Growthpoint Properties Limited Tiber acquisition: Road show - - PowerPoint PPT Presentation

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Growthpoint Properties Limited Tiber acquisition: Road show presentation

December 2013

Introduction to the Tiber Transaction

2

Introduction

• On Monday, 18 November 2013, Growthpoint and the Tiber Group, jointly announced the R6.6bn acquisition by

Growthpoint of the property portfolio of the Tiber Group (the “Property Transaction”)

• As an indivisible part of the transaction, Growthpoint also concluded agreements for:
• services to be provided by the executive management team of the Tiber Group, being Stephen Scott,

Germano Cardoso and Artur Carrazedo;

• the internalisation of Tiber Projects, being the Tiber Group property and asset management company

(the “Manco Transaction”); and

• a development agreement with a subsidiary of Tiber Bonvec Construction (“TBC”) for the development
• f the undeveloped bulk and redevelopment of the property assets acquired (the “Development

Agreement”)

• collectively the “Tiber Transaction”
• Growthpoint is pleased to present an overview of the Tiber Transaction, which we believe to be:
• the acquisition of arguably one of the most exclusive office property portfolios in South Africa;
• acquired on an accretive basis for Growthpoint’s shareholders; and
• simultaneously secures the collective expertise of the Tiber Group

Background to the Tiber Group

• Established in 1951, the Tiber Group has grown into one of the most successful privately owned property

development, property owning and construction groups in South Africa

• The late Francesco Rivera is credited as being the visionary responsible, in conjunction with TBC, for creating the

Tiber property portfolio

• The property portfolio comprises approximately R6bn of predominantly P and A-grade properties in the Northern

suburbs of Johannesburg

The Tiber Transaction allows Growthpoint to acquire arguably

• ne of South

Africa’s most exclusive office property portfolios on an accretive basis for Growthpoint shareholders

Overview of the Tiber Transaction

3

Acquisition of the property assets and property holding companies comprising the Tiber Group:

• Shares in Tiber

Property Group

• Letting enterprises
• Share in share

block companies

• Shares in JV

companies

• Undeveloped bulk

Property Transaction R6,186m Internalisation of the Tiber Group asset and property management business including 55 full-time staff and the retention of Tiber’s executive management for a period

• f 3 years

Manco Transaction R350m Retention of the Tiber Group’s development expertise by means of an agreement with a subsidiary of TBC to:

• develop the

undeveloped bulk; and

• redevelop the Tiber

properties Devco Agreement R -

The Tiber Transaction comprises three indivisible parts, the Property Transaction, the Manco Transaction and the Development Agreement for a combined value

• f R6.6bn

Overview of the Tiber Transaction cont’d

4

Property Transaction

• In terms of the Property Transaction, Growthpoint will acquire 28 prime properties and a 50% interest in a further 9

properties including undeveloped bulk attached to the properties in a portfolio comprising:

• 308,163m2 of commercial property space;
• 48,048m2 of undeveloped bulk increasing the future potential upside of the Tiber portfolio; and
• a 50% interest in a development project of 19,200m2 (the “Annex”) which, upon completion, will form

part of the Alice Lane precinct of properties together with the Towers and 12 Alice Lane properties

Manco Transaction

• The Manco Transaction has been concluded In order to retain the core competencies, skills and long standing

tenant relationships of the executive management of Tiber Projects, comprising Stephen Scott, Germano Cardoso and Artur Carrazedo (the “Executive Management”) and the Tiber Projects employees

• The effective internalisation of the Manco will be achieved by:
• procuring services from the Executive Management for a period of 3 years to ensure among other

things the seamless integration of the Tiber assets into the Growthpoint property portfolio;

• acquiring the property and asset management business of Tiber Projects including 55 full-time

employees who are responsible for rendering management services to the Tiber Group; and

• enabling the seamless integration of the assets acquired in terms of the Property Transaction into the

Growthpoint property portfolio

Development Agreement

• The Development Agreement sets out the terms and conditions under which Growthpoint, alongside a wholly-
• wned subsidiary of TBC, will develop the undeveloped bulk acquired as part of the Property Transaction, and

explore other development opportunities

• The agreement provides the TBC subsidiary with a right of first refusal to make proposals to Growthpoint for the

development of the undeveloped bulk and the redevelopment of the immovable properties being acquired in the Property Transaction

• It is intended that through the Development Agreement, a new pipeline of developments and redevelopments of

existing properties will be created to enhance Growthpoint’s existing income producing property portfolio

The Tiber Transaction is a significant boost to Growthpoint’s

• ffice portfolio:
• enhancing its

underlying income streams; and

• making GRT

the biggest

• ffice property
• wner with a

portfolio of 1.5m square metres of office space valued at nearly R25bn… … whilst simultaneously securing the continuity of the management and expertise of the Tiber Group

The Tiber Group management team

5 Stephen Scott Stephen joined the Tiber Group in 1982 and focuses on the business operations and finance aspects of the Tiber Group including asset and property management and property development Artur Carrazedo Artur has been with the Tiber Group since 1996 and is primarily involved with the financial

• perations of the group alongside

all other business aspects of the Tiber Group Germano Cardoso Germano has been with the Tiber Group since 1988 and focuses primarily on the facilities, property, project and development management of the properties within the portfolio Fernando Cardoso Fernando started with the Group in 1981 and is the chief executive

• fficer of Tiber Bonvec

Construction Proprietary Limited,

• ne of the leading privately
• wned construction companies in

South Africa, providing construction and property development expertise to the Tiber Group as well as other leading industry clients The Manco Transaction ensures that Growthpoint is able to retain the skills and expertise of the Tiber Group executives as well as that of Tiber Bonvec Construction by means of the Development Agreement

Tiber Transaction: Summary of the transaction metrics

6

Tiber Transaction - split of the purchase consideration Property Transaction (value of property assets) 6,186,143,924 Manco Transaction 349,853,520 Net working capital1 22,825,546 Tiber Transaction (total value attributable to properties and Manco Transaction) 6,558,822,990 Settled by: Tiber Group external debt taken on by Growthpoint2 1,561,347,369 Cash portion of the Property Transaction (to be funded from cash proceeds of May 2013 bookbuild)3 2,278,198,223 Cash portion of the Manco Transaction (to be funded from Growthpoint's existing debt facilities) 177,982,162 Net asset value adjustment (to be funded from Growthpoint's existing debt facilities) 22,825,546 Cash portion of the Tiber Transaction 4,040,353,300 Equity portion of the Property Transaction 2,346,598,332 Equity portion of the Manco Transaction 171,871,358 Equity portion of the Tiber Transaction 2,518,469,690 Number of new Growthpoint shares to be issued 93,276,656 Share issue price (R) 27.00

R2.3bn of the cash portion of the purchase consideration was raised by Growthpoint in May 2013 by means of an accelerated bookbuild at an issue price of R28.00 per share . . . … adding the R2.3bn of cash proceeds from the bookbuild to the equity portion of the purchase consideration results in c.73%

• f the Tiber

Transaction being funded by the issue of new Growthpoint shares Notes: 1. Net working capital to be confirmed at the effective date. Net working capital has been estimated as at the signature date and will be finalised on preparation and agreement of effective date accounts. The full net working capital balance will be funded in cash out of Growthpoint’s existing debt facilities 2. Tiber Group external debt estimated to be taken on by Growthpoint at the effective date. Tiber Group external debt has been estimated at the signature date and will be finalised on the preparation and agreement of the effective date accounts – any increase in the external debt balance will reduce the cash portion of the Property Transaction and vice versa. The external debt is likely to be refinanced by new Growthpoint borrowings 3. Growthpoint raised R2.5bn in May 2013 by means of an accelerated bookbuild at an issue price of R28.00 per share (5.8% yield on a clean price of R27.34)

Tiber Transaction – summary of transaction metrics cont’d

7

Property Transaction Property Transaction Manco Transaction Tiber Transaction Tiber Transaction Income producing

• Incl. bulk

Income producing

• Incl. bulk

Forecast net property income to June 2014 439,939,200 439,939,200

• 439,939,200

439,939,200 Forecast Manco EBITDA to June 2014

• 38,851,563

38,851,563 38,851,563 Forecast Tiber Group income to June 2014 439,939,200 439,939,200 38,851,563 478,790,763 478,790,763 Asset value 5,940,566,642 6,005,105,042 349,853,520 6,290,420,162 6,354,958,562 Property Transaction 6,186,143,924 6,186,143,924

• 6,186,143,924

6,186,143,924 Less Annex development (181,038,882) (181,038,882)

• (181,038,882)

(181,038,882) Less undeveloped bulk (64,538,400)

• (64,538,400)
• Manco Transaction
• 349,853,520

349,853,520 349,853,520 Property yield to June 2014 7.41% 7.33% 11.11% 7.61% 7.53% Annex development Forecast net property income to June 2015 21,500,000 Estimated total development cost 256,000,000 Property yield to June 2015 8.40%

The blended yield of the Tiber Transaction of 7.53% (excluding the development) is anticipated to be accretive to Growthpoint’s distribution per share to June 2014 and subsequent years… … the 12 month forward yield of the Annex development is expected to be 8.40% commencing from an expected completion date

• f July 2014

01

The Tiber Group

Overview of the Tiber property portfolio

The Tiber portfolio

Building GLA % owned Gross income (pro rata) Expenses Asset management fees Net property income Cap rate Property value Value per m2 Vacancy % Escalation (pro rata) (pro rata) (pro rata) Inyanda 1-4 16,797 50 36,468,163 (8,020,952) (1,560,000) 26,887,211 7.09% 379,211,970 22,576 0.0% 8.9% 12& 15 Alice Lane 8,772 50 19,257,647 (5,439,667) (892,273) 12,925,707 6.48% 199,521,775 22,745 0.0% 7.0% The Towers 12,622 50 42,638,236 (10,118,421) (2,273,190) 30,246,625 6.29% 480,795,607 38,092 0.0% 7.3% 50 Wierda Road 2,362 100 4,207,326 (2,140,156) (202,840) 1,864,330 8.38% 22,252,099 9,421 0.0% 8.5% 7 Wessels 2,230 100 3,977,751 (981,400) (162,272) 2,834,079 8.06% 35,166,807 15,770 0.0% 8.5% Anslow Park (Nestle) 11,986 100 39,468,608 (9,086,897) (1,797,162) 28,584,549 6.66% 429,185,664 35,807 0.0% 8.0% Barclays Illovo 5,094 100 15,643,471 (5,036,837) (610,258) 9,996,376 7.85% 127,291,943 24,989 0.0% 8.0% Eastgate 20 4,556 100 11,468,328 (3,314,465) (496,668) 7,657,195 7.85% 97,511,747 21,403 0.0% 8.3% Erf 65 Bryanston 5,807 100 16,673,386 (5,276,642) (633,440) 10,763,304 7.86% 136,871,008 23,570 0.3% 8.2% Freestone Park 5,554 100 11,607,405 (4,332,610) (458,998) 6,815,797 7.86% 86,746,289 15,619 0.6% 8.4% Hunts End 10,132 100 14,699,956 (6,081,408) (780,644) 7,837,904 8.20% 95,616,784 9,437 28.5% 7.5% Oxford Corner 8,782 100 28,329,594 (8,469,508) (1,274,994) 18,585,092 7.83% 237,305,334 27,022 0.0% 8.7% Sandown erf 161,162 2,613 100 4,828,619 (1,363,331) (170,646) 3,294,642 7.85% 41,943,283 16,052 0.0% 8.0% Sandown erf 169 2,062 100 3,755,954 (866,138) (142,307) 2,747,509 7.85% 34,979,877 16,964 0.0% 8.0% Sandown Mews 18,841 100 39,023,655 (12,905,718) (1,762,389) 24,355,548 7.86% 309,731,443 16,439 21.6% 7.1% Sandton Place Blocks A & B 3,780 100 6,123,811 (3,491,255) (293,249) 2,339,307 7.94% 29,471,311 7,797 23.9% 8.0% Strathavon 11 9,146 100 21,376,479 (6,864,366) (928,427) 13,583,686 7.88% 172,332,445 18,842 4.6% 8.0% Wierda Court 2,229 100 4,782,533 (1,684,342) (150,681) 2,947,510 8.04% 36,642,307 16,439 0.0% 7.6% 138 West Street 10,081 100 29,246,666 (10,017,951) (1,361,925) 17,866,790 7.42% 240,738,600 23,880 6.4% 8.0% Wierda Gables 2,190 100 2,093,035 (1,426,553) (43,483) 622,999 8.29% 7,514,846 3,431 52.8% 8.5% Inanda Greens Blgs 1 - 10 41,654 50 96,830,523 (26,882,418) (4,784,548) 65,163,557 7.38% 882,596,358 21,189 2.9% 8.0% Kilkishen Rivera Road Blgs 1 - 4 3,690 100 7,918,471 (2,777,632)

• 5,140,839

7.66% 67,115,140 18,188 2.8% 8.7% Tata Phase 1& 2(Ferguson Road) 2,376 50 6,438,363 (1,657,760) (260,794) 4,519,809 7.02% 64,422,417 27,114 0.0% 8.8% Pinmill Farm 11,456 50 20,816,366 (6,170,464) (709,940) 13,935,962 7.11% 195,889,824 17,099 7.4% 8.7% Eton Road 1,327 50 3,617,917 (1,189,243) (134,150) 2,294,524 8.62% 26,608,919 20,052 0.0% 9.0% 132 Jan Smuts Avenue 9,410 100 16,562,377 (7,531,440) (484,498) 8,546,439 8.48% 100,788,323 10,711 11.1% 8.4% Masstores 16,158 100 33,380,439 (6,096,243) (1,671,138) 25,613,058 7.11% 360,022,967 22,281 0.0% 8.0% The White House 1,749 100 3,645,862 (781,528) (173,547) 2,690,787 8.57% 31,404,147 17,955 0.0% 8.0% Grayston Place 4,976 100 12,424,542 (3,221,064) (554,043) 8,649,435 7.94% 108,975,221 21,900 0.0% 8.0% 19 West Street 685 100 1,354,339 (453,743)

• 900,596

8.60% 10,468,997 15,283 0.0% 9.0% Morningside 1331 3,492 100 6,040,408 (1,651,123) (212,113) 4,177,172 7.69% 54,323,855 15,557 0.0% 6.9% Turbine Square and Hall 22,796 50 43,490,379 (6,497,845) (2,359,898) 34,632,636 7.08% 488,975,829 21,450 0.0% 8.4% 100 West Street 3,850 100 8,750,529 (2,499,908) (330,339) 5,920,282 7.30% 81,108,847 21,067 0.0% 8.0% Office portfolio 269,255 616,941,138 (174,329,028) (27,670,854) 414,941,256 7.31% 5,673,531,983 21,071 5.0% Rivonia Crossing 1 and 2 34,650 100 32,598,010 (12,004,008) (1,775,139) 18,818,863 10.27% 183,296,764 5,290 34.7% 8.0% Grayston Shopping Centre 4,258 100 12,038,864 (5,426,867) (432,916) 6,179,081 7.38% 83,737,894 19,666 0.0% 9.5% Other properties 38,908 44,636,874 (17,430,875) (2,208,055) 24,997,944 9.4% 267,034,658 6,863 30.9% Tiber Group portfolio 308,163 661,578,012 (191,759,903) (29,878,909) 439,939,200 7.41% 5,940,566,641 19,277 8.2% 8.1%

Consolidated split of net property income

Tiber Group – net property income for the 12 month period ended 30 June 2014 Rent - Levies 394,128,230 Rental – Storeroom 3,611,595 Rental - Other 6,056,328 Parking – Open 10,534,276 Parking - Covered and Basement 76,509,710 Total Rental 490,840,139 Op Costs Recovered 59,961,186 Rates Recovered 30,854,843 Refuse Recovered 641,965 Water Recovered 7,099,223 Sewerage Recovered 4,662,860 Electricity Recovered 64,092,932 Generator Recovered 2,083,433 Aircon Recovered 350,092 Monthly levies recovered 499,699 Other recoveries 491,641 Total Other Recoveries 110,776,687 Gross rental income 661,578,012 Assessment Rates & Taxes 44,563,562 Refuse Municipal 706,285 Water Paid 7,348,898 Footway 81,409 Sewerage Paid 5,227,327 Electricity Consumption 66,204,091 Contractual Operating Costs 25,900,410 Other Operating Costs 28,880,135 Repairs and Maintenance 9,528,362 Other property expenses (including tenant installation and letting commission) 3,319,424 Operating Cost Expenses 191,759,903 Net rental income before asset management fees 469,818,109 Asset management fees (29,878,909) Tiber Group net property income 439,939,200

The Tiber portfolio – top 10 properties

11

The Towers

Grade P Major tenants Norton Rose, Proctor & Gamble Location 15 Alice Lane, Sandton GLA: 12,622 m2 (25,244 m2) Valuation (Cap rate of 6.29%): R480,795,607 (R961,591,214) Value per m2: R38,092 Base rental per m2: R180 Parking per bay (1,078 bays) R889 Ops costs recovered per m2 R22 Rates recovered per m2 R18 Other recoveries per m2 R25 Weighted average lease expiry 8.3 years Rental escalations 7.3%

Vacant 2014 2015 2016 2017 2018+

Inanda Greens

Grade A Major tenants Investment Solutions, Bell Dewar, Credit Suisse, Momentum Location 54 Wierda Road West, Wierda Valley GLA: 41,654 m2 Valuation (Cap rate of 7.38): R882,596,358 Value per m2: R21,189 Base rental per m2: R122 Parking per bay (1,724 bays) R659 Ops costs recovered per m2 R20 Rates recovered per m2 R8 Other recoveries per m2 R22 Weighted average lease expiry 2.3 years Rental escalations 8.0% The Tiber portfolio spans 320,00m2 of mainly P and A- grade office space concentrated in Sandton and its surrounds… … and includes as tenants several multinational companies such as Nestlè, PPC, AngloGold Ashanti, Norton Rose, Merrill Lynch, Barclays and Absa Capital

Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio – top 10 properties cont’d

12

Turbine Square and Hall

Grade A Major tenants AngloGold Ashanti, The Forum Location 65 Ntemi Piliso Street, Newtown Johannesburg GLA: 22,796 m2 Valuation (Cap rate of 7.08%): R488,975,829 Value per m2: R21,450 Base rental per m2: R113 Parking per bay (700 bays) R783 Ops costs recovered per m2 R9 Rates recovered per m2 R5 Other recoveries per m2 R9 Weighted average lease expiry 8.5 years Rental escalations 8.4%

Inyanda

Grade A Major tenants Transnet, Engen Location 15 Girton Road, Parktown GLA: 16,797 m2 (33,593 m2) Valuation (Cap rate of 7.09%): R379,211,970 (R758,423,940) Value per m2: R22,576 Base rental per m2: R130 Parking per bay (826 bays) R682 Ops costs recovered per m2 R- Rates recovered per m2 R8 Other recoveries per m2 R28 Weighted average lease expiry 7.4 years Rental escalations 8.9%

Vacant 2014 2015 2016 2017 2018+ Vacant 2014 2015 2015 2017 2018+

The Tiber portfolio – top 10 properties cont’d

13

Anslow Park (Nestle)

Grade P Major tenants Nestle Location 8 Anslow Crescent, Bryanston GLA: 11,986 m2 Valuation (Cap rate of 6.66%): R429,185,664 Value per m2: R35,807 Base rental per m2: R166 Parking per bay (589 bays) R827 Ops costs recovered per m2 R28 Rates recovered per m2 R- Other recoveries per m2 R32 Weighted average lease expiry 7.3 years Rental escalations 8.0%

Vacant 2014 2015 2015 2017 2018+

12 Alice Lane

Grade P Major tenants Absa Capital Location 12 Alice Lane, Sandton GLA: 8,772 m2 (17,543 m2) Valuation (Cap rate of 6.48%): R199,521,775 (R399,043,550) Value per m2: R22,745 Base rental per m2: R95 Parking per bay (1,012 bays) R633 Ops costs recovered per m2 R9 Rates recovered per m2 R15 Other recoveries per m2 R25 Weighted average lease expiry 6.8 years Rental escalations 7.0%

Vacant 2014 2015 2015 2017 2018+

The Tiber portfolio – top 10 properties cont’d

14

Pinmill Farm

Grade B Major tenants Icasa, And Beyond, EOH Mthombo, Cyest Location 164 Katherine Street, Sandton GLA: 11,456 m2 (22,911 m2) Valuation (Cap rate of 7.11%): R195,889,824 (R391,779,648) Value per m2: R17,099 Base rental per m2: R92 Parking per bay (917 bays) R593 Ops costs recovered per m2 R22 Rates recovered per m2 R10 Other recoveries per m2 R15 Weighted average lease expiry 3.4 years Rental escalations 8.7%

Masstores

Grade B Major tenants Masstores Location 16 Peltier Drive, Sunninghill GLA: 16,158 m2 Valuation (Cap rate of 7.11%): R360,022,967 Value per m2: R22,281 Gross base rental per m2: R115 Parking per bay (736 bays) R518 Ops costs recovered per m2 R13 Rates recovered per m2 R4 Other recoveries per m2 R16 Weighted average lease expiry 6.8 years Rental escalations 8.0%

Vacant 2014 2015 2015 2017 2018+ Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio – top 10 properties cont’d

15

Sandown Mews

Grade A Major tenants McKinsey, FNB, Africa Business News Location 88 Stella Street, Sandton GLA: 18,841 m2 Valuation (Cap rate of 7.86%): R309,731,443 Value per m2: R16,439 Base rental per m2: R123 Parking per bay (779 bays) R739 Ops costs recovered per m2 R28 Rates recovered per m2 R7 Rother recoveries per m2 R25 Weighted average lease expiry 2.3 years Rental escalations 7.1%

138 West Street

Grade A Major tenants Toyota Tsusho Africa, Thomson Reuters, Merrill Lynch Location 138 West Street, Sandton GLA: 10,081 m2 Valuation (Cap rate of 7.42%): R240,738,600 Value per m2: R23,880 Base rental per m2: R147 Parking per bay (377 bays) R690 Ops costs recovered per m2 R31 Rates recovered per m2 R20 Other recoveries per m2 R32 Weighted average lease expiry 3.2 years Rental escalations 8.0%

Vacant 2014 2015 2016 2017 2018+ Vacant 2,014 2,015 2,016 2,017 2018+

The Tiber portfolio cont’d

16

The Annex (Development Project)

Grade P Location Corner Alice Lane/Sandton Drive, Sandton GLA: 9,613 m2 (19,226 m2) Development costs paid to Tiber R181,038,882 Valuation (Cap rate of 8.40%): R256,000,000 (R512,000,000) Value per m2: R26,631 The Annex development is anticipated to be completed by the end of June 2014 and is expected to yield 8.40% for the year ended 30 June 2015.. . … and will form part of the Alice Lane precinct of properties

Lease expiry profile

17

The acquisition of the Tiber portfolio is supported by the strength of the underlying tenant base and an attractive lease expiry profile: Office Portfolio: Lease expiry profile by GLA

Assumes no vacancy at Inanda Building 10 for which a rental guarantee has been provided On account

• f the high

quality of the Tiber portfolio, the

• ffice

portfolio has a weighted average vacancy of 5.0%, below that of 7.8% for Growthpoint’s

• ffice

portfolio at 30 June 2013… … the weighted average lease expiry

• f 4.2 years

exceeds that

• f 3.6 years

for Growthpoint’s South African

portfolio 5.0% 7.9% 11.5% 12.1% 12.5% 51.0% Vacant 2014 2015 2016 2017 2018+

Split of the Tiber portfolio by sector

18

1% 88% 11%

Split by GLA

Retail Office Rivonia Crossing

1% 96% 3%

Split by value

Retail Office Rivonia Crossing Split of the Tiber property portfolio GLAm2 Value R'm Retail 4,258 1.3% 84 1.4% Office 278,868 87.8% 5,855 95.6% Rivonia Crossing 34,650 10.9% 183 3.0% 317,776 6,122

Overlay of the Growthpoint portfolio

19

Split of the Growthpoint portfolio after the transaction GLAm2 Value R'm Retail 946,759 20.3% 14,999 32.2% Office 1,509,918 32.3% 23,393 50.2% Industrial 2,211,537 47.4% 8,225 17.6% 4,668,214 46,617

20% 32% 48%

Split by GLA (ex Goz / V&A)

Retail Office Industrial

33% 49% 18%

Split by value (ex Goz / V&A)

Retail Office Industrial

Note: The Tiber portfolio has been overlaid on Growthpoint’s South African portfolio as stated at the 30 June 2013 financial year end (excluding the V&A ) and includes the office portfolio of 79,971m2 (R1.328m) acquired from Equity Estates in October 2013

A1

The remaining properties in the Tiber Portfolio

The Tiber portfolio cont’d

21

Oxford Corner

Grade P Major tenants Trafigura Services, Allan Gray Location 32a Jellicoe Avenue, Rosebank GLA: 8,782 m2 Valuation (Cap rate of 7.83%): R237,305,334 Value per m2: R27,022 Base rental per m2: R165 Parking per bay (370 bays) R854 Ops costs recovered per m2 R21 Rates recovered per m2 R19 Other recoveries per m2 R27 Weighted average lease expiry 6.4 years Rental escalations 8.7%

Rivonia Crossing 1 and 2

Grade

• Major tenants

Builders Warehouse, Toyota, Honda, The Barnyard Location Corner Rivonia Road and Witkoppen, Paulshof GLA: 34,650 m2 Valuation (Cap rate of 10.27%): R183,296,764 Value per m2: R5,290 Base rental per m2: R81 Parking per bay (132 bays) R401 Ops costs recovered per m2 R11 Rates recovered per m2 R8 Other recoveries per m2 R17 Weighted average lease expiry 3.4 years Rental escalations 8.0%

Vacant 2014 2015 2016 2017 2018+ Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio cont’d

22

Strathavon 11

Grade B Major tenants Draftfcb South Africa, Seed Engine Location 164 Katherine Street, Sandton GLA: 9,146 m2 Valuation (Cap rate of 7.88%): R172,332,445 Value per m2: R18,842 Base rental per m2: R118 Parking per bay (441 bays) R626 Ops costs recovered per m2 R19 Rates recovered per m2 R10 Other recoveries per m2 R25 Weighted average lease expiry 5.8 years Rental escalations 8.0%

Erf 65 Bryanston

Grade A- Major tenants Yum Restaurants, EMC Computer, Kindle Insurance, Location 3021 William Nicol Drive, Bryanston GLA: 5,807 m2 Valuation (Cap rate of 7.86%): R136,871,008 Value per m2: R23,570 Base rental per m2: R133 Parking per bay (267 bays) R633 Ops costs recovered per m2 R34 Rates recovered per m2 R3 Other recoveries per m2 R40 Weighted average lease expiry 2.0 years Rental escalations 8.2%

Vacant 2014 2015 2016 2017 2018+ Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio cont’d

23

Kilkishen Riviera Road Buildings 1 -4

Grade A- Major tenants Knox Titanium Vault Company, Housing Development Agency Location 1 River Street, Killarney GLA: 3,690 m2 (7,380m2) Valuation (Cap rate of 7.85%): R67,115,140 (R134,230,280) Value per m2: R18,188 Base rental per m2: R103 Parking per bay (343 bays) R474 Ops costs recovered per m2 R27 Rates recovered per m2 R3 Other recoveries per m2 R27 Weighted average lease expiry 3.2 years Rental escalations 8.7%

Tata Phase 1 and 2

Grade A Major tenants Tata Africa Holdings, Platinum Life Location 39 Ferguson Road, Illovo GLA: 2,376 m2 (4,752 m2) Valuation (Cap rate of 7.02%): R64,422,417 (R128,448,834) Value per m2: R27,114 Base rental per m2: R150 Parking per bay (179 bays) R733 Ops costs recovered per m2 R34 Rates recovered per m2 R9 Other recoveries per m2 R6 Weighted average lease expiry 2.3 years Rental escalations 8.8%

Vacant 2014 2015 2016 2017 2018+ Vacant 2014 2015 2016 2017 2018+

The remaining 50% share of the Kilkishen

• ffice park is
• wned by Abseq

Properties. Abseq Properties was acquired by Growthpoint in October 2013

The Tiber portfolio cont’d

24

Barclays Illovo

Grade A Major tenants Absa Capital Location 8 Rivonia Road, Illovo GLA: 5,094 m2 Valuation (Cap rate of 7.85%): R127,291,943 Value per m2: R24,989 Base rental per m2: R145 Parking per bay (362 bays) R560 Ops costs recovered per m2 R13 Rates recovered per m2 R- Other recoveries per m2 R58 Weighted average lease expiry 3.4 years Rental escalations 8.0%

Vacant 2014 2015 2016 2017 2018+

Grayston Place

Grade A- Major tenants Standard Bank Location 68 Grayston Drive, Sandton GLA: 4,976 m2 Valuation (Cap rate of 7.94%): R108,975,221 Value per m2: R21,900 Base rental per m2: R126 Parking per bay (184 bays) R790 Ops costs recovered per m2 R11 Rates recovered per m2 R17 Other recoveries per m2 R25 Weighted average lease expiry 1.8 years Rental escalations 8.0%

Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio cont’d

25

132 Jan Smuts Avenue

Grade B Major tenants Medikredit Integrated Healthcare, Minty’s Tyres and Mags Location 132 Jan Smuts Avenue, Rosebank GLA: 9,410 m2 Valuation (Cap rate of 8.48%): R100,788,323 Value per m2: R10,711 Base rental per m2: R82 Parking per bay (274 bays) R493 Ops costs recovered per m2 R15 Rates recovered per m2 R7 Other recoveries per m2 R43 Weighted average lease expiry 1.9 years Rental escalations 8.4%

Eastgate 20

Vacant 2014 2015 2015 2017 2018+

Grade A Major tenants

PPC

Location Corner Katherine Street/Grayston Drive, Sandton GLA: 4,556 m2 Valuation (Cap rate of 7.85%): R97,511,747 Value per m2: R21,403 Base rental per m2: R125 Parking per bay (200 bays) R521 Ops costs recovered per m2 R20 Rates recovered per m2 R9 Other recoveries per m2 R33 Weighted average lease expiry 10 years Rental escalations 8.3%

Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio cont’d

26

Freestone Park

Grade A Major tenants First Rand Bank, Bonitas Medical Fund Location 135 Patricia Road, Sandown GLA: 5,554 m2 Valuation (Cap rate of 7.86%): R86,746,289 Value per m2: R15,619 Base rental per m2: R93 Parking per bay (280 bays) R533 Ops costs recovered per m2 R26 Rates recovered per m2 R9 Other recoveries per m2 R20 Weighted average lease expiry 5.2 years Rental escalations 8.4%

Vacant 2014 2015 2016 2017 2018+

Hunts End

Grade A- Major tenants Grant Thornton, Ace Insurance Location 38 Wierda Road West, Wierda Valley GLA: 10,132 m2 Valuation (Cap rate of 8.20%): R95,616,784 Value per m2: R9,437 Base rental per m2: R89 Parking per bay (329 bays) R529 Ops costs recovered per m2 R17 Rates recovered per m2 R16 Other recoveries per m2 R24 Weighted average lease expiry 3.6 years Rental escalations 7.5%

Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio cont’d

27

Grayston Shopping Centre

Grade

• Major tenants

Woolworths Food Location Corner Grayston Drive/Helen Road, Strathavon GLA: 4,258 m2 Valuation (Cap rate of 7.38%): R83,737,894 Value per m2: R19,666 Base rental per m2: R151 Parking per bay (24 bays) R428 Casual Parking per m2 of GLA R10 Ops costs recovered per m2 R25 Rates recovered per m2 R7 Other recoveries per m2 R39 Weighted average lease expiry 4.8 years Rental escalations 9.5%

100 West Street

Grade A Major tenants Kagiso Tiso Holdings Location 100 West Street, Sandton GLA: 3,850 m2 Valuation (Cap rate of 7.30%): R81,108,847 Value per m2: R21,067 Base rental per m2: R105 Parking per bay (171 bays) R570 Ops costs recovered per m2 R23 Rates recovered per m2 R16 Other recoveries per m2 R20 Weighted average lease expiry 3.3 years Rental escalations 8.0%

Vacant 2014 2015 2016 2017 2018+ Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio cont’d

28

Morningside 1331

Grade A Major tenants MTN, Chevron South Africa Location Corner Summit/Rivonia Road, Morningside GLA: 3,492 m2 Valuation (Cap rate of 7.69%): R54,323,855 Value per m2: R15,557 Base rental per m2: R77 Parking per bay (115 bays) R571 Ops costs recovered per m2 R11 Rates recovered per m2 R4 Other recoveries per m2 R33 Weighted average lease expiry 2.7 years Rental escalations 6.9%

Sandown Erf 161, 162

Grade A- Major tenants MaCann Worldgroup South Africa Location Corner Katherine Street/Westbrooke Drive, Sandown GLA: 2,613 m2 Valuation (Cap rate of 7.85%): R41,943,283 Value per m2: R16,052 Base rental per m2: R87 Parking per bay (133 bays) R575 Ops costs recovered per m2 R8 Rates recovered per m2 R13 Other recoveries per m2 R18 Weighted average lease expiry 3.7 years Rental escalations 8.0%

Vacant 2014 2015 2016 2017 2018+ Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio cont’d

29

Wierda Court

Grade A- Major tenants

Global Credit Ratings, Morpho South Africa, Crane Registered Quantity Surveyors

Location 107 Johan Avenue, Wierda Valley GLA: 2,229 m2 Valuation (Cap rate of 8.04%): R36,642,307 Value per m2: R16,439 Base rental per m2: R103 Parking per bay (83 bays) R565 Ops costs recovered per m2 R27 Rates recovered per m2 R11 Other recoveries per m2 R18 Weighted average lease expiry 2.1 years Rental escalations 7.6%

Vacant 2014 2015 2016 2017 2018+

7 Wessels

Grade A Major tenants Metropolitan Republic Location 7 Wessel Road, Sandton GLA: 2,230 m2 Valuation (Cap rate of 8.06%): R35,166,807 Value per m2: R15,770 Base rental per m2: R93 Parking per bay (80 bays) R533 Ops costs recovered per m2 R6 Rates recovered per m2 R15 Other recoveries per m2 R17 Weighted average lease expiry 2.4 years Rental escalations 8.5%

Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio cont’d

30

Sandown Erf 169

Grade A- Major tenants

EOH Mthombo

Location Westbrooke Drive, Sandown GLA: 2,062 m2 Valuation (Cap rate of 7.85%): R34,979,877 Value per m2: R16,964 Base rental per m2: R88 Parking per bay (92 bays) R480 Ops costs recovered per m2 R16 Rates recovered per m2 R9 Other recoveries per m2 R17 Weighted average lease expiry 2.4 years Rental escalations 8.0%

Vacant 2014 2015 2016 2017 2018+

The White House

Grade B Major tenants Masstores Location 16 Petlier Drive, Sunninghill GLA: 1,749 m2 Valuation (Cap rate of 8.57%): R31,404,147 Value per m2: R17,955 Base rental per m2: R112 Parking per bay (74 bays) R542 Ops costs recovered per m2 R20 Rates recovered per m2 R13 Other recoveries per m2 R7 Weighted average lease expiry 6.8 years Rental escalations 8.0%

Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio cont’d

31

Sandton Place Blocks A and B

Grade A- Major tenants

DSA Architects, Mwana Africa Holdings. Marafe Ferrochrome

Location 68 Wierda Road, Wierda Valley GLA: 3,780 m2 Valuation (Cap rate of 7.94%): R29,471,311 Value per m2: R7,797 Base rental per m2: R82 Parking per bay (167 bays) R368 Ops costs recovered per m2 R20 Rates recovered per m2 R12 Other recoveries per m2 R43 Weighted average lease expiry 1.6 Rental escalations 8.0%

Eton road

Grade A Major tenants Mkabela Huntley Adekeye, Rudolf Bernstein Associates Location 5 Eton Road, Sandhurst, Sandton GLA: 1,327 m2 Valuation (Cap rate of 8.62%): R26,608,919 Value per m2: R20,052 Base rental per m2: R132 Parking per bay (55 bays) R615 Ops costs recovered per m2 R36 Rates recovered per m2 R9 Other recoveries per m2 R24 Weighted average lease expiry 2.3 years Rental escalations 9.0%

Vacant 2014 2015 2016 2017 2018+ Vacant 2014 2015 2016 2017 2018+

The Tiber portfolio cont’d

32

50 Wierda Road

Vacant 2014 2015 2016 2017 2018+

Grade A- Major tenants

FirstRand Bank

Location 50 Wierda Road West, Wierda Valley GLA: 2,362 m2 Valuation (Cap rate of 8.38%): R22,252,099 Value per m2: R9,421 Base rental per m2: R84 Parking per bay (103 bays) R413 Ops costs recovered per m2 R18 Rates recovered per m2 R9 Other recoveries per m2 R20 Weighted average lease expiry 0.8 years Rental escalations 8.5%

19 West Street

Grade P Major tenants N Kelly Inc. Attorneys Location 16 Petlier Drive, Sunninghill GLA: 685 m2 (1,370 m2) Valuation (Cap rate of 8.60%): R10,468,997 (R20,937,982) Value per m2: R15,283 Base rental per m2: R93 Parking per bay (68 bays) R366 Ops costs recovered per m2 R27 Rates recovered per m2 R15 Other recoveries per m2 R12 Weighted average lease expiry 2.7 years Rental escalations 9.0%

Vacant 2014 2015 2016 2017 2018+

The remaining 50% share of 19 West is owned by Abseq Properties. Abseq Properties was acquired by Growthpoint in October 2013

The Tiber portfolio cont’d

33

Wierda Gables

Grade B Major tenants Cresta Hotels, Copago, \ Location 54 Wierda Road West, Wierda Valley GLA: 2,190 m2 Valuation (Cap rate of 8.20%): R7,514,846 Value per m2: R3,431 Gross base rental per m2: R87 Parking per bay (61 bays) R411 Ops costs recovered per m2 R21 Rates recovered per m2 R15 Other recoveries per m2 R22 Weighted average lease expiry 1.1 years Rental escalations 8.5%

Vacant 2014 2015 2016 2017 2018+

Thank you