Indirect Investment. An Introduction

Transcription

1 Indirect Investment An Introduction

2 250m equity committed 15 new investments since specialist third party management teams Active in 4 continents; Africa, Australia, Europe and North America Grosvenor's Indirect Investment team is part of the Grosvenor Group, one of the world's largest privately owned property businesses which invests in, develops and manages properties and places in more than 60 cities around the world. The Indirect Investment team works to diversify the company's property portfolio by backing specialist third party managers in sectors and countries that complement the activities of the Group's four regional Operating Companies. Our investment principles: We are thoughtful investors who target opportunities which generate value through pricing dislocation, changing sector dynamics, emerging market trends, cyclical movements or change of use/repositioning. Realised 5 investments to date with IRRs ranging from 15% to 30% pa We target strategies which complement (not compete with) Grosvenor's existing regional Operating Companies. We back specialist third party managers with a demonstrable track record of generating value. We focus on third party managers with integrity, who share our investment principles and for whom our investment is of material importance. We ensure that there is alignment with our partners to achieve our mutual objectives in all market conditions. We work with managers who embrace innovation, sustainability and efficiency with a clear understanding of the rapidly changing demands of real estate. Direct Investments Grosvenor's regional Operating Companies are wholly-owned companies through which Grosvenor makes direct investments in real estate. Grosvenor Britain & Ireland Grosvenor Americas Grosvenor Asia Pacific Grosvenor Europe Indirect Investment Grosvenor's Indirect Investment business invests in real estate opportunities by backing specialist third party managed companies. 1

3 Track record Since being established in 2011, the team has committed more than 250m in 15 deals, on four continents with nine specialist partners. IO1 - UK multi-let industrial Exited March % IRR realised Majority equity investor in the reincarnation of the IO business, focused on the UK multilet industrial sector and a wholesale-toretail exit strategy. High Street IV - US industrial and logistics fund investment Exited June % IRR realised Investment in an East Coast US focussed industrial and logistics fund. PAIP - Australian industrial and logistics Exited August 2016, 27% IRR realised Investment partnership with Propertylink and Goldman Sachs focused on the Australian industrial and logistics sector. Created a portfolio of over A$700m in 18 months. IPO exit, partnership stapled with the Propertylink management company. 2

4 Long-only logistics High Street JV - US industrial equity portfolio and logistics Exited June 2017 July % IRR realised Equity financed the acquisition of five assets Forward sale of 50% to High Street Fund V on first close. Internally managed portfolio of longonly equity holdings in blue-chip global industrial and logistics companies. POP II - Sydney office Exited July % IRR realised Investment partnership alongside Propertylink and Goldman Sachs to acquire an office building at 320 Pitt Street. IO2 - UK multi-let industrial May 2015 Investment alongside io Group and Quilvest in high-yielding UK multi-let industrial properties. 5

5 High Street V - US industrial and logistics fund investment September 2015 Part of the proceeds from the High Street JV sell-down were invested into High Street Fund V, maintaining exposure to East Coast US industrial logistics. LOGIC Spain - Spanish logistics December 2015 Investment alongside Kefren Capital and Brunswick in high-yielding Spanish logistics properties. Working with Grosvenor has enabled us to create and realise several investment opportunities. We have developed a very strong and productive relationship with the team. Stephen Day Vice Chairman and Executive Director Propertylink We look forward to working with Grosvenor to trial new sustainable and innovative real estate initiatives that have been made possible as a result of their investment. Susan McArthur Managing Partner GreenSoil Investments West Midlands Interchange September 2015 Primary funder of the planning process to create a nationally significant Strategic Rail Freight Interchange in the West Midlands, UK. RMB - Sub-Saharan African development fund February 2016 Investment in a cross-sector Sub-Saharan African development fund aiming to capitalise on the rapid urbanisation and growing economies of sub-saharan Africa. 6 7

6 Alden Street Capital student housing across the US POP III - Australian value-add offices March 2016 September 2016 A JV with Alden Street Capital, a New Yorkbased student accommodation investment and management company, targeting value add student accommodation opportunities across the US. A JV with Propertylink holding four office assets in North Ryde, Sydney. Stockdale - Southwest US car parking August 2016 Investment alongside Stockdale Capital Partners and ACE Parking targeting infill car parking opportunities in South West US. Greensoil - Building Innovation Fund September 2016 An investment in a North Americanbased growth equity fund that invests in companies that generate real estate value through improved efficiency, performance and sustainability. 9

7 View from 320 Pitt Street, Sydney Deal parameters We only invest Grosvenor proprietary capital and are not subject to outside investor return criteria or artificial timing pressures. Our broad deal parameters are as follows: Deal commitment typically 25m, and with scope for follow on investments. There is no overriding return requirement. We assess every opportunity on a risk-adjusted basis. In assessing the required return, the alignment with our local partners is key. We have no closed-end time pressures and can invest from the very short to the very long term. We often target programmatic investments focussed on an identified strategic opportunity, but we are open to single asset opportunities. We do not invest in passive vehicles unless there is a clear strategic reason for doing so. We can invest in opportunities which generate returns from the application of real estate expertise rather than from exposure to the physical asset itself (i.e. service providers rather than asset owners)

8 Team contacts History Chris Taite Managing Director +44 (0) Tim Budden Finance Director +44 (0) Andy Yates Investment Director +44 (0) acres of land in London came into the family 1820s Belgravia master plan created 2000 Devolved corporate structure introduced 2016 First indirect investment in sub-saharan Africa Robert Toplis Associate Director +44 (0) Wei-Ting Leong Analyst +44 (0) Lidia Otaduy Finance Manager +44 (0) Indirect Investment business established Today 1720s Mayfair development began 1950s 60 cities 500+ people 1,500+ properties 13.1bn assets under management Amy Crang Team Assistant +44 (0) The first international expansion 12

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