ASX Announcement
30 November 2017
Propertylink Sydney Asset Tour
Propertylink Group (ASX:PLG) is today hosting a tour of Sydney assets for institutional investors and analysts and provides the attached document containing presentation material and tour information.
Further Enquiries
Investors Media Carrie Barrack Renée Bertuch Propertylink Cannings Corporate Communications Investor Relations Manager +61 2 8284 9908 +61 2 9186 4747 [email protected] [email protected]
About Propertylink
Propertylink is an A-REIT, listed on the Australian Stock Exchange under the code “PLG”. Propertylink is an internally managed real estate group that owns and manages a diversified portfolio of logistics, business park and office properties and is a leading investment and asset management business with A$1.6 billion of assets under management. Propertylink’s integrated, in-house approach to active asset management is aimed at maximising the performance and value of assets under management for our global investors from North America, Europe, the Middle East,
Asia and Australia. For personal use only use personal For
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Propertylink (Holdings) Limited (ACN 092 684 798), Propertylink Investment Management Limited (ACN 136 865 417) (AFSL 338189) as responsible entity of Propertylink Trust (ARSN 613 032 750) and Propertylink Australian Industrial Partnership (ARSN 613 032 812) Level 29, 20 Bond Street, Sydney NSW 2000 T: +612 9186 4700 www.propertylink.com.au Sydney Asset Tour Propertylink Group
Thursday, 30 November 2017 For personal use only use personal For The Propertylink team
Rob Ewing Stuart Dawes Peter McDonald GM Asset and Development Casey Greenberg Managing Director and CEO Chief Investment Officer
Management GM Capital Transactions For personal use only use personal For
Tim Simpson Carrie Barrack Erin Smith GM Funds and Mandates Investor Relations Manager Executive Assistant 2 Overview
201-205 Fairfield Road, Yennora NSW 1 Propertylink’s Strategy
2 Active Asset Management
3 Key Market Themes
4 Amazon in the US
5 Changing Sydney Landscape
6 73 Miller Street, North Sydney For personal use only use personal For 7 Sydney Asset Tour Refurbished building 122 Newton Road, Wetherill Park
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Propertylink’s strategy and key market themes For personal use only use personal For
205-231 Fairfield82 Taryn Road, Drive, Yennora Epping NSW VIC
4 Propertylink’s strategy
Propertylink’s objective is to provide securityholders with superior risk adjusted returns by investing in the wholly owned industrial portfolio and co-investing in external funds alongside our leading global investors whilst seeking growth opportunities across both sides of the business
Invest in a wholly owned portfolio of industrial assets and co-invest in external funds Invest Enhance the wholly owned industrial portfolio and assets held in external funds through active management
Grow the investment management business and wholly owned industrial portfolio
For personal use only use personal For Maintain a conservative capital structure
50 Ann Street, Brisbane QLD 50 Ann Street, Brisbane QLD
5 Integrated active asset management approach
Team of over 37 Headquartered in Platform National presence Scalable platform employees Sydney
Integrated Investment Asset Property Development in-house Acquisitions Divestments capabilities management management management management
Reduced Strong Driving High tenant Lower tenant Increased Increased property investor outcomes retention incentives rental income capital values downtime relationships
Active approach delivering superior outcomes For personal use only use personal For
6 Key market themes
Underlying our active asset management approach to driving value are longer term market trends that have the capacity to positively effect our properties
Urbanisation Last mile logistics Ageing population Technology
Long-term view to Focussed on in-fill Ongoing demand for Utilising technology to reposition existing locations with easy medical-related facilities drive greater efficiencies commercial or industrial access to CBD and key and services, occupying in existing real estate sites for alternate use, residential areas to office and industrial plus the development of based on urbanisation facilitate final stage of e- space, providing new sectors driven by trends and requirements commerce supply chain treatment and care for growth in the technology increased aging and communications
population industry For personal use only use personal For
7 Observations of Amazon in the US
• With increasing sales and fulfillment services on behalf of third parties, Amazon has become a large scale logistics company • Logistics model combines large scale warehousing in outer locations with smaller warehouses in infill locations • Amazon Flex drivers replacing traditional courier services
• Reducing customer delivery times to meet market expectations via Amazon Prime For personal use only use personal For
8 Amazon as an industrial property tenant in the US
Growing demand for last mile warehousing
• Increasing use of warehouses in last mile locations close to the customer base Amazon’s warehouse leasing mix in USA First Mile & Regional Warehouses Last Mile Warehouses • Warehouses in infill locations stock high volume and 100%
fast moving consumer goods 80% • Asset requirements 60% 40% ▪ Generally older with lower clearance 20% ▪ Require drive through capability 0% ▪ Need more parking and hard stand for Pre-2009 2010-13 2014-16
marshalling of cars Source: Morgan Stanley Research For personal use only use personal For
Large scale fulfilment centre Last mile warehouse
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The changing landscape of Sydney For personal use only use personal For
Refurbished building 122 Newton Road, Wetherill Park NSW
10 Sydney planning – The Greater Sydney Commission
• The Greater Sydney Commission - Established as an independent body in 2015 by the NSW State Government - Responsible for metropolitan planning in partnership between the State and local governments
• Overarching three cities strategy linking housing, jobs, education, health and other services with transport connections, delivering a vision of a metropolis of three ‘30 minute’ cities
• Three cities each with a unique identity and planned to maximise liveability, productivity and sustainability:
• The established Eastern City • The developing Central City
• The emerging Western City For personal use only use personal For
11 Source: Draft Greater Sydney Region Plan Sydney transport infrastructure pipeline
Project Cost Type Status Estimated ($m) Completion Year
WestConnex 20,000 Road Construction 2023
Sydney Metro Northwest 8,300 Rail Construction 2019
Sydney Metro City & Southwest 11,500 Rail Construction 2024
Western Sydney Infrastructure Plan 3,600 Road Construction 2025
NorthConnex 3,000 Road Construction 2019
CBD & Southeast Light Rail 2,100 Rail Construction 2018
Moorebank Intermodal Freight Terminal 1,900 Freight Hub Early Works 2030
Western Sydney Airport Stage 1 5,300 Airport Early Works 2023
Parramatta Light Rail 1,000 Rail Early Works 2022
Northern Beaches Hospital Road Connectivity 400 Road Construction 2017
Circular Quay Upgrade 200 Ferry Construction 2020
North Beaches Bus Rapid Transit 125 Road Construction 2017
Barangaroo Ferry Hub 50 Ferry Construction 2017
For personal use only use personal For South West Rail Link Extension TBA Rail Investigation 2023
Outer Sydney Orbital TBA Road Investigation 2030
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Greater Sydney Structure Plan 2056 – the three cities For personal use only use personal For
Source: Draft Greater Sydney Region Plan 13
73 Miller Street, North Sydney For personal use only use personal For
14 Background • Acquired in March 2015 in partnership with Fosun Property Group for $116.0m on a market cap rate of 7.6%
• Property attributes: - Built in 1990 - NLA 14,672m² | A-Grade commercial building with ground floor retail - Occupancy 100% - WALE 1.75 years with all leases aligned to expire June 2019 - Anchored by New South Wales Government tenant occupying 87% of commercial NLA - Located opposite North Sydney railway station and bus interchange, and adjacent to Greenwood retail arcade - Large floor plates ranging 871m² to 1,569m² - Ample car parking156 spaces (1:94m²) - Four sides of natural light
For personal use only use personal For - 1,400sqm of external balcony area - Sydney Harbour and CBD views
15 North Sydney market • Excellent market fundamentals driven by strong investor and tenant demand combined with supply
withdrawals in the coming years associated with Sydney Metro and alternative use development For personal use only use personal For
Source: Knight Frank
16 Asset repositioning strategy
• All commercial and retail leases have been aligned to expire with the NSW Government tenant in June 2019 • Pursue base case strategy: - Infill of balcony areas and refurbishment to A-grade standard - Complete full commercial and retail leasing program • Continue to investigate upside reposition options through to vacant
possession For personal use only use personal For
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Design & architecture For personal use only use personal For
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Sydney asset tour For personal use only use personal For
Macquarie Park, Sydney
19 Asset tour itinerary
Time Location 9.00 – 10.00am Presentations at Level 29, 20 Bond Street Sydney 10.10am Depart for North Sydney 10.25 – 10.45am 73 Miller Street, North Sydney site visit 10.45am Depart for North Ryde 11.00 – 11.25am Drive by tour of North Ryde and Macquarie Park 11.25 – 11.45am 15 Talavera Road, Macquarie Park site visit 11.45am Depart for Seven Hills 12.10 – 12.30pm 2 Costello Place, Seven Hills site visit 12:30pm Depart for Wetherill Park 1.00 – 1.45pm 495 Victoria Road, Wetherill Park site visit and lunch 1:45pm Depart 495 Victoria Road 1.50pm – 2.10pm 122 Newton Road, Wetherill Park site visit 2.10pm Depart for Yennora 2.30 – 2.50pm 205 Fairfield Road, Yennora site visit
For personal use only use personal For 2:50pm Depart for CBD 3.40pm Arrive 20 Bond Street, Sydney
20 Asset tour map
Locations A – 20 Bond Street, Sydney B – 73 Miller Street, North Sydney C – North Ryde D – 15 Talavera Road, Macquarie Park E – 2 Costello Place, Seven Hills F – 495 Victoria Street, Wetherill Park G – 122 Newton Road, Wetherill Park H – 205 Fairfield Road, Yennora
I – 20 Bond Street, Sydney For personal use only use personal For
21 73 Miller Street, North Sydney
Property Statistics Ownership Propertylink Office Partnership Number of Tenants 4 Major Tenant Government Property Site Area (sqm) 2,324 GLA (sqm) 14,672 WALE (years by income)* 1.8 Occupancy 100% Valuation $136.0 million Valuation Date 30 June 2017 Cap Rate 6.5% Property Type Office
Property Overview 73 Miller Street is a well located commercial office building offering ground floor retail and 11 levels of office accommodation with expansive harbour and city views. The property has a 5 Star NABERS energy rating and has 3 levels of basement car parking.
Location Description North Sydney is the northern extension of Sydney’s CBD and the
For personal use only use personal For property is situated on a prominent corner location of Miller and Blue Streets directly adjacent North Sydney railway station.
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* WALE at 30 September 2017 10 & 10A Julius Avenue, North Ryde
Property Statistics Ownership Propertylink Office Partnership III Number of Tenants 4 Major Tenant BOC Site Area (sqm) 12,290 GLA (sqm) 10,738 WALE (years by income)* 6.7 Occupancy 90.4% Valuation $65.0 million Valuation Date 30 June 2017 Cap Rate 6.75% Property Type Business Park
Property Overview The complex comprises two modern freestanding buildings with 10 Julius extends over 3 basement car park levels and 4 office levels whilst 10A extends over 2 basement car park levels and 3 office levels.
Location Description The property is situated within the Riverside Corporate Park at North
For personal use only use personal For Ryde approximately 13 kilometres north-west of the Sydney CBD.
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* WALE at 30 September 2017 12 Julius Avenue, North Ryde
Property Statistics Ownership Propertylink Office Partnership III Number of Tenants 9 Major Tenant Revlon Australia Site Area (sqm) 9,000 GLA (sqm) 6,989 WALE (years by income)* 3.7 Occupancy 100% Valuation $34.5 million Valuation Date 30 June 2017 Cap Rate 7.00% Property Type Business Park
Property Overview The property comprises 2 multi-tenanted detached office buildings constructed in 1999. Both buildings extend over 3 office levels with basement car parking.
Location Description The property is situated within the Riverside Corporate Park at North
Ryde approximately 13 kilometres north-west of the Sydney CBD. For personal use only use personal For
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* WALE at 30 September 2017 1 Lucknow Road (12c Julius Ave), North Ryde
Property Statistics Ownership Propertylink Office Partnership III Number of Tenants 1 Major Tenant Geneon Site Area (sqm) 3,190 GLA (sqm) 2,469 WALE (years by income) * 3.9 Occupancy 55.2% Valuation $9.2 million Valuation Date 30 June 2017 Cap Rate 7.25% Property Type Business Park
Property Overview The property was constructed in 2001 and incorporates a lower ground car park and office area together with ground and first floor office accommodation.
Location Description The property is situated within the Riverside Corporate Park at North
Ryde approximately 13 kilometres north-west of the Sydney CBD. For personal use only use personal For
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* WALE at 30 September 2017 15 Talavera Road, Macquarie Park
Property Statistics Ownership Propertylink Group Number of Tenants 13 Major Tenant Catholic Healthcare Site Area (sqm) 8,397 GLA (sqm) 12,597 WALE (years by income) 3.2 Occupancy 100% Valuation $77.0 million Valuation Date 30 September 2017 Cap Rate 6.25% Property Type Business Park
Property Overview 15 Talavera Road is a modern campus style business park with ancillary warehouse accommodation.
Location Description Macquarie Park is a high tech office/business park precinct, 17kms
north-west of the Sydney CBD. For personal use only use personal For
26 2 Costello Place, Seven Hills
Property Statistics Ownership Propertylink Australian Industrial Partnership II Number of Tenants 1 Major Tenant The Premier Group Site Area (sqm) 20,760 GLA (sqm) 11,116 WALE (years by income)* 1.3 Occupancy 100% Valuation $17.2 million Valuation Date 30 June 2017 Cap Rate 7.00% Property Type Industrial / Logistics
Property Overview A modern freestanding office and warehouse facility that has been designed to be divisible into two units. High clearance warehouse accommodation and concrete panel construction.
Location Description Seven Hills is an established industrial precinct adjoining the M2 and
For personal use only use personal For M7 Motorways and situated approximately 30 kilometres west of the Sydney CBD.
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* WALE at 30 September 2017 495 Victoria Street, Wetherill Park
Property Statistics Ownership Propertylink Australian Industrial Partnership II Number of Tenants Vacant – Short term income Major Tenant PODS (short term) Site Area (sqm) 22,690 GLA (sqm) 14,081 WALE (years by income) 0 Occupancy 0% Valuation $19.0 million Valuation Date 10 May 2017 Cap Rate 7.00% Property Type Industrial / Logistics
Property Overview The property comprises a modern and highly functional industrial facility. The warehouse is of concrete panel construction with internal clearance of up to 10.3m. Access to the warehouse is via 9 docks and 2 on-grade roller shutters, one with a large under cover loading area. There is also a small office area and canteen.
Location Description For personal use only use personal For Wetherill Park is a well established industrial precinct approximately 35km west of the Sydney CBD, less than one hour to Port Botany and Sydney Airport.
28 164-166 Newton Road, Wetherill Park
Property Statistics Ownership Propertylink Group Number of Tenants 2 Major Tenant Baxter Healthcare Site Area (sqm) 23,590 GLA (sqm) 11,854 WALE (years by income) 2.6 Occupancy 100% Valuation $20.6 million Valuation Date 30 September 2017 Cap Rate 6.25% Property Type Industrial
Property Overview Comprised of two modern, functional and high clearance distribution warehouses positioned over two separate allotments.
Location Description Wetherill Park is a well established industrial precinct approximately 35km west of the Sydney CBD, less than one hour to Port Botany
and Sydney Airport. For personal use only use personal For
29 122 Newton Road, Wetherill Park
Property Statistics Ownership Propertylink Group Number of Tenants 2 Major Tenant Sika Australia Site Area (sqm) 33,050 GLA (sqm) 18,060 WALE (years by income) 6.3 Occupancy 100% Valuation $32.2 million Valuation Date 30 September 2017 Cap Rate 6.0% Property Type Logistics
Property Overview Two functional distribution warehouse facilities providing excellent warehouse access with both sunken and on-grade loading docks along the building’s northern and western alignment.
Location Description Wetherill Park is a well established industrial precinct approximately 35km west of the Sydney CBD, less than one hour to Port Botany
For personal use only use personal For and Sydney Airport.
30 205 Fairfield Road, Yennora
Property Statistics Ownership Propertylink Australian Industrial Partnership II Number of Tenants 4 Major Tenant The Iconic Site Area (sqm) 55,400 GLA (sqm) 31,086 WALE (years by income) 5.9 Occupancy 100% Valuation $50.5 million Valuation Date 30 June 2017 Cap Rate 6.75% Property Type Industrial / Logistics
Property Overview The property comprises a freestanding industrial building split into two units (Warehouses A & B). Both comprise high clearance warehousing and 2-level office components and are currently configured into four (4) separate tenancy areas.
Location Description For personal use only use personal For Yennora is an established industrial precinct within central western Sydney approximately 30 kilometres west of the Sydney CBD.
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* WALE at 30 September 2017 CARRIE BARRACK Contact Investor Relations Manager [email protected]
T: + 61 2 9186 4747 M: +61 422 464 028
Level 29, 20 Bond Street
Sydney NSW 2001
For personal use only use personal For www.propertylink.com.au
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