Mark Baillie Banking & Property Banking & Property Group - - PowerPoint PPT Presentation

Mark Baillie

Banking & Property

50

Banking & Property Group

Key Milestones in North America

1997 2001

CHICAGO CHICAGO NEW YORK NEW YORK M MBL forms JV to establish Macquarie Capital Partners (MCP) / Macquarie Real Estate Inc, Real Estate Capital (REC) Macquarie CountryWide Trust (MCW) forms JV with Regency Centers MEMPHIS MEMPHIS Macquarie Mortgages USA (MMUSA)

2002

SEATTLE SEATTLE Real Estate Structured Finance (RESF) JV with ProLogis to form Macquarie ProLogis Trust (MPR) Strategic alliance with Archstone Smith

2004

IRVINE IRVINE RESF Macquarie Office trust (MOF) acquires Principal America Office Trust (PAO)

2005

MCW acquires $US2.7 billion CalPERS portfolio with Regency Centers

2003

LOS ANGELES LOS ANGELES RESF JV with DDR to form Macquarie DDR Trust (MDT)

2006

MOF establishes $US1.2billion JV with Maguire Properties JUPITER JUPITER M MBL and Greg Norman’s Great White Shark Enterprises form Medallist Developments (Medallist)

Columns represent growth in US assets under management

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Banking & Property Group

Staff & Office Locations in North America

181 staff across 7 offices in North America (including Macquarie Capital Partners and Medallist JVs)

New York New York

• Real Estate Capital
• Real Estate Investment

Banking

Seattle Seattle

• Real Estate Structured Finance

Los Angeles Los Angeles

• Real Estate Structured Finance

Jupiter Jupiter

• Residential Community

Development

Chicago Chicago

• Real Estate Capital
• Real Estate Investment

Banking

Irvine Irvine

• Real Estate Structured Finance

Memphis Memphis

• Residential Mortgages

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Banking & Property Group

North American Business Snapshot

Business Name Medallist Developments Macquarie Capital Partners Macquarie Mortgages USA Macquarie Real Estate Structured Finance

Real Estate Investment Banking Joint Venture between MBL and MCP Management 32 staff Chicago New York Completed 164 transactions totaling $US40.1 billion since 1991 Global investment banking and advisory firm

Activity Type Staff & Office Locations Description Key Milestones

Real Estate Structured Finance Wholly owned by MBL 21 Staff Seattle Los Angeles Irvine Closed largest deal in the US: $US105 million senior financing for condo conversion, Downtown LA – Jan 06 One stop shop for all capital tranches up to 100% of project cost Residential Mortgages Wholly owned by MBL 94 staff Memphis Licensed in 34 states & written $US2.3 billion,

• r 8,787 mortgages

under the Macquarie brand in the US Provides innovative home financing solutions that allow borrows to enhance wealth and lifestyle Residential Community Development Joint Venture between MBL and Great White Shark Enterprises 21 staff Jupiter 6420 residential lots and 3 golf courses across 5 communities in 4 states in the US Developer of premier residential communities

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Macquarie Real Estate

Real Estate Capital Business Snapshot

Drivers

• Australian superannuation flows
• Significant global increase in demand for

securitized real estate product Strategy

• Building off expertise developed in Australian

market to continue to develop our business as a leading global manager of securitized real estate funds, both listed and unlisted

• Using a combination of investment banking

and funds management skills to continue to develop and manage products that provide attractive risk adjusted returns to global real estate investors How do we make money for MBL?

• Management fees

ie base, performance and asset management

• Sponsorship fees
• Principal positions in managed trusts

Staff

• 13

Office Locations

• Chicago and New York

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Australian LPT market

Superannuation drives growth

Very large and growing superannuation industry

• 70% of the total investment management market
• Australian superannuation funds have grown 16.9% per annum since 1983
• Superannuation funds projected to double by 2011
• Government mandated 9%
• Due to limited domestic product, offshore investments have increased

Growth in Australian Superannuation Market

$0 $500 $1,000 $1,500 $2,000 $2,500

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

($A billions) Forecasted

Australian Superannuation Asset Allocations

Australian Equities 28% Property 13% International Equities 20% Australian Fixed Interest 18% International Fixed Interest 4% Cash 10% Other 7%

Source: Rainmaker

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Australian Real Estate Capital Raisings

Macquarie is the leading issuer of listed real estate capital in Australia

Capital Raised January 2003 - March 2006 for assets acquired in Australia/New Zealand, United States, Asia and Europe

500 1,000 1,500 2,000 2,500 3,000 3,500 Macquarie Galileo Centro Multiplex Stockland ING Tishman James Fielding Babcock & Brown Rubicon APN Valad Lend Lease Colonial Gandel Mirvac Westfield Charter Hall Ronin Reckson Abacus Trafalgar Mariner Investa Village Life MacArthur Cook Aspen A$ in Millions AUS / NZ US Asia Europe Source: UBS Real Estate Weekly 2003, March 2006

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Key to Success

Partnering with Best of Breed

Macquarie ProLogis Trust (MPR) Macquarie DDR Trust (MDT) Macquarie Office Trust (MOF) Macquarie CountryWide Trust (MCW) Partner Sector Focus Neighbourhood Industrial/ Community Class-A Retail Distribution Retail Office US Assets 1491 1392 72 173 US States (incl. DC) 23 18 + Mexico 24 10 Square Footage 17.3m1 35.2m 15.0m 11.3m JV AUM $US2.8b1 $US1.6b $US1.9b $US2.2b Commencement Jun 01 Jun 02 Nov 03 Dec 03 MBL has a strategic alliance with Archstone-Smith to explore US investment and Australian capital raising opportunities

1. Includes some properties previously identified for disposal. 2. MPR owns 22 assets in Mexico. 3. MOF owns 4 assets in JV with Equity Office Properties, 1 with Brandywine, 1 with KanAM, 5 with no JV partner and 6 with Maguire. All figures are as at March 31, 2006.

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Macquarie’s North American Real Estate Assets

$US10.75 billion real estate assets under stewardship with JV partners 78.8 million sq ft of gross leaseable area across 377 properties in 33 US states + Mexico

2 173 $29 1 400 $56 61 12,245 $2,394 12 2,680 $609 CT - 2 744 $148 DE - 4 1,048 $208 NJ - 5 1,169 $97 22 4,540 $791 36 6,019 $667 13 5,516 $917 14 2,537 $258 1 344 $56 7 2 , 2 5 $ 1 1 4 12 4,280 $199 MD - 19 2,095 $424 1 217 $34 4 1,370 $211 Mexico 27 3,932 $223 1 386 $66 7 1,191 $86 4 406 $103 5 2,702 $380 7 1,307 $106 21 2,513 $665 11 3,546 $269 14 2,946 $331 6 536 $85 37 8,051 $506 1 150 $6 4 488 $75 5 965 $92 5 395 $48

Value ($US m) Properties Gross Leaseable Area (sq ft ‘000s)

MA - 3 1,096 $332 DC - 4 544 $171

All figures are as at March 31, 2006.

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• No. 1 Foreign Investor in US Real Estate

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2001 Q1 2001 Q2 2001 Q3 2001 Q4 2002 Q1 2002 Q2 2002 Q3 2002 Q4 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 $US millions Australia Canada Europe (ex. Germany & UK) Germany Middle East Other Pacific Rim United Kingdom Macquarie

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2006/07 & Beyond

Real Estate Capital

• Continue to grow and enhance the performance of our existing managed trusts in conjunction with our partners
• Enhance our access to US capital sources – both institutional and retail
• Expand the number of trusts under management in alternative real estate sectors
• Take principal positions to unlock value in US real estate sector

Real Estate Structured Finance

• Expand real estate structured finance into new markets: USA: San Francisco, Phoenix, Chicago, Atlanta; Canada

and Latin America

• Services to include: debt advisory and placement and further leverage to opportunities through strategic use of

principal commitment to deals and development entity co-investment Macquarie Mortgages

• Volumes down this year – inverse yield curve
• Plan to launch retail (direct-to-consumer) presence in late 2006
• Goal to be licensed in majority of US states by 2007
• Existing core adjustable rate products to be enhanced with fixed interest loan products

Mark Baillie

Banking & Property