Aberdeen European Balanced Property Fund

Transcription

1 13 th October 2016 Aberdeen Asset Management For professional investors only, in Switzerland for qualified investors only not for use by retail investors or advisers

2 Overview - Fund structure Luxembourg SICAV-FIS Open-end Professional investors only (31), limited queue Quarterly redemptions at NAV Fee: 90/80/70 bps on NAV (hurdles at EUR 25/50m) Strategy Core Eurozone only Retail, logistics and office 25.0% LTV on average (15% end Q2 16) 6.5% target total return 4.5% target income return Track-record Stable experienced fund team Local asset and transaction management Proven track-record 10 year anniversary Avg 4.9% distribution yield last 5 calendar yrs Outperformed IPD PEPFI on 1, 3, 5 yrs basis and since inception with lower risk Total Expense Ratio of 0.9% on GAV GRESB Green Star rated Portfolio GAV of EUR 670 million (Q2 16) 23 assets 168 tenants 2.4% vacancy WAULT of 7.3 yrs Portfolio composition by sector (% of value Q2 16) Portfolio composition by country (% of value Q2 16) Logistics 25% Retail 47% Netherlands 18% Portugal 7% Austria 9% Belgium 20% Brussels, Livingstone property Office 28% Germany 10% France 16% Finland 20% Aberdeen Asset Management, Jul 16 1

3 Distribution yield track-record High distribution yield compared to a peer-group of 10 similar funds* Distribution yield per annum in % % IPD - PEPFI Balanced Funds AEBPF Q1 2016** Q2 2016** * IPDs Pan European Property Funds Index for Balanced Funds ** numbers are on a 12-months rolling basis Aberdeen Asset Management, Jul 16 2

4 Performance track-record Strong outperformance compared to a peer-group of 10 similar funds* Total return % p.a. - fund level (up to Q2 16) Total return % p.a. - property level (up to Q2 16) year 3 Years p.a. 5 Years p.a year 3 Years p.a. 5 Years p.a. Portfolio IPD* Relative Source: IPD, Aberdeen Asset Management, Jul 16 * IPDs Pan European Property Funds Index for Balanced Funds, eurozone property only 3

5 Portfolio overview Quality and diversification further improved Key financial and property data Q Q Q Bleiswijk Heerhugowaard Groningen Kokkola Turku Den Bosch Tiel Olen Helsinki Vantaa office Vantaa logistics Number of properties Lettable space in sqm 317, , ,305 Net value of investment property (EUR m) Rent roll (annual, EUR m) Net initial yield 6.1% 6.2% 6.0% Vacancy rate (rent based) 2.4% 2.9% 3.2% WAULT (incl. breaks) 6.2 yrs 6.0 yrs 5.3 yrs WAULT (excl. breaks) 7.3 yrs 7.2 yrs 6.9 yrs Gelsenkirchen Country and sector allocation Q2 16 Brussels Continente portfolio Vienna 18% 7% 10% 9% 20% 25% 47% 16% 20% 28% Beauvais Paris, rue Réaumur L Isle d Abeau Pforzheim Munich Austria Finland Germany The Netherlands Belgium France Portugal Retail Offices Ind/log Source: Aberdeen Asset Management, Jul 16 4

6 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q % 2.3% 2.0% 2.7% 2.4% 3.3% 2.9% 3.4% 3.2% 2.9% 4.3% 4.0% 3.9% 3.7% 3.8% 4.4% 4.9% 4.7% 4.8% 5.7% 5.4% 5.3% 5.0% 6.3% 6.4% 6.2% 8.6% 9.1% Portfolio vacancy Low vacancy rates support high income return Vacancy based on potential rent (in %) 10% 8% 6% 4% 2% 0% Source: Aberdeen Asset Management, Aug 16 Past Performance is not a guide to future results 5

7 Portfolio quality further improved after transactions in 2015/2016 Acquisitions (EUR 245.6m) Helsinki (EUR 42.4m) closed in May 15 Vienna (EUR 49.8m) closed in Nov 15 Brussels (EUR 63.9m) closed in Nov 15 Portugal (EUR 39.1m) closed in Mar 16 Beauvais (EUR 30.9m) closed in Mar 16 Tiel (EUR 19.5m) closed in Apr 16 Disposals (EUR 131.2m) Roche La Moliere (EUR 3.6m) closed in Sep 15 Duisburg (EUR 1.6m) closed in Sep 15 Paris Levallois (EUR 23.4m) closed in Nov 15 Venlo (EUR 15.0m) closed in Jan 16 5 German retail units (EUR 8.6m) closed in Feb 16 Paris - avenue Montaigne (EUR 79.0m) closed in Feb 16 Portfolio quality improvements End 2014 June 2016 % share Long-term Hold assets 46% 91% WAULT 5.1yrs 7.3yrs Vacancy rate 5.3% 2.4% Number of tenants Number of invested markets 5 7 Average lot size (EURm) Source: Aberdeen Asset Management, Jul 16 6

8 Investor overview Investors A total of 31 investors throughout Europe and Asia have committed EUR 579 million to the Fund Average commitment of EUR 19 million per investor Undrawn commitments of EUR 21 million Current investors include: Pension funds (Life) insurance companies Foundations Savings bank Investor by size 10-25m, 41% 5-10m, 7% < 5m, 3% > 50m, 20% 25-50m, 29% Investor base by share class Investor type Netherlands Switzerland Sweden France Singapore Hong Kong Japan Finland UK Germany Spain Italy 8.2% 4.4% 10.3% 3.4% 4.2% 13.5% 0.3% 50.0% Insurance companies, 23% Other institutional, 5% Aberdeen Asset Management, 2% Pension funds, 70% Source: Aberdeen Asset Management, Oct 16 7

9 Funding and liquidity Easy access and exit Current queue of EUR 20.8 million (Oct 16) New commitments could be drawn quickly Entry and exit pricing based on single NAV methodology Management of redemptions / exit: Redemption are typically resolved on secondary market: Secondary trades 2013: EUR 18.6m, 2014: EUR 45.1m, 2015: EUR 37.9m Cash position reserve (minimum 1.5% of GAV); EUR 10.0m of (June 16) Asset liquidity: Liquid lot sizes ranging from EUR 5 to 75 million, most liquid part of the market Core assets in high demand Assets with low vacancy Bankable assets Source: Aberdeen Asset Management, Jul 16 8

10 Executive summary Pan-European strategy aiming to deliver strong income return from the commercial sector Rationale Strategy Fund has a high income return, with rental growth potential Strong track record of outperformance with moderate risk European property looks most attractive in global terms on a long-term fundamental value basis Short-term indicators are strong for European property due to positive investor sentiment, high gap to bond yields, Inflation hedging characteristics rents tied to inflation Strong diversifier versus other asset classes Invest in high quality, commercial assets for the long-term Strong tenants with low vacancy, minimises volatility Multi country strategy reduces risk through diversification No speculative development to minimise risk Capability Proposal Experienced Pan-European team with strong track record of outperformance Very strong market relationships with owners, developers and brokers evidenced by over 6.4bn in transactions in 2015 Supported by wider platform of nearly 200 real estate professionals across Europe* Pan European commercial Fund targeting a 6.5% total return, with a 4.5% dividend 1 1. Target returns are offered as strategy goals and are not referenced to past performance. There can be no guarantee the target returns will be achieved * As at 30 Jun 16 A European strategy aiming to deliver high income from the commercial sector 9

11 Appendix: Other information 10

12 Acquisition in the Netherlands: logistic warehouse in Tiel Ultra modern logistic asset with excellent tenant Logistic warehouse in Tiel, a city between Rotterdam and Ruhr area Fully leased to Igepa Nederland B.V. with a 3 year mother guarantee. WAULT of 15 years GLA of 18,000 sqm Excellent technical specifications (free height of 10.6 meters, ground resistance of 4 tonnes, fully sprinklered and 20 loading docks) constructed in 2014 Annual rent of approx. EUR 1.08m with standard CPI indexation per year Yield of 5.54%. No transfer tax. Net price: EUR 19.5m Deal closing date: April 16 Source: Aberdeen Asset Management, Aug 16 11

13 Acquisition in France: E-Logistics warehouse in Beauvais Ultra modern e-commerce centre with excellent tenant with strong growth outlook E-logistics warehouse in Beauvais, 80 km north of Paris close to the airport Fully leased to ADS (Rakuten group) WAULT of 10 years GLA of 34,675 sqm: one building of 21,764 sqm built in 2008, one extension of 12,911 sqm built in 2013 Excellent technical specifications (free height of meters, ground resistance of 5 tonnes/sqm for some parts and 11 tonnes/sqm for other parts, sprinklers) The tenant has invested about EUR 25m in a latest generation system for automated order picking Annual rent of approx. EUR 1.9m with fixed indexation of 2.5% per year Yield of 6.1% Net price: EUR 30.9m Deal closing date: March 16 Source: Aberdeen Asset Management, Aug 16 12

14 Acquisition in Portugal: portfolio of 4 supermarkets Defensive food retail investment leased out to triple A tenant on established locations 4 stores fully let to Sonae, the largest retail company in Portugal 1. Continente Modelo Porto 3 supermarkets and 1 hypermarket Well-diversified portfolio Grade A tenant 1 Square metres Annual rent 2. Continente Modelo Lisbon (Sintra) 3,906 EUR 460k 20-year triple net Master-lease, with sublease to other brands of Sonae (Worten, Bagga and MO) Square metres Annual rent 5,122 EUR 846k GLA: aprox. 21,000 sqm 3. Continente Modelo Lisbon (Palmela) Total annual rent of EUR 2,387,000 Net price: EUR 39.1m Square metres Annual rent 5,000 EUR 551k Yield of 6.1% 4. Continente Loulé Deal closing date: March 16 Source: Aberdeen Asset Management, Aug 16 4 Square metres Annual rent 6,719 EUR 530k 13

15 Acquisition in Belgium: prime office in EU district Fully renovated property on super prime location leased out to triple-a tenant Office in the European district (Leopold) in Brussels High standards, fully renovated in 2014 GLA of 17,287 sqm and 234 parking places 15 year lease until Single tenant: European Commission Under-rent of approx. 30% Free-hold Annual rent of approx. EUR 2.7m Yield of 4.3% Net price: EUR 63.9m Deal closed: 18 November 2015 Source: Aberdeen Asset Management, Aug 16 14

16 Acquisition in Austria: logistic warehouse in Vienna Newly built, ultra-modern warehouse on prime location Located in the north of Vienna, close to highways Total of 43,449 sqm divided over two buildings of resp. 20,324 sqm and 23,125 sqm Strong anchor tenants with WAULT of over 9 years Tenant Square metres Annual rent WAULT A1 Telekom 20,324 1,516, Kuehne & Nagel 5, , Phoenix 9, , Schachinger 7, , TOTAL 43,449 3,184, Freehold property High standards, newly constructed 2014/2015. The last part - 8,200 sqm has recently been completed Annual rent of approx. EUR 3.2m Yield of 6.4% Net price: EUR 49.8m Deal closed: 2 November 2015 Source: Aberdeen Asset Management, Aug 16 15

17 Acquisition in Finland: Helsinki, Lauttis shopping centre Dominant and brand-new convenience centre with high footfall Newly developed shopping centre (daily goods) GLA of 5,902 sqm - opening in Autumn 2016 West of Helsinki CBD, above forthcoming metro station. 98% is pre leased (3 year rent guarantee on vacant space after delivery) Anchor tenants are K-Market (1,530 sqm), S- Market (1,575 sqm) WAULT of approx. 9.7 years Forward funding with 3.5% interest Annual rent of 2.3 million Yield of 5.5% Net price: EUR 42.4 million Deal closed: 27 May 2015 Source: Aberdeen Asset Management, Aug 16 16

18 Active asset management: Paris, avenue Montaigne Re-letting of under-rented units has boosted capital value Asset Location Acquisition date Strategy GLA: 776 sqm (2 units) Luxury retail pitch Tenants: Armani, Davidor Paris, avenue Montaigne Acquired in August 2009 for EUR 22.5m Re-letting of property to exploit under-rent situation has been accomplished by the signing of 2 new lease contracts in Q2 12 and Q3 15. Improvements Armani leasing deal in Q2 12 New 18 year lease Rent for this unit up by 55% to EUR 1.35m Property value up by 34% in Q2 12 Source: Aberdeen Asset Management, Aug 16 Davidor leasing deal in Q3 15 New 12 year lease Rent for this unit up by 155% to EUR 1.1m Property value up by 33% in Q3 15 Property sold in Feb 16 for EUR 78.95m, 251% above acquisition price 17

19 Active asset management: Olen shopping park near Antwerp in Belgium Off-market deal below valuation price with possibilities to expand Asset Location Acquisition date Strategy GLA: 31,218 sqm (31 units) Newly developed retail park Anchor tenants: Decathlon, Albert Heijn, Van Gastel Olen (35 km east of Antwerp) Acquired in May 2012 for EUR 46.1m Modern, large scale retail park, newly built in 2011/ Off-market deal sourcing. Very dominant within affluent catchment area. Minimal competition. Asset with durable income stream and long-term growth potential. Strategy: Expansion of Decathlon (completion in Mar 16), improvement of routing, build extra retail space on central square Improvement Asset acquired off market for EUR 46.1 million Market value of EUR 49.3 million at acquisition date Current value of EUR 60.5 million (Q2 16) Value up 31% since acquisition Capex of EUR 1.4m (Decathlon extension) Source: Aberdeen Asset Management, Aug 16 18

20 Other potential investments October 2016 Country Sector Town GLA (sqm) Yield (%) Lot size (EURm) Probability Weighted lot size (EURm) 1 Finland Office Helsinki 2, % 4 2 Finland Logistics Helsinki (Vantaa airport) 24, % 32 3 France Office Nice 7, % 12 4 France Retail Millau 7, % 11 5 Germany Mixed-use Berlin 30, % 13 6 Germany Retail Halle 21, % 18 7 Germany Retail Sindelfingen 33, % 26 8 Germany Logistics Rieste (Osnabrueck) 44, % 13 9 Netherlands Logistics Eindhoven 43, % Portugal Retail Viseu 18, % Spain Retail Salamanca 22, % Spain Retail Toledo 54, % 33 Total 310, Source: Aberdeen Asset Management, Aug 16 19

21 TER overview Attractive cost structure TER on NAV (in %) Q1 16 Q2 16 Source: Aberdeen Asset Management, Oct 16 20

22 Fund management team Experienced institutional real estate team Investment Committee Aberdeen European Balanced Fund Fund Management Team Operations Andrew Creighton Chair Gert-Jan Kapiteyn Fund Manager Elisabeth Weiland Head of Fund Accounting Fabian Klingler Alternate chair Evert Castelein Assisant Fund Manager Mihai Kreissl Fund Accountant Norbert Kraus Alternate chair Aad Jansen Assistant Fund Manager Martha Alexaki Company Secretary Andrew Allen Member Alban Arribas Member Ross Braithwaite Tim Sankey Member Member Transaction Management Asset Management Finance and Treasury Marc Pamin Thomas Wolff Ralf Köhler/Solve Nord 1 Member Member Member Region No. of people Belgium 1 Finland 2 Region No. of people Belgium 1 Finland 1 Ralf Köhler Simone Hain Daniel Endemann Head of Treasury, Property Senior Treasury Associate Senior Treasury Associate France 2 France 2 Board of Directors (AIFM) 2 Austria/Germany 2 Netherlands 1 Austria/Germany 1 Netherlands 2 Investment Strategy Board of Directors (SICAV) Spain/Portugal 1 Spain/Portugal 1 Russell Chaplin Richard Gale CIO Property Property Investment Strategist John Danes Director of Property Research Advisory Committee Seven Research/Strategy members 1. Only required for approving (re-) financing/hedging 2. As of 1 Dec 15 Aberdeen Global Services S.A. acts as the Alternative Investment Fund Manager ( AIFM ) of the Fund, replacing Aberdeen Management Services S.A. Note: Exp. denotes experience in real estate and/or finance industries Source: Aberdeen Asset Management, Sep 16 21

23 Fund management team: short biographies Key professionals dedicated to the Fund Mr Gert-Jan Kapiteyn, Fund Manager Gert-Jan has been appointed as Fund Manager as of 1 November Prior to that he was deputy fund manager of the fund since April Gert-Jan joined Goodman Property Investors in This company was acquired by Aberdeen in Gert-Jan has 22 years experience from the European real estate market, including the direct market, unlisted and the listed market. Previously, Gert-Jan worked for Altera Vastgoed NV (a Dutch non-listed property investment fund) as head of research and strategy. Prior to that Gert-Jan worked for securities broker Amsterdams Effectenkantoor BV in Amsterdam as head of the Equity Research department and as specialist on listed property equities in Europe. Before that he was working with ABN AMRO Investment Management as buy-side analyst of European property equities. Gert-Jan holds a Master degree in Business Administration from the University of Groningen. He is also registered as Chartered European Financial Analyst at the Dutch Association of Investment Analysts (VBA). Gert-Jan speaks several European languages. Key responsibilities: overall fund and team management, portfolio and performance management, investment planning / risk management, investor relations, fund raising Mr Aad Jansen, Assistant Fund Manager Aad Jansen has been appointed as Assistant Fund Manager on 1 September Aad is responsible for coordination of transactions and asset management activities of the fund. Prior to 1 September 2014, he was Head of Asset Management and Transactions of Aberdeen in the Netherlands. Aad joined Aberdeen in 2008 from Fortis ASR (currently ASR) where he was responsible for the acquisition of real estate. Previously, Aad worked for Pearle Optical as head of real estate. Prior to that, Aad worked for Bettings Real Estate as broker and now has 23 years of working experience in the real estate market in total. Aad graduated with an LLB in Law and Economics, a Masters of Real Estate at the University of Amsterdam and is a member of the RICS. Aad speaks German, French and English. Key responsibilities: coordination Asset Management activities, coordination transaction management activities Mr Evert Castelein, Assistant Fund Manager Evert has been appointed as Portfolio Analyst of the fund per 1 November 2011 (his role title was changed into Assistant Fund Manager in 2013). Before this he was Senior Analyst, Asset Appraisal Systems, within the Property Research and Strategy team of Aberdeen. Evert joined Goodman Property Investors in This company was acquired by Aberdeen in Evert has 13 years experience within the (direct) real estate market. Besides research and portfolio analysis, Evert has been responsible for the Asset Management of a small German fund. Previously, Evert worked for the FGH Bank in the Netherlands, market leader in the financing of Dutch commercial real estate, as a research analyst. Evert holds a Master degree in Economic Geography from the University of Groningen and recently finished the Master of Science in Real Estate (MSRE). Evert speaks several European languages. Key responsibilities: coordination Investment Plans/ Health-Checks / hold-sells, reporting, performance analysis, valuation analysis, sustainability Source: Aberdeen Asset Management, Sep 16 22

24 Operational overview Key mechanisms Subscription (B shares) Limited to institutional investors. Minimum commitment of EUR 3 million. Three year commitment period. Subscriptions accepted quarterly. Notice period of 10 business days ahead of quarter end. First committed first served principle: commitments of previous quarters are drawn before subsequent quarter commitments. Same quarter commitments are drawn proportionally. Call notice period of 10 bank business days. Draw downs and share issues based on adjusted NAV (NAV + equalisation charge) of previous quarter end. Fund Management fee: 90 bps on NAV for first EUR 25m, 80 bps for amount between EUR m, 70 bps for amount above EUR 50mm Redemption (B shares) Quarterly redemptions based on adjusted NAV Redemption request should be made by registered mail. Notice period of 10 business days ahead of quarter end. First received, first served. Redemption requests of previous quarters are handled before subsequent quarter redemption request. Same quarter redemption requests are drawn proportionally Redemption fee (incurred by the fund) depending on holding period: 1 year: 4%, 2 years: 4%, 3 years: 3%, 4 years: 2%, 5 years: 1.5%, 6 years: 1%, 7 years and more: 0.5%. Valuation Process managed by AIFM with support of valuation advisors All properties valued each quarter Valuation advisors rotated every three years Valuations in line with RICS Red Book principles Current valuation advisors: - BEL: CBRE - AUT, FRA, GE: Cushman & Wakefield - FIN: DTZ - NET: JLL - PORT: Savills Reporting The quarterly NAV statement will be produced within eight working days after the quarter end The Q1 and Q3 reporting will be produced within 45 days after the end of the quarter The Q2 reporting will be produced within 60 days after the end of the quarter The Q4 reporting will be produced within 90 days after the end of the quarter Source: Aberdeen Asset Management, Jul 16 23

25 Performance attribution 2015 Source: Aberdeen Asset Management, Aug 16 24

26 Disclaimer Important information FOR PROFESSIONAL INVESTORS ONLY NOT FOR USE BY RETAIL INVESTORS Issued by Aberdeen Asset Managers Limited. Registered in Scotland No Registered Office: 10 Queen s Terrace, Aberdeen, AB10 1YG. Authorised and regulated by the Financial Conduct Authority in the United Kingdom. This document is strictly for information purposes and should not be considered as an offer or solicitation to deal in any of the investments mentioned herein. Distribution in the European Economic Area: As at the date of this document, the Fund has been notified, registered or approved (as the case may be and howsoever described) in accordance with the local law/regulations implementing the Alternative Investment Fund Managers Directive (Directive (2011/61/EU)) (the AIFMD ) for marketing to professional investors into the following member state(s) of the EEA (each a Member State ): Austria, Belgium, Czech, Denmark, Finland, France, Germany, Hungary, Italy, Ireland, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden and the United Kingdom. In relation to other Member States, this document may only be distributed and Shares may only be offered or placed in a Member State: (i) at the investor s own initiative; or (ii) to the extent that this document may otherwise be lawfully distributed and the Shares may lawfully be offered or placed in that Member State. This document is for information purposes and should not be considered as an offer or solicitation to deal in any of the investments mentioned herein. This document is not intended for distribution or use by anyone in any jurisdiction where such distribution, publication or use would be prohibited. The information, opinions or data in this document do not constitute investment, legal, tax or other advice and should not to be relied upon in making an investment or other decision. The information contained herein including any expressions of opinion or forecast have been obtained from or is based upon sources believed by us to be reliable but is not guaranteed as to the accuracy or completeness. Property is a relatively illiquid asset class, the valuation of which is a matter of opinion. There is no recognised market for property and there can be delays in realising the value of property assets. Investors should be aware that past performance is not a guide to future results. The value of investments, and the income from them, can go down as well as up, and an investor may get back less than the amount invested. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Professional advice should be obtained before making any investment Investors should be aware that past performance is not a guide to future results. The value of investments, and the income from them, can go down as well as up, and an investor may get back less than the amount invested. The views expressed in this presentation should not be construed as advice on how to construct a portfolio or whether to buy, retain or sell a particular investment. The information contained in the presentation is for exclusive use by professional customers/eligible counterparties (ECPs) and not the general public. The information is being given only to those persons who have received this document directly from Aberdeen and must not be acted or relied upon by persons receiving a copy of this document other than directly from Aberdeen. No part of this document may be copied or duplicated in any form or by any means or redistributed without the written consent of Aberdeen. 25