Proposed Acquisition of Mapletree Anson. 3 December 2012

Transcription

1 Proposed Acquisition of Mapletree Anson 3 December 2012

2 Disclaimer The value of units in Mapletree Commercial Trust ("MCT" and the units in MCT, the "Units") and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by Mapletree Commercial Trust Management Ltd. (the "Manager"), or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that unitholders of MCT may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. This presentation should be read in conjunction with the SGXNET announcement "Proposed Acquisition of Mapletree Anson" dated 3 December 2012 issued by the Manager. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for Units. The past performance of MCT and the Manager is not necessarily indicative of the future performance of MCT and the Manager. The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be place on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither the Manager or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses (including employee wages, benefits and training costs), property expenses and governmental and public policy changes. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager s view of future events. 1

3 Transaction Overview 1 st Acquisition Since IPO Proposed Transaction Acquisition of Mapletree Anson Property Statistics (1) 19-storey premium office building located in CBD in Tanjong Pagar Micro-Market (2) 99-year leasehold tenure commencing from October 2007 Building completion: July 2009 GFA: 383,812 sq ft NLA: 331,854 sq ft 80 car park lots Tenant base of 13 quality well-known multinational companies Occupancy rate: 95.6% (3) Current average passing rent: S$7.30 psf per month Purchase Consideration Purchase price of S$680 million (S$2,049 psf) 0.7% discount to DTZ s valuation of S$685 million (S$2,064 psf) 1.3% discount to Knight Frank s valuation of S$689 million (S$2,076 psf) Financing To be funded with an appropriate combination of equity and debt while maintaining an optimum level of gearing EGM Unitholders approval sought for the proposed acquisition from Mapletree Anson Pte. Ltd., a wholly owned subsidiary of Mapletree Investments Pte Ltd (the Sponsor ) 1. Property statistics as at 30 September The area bounded by Neil Road/South Bridge Road, Keppel Road, Cantonment Road and Maxwell Road/Telok Ayer Street. 3. The committed occupancy of the Property as at the date of the Announcement is 99.4%. 2

4 Key Acquisition Rationale 1 Strategic Addition of a Premium Office Building to MCT s Portfolio 2 Expected DPU and NAV Accretive Acquisition Without Income Support 3 Exposure to the Transformational Growth in the Tanjong Pagar Area 4 Stable Cash Flow with Embedded Organic Growth Potential 5 Improve Diversification of MCT 6 Acquisition Fits the Manager s Investment Strategy 3

5 Strategic Addition of a Premium Office Building to MCT s Portfolio A Strategic Location with Excellent Connectivity Maxwell MRT Station (Expected Opening 2021) Strategic Location Located along the same CBD corridor as the key financial and business centers at Raffles Place, Shenton Way, Cecil Street and Marina Bay Excellent Connectivity Well served by major arterial roads and expressways (AYE) The Duxton Keppel Tower Tower Fifteen Food Court Market Tanjong Pagar Plaza GE Tower Genting Centre Jit Poh Building St. Andrew s Centre OCBC Building RCL Centre Orchid Hotel (Hotel) Amara Hotel 100 AM Fuji Xerox Towers PS 100 (TOP 2014) (Hotel) Altez (TOP 2015) Realty Icon Sky Suites (TOP 2014) Hub Synergy Point Centre Anson House M Hotel Singapore Lippo Centre Maxwell Chambers Wallich Building Mapletree Anson International Plaza Twenty Anson Anson Centre Lumiere 79 Anson Road Hong Leong House Chartis Building Ayer Rajah Expressway (AYE) Springleaf Tower Eon Shenton (TOP 2014) MAS Building Shenton Way Bus Terminal Axa Tower Bestway Building Palmer House Shenton Way MRT Station (Expected Opening 2021) 2 minutes walk to the Tanjong Pagar MRT station Connectivity further enhanced post completion of the future Maxwell and Shenton Way MRT stations on the Thomson Line Exposure to the Transformational Growth in the Tanjong Pagar Area Next phase of growth in Singapore s CBD in the medium term On-going and future developments will reinforce the area as a more vibrant business enclave embodying the work, live and play concept Residential Retail Office Mixed Use Hotel Taxi Bus Stop MRT Station 1. Map powered by Streetdirectory.com with boundary lines and legend included to highlight residential, retail, office, mixed use and hotel developments in the Tanjong Pagar area. 4

6 Strategic Addition of a Premium Office Building to MCT s Portfolio (Cont d) B Grade-A Building Specifications Over 20,000 sq ft of column free space per floor Floor to ceiling height of 3m with raised floor of 150mm Efficient centre core layout with core to window depth of 14m Separate generators for tenants emergency power supplies High tech security system (CCTV, turnstiles, access cards) State-of-the-art building services and management systems High quality finishes One of the first buildings in Singapore awarded the prestigious BCA Green Mark Platinum Award High degree of visibility with artwork the Spiral along its prominent frontage One of the Newest Premium Office Buildings within the Tanjong Pagar Micro-Market 5

7 Strategic Addition of a Premium Office Building to MCT s Portfolio (Cont d) C BCA Green Mark Platinum Certified Energy Efficiency Features Water Efficiency Features Highly energy-efficient cooling plants Innovative heat pipe technology to reduce cooling load of air-con system Energy-efficient T5 fluorescent lights with electronic ballasts Motion sensor for toilet lights Recycling of condensate water from all AHUs Water efficient fittings certified as Very Good and Excellent under PUB WELS NEWater from PUB used as primary source for cooling tower ~ ZERO potable water use Energy savings ~ 2,300,000 kwh p.a. Power for room HDB flat 1,200 off the roads annually Water savings ~ 70,000 m 3 p.a. 28 Olympic sized swimming pool Efficient Building with a Small Carbon Footprint 6

8 Strategic Addition of a Premium Office Building to MCT s Portfolio (Cont d) D Strong Tenant Base with High Occupancy Trade Sector Analysis (For the Month of September 2012) Top 10 Tenants of the Property (By Gross Rental Income for Month of September 2012) Real Estate 7.5% Energy 6.2% F&B 0.3% Insurance 31.5% Rank Tenant Trade Sector 1 2 Insurance and Consulting Firm J. Aron & Company (Singapore) (2) Percentage of Gross Rental Income Insurance 18.7% Banking & Financial Services 18.4 IT Services & Consultancy 16.0% By Gross Rental Income Yahoo! Southeast Asia Sumitomo Corporation Asia Lend Lease Asia Holdings IT Services & Consultancy 11.5 Trading 10.7 Real Estate QBE Insurance (International) Insurance 7.3 Banking & Financial Services 18.4% Trading 20.2% High Occupancy Rate of 95.6% as of 30 September 2012 (1) 7 Noble Resources Trading Kellogg Brown & Root Asia Pacific Royal & Sun Alliance Insurance Tata Consultancy Services Asia Pacific Energy 6.2 Insurance 5.4 IT Services & Consultancy 3.5 Total 96.1% 1. The committed occupancy of the Property as at the date of the Announcement is 99.4%. 2. A member of the Goldman Sachs group of companies. 7

9 Strategic Addition of a Premium Office Building to MCT s Portfolio (Cont d) E Complementing MCT s Presence in the Southern Corridor Redhill Rd EW18 Redhill Tiong Bahru Rd NE5 Clarke Quay Boon Tiong Rd EW17 Tiong Bahru Rd Tiong Bahru NE4 Chinatown EW14 NS26 Raffles Place Depot Road EW16 NE3 Outram Park Tanjong Pagar Micro-Market Tanjong Pagar EW15 CC27 Labrador Park PSAB Mapletree Anson AYE CBD AYE CC28 Telok Blangah VivoCity Keppel Terminal Road M MLHF CC29 NE1 Harbour Front Sentosa Enhances MCT s product offering to new and existing tenants who are looking to expand their operations into the CBD, better positioning MCT as a premium provider of commercial space solutions in Singapore Potential to yield operational and leasing synergies due to proximity to the HarbourFront and Alexandra Precincts Reduce geographical concentration of asset in the HarbourFront and Alexandra Precincts from 100% to ~82% (1) 1. By asset valuation as of 30 November

10 Expected DPU and NAV Accretive Acquisition Without Income Support Total Acquisition Cost (S$ Millions) Discount of 0.7% to DTZ s valuation of S$685 million Discount of 1.3% to Knight Frank s valuation of S$689 million $6.8 $690.2 $680.0 $ % of the Purchase Consideration (1) Fees to be paid in Units (2) Purchase Consideration is attractive relative to the Property s expected NPI With an appropriate method of funding, Acquisition is expected to be DPU accretive for Unitholders without the need for any income support from the Vendor Purchase Consideration Acquisition Fee Estimated Other Professional Fees & Expenses Total Acquisition Costs 1. Under the Trust Deed, the Manager is entitled to be paid an Acquisition Fee at the rate of 1.0% of the Purchase Consideration. 2. As the Acquisition will constitute an interested party transaction under the Property Funds Appendix issued by MAS, the Acquisition Fee will be payable in the form of Units, which shall not be sold within one year of the date of issuance, in accordance with Paragraph 5.6 of the Property Funds Appendix 9

11 Stable Cash Flow with Embedded Organic Growth Potential A Resilience of Rental and Occupancy Rates for Comparable Properties Occupancy Rates (%) Rental Rates (S$ per sq ft per month) 100% 98.6% $8.50 $8.00 $8.00 psf pm $ % 95.2% $7.00 $6.50 $6.31 psf pm $ % $5.50 $5.00 $ % $ Q Q Q Q Q Q Q Q Q Q Q Q3 Comparable Basket (1) (1) Tanjong Pagar Micro-Market Comparable Basket Tanjong Pagar Micro-Market According to CBRE, properties in the Comparable Basket have demonstrated higher occupancy and resilience in rental rates compared to the older buildings in the Tanjong Pagar Micro-Market The Property is well-positioned to benefit from the establishment of a two-tier market and the flight-to-quality trend Source: CBRE. 1. Comprises the basket of office buildings within the vicinity of the Property which, according to CBRE, are comparable to the Property in terms of specifications, quality and location. 10

12 Stable Cash Flow with Embedded Organic Growth Potential (Cont d) B Favourable Lease Expiry and Rental Profiles C Well Structured Leases Lease Expiry Profile (By Gross Rental Income for the month of September 2012) Leases with Rental Step-Ups (By Gross Rental Income for the month of September 2012) Market Rent of Buildings in the Comparable Basket S$8.00 psf pm (1) Expected positive rental reversion driven by: Current Passing Rent 1 Establishment of two-tier market 2 Flight-to-quality trend +9.6% S$7.30 psf pm Leases with Rental Step-Ups 35.4% 29.7% 20.2% By Gross Rental Income 55.8% (2) 7.6% 7.1% FY2012/13 FY2013/14 FY2014/15 FY2015/16 FY2016/17 Percentage of Lease Expiries by Gross Rental Income 1. Based on CBRE s estimates for the quarter ended 30 September All the leases expiring in FY2012/13 have been renewed as at the Announcement date. 11

13 Improve Diversification of MCT A Enhance MCT s Tenant Base with the Addition of Established MNCs Top 10 Tenants of MCT Before the Acquisition (As at 30 September 2012) 8.3% 3.9% 3.1% 2.9% 1.9% 1.8% 1.7% 1.7% 1.5% 1.4% Merrill Lynch Global Services Cold Storage Singapore PSA Corporation C.K. Tang Golden Village Multiplex Best Denki (Singapore) Wing Tai Retail Management RSH (Singapore) Copitiam Investment and Noodle Bowl Aryan (SEA) Top 10 Tenants of MCT After the Acquisition (As at 30 September 2012) (1) 7.3% 3.4% 2.7% 2.5% 2.4% 2.4% Tenants of Mapletree Anson 1.7% 1.6% 1.5% 1.5% Merrill Lynch Global Services Cold Storage Singapore PSA Corporation 1. Assuming MCT has acquired the Property as at 30 September Member of Goldman Sachs group of companies. C.K. Tang Insurance and Consulting Firm J. Aron & Company (Singapore) (2) Golden Village Multiplex Best Denki (Singapore) Wing Tai Retail Management Yahoo! Southeast Asia 12

14 Improve Diversification of MCT (Cont d) B Improve Trade Sector Diversification of MCT s Office Portfolio C Reduce Concentration Risk & Increase Diversification from the HarbourFront and Alexandra Precincts Office Portfolio Trade Sector Mix After the Acquisition (Gross Rental Income For the Month of 30 September 2012) Asset Valuation Breakdown After the Acquisition (S$ Million) Increased Proportion of Income from Non-Banking and Financial Services Post Acquisition 7.5% % of Gross Rental Income for Month of Sep % Banking and Financial Services MLHF (HarbourFront Precinct) Mapletree Anson (CBD) 8.2% 17.9% Valuation of S$3,830 million as of 30 November % Non-Banking and Financial Services 62.1% PSAB (Alexandra Precinct) 16.9% VivoCity (HarbourFront Precinct) 13

15 Acquisition Fits the Manager s Investment Strategy Increasing MCT s Portfolio Size and Quality of Asset Portfolio Growth in Total Assets (S$ Million, as at 30 September 2012) (1) $3, % $3,881 Growth in Net Lettable Area ( 000 Sq Ft, as at 30 September 2012) 1, % 2,107 Before the Acquisition After the Acquisition Before the Acquisition After the Acquisition Improving Weighted Average Building Age (2) (As at 30 September 2012) Increase Remaining Leasehold Interest in Land Tenure (As at 30 September 2012) 10.5 Years 10.5% % Years Before the Acquisition After the Acquisition Before the Acquisition After the Acquisition Acquisition In Line with MCT s Strategy on Delivering Stable Income and Sustainable Growth 1. Adjusted for revaluation exercise on 30 November Weighted by NLA. 14

16 Thank You For enquiries, please contact: Koh Wee Leong Investor Relations Tel: