Mara Delta Property Holdings
Investor Presentation 2016
Mara Delta Property Holdings Investor Presentation 2016 Dis - - PowerPoint PPT Presentation
Mara Delta Property Holdings Investor Presentation 2016 Dis isclaimer This document, which is personal to the recipient, has been prepared by Delta International Property Holdings (the Company ), solely for use at a presentation to
Investor Presentation 2016
This document, which is personal to the recipient, has been prepared by Delta International Property Holdings (the “Company”), solely for use at a presentation to potential
answer session that follows the presentation, hard copies and electronic copies of this document and any materials or information distributed or communicated at, or in connection with, any presentation (together the “Presentation”). This Presentation contains information which is not in the public domain (collectively referred to as the "Confidential Information"). The Confidential Information constitutes inside information, as defined in the Financial Markets Act, 2012 and its Mauritian equivalent legislation, and such Confidential Information cannot be disclosed to any third party, and no trade in the securities of the Company may be made, until such time as the Confidential Information has been made public by way of a SENS announcement and a SEM announcement. Recipients of this Presentation agree and undertake that, until such time as the Confidential Information has been made public by way of a SENS announcement and a SEM announcement 1) to treat and safeguard the Confidential Information as strictly private, secret and confidential, 2) not to use or permit the use of the Confidential Information for any purpose other the consideration or evaluation of the information contained in the Proposal (the "Permitted Purpose") and 3) not to disclose or divulge, directly or indirectly, the Confidential Information in any manner to any third party for any reason or purpose whatsoever. THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, OR JAPAN THE INFORMATION CONTAINED THIS PRESENTATION IS STRICTLY CONFIDENTIAL AND MAY NOT BE FORWARDED, PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON (WHETHER WITHIN OR OUTSIDE YOUR ORGANIZATION/FIRM) FOR ANY PURPOSE AND MAY NOT BE REPRODUCED IN ANY MANNER WHATSOEVER. ANY FORWARDING, PUBLICATION, DISTRIBUTION OR REPRODUCTION OF THESE MATERIALS IN WHOLE OR IN PART IS UNAUTHORIZED Neither this Presentation nor any copy of it may be taken, transmitted, distributed or published in or into the United States of America, its territories or possessions (the “United States”) or distributed, directly or indirectly, in the United States. Any failure to comply with these restrictions may constitute a violation of United States securities laws. The Company’s shares have not been, and will not be, registered under the US Securities Act of 1933, as amended (the “US Securities Act”) or the laws of any state, and may not be
any offering of Shares will be made only to qualified institutional buyers in accordance with Rule 144A under the US Securities Act or in other transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable state or local securities laws. Outside the United States, any offering of shares will be made in accordance with Regulation S under the US Securities Act.
(conti tinued)
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Anadarko Building, Mozambique
Vodacom Building & KPMG / Hollard Building, Mozambique
commercial experience and expertise in SSA:
proven track record of acquiring and managing commercial real estate assets
Uganda and Tanzania, amongst others
Pre Pivotal Investment Post Pivotal Investment
Market capitalisation US$ 218.9 million US$ 276.9 million
10 12 Location of properties Morocco; Mozambique; Zambia; Mauritius Morocco; Mozambique; Zambia; Mauritius; Kenya; Nigeria Independent valuation of the property portfolio US$ 317.0 million US$ 433.5 million Gross lettable area* 126,298m2 (67,264m2 added) 160,026m2 (33,728 m2 added) Sectoral profile (by value) Office: 34.7%; Retail: 52.3%; Light Industrial: 2.7%; Corp Accomm: 10.3% Office: 50.8%; Retail: 39.7%; Light Industrial: 2.0%; Corp Accomm: 7.5% Occupancy rate* 98% 98% LTV ratio + 50.0% + 50.0%
Anfa Place, Morocco
economies
in-country resources
BRONWYN CORBETT CEO TREVOR MATTHEWS
SENIOR OPERATIONS ASSET MANAGER
OJONG NSO
OPERATIONS ASSET MANAGER
BENYAMIN BELHAJ
OPERATIONS ASSET MANAGER - MOROCCO
COO PAUL SIMPSON
COUNTRY EXECUTIVE - MOROCCO
KAREN BRAMLEY
COUNTRY EXECUTIVE- EAST AFRICA
JEREMY COOPER
HEAD OF INVESTMENTS
MIKE SEWELL
INVESTMENT MANAGER
KAI MARINI
JUNIOR INVESTMENT MANAGER
GREG PEARSON
HEAD OF DEVELOPMENTS
LEON VAN DE MOORTELE CFO ASHWIN METURJEET
FINANCE MANAGER - MAURIITIUS
MOHAMED BOUIBAOUNE
FINANCIAL ACCOUNTANT - MOROCCO
EDSON NEVES
FINANCIAL ACCOUNTANT- MOZAMBIQUE
KIRSTEN LEWIS
OFFICE MANAGER/ EXECUTIVE ASSISTANT
Freedom Property Fund SARL (Morocco) Anfa Place Shopping Centre Casablanca, Morocco Commotor Limitada (Mozambique) Delta International Bahrain (Bahrain) 100% 100% S&C Immobiliaria Limitada (Mozambique) Hollard Building Vodacom Building Maputo, Mozambique Anadarko Building Maputo, Mozambique HM & K Properties Limited (Mauritius) SAL Investment Holdings Limited (Mauritius) 100% 3% 5% 95% 97% 100%
Delta Africa Property Holdings Limited (Mauritius) (SEM and JSE Listed) Delta International Mauritius Limited (Mauritius)
DIF 1 Limited (Mauritius) 100% Zimpeto Investment Holdings Limited (Mauritius) Zimpeto Immobiliaria Limitada (Mozambique) Zimpeto Square Maputo, Mozambique 100% 97% 100% 3% BH Property Investments Limited (Mauritius) 100% Barclays House Ebene, Mauritius
As at 22 September 2015 Units held Holding Delta Property Fund 23 405 584 31.78% Government Employees Pension Fund 19 054 810 25.87% Stanlib 6 639 793 9.01% Bowwood and Main* 5 746 061 7.80% Anchor Capital 3 365 318 4.57% Subtotal 58 211 566 79.03% Other 15 444 880 20.97% Total 73 656 446 100.00%
* Management Team
Anadarko Building, Mozambique
Full Year 30 June 2015 Quarterly 30 Sept 2015 Dividend per share (USD cents) 11.28
24.5% 15.3% LTV 48.7% 47.8% NAV per share (excl. deferred tax) (USD cents) 168.91 164.69 Weighted average rental/m² US$27
30 June 2015 USD ‘000 30 Sept 2015 USD ‘000 Assets Non-Current assets 210 698 222 682 Investment property 210 391 222 545 Other non-current assets 307 137 Current assets 25 343 33 666 Total assets 236 041 256 348 Equity and liabilities Total Equity 124 413 121 302 Deferred taxation 807 930 Derivative instruments
Interest-bearing liabilities 101 657 122 753 Current liabilities 9 164 10 884 Total equity and liabilities 236 041 256 348 Net asset value per share (cents) 168.91 164.69
(Pre-pip ipeline an and Piv Pivotal)
20% 11% 9% 6% 5% 4% 4% 3% 2% 2% 34%
Vodacom Anadarko Alhokair Alshaya Label Vie Samarcande Group Sal & Calderia Advogados DVH BP KPMG Other
Modern retail and office assets with attractive tenant mix located in African countries with strong fundamentals
Top 10 Tenants (by income)
52,6% 47,4%
Mozambique Morocco
Portfolio Summary by Geography (Asset Value)
Portfolio Metrics Retail Office Total
Number of Properties 2 3 5 Acquisition Cost (US$m) 121 97 218 Independent Property Value ($m) 115 105 220 Weighted Average Acquisition Yield1 8.6% 8.8% 8.7% Weighted Average Capitalisation Rate2 8.4% 8.6% 8.5% WALE (years by income) 6.9 years 7.0 years 7.1 years GLA (sqm) 35,643 23,410 59,053 Occupancy (by GLA) 93.3%3 100.0% 96.0%
KPMG / Hollard Building, Mozambique
Mo Mozam ambi biqu que
Population (million)
25.8
GDP (USDbn)
15.3
Real GDP growth rate (%)
7.1
GDP / Capita (USD)
592.5
CPI (%)
4.2
Credit rating
B Current presence
Sources: EIU, Standard & Poor’s Note:
Ma Maur uritius
Population (million)
1.3
GDP (USDbn)
12.6
Real GDP growth rate (%)
3.2
GDP / Capita (USD)
54 629
CPI (%)
7.16
Credit rating
Baa1 Mo Moroc
Population (million)
33.0
GDP (USDbn)
104.1
Real GDP growth rate (%)
4.4
GDP / Capita (USD)
3 155.2
CPI (%)
1.9
Credit rating
BBB- Target jurisdictions Ni Niger eria
Population (million)
179.0
GDP (USDbn)
569.0
Real GDP growth rate (%)
9.19
GDP / Capita (USD)
1 092
CPI
9.3
Credit rating
B+ Kenya
Population (million)
45.6
GDP (USDbn)
60.94
Real GDP growth rate (%)
3.8
GDP / Capita (USD)
649.0
CPI (%)
6.72
Credit rating
B+ Zam ambi bia
Population (million)
15.2
GDP (USDbn)
27.07
Real GDP growth rate (%)
7.1
GDP / Capita (USD)
1 081
CPI (%)
1.54
Credit rating
B
(Transfer Jan January 2016 2016)
Location: Tete, Mozambique Anchor tenants: Vale and Barloworld Sector: Commercial / Residential Land title: Leasehold (50 + 50 years) GLA: 83 x 3 bed villas 40 x 2 bed apartments Anchor lease term: 7 years Vale, 3 years Barloworld Anchor tenant lease expiry: 2023 and 2019 Average escalation: 3% p.a. Vacancies: 0% Valuation: US$33.4 million Acquisition yield: 9.80% (7.80% in Mauritius) Equity requirement: US$17.6 million Debt requirement: US$16.7 million (refinance) Vendor: VDE Limitada Type of purchase: Purchase of Mauritius SPV
(Transfer Jan January ry 2016 2016)
Location: Pemba, Mozambique Anchor tenants: Bollore Africa Logistics Sector: Light industrial Land title: Leasehold GLA: 6 400m2 Parking bays: 10 Anchor lease term: 4.5 years Anchor tenant lease expiry: March 2020 Average escalation: 0% Vacancies: 0% Valuation: US$8.0 million Equity requirement: US$4.3 million Acquisition yield: 10.90% (7.60% in Mauritius) Debt requirement: US$4.0 million Vendor: HodariProp Type of purchase: Subject to negotiation
(Transferred)
Location: Ndola, Zambia Anchor tenants: Shoprite Sector: Retail Land title: Leasehold GLA: 11 964m2 Anchor lease term: 8.5 years Anchor tenant lease expiry: April 2024 Average escalation: USD CPI p.a. Valuation: US$24.8 million (100%) Acquisition yield: 7.75% (7.20% in Mauritius) Equity requirement: US$5.6 million Debt requirement: US$7.1 million (refinance) Vendor: Rockcastle Global Real Estate Type of purchase: 50% Purchase of Mauritius SPV
(Transferred)
Location: Kitwe, Zambia Anchor tenants: Shoprite, Game, Pick n Pay Sector: Retail Land title: Freehold GLA: 28 235m2 Anchor lease term: 4.5 years Anchor tenant lease expiry: March 2020 Average escalation: USD CPI p.a. Valuation: US$68.7 million Acquisition yield: 7.75% (7.20% in Mauritius) Equity requirement: US$17.8 million Debt requirement: US$17.4 million (refinance) Vendor: Rockcastle Global Real Estate Type of purchase: 50% Purchase of Mauritius SPV
(Transfer Jan January ry 2016 2016)
Location: Ebene, Mauritius Anchor tenant: Barclays Bank Sector: Office Land title: Leasehold GLA: 7 700m2 Parking bays: 150 Anchor lease term: 12 years Anchor tenant lease expiry: 2028 Average escalation: CPI Vacancies: 0% Valuation: US$13.4 million Equity requirement: US$8.2 million Acquisition yield: 8.30% (7.40% in Mauritius) Debt requirement: US$6.7 million Vendor: Jade Group Type of purchase: Purchase of building
(Transfer Apr pril l 2016 2016)
Location: Lusaka, Zambia Anchor tenants: Shoprite, Game Sector: Retail Land title: Freehold GLA: 25 900m2 Parking bays: 1 300 Anchor lease term: 10.0 years Anchor tenant lease expiry: 2026 Average escalation: US CPI p.a. Vacancies: 0% Valuation: US$80.0 million (100%) Equity requirement: US$6.3 million (mezz. facility) Balance on completion of asset Acquisition yield: 7.75% (7.2% in Mauritius) Debt requirement: US$6.0 million (mezz. facility) Balance on completion of asset Vendor: Rockcastle Global Real Estate Type of purchase: 50% Purchase of Mauritian SPV
(Transfer March 2016 2016)
Location: Naivasha, Kenya Ownership interest: 50.0% Anchor tenant: Tuskys Sector: Retail Land title: Leasehold GLA: 5 300m2 Parking bays: 250 Anchor lease term: 15.0 years Anchor tenant lease expiry: 2030 Average escalation: 3% p.a. Vacancies (GLA): 1.9% Valuation: US$10,4 million (100%) Equity requirement: US$3.6 million Acquisition yield: 6.4% (2.5% in Mauritius) Debt requirement: US$3.4 million Vendor: Pivotal Fund Limited Type of purchase: Share Purchase. Mauritian holdco
(completion & transfer Sep September 20 2016 16)
Location: Lagos, Nigeria Ownership Interest: 37.1% Anchor tenant: Oando PLC Sector: Office Land title: Leasehold GLA: 27 000m2 Parking bays: 700 Anchor lease term: 10.0 years Anchor tenant lease expiry: 2026 Average escalation: 3% p.a. (4.5% p.a. from year 4 onwards) Vacancies (GLA): 41.3% Valuation: US$280.0 million (100%) Equity requirement: US$55.1 million Acquisition yield: 9.4% (6.9% in Mauritius) Debt requirement: US$53.2 million Vendor: Pivotal Fund Limited Type of purchase: Share purchase. Mauritian holdco
Anfa Place, Morocco
› Letting of retail vacancies in Morocco › Planned CAPEX/Expansion projects › Pre-let development pipeline
› Pipeline of developed assets to bulk up core portfolio › Deliberate and selective diversification of assets to increase earnings
› Active and controlled property management › Emphasis on achieving lower cost to income ratios through economies of scale › On the ground management in place
› Diversification (currency and jurisdiction) of funding sources to obtain lowest rates › Optimal usage of assets provided as security › Strategy of fixing 70% of rates at favourable levels › Access to debt capital markets
Sandile Nomvete
Chairman Exec Dep. & Prop Dev. Prog Sandile is the founder and CEO of Delta Property Fund, a REIT listed on the JSE with a portfolio of assets valued at ~US$700m. Sandile serves as a director on a number of other boards and has more than a decade of experience in executive and non executive positions.
Bronwyn Anne Corbett
Chief Executive Officer BCom (Acc) (Univ. of Natal, PMB), CA(SA) Bronwyn is a Chartered Accountant and CEO of Mara Delta (previously Delta Africa). She has more than 10 years of experience in the property sector with a specific focus on property ownership and financing structures. Bronwyn was a co-founder of Delta Property Fund which has built its property portfolio from R2 billion to in excess of R10 billion. Bronwyn was instrumental in both the listing of Delta Property Fund and Delta Africa (now Mara Delta) and has extensive experience in raising capital.
Leon van de Moortele
Chief Finance Officer Bcompt (Hons), CA(SA) After completing articles with PwC, Leon moved to the Global Risk Management Services within PwC, where he become the Senior Manager in charge of Data Management. In 2004, he moved to Solenta Aviation where he became Group Finance Director within 18 months. During his tenure as Group Finance Director, the group expanded from 12 aircraft to 48 aircraft,
d’Ivoire.
Greg Pearson
Executive Director MCMI, Elec Eng Greg is a graduate of Kingston University in London where he studied Business Management and Project Management. Prior to joining Delta, Greg was an executive with AECOM and was responsible for expanding their African footprint (ex- SA) resulting in his involvement in a vast array of major projects across Africa.
Paul David Simpson
Chief Operating Officer RIBA1 Paul has had close involvement in providing architectural input on three hundred new shopping centres across South Africa, Africa and the Middle East. Paul’s experience ranges from major tenant input through to mall plan design of large regional centres such as Clearwater Mall, Maponya Mall and Irene Mall. Paul also served as construction director of Group Five Building in the Western Cape as well as 2 decades at Woolworths heading up the real estate division.
Peter Todd
Lead Independent Director Peter was appointed as an Independent Non-Executive Director with effect from 14 August 2014. Peter is a qualified attorney and began his career as the senior tax manager at Arthur Anderson and Associates in Johannesburg. He joined TWS Rubin Ferguson in 1993 as a tax partner and was instrumental in listing six companies on the JSE. In 2000, Peter established Osiris International Trustees Limited in the British Virgin Islands (“BVI”) to provide international trust and corporate administrative services to global clients, as well as Drake Fund Advisors which assists with the setup and administration of hedge funds in the BVI and Cayman Islands. He held a Non-Executive Director position at Redefine International Limited from the initial listing for some 9 years and has been involved in the property industry for many years.
Maheshwar Doorgakant
Non-Executive Director Maheshwar is a fellow of the Institute of Chartered Accountants of England and Wales. He holds the position of Managing Director of Apex Fund Services (Mauritius) Limited, which forms part of the Apex Group. He holds a number of directorships on numerous boards in both India and Africa for various funds and companies through which he has acquired extensive experience and knowledge on key industries in India and its principal capital markets as well as Africa. Mahesh is also the President of the Executive Committee of the Association of Trust and Management Companies of Mauritius.
Chandra Kumar Gujadhur
Non-Executive Director Chandra is the Chairman and co-founder of Apex Fund Services (Mauritius) Limited. He is also a member of the Institute of Chartered
experience in the auditing of offshore funds, fund structuring and tax planning. He was previously a member of the Accounting and Auditing task team of the Corporate Governance Committee of Mauritius and the Chairman and member of the Consultative Sub-Committee on the drawing up of the New Listing Rules of the Stock Exchange of
Managing Director at Apex Mauritius. As a board member of numerous India focused funds and companies he has gained extensive experience and knowledge on key industries in India and its principal capital markets.
Ian Mcleod
Non-Executive Director Ian holds a BCom (Honours) in Real Estate Investment, Valuation and Development and has over 41 years of experience with financial institutions, including Standard Bank of South Africa and Nedbank with a specific focus on Real Estate Credit Risk. He has extensive knowledge of the real estate sector’s key role players, business sector and geographic nodes. Ian has managed portfolios in excess of R40 billion during changing economic cycles and managing problematic properties in economic downturns. It is Ian’s expertise and knowledge that have seen him previously hold the position of Head of Credit for Real Estate.
Trevor Matthews
Operations Manager Certificated in Shopping Centre Management Trevor has over 30 years industry experience beginning his career in 1979 as a property assistant, a position he held for six years, in which he established the building blocks to a long and successful career in the sector. By 1985, he joined BanKorp Properties as a manager of collections. Following this, Trevor joined Liberty Group Properties as the Leasing Manager. In 2001, he managed a R1.5 billion portfolio for Allan Gray Shopping centres, thereafter progressing to Canal Walk Management as the Leasing Manager. He was the Retail Asset Manager of the Fountainhead Property Trust where he was responsible for the full asset management of a retail portfolio of 10 shopping centres.
Jackie Van Niekerk
Non-Executive Director (Pivotal) Jackie is the CEO of The Pivotal Fund Limited. Jackie studied BCom Accounting at the University of Pretoria and has 10 years of property experience in all property industries and disciplines. Jackie joined Pivotal in 2009 as an asset manager, where she gained experience in property management, investment and development in all property sectors. She was elected to the board and appointed as managing director in June 2013.
Ashish J Thakkar
Non-Executive Director (Mara) Ashish J. Thakkar is the Executive Chairman of Mara Sokoni, an African e-commerce platform with a focus on B2C marketplace for general merchandise. He is also the Founder of Mara Group and Mara Foundation. Ashish has driven the growth of the Mara Group from a small IT business in Uganda to the globally recognized multi-sector investment group that exists today. Through its investments, Mara Group now employs over 11,000 people across 25 African countries in sectors spanning technology, banking, real estate and
Awakes: Adventures in Africa’s Economic Miracle.
Dave Savage
Non-Executive Director (Pivotal) Dave is an Executive Director of The Pivotal Fund Limited. Dave has 27 years’ experience in the property industry, 25 years of which have been dedicated to the growth of the Abcon Group. Dave has been involved in all aspects of Abland becoming a national property development company active in all industry sectors. He was also integrally involved in the formation and listing of Pivotal. Dave currently serves as Group CEO for the various companies. In addition, he serves on the board of Fountainhead Property Trust.
Ian Chambers
Independent Non-Executive Director Ian Chambers is an Independent Non-Executive Director residing in Mauritius. His company, Ian Chambers Consulting Limited, provides: tax advice to expatriates considering using Mauritius for future business; exchange control advice to South Africans considering relocating or emigrating to Mauritius; tax structuring advice to companies considering the utilisation of Mauritius; and structuring advice to South African companies in general.
Location: Casablanca, Morocco Anchor tenants: Carrefour, M&S, H&M, Virgin Megastore, McDonalds, Starbucks, Burger King Sector: Retail Land title: Freehold GLA: 30 879m2 Parking bays: 1148 Anchor lease term: 3 + 3 + 3 years Anchor tenant lease expiry: 2021 Average escalation: 10.0% every 3 years Vacancies: 0.31% in shopping mall 7.33% in street mall Valuation: US$104.7 million
Location: Maputo, Mozambique Anchor tenant: Anadarko Petroleum Sector: Office Land title: Leasehold (50+50 years) GLA: 7 805m2 (plus 4 000m2 second phase) Parking bays: 185 Anchor lease term: 15 years Anchor tenant lease expiry: May 2028 Weighted average escalation: PPI + 2.5% Vacancies: 0% Valuation: US$ 41.2 million
Location: Maputo, Mozambique Anchor tenant: KPMG, Hollard & BP Sector: Office Land title: Leasehold (50+50 years) GLA: 4 945m2 Parking bays: 99 Anchor lease term: 3.5 years Anchor tenant lease expiry: Feb 2018 Weighted average escalation: 4.1% Vacancies: 0% Valuation: US$ 18.6 million
Location: Maputo, Mozambique Anchor tenant: Vodacom Sector: Office Land title: Leasehold (50+50 years) GLA: 10 660m2 Parking bays: 336 Anchor lease term: 10 years Anchor tenant lease expiry: Dec 2020 / 5.9 years Weighted average escalation: 5.0% Vacancies: 0% Valuation: US$ 43.4 million
Location: Maputo, Mozambique Anchor tenant: Retail Masters, Edcon Sector: Retail Land title: Leasehold (50+50 years) GLA: 4,764m2 Parking bays: 136 Anchor lease term: 10 years Anchor tenant lease expiry: May 2024 / 6.5 years Weighted average escalation: 4.2% Vacancies: 0% Valuation: US$ 10.6 million