Sirius Real Estate Business Presentation 2014 1 Sirius Real Estate - - PowerPoint PPT Presentation

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Sirius Real Estate Business Presentation 2014 1 Sirius Real Estate - - PowerPoint PPT Presentation

Aug 20, 2022 192 likes •472 views

Providing space for business Sirius Real Estate Business Presentation 2014 1 Sirius Real Estate Group History Listed on the London AIM on 4 May 2007 Acquired 38 business parks between 2006 and 2008 currently own 30 properties valued

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1 Providing space for business

Sirius Real Estate Business Presentation 2014

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Sirius Real Estate Group History

  • Listed on the London AIM on 4 May 2007
  • Acquired 38 business parks between 2006 and 2008 currently own 30

properties valued by DTZ at €434m in Sept 2013.

  • Currently financed by BerlinHyp (€115m), Macquarie (€61m), K-Bonds

(€52m)

  • Externally managed by PCSREAM till Jan 2012, now asset management

team internalised

  • Currently employs 150 people to perform all aspects of asset management

and property management

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Business Model

To acquire large under-utilised and under-

  • ccupied office/industrial properties (typically

30,000-100,000 m²) for conversion into improved higher yielding workspace in well-established business locations targeted specifically at the Small and Medium sized enterprises.

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Business Model

  • To purchase off-market directly from private investors, corporates, banks

and institutions across the country

  • Retain or add core anchor tenants (Siemens, GKN, VAG)
  • Transforms the property through branding and renovation
  • Drive occupancy and rental growth through in-house sales & marketing

platform

  • Creates highly yielding flexible workspace through a range of products
  • Reduce direct costs and significantly improve service charge recoverability
  • Maximise value of surplus land through appropriate development or

disposal

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SLIDE 6

Typical Sirius Business Park

  • 40-50% of space let to core anchor tenant/tenants with long-

term good covenanted income

  • 40% of space let on conventional basis to Mittelstand
  • 10-20% Flexible space housing Sirius product range
  • Market leading in-house letting/re-letting space in all

categories above

  • Market leader in managing and recovering service charge

costs from multi-tenant, mixed-use business parks

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SLIDE 7

Sirius Product Range

Dec-13

SqM - Total Occupancy SqM - Vacant Total Income (All Inclusive) Total Rate per SqM SMSP Office 17,557 69% 5,500 1,596,534 11.03 SMSP Flexilager 32,318 33% 21,765 929,221 7.28 SMSP Storage 7,676 58% 3,211 419,398 7.83 SMSP Workbox 3,739 76% 899 264,460 7.76 Conferencing 5,593 100% 765,500 11.41 TOTAL 66,883 53% 31,285 3,975,113 9.31

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Sirius Product Range

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Operational Performance – Last 5 Years (adjusted for post year end items)

Mar-10 Mar-11 Mar-12 Mar-13 Sep-14 (6 mths) Rent 41.8 42.1 43.2 43.1 21.0 Surrender Premiums 0.0 1.7 0.9 1.0 1.7 Other Income 2.0 1.4 1.0 1.3 0.6 TOTAL INCOME 43.8 45.1 45.1 45.4 23.3 Service Charge Irrecs (10.9) (9.3) (8.2) (7.1) (3.6) Maintenance (1.0) (1.2) (1.1) (1.2) (0.5) NOI 31.9 34.6 35.7 37.2 19.2 Overheads & Bad Debts (16.2) (15.2) (13.4) (12.4) (5.6) EBITDA 15.7 19.4 22.3 24.7 13.6 Interest & Finance Costs (17.8) (17.9) (17.6) (15.0) (6.1) Depreciation (0.6) (0.9) (0.9) (1.0) (0.6) PBT (2.8) 0.7 3.8 8.7 6.9

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SLIDE 10

Legal Development Marketing Finance Tax Conferencing HR Asset Management Technical Operations Managers ROM Sales IT Senior Management Team Operations Center Manager Sales In-bound Information Services SAP Area Sales Manager Service Charge SAP Team Technical Operations Manager

The Team

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The Operating Platform

  • Sales & Marketing division generating > 1,000 enquiries per month and converting

100,000sqm (circa €7m income) of new lettings per year

  • On-line Marketing team responsible for fully integrated online marketing strategy
  • Dedicated renewals team focused on tenant retention
  • Service Charge Reconciliation division with advanced allocation tools and methods
  • Internally trained on-site management dealing with all aspects of property

management

  • Highly advanced rent collection systems, procedures and resources
  • Dedicated internal legal, accounting and tax services
  • In-house development team to manage capex projects and investment
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Sales & Marketing

  • A Marketing division that has produced a 300% increase in enquiries over the last

4 years.

  • In-house expertise responsible for creating, developing and managing nearly 7,000

live on-line promotions.

  • Daily management of 150 live Google pay per click campaigns.
  • Managed presence across 25 on-line German specialist property portals.
  • Contact database of over 70,000 records with increased propensity to purchase

Sirius products.

  • A website consisting of 100,000 relevant keywords making the Sirius brand

unavoidable to relevant on-line enquirers throughout Germany.

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Sales & Marketing (continued)

  • A trainable and measurable 10 step Sirius specific structured sales process.
  • A 100 point mystery shopping formula that enables accurate measurement of sales

activity.

  • A Customer Relationship Management System that can measure how quickly

salespeople deal with sales leads and help to forecast future sales results.

  • A sales force that conducts over 6,000 viewings per year resulting in the

acquisition of over 1,000 new customers per annum and the sale of more than 100,000 sqms of commercial space per year.

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SLIDE 14

Service Charge

  • A dedicated in-house Service Charge Balancing team.
  • In-house tools & knowledge for management and control of external

facility management suppliers.

  • In-house expertise and implementation of effective utilities metering and

control.

  • Advanced tools for cost allocation to improve cost recovery.
  • Reduced irrecoverable costs on SRE portfolio from €12m to €7.5m in 2

years;

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Total SRE Portfolio at Feb 14

Business Parks 30 Property value (DTZ) € 428m Net lettable area 1.0 m 64% 23% 13% Usage Split

64% 23% 13%

Usage Split

Industrial/Logistic/Storage Office Other

Annual rent €40.9m Average rate € 4.47 Occupancy 75%

56% 29% 15%

Usage Split - by Revenue

Industrial/Logistic/Storage Office Other

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Key Facts – Portfolio Lease Expiry

< 1 Yr 1 - 2 Yrs 2 - 3 Yrs 3 - 4 Yrs 4 - 5 Yrs > 5 Yrs Feb-14 11,920,624 10,114,526 7,365,425 2,406,361 2,550,788 6,981,030 29% 24% 18% 6% 6% 17% 2 4 6 8 10 12 14 € - Millions

Portfolio - lease expiry by Annual Rent (Feb 14) to First Break Clause

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30 Business Parks

Bayreuth Berlin Bonn Bremen Düsseldorf Hannover Kassel Kiel Kirchheim Köln Magdeburg Maintal Mannheim Merseburg München Nürnberg Offenbach Pfungstadt Rostock Solingen Wuppertal

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Current SRE Major Tenants

Space - Sqm Monthly Rent % Of Total Rent Average Lease Length Remaining - Yrs 1 Siemens 40,646 195,879 5.6% 2.3 2 GKN Aerospace Deutschland GmbH 41,314 150,923 4.3% 7.7 3 MAN Diesel & Turbo SE 38,813 130,717 3.8% 2.9 4 Daimler AG 26,556 130,163 3.7% 2.4 5 VAG-Armaturen GmbH 35,476 122,034 3.5% 6.8 6 ASM Assembly Systems GmbH & Co 17,452 120,049 3.4% 2.3 7 Dematic GmbH 28,293 101,447 2.9% 1.3 8 Bopp & Reuther Sicherheits 19,859 85,546 2.5% 2.4 9 Borsig GmbH 34,076 79,823 2.3% 3.2 10 Brinkmann Tabakfabriken GmbH 31,380 78,928 2.3% 1.5

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Case Study - Gartenfeld

19 Sirius Real Estate Limited Half year presentation 2013 Details Acquisition Sep-13 Rental Income Analysis Acquisition Sep-13 Purchase Price/Valuation €5,670,000 €15,980,000 Sqm Occupied: Total SqM 29,686 30,929 Original Tenants 11,544 1,624 Occupancy 39% 79% New Tenants 22,808 Rate per SqM €3.17 €5.18 TOTAL 11,544 24,432 Capex €0 €4,895,665 Rental Income: Rental Income €439,328 €1,520,043 Original Tenants €439,328 €63,446 Irrecoverable SC & Maintenance

  • €460,000
  • €209,898

New Tenants €1,456,596 NOI

  • €20,672

€1,310,145 TOTAL €439,328 €1,520,043 Space Split SqM Rental Income Rate Anchor Tenants 2,921 €210,446 €6.00 Conventional Leases 18,304 €983,009 €4.48 Products 3,208 €326,588 €8.48 Vacant - Products 381 Vacant 6,116 TOTAL 30,929 €1,520,043 €5.18 Products SqM Investment Cost per SqM ERV (Incl SC) Rate per SqM (Incl SC) ROI Smartspace Office 1,650 €257,633 €156 €226,492 €11.44 88% Smartspace Workbox 1,022 €368,632 €361 €113,167 €9.23 31% Conferencing 917 €115,783 €126 €130,000 €11.82 112% TOTAL 3,589 €742,047 €207 €469,659 €10.91 63%

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Case Study – Gartenfeld Pictures

20 Sirius Real Estate Limited Half year presentation 2013

Smartspace Office & Conferencing Workbox Branding/lb 2 Before Newbuild After

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Case Study - Maintal

21 Sirius Real Estate Limited Half year presentation 2013 Details Acquisition Sep-13 Rental Income Analysis Acquisition Sep-13 Purchase Price/Valuation €18,762,000 €22,270,000 Sqm Occupied: Total SqM 34,910 38,018 Original Tenants 24,772 18,232 Occupancy 71% 87% New Tenants 14,976 Rate per SqM €5.21 €5.09 TOTAL 24,772 33,208 Capex €5,068,830 Rental Income: Rental Income €1,549,524 €2,029,739 Original Tenants €1,549,524 €1,272,149 Irrecoverable SC & Maintenance

  • € 166,151
  • € 145,892

New Tenants €757,589 NOI €1,383,373 €1,883,847 TOTAL €1,549,524 €2,029,739 Space Split SqM Rental Income Rate Anchor Tenants 18,232 €1,272,149 €5.81 Conventional Leases 13,222 €506,826 €3.19 New Builds 1,754 €250,763 €11.91 Vacant - New Builds 1,354 Vacant 3,456 TOTAL 38,018 €2,029,739 €5.09 New Builds SqM Investment Cost per SqM ERV Rate per SqM ROI Carglass 421 €526,397 €1,250 €61,800 €12.23 12% BMW Showroom 1,333 €1,343,498 €1,008 €173,580 €10.85 13% Zk Glasbau 1,354 €920,255 €680 €105,620 €6.50 11% TOTAL 3,108 €2,790,149 €898 €341,000 €9.14 12%

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Case Study – Maintal Pictures

22 Sirius Real Estate Limited Half year presentation 2013 Other Refurbishment

Office Refurbishment Branding/lb 2 Before Newbuild After

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Case Study – Munich Rupert Mayer Str.

23 Sirius Real Estate Limited Half year presentation 2013 Details

Acquisition Sep-13

Rental Income Analysis

Acquisition Sep-13 Purchase Price/Valuation €57,496,694 €53,100,000 Sqm Occupied Total SqM 71,914 71,831 Original Tenants 71,914 11,608 Occupancy 100% 88% New Tenants 51,382 Rate per SqM €5.62 €6.95 TOTAL 71,914 62,990 Capex €991,546 Rental Income: Rental Income €4,848,488 €5,252,460 Original Tenants €4,848,488 €987,783 Irrecoverable SC & Maintenance

  • €704,037
  • €298,309

New Tenants €4,264,677 NOI €4,144,451 €4,954,151 TOTAL €4,848,488 €5,252,460

Space Split

SqM Rental Income Rate Anchor Tenants 31,980 €2,809,266 €7.32 Conventional Leases 22,827 €1,715,629 €6.26 Products 8,184 €727,564 €7.41 Vacant - Products 1,819 Vacant 7,023 TOTAL 71,831 €5,252,460 €6.95

Products

SqM Investment Cost per SqM ERV (Incl SC) Rate per SqM (Incl SC) ROI Smartspace Office 2,948 €325,642 €110 €453,852 €12.83 139% Conferencing 635 €42,540 €67 €95,368 €12.52 224% Flexilager 3,654 €110,646 €30 €371,734 €8.48 336% lb2 2,765 €71,375 €26 €265,563 €8.00 372% TOTAL 10,002 €550,203 €55 €1,186,516 €9.89 216%

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Case Study – Munich Rupert Mayer Str. Pictures

24 Sirius Real Estate Limited Half year presentation 2013 Smartspace Office & Conferencing

Refurbishment Branding/lb 2 Before Flexilager After

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Access to Finance

  • Secured €61m facility with Macquarie Bank in 2012-13;
  • Secured €52m facility with K-Bonds in August 2013;
  • Credit approved €115m facility with BerlinHyp/PBB – at

documentation stage expected March 2014 close;

  • Significant interest with other banks for additional facilities for

new acquisitions;

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Business Outlook

  • Experienced management team that has successfully

transformed the business

  • Asset management and property management techniques

ready to produce significant profits for investors

  • Very attractive properties currently available in the market
  • Compelling returns for investors including a narrowing

discount to NAV

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SLIDE 27

Board of Directors and Senior Management