Leighton Holdings Limited Investor Presentation on Leighton Properties Pty Limited. Presentation to Analysts 9.30am, 2 July 2003

Transcription

1 Leighton Holdings Limited Investor Presentation on Leighton Properties Pty Limited Presentation to Analysts 9.30am, 2 July

2 Presentation outline Background of Group Strategy/History Dieter Adamsas, LHL Deputy CEO & CFO Leighton Properties Overview Vyril Vella, Managing Director Queensland Operations Bob Borger, Queensland Manager Jon Barker, Development Manager Victorian Operations Bill Beck, Manager, Victoria New South Wales Operations Mark Gray, Manager NSW Projects Questions and Conclusion 2

3 Background Dieter Adamsas Deputy CEO and CFO Leighton Holdings Limited 3

4 Leighton Holdings Welcome Diversity a key strategy of Group Property development a good fit with contracting Mixed performance historically Strategic re-alignment in 1990 s Outlook now very positive 4

5 Leighton Properties Overview Vyril Vella Managing Director Leighton Properties Pty Limited 5

6 Leighton Properties Overview Property Developer Equity Contributor Focus is on commercial, industrial and bulky goods Activities confined to eastern seaboard JV s preferred Strong association with JFG Forward market conditions generally favourable Demand for property strong Workload at record high 6

7 Background Established in 1972 Since then have completed over 70 development projects These have included several landmark projects: Maritime Plaza, Sydney Casino, Sydney 417 St Kilda Road, Melbourne Jetset House, Melbourne Eden s Landing, Queensland MacArthur Chambers Stage 1 (Retail) 7

8 Current Position 13 projects now at various stages of development Total end value approaching $1.8b Majority JV s End value to Leighton Properties approximately $1.2b 8

9 Current Position State Managers will talk in detail In summary: 9

10 Current Project Position New South Wales Category Delivery Type Total End Value $m LPPL Share of Value KENS Comm. Pre-Sold % 100 Pacific Highway Comm. JV % 101 George Street, Parramatta Comm. JV 80 50% 233 Castlereagh Street Comm. JV 90 50% 56 Delhi Road Comm. Strata 30 50% Riverside Comm. JV* % *Potential JV 10

11 Current Project Position Victoria Category Delivery Type Total End Value $m LPPL Share of Value Mulgrave 245 Wellington Rd C/Ind. Mixed % Thomastown 15 Edgars Rd Ind. Land Subdiv % 700 Collins Street Comm. JV % Lyndhurst B.G. Mixed* % Mornington B.G. Pre-sold % *Potential JV 11

12 Current Project Position Queensland Category Delivery Type Total End Value $m LPPL Share of Value Noosa Resort Resort JV % MacArthur Retail Retail JV % MacArthur Commercial Comm. JV % 12

13 Queensland Bob Borger / Jon Barker Leighton Properties Pty Limited 13

14 Queensland Overview Brisbane Office Market Vacancy factor: 6.8% Incentive levels remain high Achieving rents $400m 2 (face) Limited new supply Brisbane Industrial market Focus on Gateway precinct, Yatala & Heathwood Rents from $57m 2 to $93m 2 Yields 8.8% Bulky Goods Continuing growth but limited zoned sites in BCC Better opportunities outside 14

15 Viridian Project Noosa 50 % Joint Venture with Ariadne 8 Homes - $22.7m 23 Villas - $34.50m 147 Resort Units + Conference Centre & Health Spa - $ 130m Land purchase settled 23 May of 8 Homes pre-sold 22 of 23 villas pre-sold Negotiating with resort operators Resort completion February

16 Viridian Project Noosa 16

17 MacArthur Central Brisbane Retail purchased by Investa - $96.95m Settled 25 June 2003 Joint Venture with Seymour Fully Leased Brisbane CBD centre Woolworths / Big W / Dymocks 17

18 MacArthur Central Brisbane 24,800m 2 office tower above Retail Centre Completion December ,500m 2 currently pre leased Value $123m 18

19 New projects Helensvale, Gold Coast - Bulky Goods & Industrial Heathwood, Brisbane - Industrial Chermside, Brisbane - Commercial Trade Coast Central - Industrial Newstead Riverpark Mixed use 19

20 Victoria Bill Beck Leighton Properties Pty Limited 20

21 Victoria Overview Melbourne CBD Office Market Vacancy factor: 7.5% Incentive levels remain low to moderate Achieving rents $ m 2 (face) Extensive new supply Melbourne Suburban Market Office Focus on Mulgrave Industrial Focus on West and South East Rents from $65m 2 to $200m 2 Yields 8-9% Bulky Goods Continuing growth in selected areas South and East 21

22 700 Collins Street Vic 50 % Joint Venture with Folkestone Ltd Office 32,200m 2 Bureau of Meteorology 17,000 Medibank Private 12,500 Retail 1,600m Cars Buyer in due diligence Completion July

23 Com.Park Mulgrave Hi-Tech Office Park 18 Lots 12 Developed and Sold 1 Pre-lease being finalised for 4,500m 2 office Planning underway for 3,300m 2 office 23

24 Com.Park Thomastown Industrial Park 30 Lots 29 Sold 1 Remaining 24

25 Homemaker Centres Growing Demand Retailers Investors Consumers Unique branding for LPPL 25

26 Homemaker Centres Mornington JFG buying the land LPPL developing and leasing Strong demand for space 32,000m2 Offers from National Tenants Harvey Norman Clive Peeters Freedom Fantastic Furniture Oz Design Furniture 26

27 Homemaker Centres Moorabin Completed 2002 Sold to GPT 27

28 Homemaker Centres Lyndhurst City of Casey Fastest growing city Stage 1 20,000m 2 Future stages 28

29 Prospects Deer Park Large scale industrial estate Scoresby Homemaker Centre and Industrial Monash High Tech research Facility Burwood Mixed use office and retail complex 29

30 New South Wales Mark Gray Leighton Properties Pty Limited 30

31 Market Overview - Sydney Sydney is global city, external factors influence property market Growth restrained 2000 to 2003 by world events Sluggish overseas economies Iraq Demand negative as businesses cut costs to improve profitability Continuing strong appetite for investment property Limited supply coupled with positive sentiment should create DEMAND LEAD UPSWING 2004 to

32 Market Overview - Sydney Survey just released by Jones Lang LaSalle Commercial markets compared to 12 months ago show we are in a trough Consistent with LPPL view of upswing

33 Market Overview - Sydney 2003 to 2007 Location Rent Incentive Vacancy Yield Sydney Prime Sydney Secondary North Sydney Parramatta - - North Ryde

34 Strategy LPPL positioned to meet demand in: Sydney - Prime - KENS Project - Secondary Castlereagh North Sydney Pacific Highway Parramatta George Street North Ryde - Julius Avenue, Riverside 34

35 KENS Project Sydney Seek limited precommitment Market in 2005 to meet demand 35

36 KENS Project Sydney Pre-lease to Westpac Take-out to Westpac Office Trust Exposed to delivery risk 36

37 KENS Project Sydney 76,700m 2 NLA 854 cars Progressive take-up aligned to lease expiry Completion progressively through 2006 including integrated fitout 7 stages 37

38 233 Castlereagh Street Sydney JV with Real Estate Partners 18,000m2 B+ Grade 200 cars (approx) Target 10/2004 completion 38

39 100 Pacific Highway North Sydney 50/50 JV with ISPT Achieved DA in March 21,000m 2 NLA A Grade 1,200m 2 footprint 129 cars 39

40 101 George Street Parramatta DA approved for 17,800m 2 A Grade 301 cars Commencing October, complete mid

41 Lots 8 & 9 Riverside North Ryde DA approved 36,000m2 JV with ISPT Potential to build in stages Seeking pre-commitment 41

42 56 Delhi Road North Ryde JV with land owner Strata office Commence 3 rd Qtr 2003 Complete 4 th Qtr

43 56 Delhi Road North Ryde 43

44 Summary Quality projects in each of the principal commercial markets Take advantage of upswing to 2006 Continue to seek and purchase assets where added value can be established, including bulky goods and industrial in west and south-western Sydney 44

45 Questions and Conclusion Dieter Adamsas and Vyril Vella 45

46 Summary 13 projects with total end value of $1.8bn Worth $1.2bn to Leighton Properties Manage risk through joint ventures, precommitments and cap on capital employed Expect stronger contribution to Group over next few years 46

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