Real Estate Agriculture

Transcription

1 Real Estate Agriculture

2 CONTENTS OUR BACKGROUND BUSINESS OVERVIEW REAL ESTATE CASE STUDY AGRICULTURE CASE STUDY

3 BUSINESS OVERVIEW ABOUT EG EG is a leading, specialist non-core real estate fund manager and developer. Established in 2000, EG has recorded over a decade of successful investments and more than doubled its assets under management since Approximately AU$1.25 billion in assets under management. Key skill sets in acquisition, asset management, repositioning and development expertise. Privately owned by two principals, Michael Easson and Adam Geha. Offices in Sydney, Melbourne and Perth, with 20 staff. 3

4 BUSINESS OVERVIEW THE EG DIFFERENCE ABSOLUTE ALIGNMENT DEAL FLOW FIND THE DEALS PRISMS FILTER THE DEALS INVESTMENT MODEL DELIVER ON STRATEGY TEAM CULTURE Alignment Model: Based fees as a fixed dollar amount. First-loss coinvestment by EG. Success fees are back-ended. Our extensive network of contacts gives us access to a constant stream of off-market and pre-market deal opportunities. Risk management is a priority at EG. We ve developed our own proprietary risk assessment model to clearly measure and price real estate risks, providing specific guidance to the team. Our success is due to a focused, strategic approach to investment in Australian real estate. We map and analyse infrastructure, viewing real estate as a network asset before committing to the appropriate Responsive, engaged team through strong focus on team culture. EG Grow program leads to high levels of trust amongst team members, allowing for decisions to be debated, without personal agendas.

5 FUNDS MANAGEMENT WE CHOOSE TO BE DEFINED BY THE WAY WE DO BUSINESS, AS MUCH AS THE BUSINESS WE DO MICHAEL EASSON EXECUTIVE CHAIRMAN

6 FUNDS MANAGEMENT OVERVIEW Funds are unlisted and have a seven to 10 year term. Five current funds, with over $600 million in funds under management. Fund strategy is typically to invest in real estate assets with a value-add strategy through active asset management, refurbishment, repositioning and/or rezoning, strata titling or redevelopment. EG s investors are predominantly pension funds. Other investors include insurance funds and high net worth individuals. 6

7 FUNDS MANAGEMENT RETURNS Our realised returns over the past five years have delivered an average equity IRR above 20% p.a. We ve recorded positive returns on every single asset acquisition we ve made thus far. We are unaware of any other Australian fund manager that can make the same claim in the wake of the global financial crisis. PROPERTY ACQUISITION DATE PURCHASE PRICE (AU$) SALE DATE SALE PRICE (AU$) REALISED EQUITY IRR p.a. Brunswick East, Vic April m Nov m 32.0%* East Perth, WA June m Jan m 14.7%* Allengrove, Ryde NSW m July m 9.0% Harrington St, Sydney, NSW Sept m Nov m 46.0% Whiteside, Ryde, NSW m Dec m 18.0% Summer Hill, NSW Sept m Sept m 12.0%** AVERAGE EQUITY IRR: 22.4% * Ungeared **Ungeared, 75% JV Sale 7

8 DEVELOPMENTS DOING THE RIGHT THING BY INVESTORS MEANS EVERYONE WINS ADAM GEHA CEO

9 DEVELOPMENTS OVERVIEW - PIPELINE Short-term development pipeline $2.9bn over next 3 years Total of 19 sites across Australia in capital cities: Sydney Melbourne Perth Brisbane

10 DEVELOPMENT PIPELINE OVERVIEW Burswood WA GR $239M Canterbury VIC GR $80M Fortitude Valley QLD GR $225M Five Dock NSW GR $123M Fremantle WA GR $145M Summer Hill NSW GR $320M Northbridge WA GR $665M 2012/13 AUD 80m 2013/14 AUD 443m 2014/15 AUD 1,274m Kensington 1 VIC GR $240M Kensington 2 VIC GR $60M 2015/16 AUD 300m Drummoyne NSW GR $152M Auburn NSW GR $350M Woolstores WA GR $383M AUD 885m

11 AGRICULTURE OVERVIEW Around 3 years ago we observed growing interested from PRC investors in Australian agriculture assets We are now building a team of Agriculture experts (including our MD Anthony Abraham (senior Macquarie Bank executive) Plan: Similar to EG s property business, to assist clients acquire and manage agriculture assets Successes: So far we are assisting several PRC institutional investors undertake due diligence in Australia Dairy, Beef and Nuts assets 11

12 AGRICULTURE CASE STUDY 1 HORITCULTURE INDUSTY Investor intended to acquire a vertically integrated nut and health food company with core capabilities across: horticulture, orchard management, processing, sales and marketing. They planned to expand the business and export the business s high quality produce to China. Our services: Identify major nut and health food company Prepare a high level due diligence report that analyzed the target business and summarized the key financials of the business. Our services ensured that the investor was able to quickly make an informed and objective decision about the prospects of the business. 12

13 AGRICULTURE CASE STUDY 2 DAIRY INDUSTRY Investor intended to acquire a high quality dairy business with potential to expand the business and export produce to China. Through our extensive dairy industry network we were able to identify major dairy businesses that met the investor s requirements. We also provided the investor with a high level due diligence report that analyzed the target business and summarized the key financials of the business. Our services ensured that the investor was quickly able to make an informed and objective decision about the prospects of the business. 13

14 CONTACT: Scott Reid DISCLAIMER This document has been prepared by EG for the purpose of providing general information. While reasonable care has been taken in the preparation of this document, EG makes no representation in respect of this document including as to the accuracy or completeness of any statement in it including, without limitation, any forecasts.

15 FINDING ABSOLUTE ALIGNMENT TM The pendulum symbol represents our commitment to being in alignment with our partners. 15