saudi and GCC Citizens Residents of Saudi Arabia Companies, Institutions, Investment Funds established in Saudi Arabia and GCC Qualified Foreign Investors Receiving Banks 9

10 Disclaimer Disclaimer: Jadwa Investment or its directors, staff, or affiliates makes no warranty, representation or undertaking whether expressed or implied, nor does it assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information that is contained in this material. It is not the intention of this material to be used or deemed as an advice, option or for any action that may take place in future. Unless otherwise stated, all information contained in this material shall not be reproduced, in whole or in part, without the specific written permission of Jadwa Investment. The content of this document is for information purposes only. Jadwa Investment does not hold itself out as providing legal, financial or other advice via this document. To ensure proper understanding of the Fund and its suitability for you according to your risk appetite, we recommend that you seek specialist investment advice.investments in Jadwa's products are governed by their Terms and Conditions. While reading the product s Terms and Conditions, please refer to the principal risks of investing in the product. Some products are exposed to foreign currencies and changes in currency exchange rates and other risks that may have an adverse effect on the value and price. The product s value is subject to fluctuations and the investor may not receive the full amount that is originally invested. The information provided in this document can be changed at any time without prior notice. Past performance is not indicative of future returns. Jadwa Investment is authorized and regulated by the Capital Market Authority of Saudi Arabia. Jadwa Investment s Headquarters Sky Towers King Fahad Road, Riyadh P.O. Box Riyadh, 11555, Kingdom of Saudi Arabia Tel Tel (011) Website