GLP Establishes US$7 Billion CLF II, Largest China-Focused Logistics Infrastructure Fund. 21 July 2015

Transcription

1 GLP Establishes US$7 Billion CLF II, Largest China-Focused Logistics Infrastructure Fund 21 July 2015

2 GLP Establishes US$7 billion CLF II Overview of CLF II Higher Risk- Adjusted Returns US$7 billion fund Seven leading global institutions investing alongside GLP to develop modern logistics facilities in China GLP China is manager and holds 56% stake in CLF II Largest China-focused logistics infrastructure fund; offering significantly oversubscribed Locks in long-term capital to strengthen GLP s China development program CLF II is more than 2x larger than CLF I given strong demand from investors. Allows GLP to continue to enhance network effect with customers Fees and promotes from fund partners increase GLP s returns by bps 1, reduce risk Scalable fund management platform; AUM grows 36% to US$27.1 billion China Remains GLP s Primary Market for Development Majority of GLP s equity invested in China; GLP s share of China development going forward unchanged at ~45% CLF I has reached its investment capacity; CLF II expects to commence construction of new developments in April 2016 GLP s development starts in China to grow at 30% per annum Attractive Development Opportunity Limited supply of modern logistics facilities unable to meet strong leasing demand from retailers, e- commerce, consumer goods manufacturers and 3PLs 12.1 million sqm GFA land reserve provides concrete and scalable development pipeline 1. Potential fees and promotes based on the AUM and fee structure of GLP s existing development funds. Promotes assume all requisite triggers are satisfied and not discounted. No assurance can be provided that these assumptions may materialize 2

3 GLP Blogis Goodman Prologis Mapletree Yupei e-shang ACL Beijing Properties IDI Gazeley GLP Stake: 19.9% GLP Stake: 53.1% CLF II Strengthens Unrivaled China Network; Enhances Returns Transaction provides long-term capital to strengthen GLP s market-leading position in China On-the-ground execution by experienced team Competitive Landscape CLF II (mm sqm) 9.9 Total Equity Commitments: US$3.7 billion Target Loan-to-Cost: ~45% Investment Capacity: US$7 billion 1 Buildable Area: Seed Portfolio: Investment Period: 13.0 million sqm none 4 years GLP China Stake: 56% Key Investors : Seven leading global investors from Asia, North America and Middle East including two new investors to GLP s fund management platform. Four investors are existing partners in CLF I. Source: Company websites, various news sources, CBRE estimates based on available information 1. When fully leveraged and invested; does not factor in potential value creation 3

4 GLP Ramps Up China Development with CLF II November US$3b CLF I established CLF I March QFY14 - CLF I - CLF I investment capacity investment fully utilized capacity fully utilized 2QFY16 - July 2015 US$7.0b - US$7b CLF CLF II established II established March CLF March I fully CLF I leveraged fully leveraged and and invested invested CLF II Highlights CLF II is GLP s exclusive vehicle for new, wholly owned logistics development projects in China 1 Similar fee structure for CLF I and CLF II Two-thirds of CLF I investors have also invested in CLF II No seed portfolio for CLF II CLF II investment period is 4 years given larger size March CLF II fully leveraged and invested 1QFY17 April CLF - CLF II begins II begins construction construction March 2013 March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 March Subject to the Fund s investment capacity and satisfaction of investment criteria 4

5 Development: Value Creation GLP s development track record, coupled with the unmet demand for modern logistics facilities in China, Japan, and Brazil, present a unique value creation opportunity. FY16-18E Development Completions Sources of Capital GLP equity Brazil 8% Fund management platform - Third-party equity - Capital recycling Japan 19% Fund Partner Share 55% $8bn 1 Total GLP Share 45% Debt - Significant debt headroom with low look-through leverage of 10% 2 Outcome 3 China 73% Development gains - FY16-18E: US$1 billion 4 of development gains (GLP share), at estimated 25% value creation margin Fund fees and promotes - Earn potentially US$400 million 5 of fees and promotes 1. Total development cost of completed projects 2. Pro-forma look-through leverage as at 31 March 2015 assuming GLP s ultimate 10% stake in GLP US Income Partners I 3. No assurance can be provided that these assumptions may materialize 4. Before fees and promotes 5. Potential fees and promotes based on the AUM and fee/promote structure of GLP s existing development funds. Promotes assume all requisite triggers are satisfied and are not discounted 5

6 Fund Management Platform Delivers Superior Risk-Adjusted Returns Expanding Network and Increasing Returns Our fund management business is a unique platform for co-investment opportunities with leading global institutional investors, enabling GLP to scale our business while delivering superior risk-adjusted returns. Fund Management Platform Case Study 2X Bigger bps Higher Total Development Opportunity Fund Fees & Promotes Total Development Opportunity Development Gains Development Gains Direct Investment Model (GLP Share: 100%) Fund Management Model (GLP Share: 56%) Direct Investment Model (GLP Share: 100%) Fund Management Model (GLP Share: 56%) Potential fees and promotes based on the AUM and fee structure of GLP s existing development funds. Promotes assume all requisite triggers are satisfied and not discounted. No assurance can be provided that these assumptions may materialize 6

7 2. Appendix GLP Park Beilun China 1. Overview of CLF II 2. Appendix

8 F 2020F 2030F China: Domestic Consumption is the Key Demand Driver China s expanding middle class is driving unprecedented growth in e-commerce activity and retail chain store sales. The weight of domestic consumption is increasing rapidly relative to total GDP and the movement of consumer goods related to this activity has created accelerating demand for modern logistics space. Domestic Consumption as % of Total GDP Online Retail Sales Growth in China is Accelerating Chain Store Sales as % of Total Retail 90% 80% 70% 60% 50% 67.0% 58.0% 51.2% 7,000 6,000 5,000 4,000 3, year CAGR: 63% 2,789 3,955 5,160 6,295 Huge room to grow 65% 40% 30% 48.2% China Japan USA Germany 2,000 1, ,850 1, '16E 5% 10% India China US Source: World Bank, Bureau of National Statistics Source: iresearch Consulting Group; Ministry of Commerce Source:Strong and Steady, 2011 Asia s Retail and Consumption Outlook by PWC 8

9 China: GLP Leading the Modernization Wave in Logistics Facilities The supply of modern logistics buildings in China is limited. With its strategic relationships and development track record, GLP is well positioned to continue being the leading developer in the market. Current Supply of Logistics Facilities in the US is ~13 times that of China Warehouse stock: total area (sqm) per capita 6.00 Modern Logistics Facilities 1 Account for 15-20% of Total Supply; Market is Fragmented (million sqm) x China Source: GLP Market Research; CB Richard Ellis estimates; CIA The World Factbook US Major Providers 1 Modern Logistics 2 Facilities Total Market Supply of Logistics Facilities 1. From CBRE report covering 12 leading national logistics developers 2. Includes facilities provided by major international and national developers, small and midsize developers, state-owned enterprises, and facilities owned for self-use 9

10 GLP Fund Management Platform GLP provides its institutional investment partners a menu of country specific funds with return targets ranging from core to opportunistic. Total Fund Name (Vintage) GLP Japan Development Venture GLP Japan Income Partners I GLP Brazil Income Partners I GLP Brazil Development Partners I GLP J-REIT CLF I GLP Brazil Income Partners II GLP US Income Partners I CLF II Various (Sep 11) (Dec 11) (Nov 12) (Nov 12) (Dec 12) (Nov 13) (Oct 14) (Feb 15) (Jul 15) Assets under Management 1 US$2.1bn US$1.0bn US$900m US$1.2bn US$3.1bn US$3.0bn US$800m US$8.0bn 3 US$7.0bn US$27.1bn 3 Investment To- Date US$1.1bn US$1.0bn US$800m US$600m US$3.1bn US$1.4bn US$800m US$8.0bn 3 US$0.0bn US$16.8bn 3 Joint Venture Partners CPPIB CIC & CBRE CIC, CPPIB & GIC CPPIB & GIC Public Various CPPIB & Other Investor GIC & Potentially Various Various Others 2 Total Equity Commitment GLP Co- Investment Investment Mandate US$1.0bn US$500m US$400m US$800m US$1.3bn US$1.5bn US$500m US$3.2bn 3 US$3.7bn US$12.9bn % 33.3% 34.2% 40.0% 15.0% 55.9% 40.0% 10.4% % 34.7% 2 Opportunistic Value-add Value-add Opportunistic Core Opportunistic Value-add Core Opportunistic Various 1. AUM based on cost for in-progress developments (does not factor in potential value creation) and latest appraised values for completed assets 2. GLP in contract to pare down equity stake to 10% 3. Subject to post-closing adjustments 10

11 Disclaimer The information contained in this presentation (the Information ) is provided by Global Logistic Properties Limited (the Company ) to you solely for your reference and may not be retransmitted or distributed to any other person. The Information has not been independently verified and may not contain, and you may not rely on this presentation as providing, all material information concerning the condition (financial or other), earnings, business affairs, business prospects, properties or results of operations of the Company or its subsidiaries. Please refer to our unaudited financial statements for a complete report of our financial performance and position. None of the Company or any of their members, directors, officers, employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) from any use of this presentation or its contents or otherwise arising in connection therewith. This presentation contains statements that constitute forward-looking statements which involve risks and uncertainties. These statements include descriptions regarding the intent, belief or current expectations of the Company with respect to the consolidated results of operations and financial condition, and future events and plans, of the Company. These statements can be recognised by the use of words such as believes, expects, anticipates, intends, plans, foresees, will, estimates, projects, or words of similar meaning. Similarly, statements that describe the Company s objectives, plans or goals also are forward-looking statements. All such forward-looking statements do not guarantee future performance and actual results may differ materially from those in the forward-looking statements as a result of various factors and assumptions. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of the management of the Company on future events. The Company does not undertake to revise forward-looking statements to reflect future events or circumstances. No assurance can be given that future events will occur, that projections will be achieved, or that the Company s assumptions are correct. By accepting and/or viewing the Information, you agree to be bound by the foregoing limitations. 11

12 GLP Tianjin Pujia China Investor Relations Contact Ambika Goel, CFA SVP - Capital Markets and Investor Relations Tel: agoel@glprop.com