Capital Raise - Investor Presentation February 2016 2 Redefine - - PowerPoint PPT Presentation

capital raise investor presentation
SMART_READER_LITE
LIVE PREVIEW

Capital Raise - Investor Presentation February 2016 2 Redefine - - PowerPoint PPT Presentation

Redefine International P.L.C. Capital Raise Investor Presentation Capital Raise - Investor Presentation February 2016 2 Redefine International P.L.C. Redefine International P.L.C. Capital Raise Investor Presentation Capital Raise Investor


slide-1
SLIDE 1

Redefine International P.L.C. Capital Raise Investor Presentation

Capital Raise - Investor Presentation

February 2016

slide-2
SLIDE 2

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Important Information and Disclaimer

  • This presentation has been prepared and issued by and is the sole responsibility of Redefine International P.L.C. (the “Company”) and comprises the written materials/slides for a presentation concerning the Company and its proposed

placing (“the Placing”) of new ordinary shares of 8.0 pence each in the share capital of the Company (the “Placing Shares”). For the purposes of this notice, “presentation” means this document, any oral presentation, any question and answer session and any written or oral material discussed or distributed during the presentation meeting or while access to the presentation has been made available to you.

  • This presentation is not an offer of securities for sale in the United States. The securities discussed herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act") and may not be
  • ffered or sold in the United States absent registration or an exemption from, or in a transaction not subject to, registration under the US Securities Act. No public offering of the securities discussed herein is being made in the United States

and the information contained herein does not constitute an offering of securities for sale in the United States, Canada, Australia or Japan. This presentation is not for publication, distribution or release directly or indirectly in or into the United States, Canada, Australia or Japan or to US persons or any other state or jurisdiction in which the same would be restricted, unlawful or unauthorised. Neither the US Securities and Exchange Commission nor any securities regulatory body of any state or other jurisdiction of the United States of America, nor any securities regulatory body of any other country or political subdivision thereof, has approved or disapproved of this document or the securities discussed herein or passed on or endorsed the merits of the Offering or the accuracy or adequacy of the contents of this document. Any representation to the contrary is a criminal offence in the United States. The securities discussed herein have not been and will not be registered under the applicable securities laws of the United States, Australia, Canada or Japan and, subject to certain exceptions, may not be offered or sold within Australia, Canada, or Japan or to any national, resident or citizen of such jurisdictions. Any failure to comply with these restrictions may constitute a violation of United States, Australian, Canadian or Japanese securities laws.

  • By accepting this document, and in consideration for it being made available to such recipient, each recipient agrees to keep strictly confidential the information contained in it and any information otherwise made available by the

Company, whether orally or in writing. Each recipient shall treat and safeguard as private and confidential all information contained in this document and take all reasonable steps to preserve such confidentiality. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. The information contained herein may not be recorded, copied, distributed, reproduced, stored in a retrieval system, transmitted or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient, to any other person in whole or in part without the express written consent of the Company. A prospectus has been published by the Company in relation to the potential admission of the Placing Shares (to the extent that the proposed Placing proceeds) to (a) the premium listing segment of the Official List and to trading on the London Stock Exchange’s main market for listed securities and (b) listing and trading on the Main Board of the Johannesburg Stock Exchange. If the proposed Placing proceeds, any commitments to take up Placing Shares shall be made solely on the basis of the information contained in the prospectus and any information publicly announced to a Regulatory Information Service by or on behalf of the Company prior to, on or subsequent to the date of the prospectus.

  • This presentation has not been approved by the UK Financial Conduct Authority or any other regulator, nor has it been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000, as

amended ("FSMA"). This presentation does not constitute, and the Company is not making, an offer of transferable securities to the public within the meaning of sections 85 and 102B of FSMA and it is only being directed at persons in the UK and outside the UK (other than South Africa) who are (a) persons in member states of the European economic area ("EEA") who are qualified investors (as defined in article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC as amended, including by Directive 2010/73/EC)); (b) persons in the United Kingdom who (i) are qualified investors as defined in section 86 of FSMA, (ii) persons who have professional experience in matters relating to investments and who fall within the category of persons set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the "Order") or (iii) are high net worth entities within the meaning set out in Article 49 (2) (a) of the Order or (c) other persons to whom it may otherwise lawfully be communicated (all such persons, the "Relevant Persons").This presentation is directed only at Relevant Persons and must not be acted on or relied upon by persons who are not Relevant Persons. Any other person who receives this presentation should not rely or act upon it. By accepting this presentation and not immediately returning it, the recipient is deemed to represent and warrant that: (i) it is a Relevant Person; and (ii) it has read, agrees and will comply with the contents of this notice and in particular, will be taken to have represented, warranted and undertaken that it has read and agrees to comply with the contents of this notice including without limitation the obligation to keep this presentation and its contents confidential.

  • This presentation does not constitute and the Company is not making an offer to the public in South Africa (as defined in the South African Companies Act 2008). The presentation is only directed to persons in South Africa who fall within

Section 96(1)(a) and/or (b) of the South African Companies Act 2008.

  • This presentation is for information purposes only and does not constitute or form part of, and should not be construed as, any offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any

member of its group in any jurisdiction, nor should it or any part of it form the basis of, or be relied on in connection with, any investment decision or any decision to participate in the proposed Placing, any contract to purchase or subscribe for any securities in the Company or any member of its group (together "Group") or any commitment whatsoever and should not be considered as a recommendation by the Company, any of the Joint UK Bookrunners (as defined below) or any other person in relation to participation in the proposed Placing. You are encouraged to seek individual advice from your personal, financial, legal, tax and other advisers before making any investment or financial decisions subscribing for or purchasing any securities.

  • The information contained in this presentation has been prepared by the Company from Company information and publicly available sources. Any estimates, projections, targets or forecasts contained herein (if any) have been

prepared by the management of the Company and involve significant elements of subjective judgement and analysis, which may or may not be correct. No representation or warranty, either expressed or implied, is or will be made by the Company, its advisers, or their respective affiliates, directors, officers, partners, members, employees, agents, representatives or advisers as to the accuracy or completeness of the information contained in this document, or on which this document is based or of any other written or oral communications with the recipient in connection with an evaluation of any transaction with or relating to the Company, and all liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. Nothing contained herein or therein is, or shall be relied upon as, a promise, warranty or representation, whether as to the past, present or the future. The recipient of this presentation acknowledges and agrees that no person has nor is held out as having any authority to give any statement, warranty, representation or undertaking on behalf of the Company.

  • This presentation includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes",

"estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or

  • intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and include, but are not limited to, statements regarding the Company's and/or

the Group's intentions, beliefs or current expectations concerning, among other things, the Company's and/or the Group's business, results of operations, financial position, prospects, growth and strategies and expectations of the industry.

  • By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance and the actual results of the

Company and/or the Group's operations, financial position and the development of the markets and the industries in which the Group operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this presentation. In addition, even if the Group's results of operations and financial position and the development of the markets and the industries in which the Company and the Group currently operate, are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. A number of risks, uncertainties and other factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements.

2

slide-3
SLIDE 3

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Important Information and Disclaimer

  • Past performance cannot be relied on as a guide to future performance and forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or

activities will continue in the future.

  • Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this presentation reflect the Group's current view with respect to future events and are subject to risks relating to future

events and other risks, uncertainties and assumptions relating to the Group's business, results of operations, financial condition, prospects, growth and strategies which could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statements. Investors should specifically consider the factors identified in this presentation, which could cause actual results to differ, before making an investment decision. Statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Except to the extent required by the FCA, the London Stock Exchange, the Panel on Takeovers and Mergers or by the Listing Rules, the Prospectus Rules, the Disclosure and Transparency Rules and the UK City Code on Takeovers and Mergers or by applicable law, the Company undertakes no obligation publicly to release the result of any revisions to any forward-looking statements in this presentation that may occur due to any change in the Company's expectations or to reflect events or circumstances after the date of this presentation. No statement in this presentation is or is intended to be a profit forecast or profit estimate or to imply that the earnings of the Company for the current or future financial years will necessarily match or exceed the historical or published earnings of the Company. No statement in this presentation is intended to be, nor should it be construe as, a profit forecast.

  • The presentation is necessarily based on economic, monetary, market and other conditions as in effect on, and the information available to the Company as of, the date hereof and the Company assumes no responsibility for updating,

revising or reaffirming the information contained herein based on circumstances, developments or events occurring after the date of the presentation. The information contained in the presentation does not address any legal, regulatory, tax or accounting matters that may be relevant to an assessment of any proposed transaction relating to the Company. Any recipient of this presentation must take their own financial, tax, accounting and legal advice in relation to any of the matters addressed in this presentation or in relation to any related transaction.

  • Peel Hunt LLP (“Peel Hunt”), which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively as UK sponsor and joint UK bookrunner to the Company and no one else in connection with

the proposed Placing and will not regard any other person as its client in relation to the proposed Placing and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the proposed Placing or the contents of this presentation and/or any other matter referred to in this presentation. Apart from the responsibilities and liabilities, if any, which may be imposed on Peel Hunt by the Financial Services and Markets Act 2000 (as amended) (“FSMA”), or the regulatory regime established thereunder, Peel Hunt accepts no responsibility whatsoever and makes no representation or warranty, express or implied, in relation to the contents of this presentation, including its accuracy, completeness or for any other statement made or purported to be made by it or on behalf of it, the Company, its directors or any other person in connection with the Company

  • r the proposed Placing, and nothing in this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Peel Hunt accordingly disclaims all and any liability whatsoever, whether

arising out of tort, contract or otherwise (save as referred to above), which it might otherwise have in respect of this presentation or any such statement.

  • J.P. Morgan Securities plc (“JPMC” and, together with Peel Hunt, “the Joint UK Bookrunners”), which conducts its UK investment banking business as J. P. Morgan Cazenove is authorised by the Prudential Regulation Authority and

regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom, is acting exclusively as joint UK bookrunner to the Company and no one else in connection with the proposed Placing and will not regard any other person as its client in relation to the proposed Placing and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the proposed Placing or the contents of this presentation and/or any other matter referred to in this presentation. Apart from the responsibilities and liabilities, if any, which may be imposed on JPMC by FSMA, or the regulatory regime established thereunder, JPMC accepts no responsibility whatsoever and makes no representation or warranty, express or implied, in relation to the contents of this presentation, including its accuracy, completeness or for any other statement made or purported to be made by it or on behalf of it, the Company, its directors or any other person in connection with the Company or the proposed Placing, and nothing in this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. JPMC accordingly disclaims all and any liability whatsoever, whether arising out of tort, contract or otherwise (save as referred to above), which it might

  • therwise have in respect of this presentation or any such statement.
  • The price of the Company’s issued securities and any securities to be issued pursuant to the proposed Placing and any income from them may go down as well as up and investors may not get back the full amount invested on disposal
  • f such securities. Neither the content of the Company’s website nor any website accessible by hyperlinks on the Company’s website is incorporated in, or forms part of, this presentation.
  • Where information contained in this presentation has been sourced from a third party, the Company confirms that such information has been accurately reproduced and, so far as the Company is aware and has been able to ascertain

from that information, no facts have been omitted which would render the reproduced information, or information derived from it, inaccurate or misleading.

  • The presentation has not been independently verified and no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of Peel Hunt and JPMC or any of their respective parent or subsidiary

undertakings, or the subsidiary undertakings of any such parent undertakings, or any of such person's respective directors, officers, employees, agents, affiliates or advisers, as to, and no reliance should be placed on, the accuracy, completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is assumed by any such persons for any such information or opinions or for any errors or omissions. All information presented or contained in this presentation is subject to verification, correction, completion and change without notice. None of the Company or any of the Joint UK Bookrunners or any of their respective parent or subsidiary undertakings, or the subsidiary undertakings of any such parent undertakings, or any of such person's respective directors, officers, employees, agents, affiliates or advisers, undertakes any obligation to amend, correct or update this presentation or to provide the recipient with access to any additional information that may arise in connection with it. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness.

  • The availability and distribution of this presentation and the offering of the securities discussed herein in certain jurisdictions may be restricted by law. No action has been taken by the Company or any of the Joint UK Bookrunners that

would permit an offering of the securities discussed herein or access to or possession or distribution of this presentation or any other offering or publicity material relating to the securities discussed herein in any jurisdiction where action for that purpose is required. Persons into whose possession this presentation comes or who have accessed this presentation are required by the Company and the Joint UK Bookrunners to inform themselves about, and to observe, such restrictions.

3

slide-4
SLIDE 4

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Presentation team

4

Michael Watters Chief Executive Stephen Oakenfull Deputy Chief Executive Adrian Horsburgh Property Director Donald Grant Chief Financial Officer MBA and qualified engineer with a BSc Eng (Civil) Degree Over 27 years' experience in the investment banking and real estate industries Joined Redefine International in 1998 CFA with a BSc (Hons) Degree in Construction Management Over 16 years of experience, including 10 years in the real estate sector Joined Redefine International in May 2007 Qualified as a Chartered Surveyor Over 30 years of experience in the UK real estate sector Joined Redefine International in March 2014 Qualified Chartered Accountant Over 20 years of experience, including 7 years in the real estate sector Joined Redefine International in August 2015

slide-5
SLIDE 5

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Opportunistic income focused FTSE 250 UK REIT

  • Enhanced portfolio across targeted

sectors valued at £1.5bn supports strong income fundamentals

  • Invested in Europe’s two strongest

economies

  • Secure income stream with a WAULT
  • f 8.3 years and assets with clear

value and income opportunities

  • Intensive but lean management

structure with focus on enhancing value through active management

  • Proven track record of delivering

market-leading dividends throughout the property cycle

  • Following a five year transformation

the £490m AUK deal is a significant milestone for Redefine International 5

Figures as at 31 August 2015 adjusted to include100% of the AUK portfolio

Income driven total returns are underpinned by a high quality and segmented portfolio, together with an efficient capital structure

Targeting above inflation dividend growth

slide-6
SLIDE 6

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Delivered value throughout a five year transformation

31 August 2011 Market Cap (£m) 227 Portfolio Value (£m) 1,077 Underlying distributable earnings (£m) 20.3 LTV (%) 75.4

Significant efforts over last 5 years have transformed both the corporate structure and asset base

Committed to deliver superior distributions to shareholders

31 August 2015 Market Cap(1) (£m) 778 Portfolio Value (£m) incl non-core 1,045 Underlying distributable earnings (£m) 44.4 LTV (%) 51.8

German shopping centre acquisition €189m Acquisition of Weston Favell Shopping Centre for £84m German Retail Portfolio (“Leopard”) €157m Sold non-core assets, including Cromwell and Swiss portfolio £490m AUK acquisition post year end Reverse takeover

  • f Wichford P.L.C.

Admitted to Premium listing

1) Market cap of £703m as at 25 January 2016

Annualised total shareholder returns of 13% since reverse takeover

6

UK REIT conversion Internalisation

  • f management

JSE secondary listing Repayment of over £250m of legacy financing facilities £127m equity raise £70m equity raise Included in the FTSE 250 and EPRA indices £55m equity raise

slide-7
SLIDE 7

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Enhanced income focused portfolio valued at £1.5bn

7

Figures as at 31 August 2015 adjusted to include100% of the AUK portfolio (excluding Grosvenor Street)

The AUK acquisition complements the existing portfolio by increasing exposure to strong underlying fundamentals

slide-8
SLIDE 8

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Transformational milestone achieved with AUK deal

Increases the existing portfolio by approximately 50% Transaction to be completed in two tranches: – Tranche 1 comprised 10 assets completed in October 2015 for £256.0m – Tranche 2 made up of 9 assets to be completed in March 2016 for £204.7m High quality institutional assets of which 75% are located in economic growth areas Enhanced risk adjusted returns and income profile

8 AUK Retail 9 properties valued at £232m AUK Offices 6 properties valued at £129m AUK Distribution 4 properties valued at £98m

100% of the AUK portfolio (excluding Grosvenor Street) as at 31 August 2015

Early progress on asset management initiatives delivering value with significant scope to continue through the cycle

Successful exchange on Grosvenor Street pre-completion

slide-9
SLIDE 9

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Outlook supports where we operate

Occupational market improving Lower energy prices expected to support business and consumer spending Tenant demand supports focus areas in discount, convenience and leisure

UK Retail 9 UK Hotels UK Commercial Germany

Positive outlook for 2016 with average occupancy rates expected to reach the highest levels for a decade Demand is expected to continue exceeding supply in London Positive outlook on UK regional

  • ffice fundamentals

Distribution sector currently experiencing strong demand and rental growth potential Favourable economic outlook Property expected to benefit from lower interest rates for longer

Figures as at 31 August 2015 adjusted to include100% of the AUK portfolio (excluding Grosvenor Street)

Segmented approach and disciplined investment in value-add assets enhances income security

slide-10
SLIDE 10

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Occupier led asset management case studies

10

Development underway at City Arcaden, Ingolstadt Germany £8.5m estimated investment to deliver 6.8% yield on cost Redevelop shopping mall into a two store concept Conditional agreement signed with new anchor tenant Primark for 5,200m2 Extend H&M as second retail tenant and regear lease on a 10 year term Use of side wing areas for office and residential Expected to be delivered in late 2016 Harrow, St George’s Acquired for £65.9m in 2011 In 2012 works started to rebrand, modernise and revitalise the centre and reposition it towards leisure elements Since acquisition the annualised gross rental income has increased by 20%

Invest in assets with clear opportunities for adding value with a focused sector specialist team and selective high yielding development initiatives

slide-11
SLIDE 11

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Solid income visibility with WAULT of 8.3 years

11

Tenant Profile Diverse source of rental income 37% of portfolio subject to index-linked rents Less than 10% of rent roll expiring per year during the medium term

Long term visibility on resilient income stream with diverse tenant base

Figures as at 31 August 2015 adjusted to include 100% of the AUK portfolio (excluding Grosvenor Street)

Lease expiries by gross income (£m)

Top tenants 2015 % of gross income UK government 7.3 Tesco 3.3 VBG 2.6 Edeka 2.5 Real 1.7 OBI 1.6 Debenhams 1.4 Primark 1.4 Wilkinsons 1.4

slide-12
SLIDE 12

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Successful track record in managing debt and gearing

12

Capital Structure New £303m facility agreed with 4 of the largest UK banks Includes £148m revolving credit facility providing flexibility and efficient use

  • f cash resources

Weighted average debt maturity of 7.4 years with no significant maturity until 2020 Committed to our target LTV ratio of 40%-50%

We focus on superior distributions through growing income and reducing costs

3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% FY2011 FY2012 FY2013 FY2014 FY2015

Historic weighted average cost of debt and LTV

LTV (%) Weighted cost of debt (%) LTV% WAC% Debt 75.4% 5.0% 3.9% 51.8%

slide-13
SLIDE 13

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Recent asset recycling

  • Disposed of non-core assets in FY2015

– Remaining investment in Cromwell generated net proceeds of AUD$122m (£57m) – Exited Swiss market with net proceeds of £12m

  • Exchanged on the sale of 10 petrol filling stations since

year end for £12m

Ability to re-allocate capital across sectors

13

Grosvenor Street

  • Successfully exchanged Grosvenor Street in

December 2015

  • Prime asset, however low-yielding and outside the

immediate, income focused strategy

  • Included in Tranche 2 of AUK transaction due to complete

in March 2016 at an apportioned purchase price of £29m

  • Total consideration of £35.6m which realised an

immediate £3m profit

Recycled

Transformational AUK acquisition

Repositioned the portfolio to locations with stronger economic fundamentals and improved occupier demand

Diversified portfolio enables recycling of capital to sectors expected to deliver the best risk adjusted returns

slide-14
SLIDE 14

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Structure Accelerated book build Proceeds £100m - £150m Placing price To be determined by bookbuild Key shareholder support Redefine Properties has an irrevocable commitment to subscribe for up to £70m and, at a minimum, its current 30.07% shareholding Interim dividend entitlement Shares will rank pari passu with existing shares with full entitlement for the interim February 2016 distribution (payable in June 2016) Bookbuild Expected launch following the EGM if Board considers appropriate US restrictions No US offering in accordance with Regulation S Joint bookrunners – UK J.P. Morgan Cazenove and Peel Hunt Bookrunner – South Africa Java Capital

14

Proposed placing overview

slide-15
SLIDE 15

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Use of proceeds

  • Minimum placing requirement of £100m will be used to complete the acquisition of the AUK Tranche 2 transaction
  • Excess capital raised over the minimum £100m:
  • Reduce leverage and resulting margin on the AUK facility
  • Support refinancing and restructuring of existing facilities at lower leverage levels
  • Invest in the existing portfolio and opportunistic acquisitions

15

slide-16
SLIDE 16

Redefine International P.L.C. Capital Raise Investor Presentation

Committed to deliver future success

  • Capitalise on the transformed corporate structure

and asset base, in particular the transformational AUK acquisition opportunities

  • Continue driving resilient income driven total

returns through-the-cycle

  • Intensive but lean management structure with

focus on enhancing value through active management

  • Commitment to reduce leverage back to within

target range

  • Proven track record of delivering superior

dividends throughout the property cycle

Redefine International P.L.C. Capital Raise Investor Presentation

16

slide-17
SLIDE 17

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

17

Redefine International Team

Michael Watters CEO t: +44 (0)20 7811 0100 e: mwatters@redefineinternational.com Stephen Oakenfull Deputy CEO t: +44 (0)20 7811 0100 e: soakenfull@redefineinternational.com Donald Grant CFO t: +44 (0)20 7811 0100 e: dgrant@redefineinternational.com Adrian Horsburgh Property Director t: +44 (0)20 7811 0100 e: ahorsburgh@redefineinternational.com Janine Ackermann Head of Investor Relations t: +44 (0)20 7811 0100 e: jackermann@redefineinternational.com Redefine International P.L.C. Merchants House 24 North Quay Douglas Isle of Man IM1 4LE t: +44 (0)1624 689 589 2nd Floor, 30 Charles II Street London SW1Y 4AE t: +44 (0)20 7811 0100 Visit us online www.redefineinternational.com @RedefinePLC Redefine International

slide-18
SLIDE 18

Redefine International P.L.C. Capital Raise Investor Presentation

Appendices

slide-19
SLIDE 19

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

19

Redefine International P .L.C.

Who we are and what we do

Redefine International is an opportunistic income focused FTSE 250 UK Real Estate Investment Trust committed to delivering superior distributions to its shareholders throughout the property cycle, enabled by a diversified portfolio.

Introduction

Redefine International has held a primary listing on the London Stock Exchange since 2006 and a secondary listing on the Johannesburg Stock Exchange since 2013. The Company is included within the EPRA and FTSE 250 indices.

slide-20
SLIDE 20

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Company overview

20

Financial highlights(1) Market cap of c.£0.8bn(3) Distributable earnings of £44.4m (+13.6%) Dividend per share of 3.25 pence (+1.6%) EPRA NAV share 41.0p (+8.75%) LTV of 51.8% (-400bps) Investment portfolio(2) Transformational Aegon UK portfolio acquisition (“AUK”) of £459m announced in September 2015 £1.5bn property portfolio across the UK and Germany Net initial yield: 6.0% Weighted average lease length: 8.4 years

1) Results for the year ending 31 August 2015 2) Figures as at 31 August 2015 and adjusted to include 100% of the AUK Portfolio (excluding Grosvenor street) 3) Market value of £703m as at 25 January 2016

LSE: RDI JSE: RPL 30% 36% 34%

slide-21
SLIDE 21

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Our strategic priorities

21

Target superior distributions to shareholders throughout the property cycle Focus on all bottom line contributors, including

  • perational and finance costs

Distribution growth Rental growth enhanced and protected by innovative

  • ccupier led asset

management initiatives and selective high yielding development projects Invest in properties expected to deliver returns in excess of cost of capital Superior income focused returns Maintain an efficient capital structure LTV ratio monitored closely Reduce cost of borrowings Actively review debt maturity profile and future liquidity requirements Target fixed interest rates for at least 75% of borrowings Reduce cost of capital Allocate capital to assets and sectors expected to provide

  • ptimal risk-adjusted returns

Target well-located properties that will capture sustainable rental and long term value growth Enhance portfolio quality

slide-22
SLIDE 22

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Specialist internalised management team

Internalised centre managers CentreStage in-house commercialisation experts UK Retail

22

UK Commercial & AUK UK Hotel Germany 12-18 month agreement with Kames on day to day asset management

  • f AUK

Own 25.3% shareholding in RedefineBDL RedefineBDL is the UK’s largest independent hotel manager External centre managers Executive & Central Team Overall responsibility for strategy Overall capital allocation Overall capital structure and financing decisions Investment criteria and business plans Development expertise, oversight and leverage scale Each property reviewed with relevant asset manager at least monthly

Intensive but lean management structure with focus on strategic segments and hands-on approach, supported by skilled and highly qualified advisors where required

Sarah Jones Senior Asset Manager Nick Gregory Senior Asset Manager Peter Katz Director European Portfolio Helder Pereira CEO RedefineBDL Hotel Group Limited

slide-23
SLIDE 23

Redefine International P.L.C. Capital Raise Investor Presentation

Transformational portfolio

Redefine International P.L.C. Capital Raise Investor Presentation

slide-24
SLIDE 24

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

24

Pro-forma portfolio

Figures as at 31 August 2015 adjusted to include100% of the AUK portfolio (excluding Grosvenor Street)

AUK adds largely institutional quality assets that offers a scalable opportunity to deliver

  • n income strategy throughout the cycle

Gross Annualised estimated Weighted % of portfolio gross rental market Net average Voids by market Market value income rental value initial lease length (by lettable value (£m) (£m) (£m) yield (years) area) UK Retail 23.3% 349.6 27.0 27.9 6.4% 8.9 2.9% AUK Retail 15.5% 232.2 15.5 14.0 6.3% 10.0 0.9% UK Retail pro-forma 38.8% 581.8 42.5 41.9 6.3% 9.3 2.2% UK Commercial 10.8% 162.2 13.1 11.6 7.3% 7.4 0.7% AUK Offices (excl Grosvenor street) 8.6% 128.6 6.3 9.0 4.0% 5.0 20.8% AUK Distribution 6.5% 98.1 6.5 6.2 6.2% 4.6 0.0% UK Commercial pro-forma 25.9% 388.9 25.9 26.8 6.0% 6.1 3.0% UK Hotels 15.7% 234.7 14.4 15.1 5.8% 11.2 1.5% UK total pro-forma 80.4% 1,205.4 82.8 83.7 6.1% 8.6 2.5% Europe 19.6% 293.5 19.8 19.4 5.6% 7.3 1.8% Total pro-forma (excl Grosvenor) 100.0% 1,498.9 102.6 103.1 6.0% 8.4 2.3% Grosvenor street 31.0 0.8 1.3 2.3%

  • 0.0%
slide-25
SLIDE 25

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

AUK portfolio

9 properties in total Five well located retail parks of which 80% is in London, South East and big 6 UK cities Other assets include high street shopping assets, vehicle dealership and retail warehouse Positive tenant audits Upsize requirements UK Retail

25

UK Distribution UK Offices Three well located distribution centres and one industrial estate 100% in South, South East and Motorway junction Initial tenant demand above market rentals 97% located in London, South East and big 6 UK cities One London office, as the Grosvenor street office sold in December 2015 Five regional offices with high vacancies, once fully let will result in 7.3% yield

Figures as at 31 August 2015 adjusted to include100% of the AUK portfolio (excluding Grosvenor Street)

Occupancy (%) 99.1 Lettable area (m2) 86,547 Annualised gross rental income (£m) 15.5 Net initial yield (%) 6.3 Occupancy (%) 100 Lettable area (m2) 98,991 Annualised gross rental income (£m) 6.5 Net initial yield (%) 6.2 Occupancy (%) 80.1 Lettable area (m2) 33,159 Annualised gross rental income (£m) 7.2 Net initial yield (%) 3.7

slide-26
SLIDE 26

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Early success on AUK exceeds initial expectations

26

Successfully exchanged Grosvenor Street in December 2015 Prime asset, however low-yielding and outside the immediate, income focused strategy Included in Tranche 2 of AUK transaction due to complete in March 2016 at an apportioned purchase price of £29.0m Total consideration of £35.6m which realised an immediate £3m profit Active asset management since announcement in September 2015 New lettings and renewals totalling £0.5m all at or above ERV Four new leases completed on favourable terms Two rent reviews of £0.8m significantly higher than the £0.6m passing rent Good progress is being made on vacancies in the regional

  • ffice assets

Early progress is testament to the strong and exciting foundation on which this transformational deal has put the business

slide-27
SLIDE 27

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

AUK opportunity: Retail Parks

27

Banbury Cross Retail Park Affluent North Oxfordshire town with the park situated between Tesco Extra and proposed Waitrose Average passing rents c £24 psf vs new Gateway scheme up to £40 psf Interest from TK Maxx, DW Sports and Wilkinsons Net initial yield of 6.9% Priory Retail Park, Merton Prominent retail park in South London suburb with excellent location next to M&S and Sainburys Average passing rents £25 – £30 psf vs £40 psf on neighbouring Tandem Park Offers to split leisure unit for retailers at £35 – £37.5 psf Interest from discount supermarkets and fashion tenants Further medium to long term development opportunities Net initial yield of 5.2% with growth to come

To date asset management efforts largely focused on letting of vacant space and lease renewals, all of which are above management’s initial expectations

slide-28
SLIDE 28

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

AUK opportunity: Offices

28

Charing Cross Road, London Adjoining Crossrail and Centre Point development Area of intense development activity and rising rents Average rents on offices £40 psf vs £75 psf in the vicinity Reversionary yield of c5.0% Since announcement, two rent reviews totalling £0.8 million have been agreed £0.2 million above passing rent Excellent medium term prospects Opportunity to acquire adjoining properties and extend floors Deansgate, Manchester Prime location Rising rents Average passing rent £24 psf vs prime evidence at £30 – £34 psf in the vicinity Reversionary yield of 8.0%, market evidence at 4.75% – 5.25%

AUK offers exposure to high quality regional offices with immediate upside in filling vacancies

slide-29
SLIDE 29

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

AUK opportunity: Distribution

29

Camino Park, Crawley Prime distribution near Gatwick Airport/M23 – highly liquid institutional stock Average passing rent £7.60 psf vs £10 – £12 psf on airport Good tenant covenants and rental growth prospects Net initial yield of 6.0% vs prime South East multi-let yields

  • f 5.0%

Express Park, Bridgewater Big box distribution units close to junction 23 of the M5 Average passing rents £5.45 psf vs c £6.50 psf at Bristol Excellent tenant line up including Excel, Toolstation and Refresco Gerber Opportunity to discuss leaseback on adjoining unit Net initial yield of 6.3% vs prime South East multi-let yields

  • f 5.5%

AUK offers exposure to well-located industrial and distribution assets

slide-30
SLIDE 30

Redefine International P.L.C. Capital Raise Investor Presentation

Redefine International existing portfolio

Redefine International P.L.C. Capital Raise Investor Presentation

slide-31
SLIDE 31

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Existing portfolio valued at £1.0bn

Six wholly-owned dominant regional and community shopping centres Tenanted by leading retailers including Debenhams, Asda, Tesco, Wilko and TK Maxx

UK Retail

31

UK Commercial UK Hotels Germany

63 properties diversified across

  • ffices, motor trade and

service stations The 22 offices are predominantly Government-let with majority indexed rents Service station and motor trade properties provide defensive income on long leases with leading brands including BP and Kwik Fit Eight hotels in Greater London and the South East and one hotel in Edinburgh Branded Holiday Inn, Holiday Inn Express, Crowne Plaza and DoubleTree by Hilton 25.3% holding in RedefineBDL, the UK’s largest independent hotel manager 86 properties in total Three well located shopping centres in Berlin, Hamburg and Ingolstadt Other assets include retail parks, discount supermarkets and government-let offices

Figures as at 31 August 2015, excluding the Hague (non-core) and including proportionate share of JVs

Occupancy (%) 97.1 Lettable area (m2) 159,076 Annualised gross rental income (£m) 27.0 Net initial yield (%) 6.4 Occupancy (%) 99.3 Lettable area (m2) 112,601 Annualised gross rental income (£m) 13.1 Net initial yield (%) 7.3 Occupancy (%) 98.5 Lettable area (m2) 41,323 Annualised gross rental income (£m) 14.4 Net initial yield (%) 5.8 Occupancy (%) 98.2 Lettable area (m2) 208,425 Annualised gross rental income (£m) 21.5 Net initial yield (%) 5.6

slide-32
SLIDE 32

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Unlocking further value in existing portfolio

Property Description/Progress Planning Start Capex (est.) Yield on cost (est.) City Arcaden, Ingolstadt Complete redevelopment of existing centre Scheme to deliver new 5,200 sqm Primark store H&M to be retained and adjoin Primark Approved In progress £8.5m 6.8% Weston Favell, Northampton Extension and reconfiguration of ground floor mall Rebranding and aesthetic enhancements Approved In progress £4.6m n/a Crescent Centre, Bristol Redevelopment of entrance Additional tenant amenities Pre- application stage Q2 2016 £2.0M 18.7% Birchwood Demand-led extension Discount retailers and casual dining Pre- application stage Q3 2016 £1.3M 9.8% St George’s, Harrow Potential extension to accommodate new tenant Concept stage

  • TBC

n/a Delta 900 Pre-let to Oxford Brookes University Complete refurbishment Approved In progress £0.9m 15.5%

32

Selective high yielding developments in response to tenant demand

slide-33
SLIDE 33

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Existing UK Retail portfolio

Grand Arcade, Wigan

33

Occupational market largely supportive Portfolio near full occupancy at 97.1% (+170bps) – Enable RDI to be more selective on retailers to target – More competitive and ultimately higher rental income Focus on outperforming discount, convenience and leisure retailers Weston Favell, Northampton St George’s, Harrow Birchwood, Warrington Market Value (£m) 102.2 Annualised gross rental income (£m) 8.0 Lettable area (m2) 43,491 Occupancy (%) 99.8 WAULT (years) 9.9 Net initial yield (%) 6.6 Market Value (£m) 90.0 Annualised gross rental income (£m) 6.6 Lettable area (m2) 28,363 Occupancy (%) 98.4 WAULT (years) 8.1 Net initial yield (%) 6.6 Market Value (£m) 71.3 Annualised gross rental income (£m) 4.5 Lettable area (m2) 20,276 Occupancy (%) 98.0 WAULT (years) 5.2 Net initial yield (%) 5.3 Market Value (£m) 34.4 Annualised gross rental income (£m) 2.8 Lettable area (m2) 36,571 Occupancy (%) 90.4 WAULT (years) 15.9 Net initial yield (%) 6.2

Figures as at 31 August 2015

Recent Performance Like-for-like valuation +4.4% Net rental income +2.1%, ERV +0.5%

slide-34
SLIDE 34

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Existing UK Commercial portfolio

Government Offices

34

Typically let on long secure leases Over 50% of rents are indexed Asset management opportunities in improving regional office market Well located assets, eg Watford and Southwark, offering significant residential redevelopment opportunities Petrol Filling Stations Kwik Fit Portfolio Market Value (£m) 110.0 Annualised gross rental income (£m) 9.7 Lettable area (m2) 61,441 Occupancy (%) 98.7 WAULT (years) 5.3 Net initial yield (%) 8.0 # Properties 21 Market Value (£m) 23.3 Annualised gross rental income (£m) 1.5 Lettable area (m2) 33,533 Occupancy (%) 100 WAULT (years) 14.2 Net initial yield (%) 5.6 # Properties 14 Market Value (£m) 17.0 Annualised gross rental income (£m) 1.1 Lettable area (m2) 14,870 Occupancy (%) 100 WAULT (years) 16.4 Net initial yield (%) 6.3 # Properties 27

Figures as at 31 August 2015

Recent Performance Like-for-like valuation +6.1% Net rental income +2.7%, ERV +4.7% Exchanged on the sale of 10 petrol filling stations since year-end for £12.0m

slide-35
SLIDE 35

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Existing UK Hotel portfolio

London portfolio

35

Limited service branded hotel portfolio Successful 6,800 sqft extension at Enfield Positive outlook for 2016 with average occupancy rates expected to reach the highest levels for a decade Demand is expected to continue exceeding supply in London Edinburgh, DoubleTree Enfield, Travelodge Market Value (£m) 195.4 Annualised gross rental income (£m) 12.0 Lettable area (m2) 29,426 Occupancy (%) 100 WAULT (years) 10.3 Net initial yield (%) 5.8 Market Value (£m) 26.4 Annualised gross rental income (£m) 1.8 Lettable area (m2) 7,250 Occupancy (%) 100 WAULT (years) 10.6 Net initial yield (%) 6.6 Market Value (£m) 12.9 Annualised gross rental income (£m) 0.6 Lettable area (m2) 4,647 Occupancy (%) 86.3 WAULT (years) 31.8 Net initial yield (%) 4.5

Figures as at 31 August 2015

Recent Performance Like-for-like valuation +7.4% Rental income +4.0%

slide-36
SLIDE 36

Redefine International P.L.C. Capital Raise Investor Presentation Redefine International P.L.C. Capital Raise Investor Presentation

Existing German portfolio

Schloss, Berlin

36

Accretive acquisition of Supermarket portfolio completed in December 2014 95% of leases indexed Potential to create additional retail space and commercialisation opportunities Redevelopment of Ingolstadt to deliver new 5,200m2 Primark store underway and significant future redevelopment potential in Hamburg Altona, Hamburg City Arcaden, Ingolstadt Supermarket Portfolio(2) Market Value (£m) 64.9 Annualised gross rental income (£m) 3.8 Lettable area (m2) 18,160 Occupancy (%) 100 WAULT (years) 5.2 Net initial yield (%) 5.1 Market Value (£m) 55.9 Annualised gross rental income (£m) 3.3 Lettable area (m2) 15,074 Occupancy (%) 98.9 WAULT (years) 5.7 Net initial yield (%) 5.2 Market Value (£m) 14.7 Annualised gross rental income (£m) 0.5 Lettable area (m2) 10,413 Occupancy (%) n/a WAULT (years) 4.3 Net initial yield (%) 0.3 Market Value (£m) 129.7 Annualised gross rental income (£m) 10.2 Lettable area (m2) 143,051 Occupancy (%) 97.4 WAULT (years) 10.5 Net initial yield (%) 6.5 # Properties 66

1) Figures as at 31 August 2015 2) Held in 50% JV with Redefine Properties. Amounts include 100% of JV valuation and related metrics

Recent Performance Like-for-like valuation +0.8% although -7.2% when accounting for the Euro devaluation ERV +2.37%