Entra IPO. Klaus-Anders Nysteen, CEO Entra. Bildekvalitet

Transcription

1 Entra IPO Klaus-Anders Nysteen, CEO Entra Bildekvalitet

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3 14 years as an independent company Acquires 1/3 of Oslo S utvikling Established in July 2000 after spin-off of property portfolio from Statsbygg Develops Høgskolen in Akershus Acquires and develop BG14 in Oslo Acquires National Library Acquires and develops Munch-kv. in Oslo Acquires Havnelageret in Oslo Builds Papirbredden in Drammen Builds Nonnesetergaten 4 in Bergen Rehab. Middelthunsgate 29 In Oslo Develops Rockheim in Trondheim Builds Papirbredden 2 in Drammen Rehab. Powerhouse, Kjørbo Rehab. Fr. Selmersvei 4 Develops in Oslo Brattør-kaia in Trondheim Nominated for Media City in Bergen Acquired 50% of Hinna Park JV Acquires 100% of AS Lilletorget 1 2 Page 3

4 Our business in brief A leading owner, manager and developer of Norwegian office properties Focused on centrally-located, high-quality assets in attractive office markets Public sector represents 73% of the tenant base 166 employees Key figures as of No of properties 108 Total area 1.3 mill sqm Occupancy rate 94.1 % WAULT 7.7 år Net yield 6.4 Portfolio market value 27.8 bn EPRA NAV 11.8 bn Page 4

5 Strategy Profitable growth Customer satisfaction Environmental leadership Page 5

6 The Entra privatisation process Bildekvalitet Page 6

7 The Entra privatisation process 1. Project management and key decision points 2. Equity story 3. Pre marketing, roadshow and book-building 4. Implications for the company Page 7

8 Ministry of Trade, Industry and Fisheries Privatisation of Entra 14 January March September October October 2014 NMTIF prepares for listing of Entra Financial advisors appointed Intention to float Launch of IPO Start of bookbuilding Bookbuilding completed Listing on Oslo Børs Page 8

9 Project management Key work streams Year 2014 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Financial reporting Review of property portfolio Preparations Financial analysis Equity story Capital structure Prospectus drafting Due Diligence Marketing material Early look meetings Analyst presentation Jun-23 Execution Listing process Intention to float Pre-marketing Roadshow/ bookbuilding Sep-17 Pricing/ Allocation First day of listing Kick off Oct-16 Oct-17 Page 9

10 Project management a key success factor IPO Steering Committee Project Management Group Issues Timing Significant offering process decisions Monthly and ad hoc as required Issues Timing Day-to-day project management Weekly Working Groups n n n n n Corporate Governance Revision of AA/by-laws as needed Board structure, composition and rules INED recruitment and appointment Review of / changes to related-party transactions as needed Convert into Norwegian Public Liability Company (ASA) Valuation n Business plan iterations n Operating model / research model build-up n Financial guidance n Property valuation Property appraisal reports Summary valuation report for inclusion in prospectus n Weekly market and valuation updates n Price range-setting and pricing n Capital Structure/ Dividend Policy/ Financing Decision on capital increase at IPO Capital structure at IPO n Documentation/ Due Diligence Due Diligence and data room (legal / financial / business plan / commercial) n n Dividend policy / guidance n Real estate diligence (environmental, structural) n Execution of any debt financing, if applicable n Prospectus drafting n Negotiation with lending n Listing process / application banks n Agreements and guidelines Underwriting agreement Comfort letter(s) Legal opinions Research guidelines n Accountancy & tax issues n Inclusion of RE valuation in financials n n Marketing & Distribution Management presentation to advisors Equity story and positioning n Offer structure n Investor targeting n Planning of all marketing steps including presentations and logistics (early-look/pilotfishing meetings, analyst presentation, roadshow, Q&As/scripts) n Syndicate briefing / management, messages to market n Allocations / stabilisation Communication/ Retail Offering n Communication strategy n Implement publicity guidelines n Implement insider regulations and lists n Financial reporting n Public and investor relations n Press contacts n Employee communication n Internal structures and set up n IT strategy / set up n Indicative sizing n Incentives n Appointment /briefing/ management of selling agents Page 10

11 Key decision points Preferred transaction alternative Timing and transaction size Equity story Capital structure size of primary issue Dividend policy Valuation Page 11

12 Extensive syndicate of advisors Legal: Entra Ministry of Trade, Industry and Fisheries Financial/Auditor: Property/ valuation: Joint Global Co-ordinators: Financial and legal advisors Co-managers: Legal DD: Financial DD: Page 12

13 The Entra privatisation process 1. Project management and key decision points 2. Equity story 3. Pre marketing, roadshow and book-building 4. Implications for the company Page 13

14 Key investment highlights 1. Large, high quality portfolio offering a solid yield and growth potential 2. Specialised focus and leading position in stable Norwegian market 3. Strong, fully integrated real estate platform 4. Solid track record and strong financial and operating profile Page 14

15 Market leading office owner and operator Portfolio by geography (% share of market value) Portfolio by area Tromsø 7 % 11 % Bodø 82 % Trondheim Portfolio by value 7 % 5 % Bergen Stavanger 93 % Kristiansand Page 15

16 Growth through project development Schweigaardsgate 16 (Oslo) Lars Hilles gate 30 (Bergen) Papirbredden 3 (Drammen) Type project: Newbuild Time period: 2013 to 2015 Project area: 15,500 sqm Ownership Entra: 100 % Type project: Renovation / extension Time period: 2015 to 2017 Project area: 45,000 sqm Ownership Entra: 50 % Type project: Newbuild Time period: 2014 to 2015 Project area: 11,000 sqm Ownership Entra: 60 % Page 16

17 Fully integrated real estate platform Competitive advantages Fully integrated business model Long-term customer relationships and knowledge of public sector tenants needs Project development expertise Leadership in green buildings Expertise in urban development Demonstrated ability to collaborate with partners Operating Leasing Building and renovation Developing Page 17

18 The Entra privatisation process 1. Project management and key decision points 2. Equity story 3. Pre marketing, roadshow and book-building 4. Implications for the company Page 18

19 Extensive pre-marketing and investor education 16 Early Look meetings with Entra management in IPO research reports distributed Near 300 investors met by the syndicate analysts Investor feedback from ~ 600 sources Page 19

20 Intensive management roadshow No of days: 9 No of meetings: No of unique investors met: Norway No of meetings: 7 No of investors met: 113 Sweden No of meetings: 8 No of investors met: 31 UK No of meetings: 23 No of investors met: 93 Finland No of meetings: 3 No of investors met: 24 Netherlands No of meetings: 7 No of investors met: 12 Denmark No of meetings: 1 No of investors met: 7 Germany No of meetings: 3 No of investors met: 7 USA No of meetings: 12 No of investors met: 32 France No of meetings: 3 No of investors met: 10 Page 20

21 Challenging market conditions during book-building NOK 77,0 Book-building period 75,0 73,0 71,0 69,0 67,0 65,0 63, Entra OSEBX Eurostoxx 600 S&P 500 Oil - Brent Source: Handelsbanken Page 21

22 Near all other transactions were pulled Issuer Size (mill) Country Sector Outcome Molecular Partners $200 Switzerland Bio-Pharmaceuticals Pulled BCA Marketplace 300 UK Car Dealership Pulled Aldermore 300 UK Financials Pulled SPIE 900 France Engineering Pulled Italiaonline 300 Italy Online Advertising Pulled Intercos 194 Italy Cosmetics Pulled Miller Homes 140 UK House Building Pulled Fedrigoni 230 Italy Paper Production Pulled Page 22

23 Strong demand for Entra shares Demand by geography Demand by investor type 25 % 5 % 30 % Norway Swe/DK/FI UK US 9 % Long Only Hedge Funds Retail ROE 33 % ROW 58 % 10 % 9 % 21 % Page 23

24 Positive development post IPO NOK Entra OSEBX EPRA/NAREIT Devloped Europe Entra is the 16th largest company listed on Oslo Børs Fast track inclusion in important indices: FTSE EPRA Europe Developed Real Estate FTSE EPRA International Developed Real Estate OSEX, OSEBX and VINX Nordic Bench Assumed into MSCI World in May investment banks currently with analyst coverage Page 24

25 Third largest Norwegian IPO since 2006 No Company Year Size (NOKm) Free float ,717 40% ,087 25% ,015 50% ,382 46% ,960 59% ,523 55% ,045 45% ,899 29% ,682 42% ,532 30% Page 25

26 Largest Nordic real estate IPO ever Second largest Western European real estate IPO since the financial crisis No Company Year Size ( m) , Prior to financial crisis Page 27

27 The Entra privatisation process 1. Project management and key decision points 2. Equity story 3. Pre marketing, roadshow and book-building 4. Implications for the company Page 27

28 Implications for the company and way forward Increased focus on the company and its operations ~7000 stakeholders Increased pressure on execution, risk, efficiency, capital discipline and profitability Increased requirements on documentation and financial reporting: Strong commitment among employees 75% participated in the IPO New opportunities ahead as a listed company Page 28

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