Development Initiatives – Investor Presentation September 12, 2017
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Development Initiatives Investor Presentation September 12, 2017 SmartCentres Development History Assembling sites 1989-1994 10 Employees st 1994 1 new Walmart 65 Employees 1994-1999 26 Walmarts open 138 Employees 1st transaction with Calloway (now 2003 SmartREIT) 292 Employees 2007 SmartREIT acquires SmartCentres property management platform SmartREIT purchases SmartCentres 2015 development platform 380 Employees Developed 175 Walmarts across Canada 1994-2017 Developed 200+ retail properties - 52 million sf open SMART REAL ESTATE INVESTMENT TRUST 2 Retail is Great Real Estate Close to Population Designated Growth and Intensification Areas Superior Access & Visibility SMART REAL ESTATE INVESTMENT TRUST 3 Development Opportunities Vacant Land Intensification Consolidation SMART REAL ESTATE INVESTMENT TRUST 4 Development Categories Residential Senior Residences Retail Apartment Build –out of Rentals Office existing Self Condominiums Storage Outlet Malls Townhouses Penguin Pick-Up SMART REAL ESTATE INVESTMENT TRUST 5 Technology Initiatives Charging Stations Mobile Digital Advertising Signs Technology Wifi Building Networks Systems Advertising Kiosks SMART REAL ESTATE INVESTMENT TRUST 6 Deal Structures SC’s Development Team Joint Venture Partners Building Lease Ground Lease Sale of Surplus Land SMART REAL ESTATE INVESTMENT TRUST 7 Development Initiatives • 16 Underway Non Retail • 48 Active Initiatives • 54+ Future • 19 Underway Retail • 36 Active Developments • 2+ Future SMART REAL ESTATE INVESTMENT TRUST 8 Residential Development Initiatives Apartment Rentals Underway 1 Active 9 Future 15+ Condominiums Underway 4 Active 7 Future 12+ Townhouses Underway 1 Active 5 Future 4+ SMART REAL ESTATE INVESTMENT TRUST 9 Development Initiatives Self-Storage: Underway 8 Active 15 Future 7+ Office: Underway 1 Active 2 Seniors Residences: Underway 1 Active 10 Future 16+ SMART REAL ESTATE INVESTMENT TRUST 10 Retail Development Build-out of existing: Underway 17 Active 34 Outlet Malls: Existing 2 Expansions 2 Future 2 SMART REAL ESTATE INVESTMENT TRUST 11 Ability to Execute Strong, Experienced In-House Development Team Partner Relationships Government/Consultant Relationships SMART REAL ESTATE INVESTMENT TRUST 12 In-House Development Experience Employees in Development & Leasing Related Functions: # of People 145 # of Years Experience with SmartCentres Average 7.5 years Total 1088 years # of Years Experience in Real Estate Average 15.0 years Total 2175 years SMART REAL ESTATE INVESTMENT TRUST 13 In-House Development Skills Environmental/ Planners/ Government Engineers Relations Geotech Developers Specialists Leasing Construction Architects Finance/ Lawyers Financial Analysts SMART REAL ESTATE INVESTMENT TRUST 14 Executive Team Mitchell Goldhar Chairman of the Board Board of Trustees Peter Forde Huw Thomas President & Chief Chief Executive Operating Officer Officer Rudy Gobin Geographic Fernando Vescio Mauro Pambianchi Development Peter Sweeney EVP Portfolio Chief Development Leaders & SVP, Human Management & Chief Financial Resources & Officer Development Officer Investments Finance Corporate Services Asset Management Ontario 2 Development Leasing Construction Investments and Operations M&A Development Support Valuations SMART REAL ESTATE INVESTMENT TRUST 15 Development Teams Team Leader # of Years in Real Estate West Vice President 21.5 Ontario 1 Executive Vice President 29 Ontario 2 Executive Vice President 26 VMC Senior Vice President 13 Quebec Vice President 15 Total # in teams: 40 Total # of years in real estate: 500 SMART REAL ESTATE INVESTMENT TRUST 16 Leasing Teams Team Leader # of Years in Real Estate Overall Senior Vice President 34 West Vice President 21 Ontario Vice President 24 Ontario Vice President 17 Ontario Vice President 33 Quebec & Atlantic Vice President 24 Legal Vice President& Senior Counsel 24 Total # in teams: 24 SMART REAL ESTATE INVESTMENT TRUST Total # of years in real estate: 410 17 Construction Team Leader # of Years in Real Estate Overall Senior Vice President, 29 Construction & Operations Construction ExecutiveVice President 45 Construction & Tenant Vice President 19 Design Estimating Vice President 28 Construction Director 31 Project Management Senior Project Manager 31 Total # in teams: 35 SMART REAL ESTATE INVESTMENT TRUST Total # of years in real estate: 615 18 Development Support Team Leader # of Years in Real Estate Corporate Affairs/ Vice President 12 Government Relations Engineering & Vice President 20 Development West - Engineering Vice President 19 Total # in teams: 7 Total # of years in real estate: 82 SMART REAL ESTATE INVESTMENT TRUST 19 Finance and Legal Team Leader # of years in Real Estate Finance & Tax Senior Vice President 33 Cash Management Vice President 28 & Development Accounting Financial Asset Vice President 13 Management Legal Vice President & 20 Senior Counsel, Corporate SMART REAL ESTATE INVESTMENT TRUST 20 Operations and Corporate Team Leader # of Years in Real Estate Finance & Accounting Vice President 18 Operations, Shopping Vice President 29 Centres Management Office Property Vice President 27 Management Investments Vice President 27 SMART REAL ESTATE INVESTMENT TRUST 21 Development Initiative Presentations Vaughan NW StudioCentre, Toronto Outlet Centre Expansion Laval Centre & Pointe Claire VMC SMART REAL ESTATE INVESTMENT TRUST 22 Vaughan NW – Retail, Residential, Mixed Use, Self-Storage Vaughan NW SMART REAL ESTATE INVESTMENT TRUST 23 Vaughan NW - Overview New $1.3B hospital under construction Annual average daily traffic on HWY 400: 200,000 + Annual average daily traffic on Major Mackenzie Drive: 40,000 + SMART REAL ESTATE INVESTMENT TRUST 24 Vaughan NW – Retail, Residential, Mixed Use, Self-Storage Townhouse Lands Mixed Use Lands Self Storage Lands Shopping Centre Lands 15.88 Acres 5.9 Acres 1.55 Acres 20 Acres SMART REAL ESTATE INVESTMENT TRUST 25 Vaughan NW – Retail, Residential, Mixed Use, Self-Storage SMART REAL ESTATE INVESTMENT TRUST 26 Vaughan NW – Residential 15.88 acres rolled into JV with Fieldgate on June 29, 2017 Fieldgate share of the purchase price was $19.4 Million SMART REAL ESTATE INVESTMENT TRUST 27 Vaughan NW – Residential Phase II Phase I Two phased development Phase I parcel designated as-of-right to permit townhouses Phase II parcel requires a rezoning SMART REAL ESTATE INVESTMENT TRUST 28 Vaughan NW – Residential Standard Towns – Front Elevation Dual Frontage Towns – Front Elevation Rear Lane Decked Towns – Front Elevation Phase I Development 106 Standard Townhomes 55 Rear Lane Townhomes 16 Dual Frontage Townhomes SMART REAL ESTATE INVESTMENT TRUST 29 Vaughan NW – Mixed-Use 5.9 acre block to be developed with high-density residential & mixed uses Mixed Use Development Block SMART REAL ESTATE INVESTMENT TRUST 30 Vaughan NW – Mixed-Use Development to include a mix of rental apartments, Mixed use block will require a rezoning condominiums, retirement residential & ground floor Application to run concurrently with Phase II retail townhouse block Anticipate upwards of 800,000 sf upon completion SMART REAL ESTATE INVESTMENT TRUST 31 Vaughan NW – Self-Storage 1.5 acre site to be rolled into JV with SmartStop Self Storage SMART REAL ESTATE INVESTMENT TRUST 32 Vaughan NW – Self-Storage Proposing a 4- storey, 106,000 sf self-storage facility Rezoning application underway to permit use Property to be rolled into JV upon rezoning SMART REAL ESTATE INVESTMENT TRUST 33 Vaughan NW – Digital Sign, Charging Station, Penguin Pick-Up SMART REAL ESTATE INVESTMENT TRUST 34 Vaughan NW – Retail, Residential, Mixed Use, Self-Storage SMART REAL ESTATE INVESTMENT TRUST 35 StudioCentre * Plan is for illustrative purposes only and is subject to change SMART REAL ESTATE INVESTMENT TRUST 36 629 Eastern Avenue DON VALLEY PARKWAY QUEEN ST DOWNTOWN EASTERN AVE Union Station Gardiner Rogers Centre Expressway CN Tower Air Canada Centre PORT LANDS Billy Bishop Lake Ontario Airport SMART REAL ESTATE INVESTMENT TRUST 37 2017 18.5 ACRES SMART REAL ESTATE INVESTMENT TRUST 38 Industrial Past TORONTO IRON WORKS & TANNERY (c.1960) SMART REAL ESTATE INVESTMENT TRUST 39 South Of Eastern/Leslieville SMART REAL ESTATE INVESTMENT TRUST 40 Leslieville Neighbourhood SMART REAL ESTATE INVESTMENT TRUST 41 Film In Its DNA SMART REAL ESTATE INVESTMENT TRUST 42 Revival 629 Film Studios SMART REAL ESTATE INVESTMENT TRUST 43 Toronto’s Film Hub 5 4 1 1 6 3 2 TORONTO’S FILM HUB 7 REVIVAL 629 4 FILM PORT 629 SUNNSIDE UP 5 1 CINESPACE STUDIO 2 PINEWOOD 6 SHOWLINE 3 STUDIOS OF CORUS 7 AMERICA SMART REAL ESTATE INVESTMENT TRUST 44 Revival 629 Film Studios 234,000 sf of Film Stages, Production Offices, Support Space and Post Production Facilities 3rd largest Film Studio in the City of Toronto Film was a $1.8 billion dollar investment in Toronto’s economy (2016) Investment in Toronto’s Film Production industry has been on a steady rise since 2012 Television series continue to dominate production investment in Toronto SMART REAL ESTATE INVESTMENT TRUST 45 Productions FEATURE FILMS TELEVISION PIXELSPIXELS REMEMBER ZOOM FALL OUT THE SUITSSUITS SENSITIVE SKIN 1 SENSITIVE SKIN 2 REMEDY DARK STRANGER MAN VS. MAPS TO THE LUCKY 7 LOST GIRL HORIZON ROCKY STARS WET BUM ROBOCOP THE COCKSURE HORROR PICTURE SHOW: LET’S DO THE LADS MOVIE DOWNSIZING IT WAS YOU, TIMEWARP THE ADVENTURES OF NAPKIN MAN SEASON CHARLIE TRACEABLE SUICIDE SQUAD 1 SALVATION: S1 THE ADVENTURES OF NAPKIN OPERATION AVALANCHE MY BIG FAT GREEK MAN SEASON 2 BITTEN MAX AND SHRED SEASON 1 WEDDING 2 HOW TO STATE