EAB European Property Fund LP Fact Sheet

Transcription

1 Key features Fund size: Capital investment: Fund structure: 125 million (utilising third party leverage of around 60% on Capital invested) 50 million will be the maximum equity investment in the Fund, comprised of Seed Capital from Arab Bank plc of 7.5M plus seed capital of 2.5M as a co-investment from Catella Europroperty Investment BV and a further 40M has been provided by Arab Bank plc as an underwriting loan in order to establish the Fund Closed-end UK Limited Partnership, Administered in Guernsey (Channel Islands) Minimum commitment: 250, 000 with additional increments of 50,000 Fund term: Targeted return: Five years (with an option for 2 one-year extensions for a managed exit strategy) We are targeting an Internal Rate of Return (IRR) of 10% through annual income generated (distributed quarterly) and the potential for capital gains on exit Fund objectives The Fund will invest in properties in northern European locations with a view to generating regular income and attractive capital gains when the Fund matures. This Fund will draw on the success of Arab Bank s first property Fund which has deployed 125M and is currently generating an 8% p.a. cash on cash yield. Main features of this Fund Generous cash on cash yield with quarterly income distributions, in excess of 7.5% p.a. Potential for capital appreciation High degree of investment diversification, with a low correlation to the Financial markets Use of leverage by the Fund to maximise returns Access to European property markets via a proven, tax efficient structure Property sector diversification: properties acquired will be in the logistics, office, retail and industrial sectors Fund Manager The Fund is managed by AB Consolidated Investments Ltd [ABCIL] a wholly owned subsidiary of Arab Bank plc. ABCIL also acts as the General Partner, is registered in the United Kingdom and is authorised and regulated by the Financial Service Authority in the UK. The investment process Private Placement Memorandum issued: First Closing date: Investor s commitments: Target investment locations The Netherlands Luxembourg September December 2006 Subscription is through a Euro denoted current account at the Europe Arab Bank plc s Mayfair Branch in London. Germany Belgium Investment and Property Adviser France Catella who are co-sponsors of the Fund, are also the Investment and Property advisers. They are based in Amsterdam in The Netherlands and have a proven track record in establishing and running pan European Property Funds.

2 Details for Investing in the Fund The Fund is a closed-end Limited Partnership, investors subscribe to the Limited Partnership and become Limited Partners for the term of the Fund. The Term of the Fund is 5 years with an additional two one-year extensions available to the Fund in order to ensure an appropriate exit strategy. There are limited early exit options from the Fund and any early exit is at the sole discretion of the General Partner. The Fund is denoted in Euro, however Investors will be offered the opportunity to hedge their currency risk should this be a requirement. Fees & expenses Investors will be charged a placement fee of 2% of their commitment capital, the placement fee will only be charged when the capital commitment is drawn into the Fund. The Fund Manager will receive an annual management fee of 0.4% of Gross Asset Value. The Investment Adviser will receive an annual management fee of 0.5% of Gross Asset Value. The Fund will carry all normal third party operating expenses such as audit, tax and legal expenses. Performance fees are payable to the Investment Manager and the General Partner upon maturity of the Fund. The Hurdle rate and fees applicable are detailed in the Private Placement Memorandum. Developments in the Fund to date Arab Bank and Catella, the co-sponsors of the Fund have provided seed capital to the Fund which has allowed it to acquire more than a third of the intended portfolio of property assets and prospects are good for further acquisitions in the near future. The three properties already acquired for the Fund s portfolio are: Property Location Investment % of Portfolio* Ricoh Building The Netherlands 22,820, % Kwintet KLM Kleding The Netherlands 5,097, % Adbel NV Belgium 12,350, % Total Properties already acquired 40,267, % * intended portfolio size is 125 million including finance costs In addition to the above, a prospective acquisition has been identified in Germany that will raise the invested portfolio to 40% of the targeted portfolio size. The acquisition is expected to be finalised in October Leverage By utilising 3 rd party leverage of around 60% on Capital the Fund will acquire properties with strong lease covenants and credit worthy tenants. Contact details For all enquiries please contact the Arab Bank Wealth Management and Private Banking Group: By to: candice.mendes@arabbank.ae dana.karkar@arabbank.com.jo By telephone, please call: Bahrain Qatar Egypt U.A.E Extension 0 Jordan UK Palestine

3 Seed investment properties already acquired by the Fund: The Netherlands The property : Ricoh Building Acquisition cost : 22,820,675 Location : Schiphol-Rijk, The Netherlands Rental income per annum : 1,521,645 Construction completed : 1998 Triple Net Investment Yield : 6.67% Lettable space - Office : 3,665 m 2 Senior debt : 13,900,000 - Warehouse : 12,615 m 2 Finance costs : 79,325 - Storage : 120 m 2 L.T.V. Ratio : 60.91% - Total : 16,400 m 2 Senior debt provided by : EuroHypo AG Leaseholder : Ricoh Europe BV The Netherlands The property : Kwintet KLM Kleding Acquisition cost : 5,097,250 Location : Enschede, The Netherlands Rental income per annum : 378,185 Construction completed : 1991 Triple Net Investment Yield : 7.42% Lettable space - Office : 1,350 m 2 Senior debt : 3,100,000 - Warehouse : 5,450 m 2 Finance costs : 27,750 - Total : 6,800 m 2 L.T.V. Ratio : 60.82% Senior debt provided by : EuroHypo AG Leaseholder : Kwintet KLM Kleding NV

4 Belgium The property : Sint Niklaasstraat 27 Acquisition cost : 12,350,000 Location : Ghent, Belgium Rental income per annum : 859,840 Partial renovation completed : 2003 Triple Net Investment Yield : 6.96% Lettable space - Office : 3,458 m 2 Senior debt : 7,000,000 - Retail : 1,245 m 2 L.T.V. Ratio : 56.68% - Polyvalent : 4,932 m 2 Senior debt provided by : Dexia Bank NV - Archives & Other : 1,050 m 2 Finance costs : 95,000 - Total : 10,685 m 2 Leaseholder : City of Ghent, PM United Brands & Belgacom NV Germany (acquisition process has begun, completion expected in October 2006) The property : Ignaz Kiechle Strasse 40 Acquisition cost : 10,750,000 Location : Kempten, Germany Rental income per annum : 729,000 Construction completed : 30 September 2006 Triple Net Investment Yield : 6.78% Lettable space - Office : 2,526 m 2 Senior debt : 6,500,000 - Industrial\warehouse : 6,681 m 2 L.T.V. Ratio : 60.47% - Total : 9,207 m 2 Finance costs : 70,000 Senior debt provided by : Aareal Bank AG Leaseholder : Convenience Food Systems

5 Notices, Risk Warnings and disclaimers This document was produced by AB Consolidated Investments Ltd. [ABCIL], solely for information purposes for the use by the recipient. This document provides information we believe to be appropriate and reliable, but we give no representation or warranty as to its accuracy, reliability or completeness. It is not to be copied or made available to any other person without the express written consent of ABCIL. Neither this document nor any copy hereof may be sent or taken into the United States or distributed in the United States or to any US person. All statistics quoted in this document have been based on the available information and in each case the sources of our information have been disclosed. This publication is for information purposes only and is not intended to be used as the basis for any investment decisions. Nothing contained herein shall in any way constitute any offer by Arab Bank to provide any services or products or an offer or solicitation of an offer to buy or sell any investment. Investors should note that all terms and conditions are contained in the Limited Partnership Agreement [LPA], which is the sole source of legally binding documentation, and to which investors should refer prior to making any decision. Independent Advice: This investment may not be suitable for all investors. Potential investors should consult with their own financial, business, legal, tax and accounting advisors with respect to this product and should refrain from entering into any transaction unless they have fully understood the risk and independently determined that the transaction is suitable for them. Risks: This is a Euro based investment. Changes in the rates of exchange between an investor s normal currency and the Euro may cause your investment to fluctuate in value. Financial transactions also involve risks of variation in interest rates, exchange rates, property and rental values, and regulatory regimes in the jurisdiction involved. As a consequence the value of investments can go down as well as up, and the past performance figures quoted in this document are no guarantee of future performance. Investment in property is a long term undertaking with limited opportunity for early exit. Disclosure of Material Interest: Investors should note that Arab Bank receives fees in respect of the EAB European Property Fund LP, as disclosed in this fact sheet, the LPA and in the Private Placement Memorandum. In addition, Arab Bank is both a sponsor, underwriter and co-investor in this Fund. Summary details are included in this fact sheet and investors should refer to the PPM for full particulars. Taxation: Potential investors should note that the information and projections contained herein have been prepared in good faith and on the basis of currently applicable UK taxation rates. Levels of taxation and tax regimes in the jurisdiction involved can change over the lifetime of an investment such as this, and you should obtain independent advice on the impact of taxation in your jurisdiction and which might affect the value of your investment. Cancellation Rights: Investment in property is a long term undertaking, investors should be aware that the investment term is up to seven years and that there is only a limited chance that they can exit this investment before the full term and then only at the sole discretion of the General Partner in accordance with the Investors rights and obligations as described in the Private Placement Memorandum. Regulatory Systems: Before committing yourself to an investment in the Fund you should be satisfied that any local regulatory requirements in your country have been complied with and will not prevent you from making the investment. It is possible that the regulatory system in your country will differ from the United Kingdom. Information on any protections and/or compensation available in your country may be obtained from the Relationship Manager in your country. AB Consolidated Investments Ltd, the General Partner, is authorised and regulated by the Financial Services Authority in the United Kingdom and is registered in England at Companies House, Registered Company Number: Should there be any complaint about our products and services then you should, in the first instance, write to the Compliance Officer, Europe Arab Bank Plc, 15 Moorgate, London, EC2R 6AD.