Edmond de Rothschild Real Estate SICAV. March 2012

Transcription

1 Edmond de Rothschid Rea Estate SICAV March

2 History» November 2010: Authorization given by FINMA to Edmond de Rothschid Rea Estate SICAV (ERRES)» December 2010: SICAV structure set up» March 2011: Launch of the 1st sub-fund, ERRES-Swiss, with CHF 300m in AUM» February 2012: Authorization given by FINMA for a new sub-fund» March 2012: Capita increase for the existing ERRES-Swiss sub-fund» Apri 2012: Launch of the 2nd sub-fund: ERRES-Hevetia 2

3 Organisation

4 Structure (1) Banque Privée Edmond de Rothschid Investment Manager CACEIS (Switzerand) Management Company Edmond de Rothschid Rea Estate SICAV KPMG Auditor Board of Directors Banque Cantonae Vaudoise Custodian Bank 4

5 Structure (2) Edmond de Rothschid Rea Estate SICAV Entrepreneur sub-fund Swiss sub-fund Hevetia sub-fund 5

6 Swiss sub-fundu

7 Market price since aunch EdR Rea Estate SICAV Swiss SXI Rea Estate Funds Price Index» ERRES Swiss premium ( ): 14.8%» Index average premium ( ): 21.9%» Index weighted average premium ( ): 25.2% Source: SIX, BPER, Credit Suisse 7

8 Trading voume 14% 12.8% 12% en % du nb de parts 10% 8% 6% 4% 2% 3.9% 1.9% 3.3% 2.6% 2.5% 7.8% 1.7% 2.2% 2.8% 2.6% 4.1% 0% mars.11 avr.11 mai.11 juin.11 jui.11 août.11 sept.11 oct.11 nov.11 déc.11 janv.12 févr.12» ERRES Swiss Monthy average voume (12 months): 4.1%» Index average monthy voume: 1.5% Data as at for ERRES Swiss and for the Sxi Rea Estate Index Source: BPER, Credit Suisse, SIX 8

9 Summary of tax advantages» Fisca vaue at : CHF 13.91/share» Rea estate returns and assets are tax exempt for sharehoders if these are hed directy by the SICAV.» Ony returns from cash or investment vehices wi be subject to taxation for the sharehoders. This information is provided for informationa purposes ony. We recommend that the existing or potentia investors consut their fisca advisors for any impication reated to any investment in the SICAV sub-funds. 9

10 Current situation (at )» Net asset vaue: CHF 300m» Gross rea estate asset vaue: CHF 370m» Target everage: 30% (max. 50%)» Number of properties: 22» Tota renta surface: 97,682 m2 (incuding buiding projects)» Reversionary renta income: CHF 22m» Share price: ( ): CHF 118 per share 10

11 Aocations Répartition Répartition géographique (en(en%% des oyers bruts) bruts) Répartition Répartition sectoriee sectoriee (en % des (en% oyers des oyers bruts) Fribourg 20% Fribourg 20% Neuchâte 3% Neuchate 3% Vaais 1% Vaais 1% Genève 26% Genève 26% Dépôts/archives 3% Industrie 9% Dépôts/archives 3% Industrie 9% Autres Autres 4% 4% Parkings 3% Parkings 3% Résidentie 18% Résidentie 18% Soeure 3% Soeure 3% Commerces 9% Commerces 9% Bâe 7% Bâe 7% Zürich 15% Zürich 15% Vaud 25% Vaud 25% Bureaux 54% Bureaux 54% BANQUE PRIVEE EDMOND DE ROTHSCHILD S.A. INVESTMENT FUND DEPARTMENT 11

12 Swiss rea estate market situation (1)» Stabe market dominated by oca and institutiona investors» Strong demand for high-quaity rea estate assets due to ack of performance from other asset casses and market environment» Most investors concentrate on the residentia sector for which there is strong demand due to a continuous fow of immigrants and very ow vacancy rates. Residentia properties wi continue to be an important asset cass with a ot of market demand Source: CBRE 12

13 Swiss rea estate market situation (Geneva) OFFICE REAL ESTATE MARKET RESIDENTIAL REAL ESTATE MARKET Rents in CHF/m 2 /year STABLE Rents in CHF/m 2 /year HIGH Capitaisation rates 4.25% % Capitaisation rates 4.00% % Stock Avaiabe Restricted Stock Avaiabe Very ow Office stock in the canton per m² 4.64 miions Number of assets (in thousands) 221 Vacancy Rate LOw Vacancy rate Very ow Demand Demand Lowering demand and increase of stock Economic context shoud put pressure on the highest rents Outook Key criteria:» Quaity of the tenants Outook Key criteria:» Leve of rents» Situation» Quaity of the buidings Source: CBRE 13

14 Swiss rea estate market situation (Zurich) OFFICE REAL ESTATE MARKET RESIDENTIAL REAL ESTATE MARKET Rents in CHF/m 2 /year STABLE Rents in CHF/m 2 /year HIGH Capitaisation rates 3.5% % Capitaisation rates 4.00% % Stock Avaiabe Restricted Stock Avaiabe Low Office stock in the canton per m² 6 miion Number of assets (in thousands) 697 Vacancy Rate Low Vacancy rate Low Demand Demand Outook The number fo avaiabe surfaces shoud increase in the forthcoming months; a arge number of tenants start to move out from cdb to the new deveoping areas in the north and west of zurich. Outook The buiding activity in the zurich canton has aways been important fats are supposed to be buit in 2012 Source: CBRE 14

15 Stabe commercia strategy - EPALINGES (VD) Biopoe III Offices and aboratories» Vaue: 32 Mn CHF» Aocation: 9%» Renta surface: m2» Net yied: 4.9 %» No vacancy Comments» 20 year ease indexed to CPI» Minergie Labe» Direct access to the subway 15

16 Stabe residentia strategy Dietikon (ZH) Kreuzstrasse/Überandstrasse/Gjuchstrasse Residentia: 70 fats + 33 parking paces» Vaue: 22 Mn CHF» Aocation: 6%» Renta surface: m2» Net yied: 4.3 %» No vacancy Comments» Genera good condition» Cose to pubic transports» Dietikon Raiway station at 5 mn 16

17 Added vaue Strategy - FRIBOURG (FR) - Agora Offices / Residentia / Shops» Vaue: 68 M. CHF *» Aocation: 17%» Renta surface: m2» Gross yied: 5.6%*» Net yied: 5.1%* Comments:» Direct access to SBB Raiway station» Minergie Labe» Last commercia eases being negotiated» Marketing of 15 dupexes: March 2012 * Projection end of construction / fit outs 17

18 How the capita increase wi be used» Acquisition of reserved assets: CHF 45m» Renovations and transformation of the existing portfoio: CHF 18m» Assets under excusive negotiations: CHF 40m 18

19 Capita increase» 1,000,000 new shares: three existing shares entite hoder to one new one» Listing of preferentia rights: From 12 March to 22 March 2012» Trading in new shares: 2 Apri» Issue price: CHF / part (Projected NAV at % Issue commission)» Subscription period: From 12 March to 23 March 2012» Situation after the capita increase: - Net Asset Vaue: Circa CHF 405m - Gross rea estate vaue: Target CHF 600m 19

20 Capita increase» During their first day of isting, subscription rights are detached from the shares and made avaiabe to the sharehoders, who can then decide to exercise them or trade them on the stock exchange - Listing codes of the rights : (Code ISIN CH )» Exampe de preferentia rights cacuation» Share price: CHF 118» Issue price: CHF » Theoretica price of the rights: ( )/(3 existing shares + 1 new one)= CHF 3.42» For new investors: 3 rights at issue price at = CHF

21 Hevetia evetasub-fundu

22 Why a new sub-fund?» ERRES is an umbrea SICAV» New strategy based on portfoio acquisition» Guarantees coherence between the different sub-funds» Protects current investors by preventing a arge diution» Diversifies the sharehoder base 22

23 Portfoio construction» Portfoio acquisition Target» Restructuring of corporate portfoios eading to added vaue opportunities 70%» Muti-product deveopments (max. 30% of the assets) 20%» Majority stakes in investment vehices 10% 23

24 Preiminary caendar» Subscription period from 16 Apri to 25 Apri 2012» Trading in new shares 2 nd of May» Listing schedued for aunch 8 th of May 24

25 Discaimer Edmond de Rothschid Rea Estate SICAV (the "SICAV"), Geneva is an externay managed société d investissement à capita variabe incorporated in Switzerand in the "rea estate" category, as defined in the Swiss Coective Investment Schemes Act (CISA). The SICAV has deegated administration, management and distribution to its Fund Management Company, CACEIS (Switzerand) SA, Nyon, which has in turn deegated the SICAV's investment management and the excusive distribution of its shares to Banque Privée Edmond de Rothschid SA, Geneva, which aso has sub-distribution authority. Banque Cantonae Vaudoise, Lausanne is the SICAV's custodian. Subscriptions sha be vaid ony of the basis of the current prospectus incuding the investment reguations and artices of association, together with the simpified prospectus and the atest annua report (or semi-annua report if it is more recent). These documents may be obtained free of charge from the headquarters of the SICAV, Banque Privée Edmond de Rothschid SA, rue de Hesse 18, 1204 Geneva, from CACEIS (Switzerand) SA, chemin de Précossy 7-9, 1260 Nyon and from any subdistributors. This document is provided for informationa purposes ony and does not constitute investment advice or a recommendation to make or iquidate an investment or to effect any other type of transaction in reation to the SICAV. Nor does it constitute a pubic tender or an offer or soicitation to subscribe shares in the SICAV. The SICAV, CACEIS (Switzerand) SA and Banque Privée Edmond de Rothschid SA do not warrant the accuracy or exhaustiveness of this document, and discaim a iabiity for osses that coud arise from using the information herein. This document refects the opinions of the SICAV. Investors are advised to examine the content hereof with a financia adviser to ascertain whether an investment in the SICAV is appropriate in view of each investor's circumstances, taking account of his investment objectives, risk profie and persona, financia, reguatory and tax situation. A investments entai risks, particuary the risk of fuctuations in vaues and returns. Historica performances and financia market scenarios are no guarantee of present or future returns. Any data on performances mentioned herein do not incude fees and other charges evied upon the issue and redemption of the SICAV's shares. Any reproduction of this document, in whoe or in part, is prohibited without the SICAV's prior consent in writing. The main investment objective of each sub-fund sha be to preserve the substance of capita invested ong term and to distribute appropriate income. To the extent possibe the SICAV's Board of Directors and Investment Manager sha strive to pursue the specific investment strategy drawn up for each sub-fund as set out in the SICAV's Term Sheets reating to the investment reguations. The impementation of said strategies may nevertheess be subject to constraints and to reguatory and ega procedures such as the Swiss rues on purchasing property for residentia purposes. No assurance can be given by the SICAV, the Board of Directors, the Fund Management Company or the Investment Manager that residentia property contempated for purchase by the SICAV wi be confirmed by the reevant federa and/or cantona authorities as not being subject to said constraints and procedures. This document is not intended for persons subject to egisation prohibiting their access to such information by virtue of their nationaity, status or domicie. In particuar, the SICAV has not fied and wi not fie an appication with the US Securities and Exchange Commission for authorisation to offer or se its shares to the pubic under the Securities Act of The SICAV is not and wi not be registered under the Investment Company Act of 1940 as amended. This document may not be distributed, and shares in the SICAV may not be offered, in the United States of America or in any territory, possession or region that is subject to its jurisdiction. 25