www.attacq.co.za
UPDATEPRE YEAR END
JUNE 2017
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INTRODUCTION 3
VISION 5
STRATEGY 7
SOUTH AFRICAN PORTFOLIO 13
WATERFALL DEVELOPMENT 17
MAS REAL ESTATE INC. INVESTMENT 34
REST OF AFRICA: RETAIL INVESTMENTS 36
CONCLUSION 38
QUESTIONS AND ANSWERS 40
AGENDA
INVEST GROWDEVELOP
SLIDE
Lynnwood Bridge Precinct
INTRODUCTION
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Michael Clampett
Head: Retail Asset &
Prop Management
CA(SA)
Joined Jul 2015
7 yrs property
experience
EXPERIENCED MANAGEMENT TEAM
Morné Wilken
CEO
B Eng (Hons)
Joined Aug 2009
17 yrs property
experience
Melt Hamman
CFO
CA(SA)
Joined Jul 2013
7 yrs property
experience
Jackie van Niekerk
COO
BCom Acct
Joined Apr 2017
14 yrs property
experience
Tasja Kodde
Company Secretary
Chartered Secretary
Joined Mar 2015
4.5 yrs property
experience
Debbie Theron
Head: Off & Mixed Use
Asset & Prop Mgt
BA Law
Joined Jun 2014
26 yrs property
experience
Pieter Mackenzie
Head: Developments
BSc Blg Mgt, MBA
Joined Jan 2016
30 yrs property
experience
Raj Nana
Investment Officer
CA(SA)
Joined Apr 2014
3.5 yrs property
experience
Peter De Villiers
Head: International
Assets
CA(SA) CFA
Joined Jul 2013
4 yrs property
experience
Bridge at Lynnwood Bridge Precinct
VISION
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ATTACQ’S VISION AND UNIQUE VALUE PROPOSITION
To be the premier property company
Delivering exceptional and sustainable growth through
real estate investments and developments
Through: • Focused approach
• Waterfall development pipeline• Quality properties and investments
Owning and managing a quality portfolio and developing a City, both of
which deliver exceptional and sustainable capital and earnings growth.
“
“Morné Wilken
Mall of Africa
STRATEGY
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STRATEGIC EXECUTION HIGHLIGHTS | 2017 FINANCIAL YEAR
Invested in partnershipswith Equites, Zenprop, Barrow, Atterbury,
and Sanlam Properties
Vacancies reduced to 2.6%
MAS revised itsinvestment strategy
Rebranded to communicate our
vision and offering to the market
11 bursaries via Atterbury Trust
Contributions made to
Columba Leadership Programme,
Fat Cats Cares and Bana Ba Rona Early
Childhood Development Centre
8 Green rated buildings(by design) and
1.2 million m² development rights in the centreof Gauteng, of which ±608 000 m² bulk is serviced
Further appointments made in
Development team
DEVELOP GROWINVEST
completed buildings4in SA, adding primary GLA of
70 424 m²
Completed 3 rooftop PVplants with a total capacity of
Another 2 installations underway
5 909 kWp
A further
Of bulk jointly secured withSanlam Properties at Waterfall
665 425 m2
Appointed Jackie van Niekerk
as Chief Operating officer
first birthday celebrationMall of Africa
>1.1 million visitors per month
Average trading density of R2 630 m² (opening to 31 March 2017)
1 Gold LEED rated building
(as of 31 December 2016)
High qualitydirectly held
property portfolio
WALE 6.5 years(as of 31 December 2016)
Recognised in the
2017 VIVA global awards as one of the world’s most outstanding examples of
shopping centre design and development
Included in the FTSE / JSE
Responsible Investment Indexfrom 19 June 2017
Sold: Investment in
Atterbury Europe, non-core African asset, 8 industrial buildings (Equites)
R1.7 bn
capital recycled
In the pipeline: Nova Eventis (Competition
Commission approval outstanding), Altech Building (subject to transfer)
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• Sustainable and long term
• Exceptional returns
• Key metrics:
o Total return per share
o Growing distributable income per share
• Maximise value from Waterfall
• Low/medium riskExtraordinary returns
High risk
Lumpy and with sustainability risk
Income growth
Low risk
Sustainable
Short term decision making
Developer
Premium quality “Income Fund”*
that controls a City
“Income fund”*
ATTACQ’S DIFFERENTIATOR
* Dividend paying property company
Deliver exceptional
and sustainable capital
and earnings growth
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ATTACQ’S JOURNEY
DEVELOPMENTS
SOUTH AFRICA
NON-SA: MAS
PORTFOLIO SPLIT BY GROSS ASSETS
69%12%
5%
5%
9%
Dec 2016
R27.1bn
58%
5%
6%
2%
29%
Dec 2013
R15.1bn
Post December 2016 events, impacting the split
Recycling of non-core assets
• Non-core African asset – R45 million
• Atterbury Europe (Serbia / Cyprus) – R1.35 billion
• Altech building (transfer in process) – R50.5 million
• Nova Eventis (Competition Commission approval outstanding)
435 842 m2 primary GLA to 694 770 m2 primary GLA
NON-SA: Africa
NON-SA: Other
Implementation milestones• Recycle of certain non-core assets• Restructure debt• Simplify legal structure• JSE approval of REIT status• Declare maiden distribution
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DISTRIBUTION TARGETS
73
88
105
126
0
20
40
60
80
100
120
140
2018 2019 2020 2021
Ce
nts
Years
Target distribution per share Linear (Target distribution per share)
20%growth
20%growth
20%growth
Management Target of three year rolling CAGR of 20% on distributions
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FOCUSED APPROACH | FOUR VALUE DRIVERS
1 Existing quality operational
South African portfolio
2 Waterfall development portfolio
3 Strategic investment in
MAS Real Estate Inc.
4 Rest of Africa:
Retail Investments
MooiRivier Mall
SOUTH AFRICAN
PORTFOLIO
69%
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PORTFOLIO SPLIT BY GROSS VALUE
EXISTING QUALITY OPERATIONAL SA PORTFOLIO
VACANCIES
2.6%Dec 2016: 2.6%
Dec 2015: 3.4%
WALE* PROFILE
6.5 YEARSDec 2016: 6.5 years
Dec 2015: 6.8 years
COLLECTION RATE^
94.7%Dec 2016: 94.7%
Dec 2015: 95.8%
RENTAL ESCALATIONS#
7.6%Dec 2016: 7.6%
Dec 2015: 7.9%
RENTAL~ R / m²
R158.8Dec 2016: R158.8 / m²
Dec 2015: R138.3 / m²
NON-GLA INCOME
+105%Dec 2016: R8.2 million
Dec 2015: R4.0 million
58.4%
2.4%
6.1%
33.1%
Jun 2016
58.2%
34.6%
4.9%
2.3%Dec 2016LIGHT INDUSTRIAL
RETAIL
HOTEL
OFFICE AND MIXED-USE
* WALE: Weighted average lease expiry profile
^ Collection rate based on total arrears as a percentage of rental income
# Weighted average rental escalations
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# 100% of primary gross lettable area reflected above. Attacq’s undivided share in the property: ^80%; *25%; Attacq’s interest in property company: #50%
FEATURED PROPERTIES
1. Eikestad Mall 2. MooiRivier Mall 3. Mall of Africa
4. Garden Route Mall 5. Brooklyn Mall
Top 8 featured properties Primary Gross
Lettable Area#
• Mall of Africa, Waterfall^ 123 348
• Lynnwood Bridge Precinct,
including Glenfair Boulevard, Pretoria 81 973
• Newtown Precinct, Johannesburg# 78 305
• Brooklyn Mall, Pretoria* 74 756
• Garden Route Mall, George 53 584
• MooiRivier Mall, Potchefstroom 49 054
• Eikestad Mall Precinct, Stellenbosch^ 47 146
• Cell C Campus, Waterfall 43 890
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MALL OF AFRICA
• Celebrates its 1st Birthday on the 28th April 2017
• >1.1 million average shoppers per month(opening to March 2017)
• R2 630 m² average trading density(opening to March 2017)
• Annual rent to turnover ratio: 9.6% IPD benchmarking report: 10.4% (year end 31 March 2017)
• Dedicated Gautrain bus route
• National retailers indicated their Mall of Africabranch trades in top five of their SA portfolio
• Won 2016 Spectrum Award for the bestretail development in the category ofnew regional and super-regional shopping centres
• Recognised in the 2017 VIVA global awards as one of the world’s most outstanding examples of shopping centre design
and development
Gateway West
WATERFALL
DEVELOPMENT
12%
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DEVELOPMENT OPTIONS
• Appoint a dedicated developer to roll-out the Waterfall development
• Form a Joint Venture with an established developer on the total Waterfall development
• Dedicated Attacq Development Team and selective Joint Ventures
BMW Corporate Campus
K101 Warehouse
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Chantell Latilla-Campbell
Deal MakerCIPF, CCPP, Commercial Brokerage CertificateJoined Jun 201725 yrs experience
BiancaBarnes
Broker LiaisonJoined Aug 20165 yrs experience
NicoBarnard
Town PlannerPr. Pln, CDFAJoined Sept 20168 yrs experience
EXPERIENCED DEVELOPMENT TEAM
PieterMackenzie
Head of DevelopmentsBSc, Bldg Mgt, MBAJoined Jan 201629 yrs experience
MornéWhitehead
Development ManagerBSc(QS), Hons: PRQSJoined June 201616 yrs experience
CarienStorm
Development ManagerBComJoined 201316 yrs experience
EnzoOosthuizen
JessicaGovender
Marketing Development SpecialistBCom HonoursJoined Jun 201720 yrs experience
MironNaidoo
Development ManagerProject Management, Civil EngineeringJoined Jun 201711 yrs experience
DavidOosthuizen
Development ManagerJoined Aug 201613 yrs experience
LindaMeyburgh
Deal MakerSA Professional Valuers Ass, BScHonoursJoined Jun 201710 yrs experience
PAJoined Aug 201615 yrs experience
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44 849
127 407
70 200 71 398 60 381
52 083
172 408
28 208
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200 000
2012 2013 2014 2015 2016 2017 2018 2019
Prim
ary
GLA
m2
Future vs historical pipeline
Historical Secured Potential (75%) Potential (50%) Potential (25%)
Parameters
• Analysis includes all Waterfall developments by financial year, since the land was acquired in 2008
• Mall of Africa excluded from the analysis
• Projects allocated to financial years based on start date of project
• 2017 secured projects (52 083m2): BMW, AEFMC (Corporate Campus), The Artria (Hotel) and Massbuild Extension
• 2018 secured projects (52 308m2): Deloitte, Waterfall Point and Burger King (Waterfall Lifestyle)
• Remainder of pipeline based on actual leads for space probability weighted using estimated chance of success
WATERFALL DEVELOPMENT HISTORY AND PIPELINE
Pre-internalisation Post-internalisation Totals
104 391 m2
GLA newly
securedprojects
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172 408
239 558
28 208
71 830
215 936
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200 000
220 000
240 000
260 000
2018 2018 2018 2018 2019 2019
m2
Current activity and actual vs weighted pipeline
Secured Potential 75% Potential 50% Potential 25%
Actual
enquiriesActual
enquiriesProbability
adjusted
Probability
adjusted
WATERFALL DEVELOPMENT PIPELINE: ACTUAL VS WEIGHTED
• Currently under construction: PwC, Gateway West, K101 warehouse, BMW, Massbuild Extension, Corporate Campus
• Secured and under planning: Deloitte, The Atria (Hotel and Residential), Waterfall Point, Burger King (Waterfall Lifestyle)
• Speculative developments currently under planning: Gateway East, The Artria (Offices), Polofields Retail
• Remainder of pipeline based on actual leads for space probability weighted using estimated chance of successFY
20
18
Spec & under planning
Under
construction
Secured &
under
planning
FY
20
19
Actual activities
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WATERFALL MASTERPLAN EXPLAINED
• Catalyst for growth:
Mall of Africa and 1.3 Ha Waterfall Park
• 1.2 million m2 remaining bulk
• ±608 000 m2 serviced development rights
• Two focus areas:
Waterfall City and Waterfall Logistics Hub
• Benefits of Waterfall
• Central location
• Infill development
• Excellent access
• Unique urban designand infrastructure
• Corporate consolidation
• Economic benefit
Waterfall Development
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WATERFALL FOCUSED APPROACH
Waterfall City – An integrated City that works
• Work, live and play
• Sufficient and efficient infrastructure
• Smart technology
• Lifestyle offering
Waterfall Logistics Hub –
Gauteng’s Logistics Hub of choice
• Distribution / warehousing in logistics park
• Light industrial
• Office, warehousing and industrialcombinations
N
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DEVELOPMENTS UNDER CONSTRUCTION
Gateway West
• Primary gross lettable area: ±13 891 m²
• Segment: Office
• Estimated value on completion: ±R387.6 million
• Estimated date of completion: November 2017
Gateway West
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DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED
K101 Warehouse
• Primary gross lettable area: ±8 523 m²
• Segment: Light industrial
• Estimated value on completion: ±R93.0 million
• Estimated date of completion: September 2017
K101 warehouse
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DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED
PwC Tower and Annex*
• Primary gross lettable area: ±45 223 m²
• Segment: Office
• Estimated value on completion: ±R1.6 billion
• Estimated date of completion: February 2018PwC
* Data provided at 100% level.
Attacq has a 75% undivided share
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DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED
BMW Group South Africa Regional Distribution Centre
• Primary gross lettable area: ±32 000m²
• Segment: Light industrial
• Estimated date of completion: December 2017
BMW
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DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED
Massbuild extension
• Primary gross lettable area: ±9 643m²
• Segment: Light industrial
• Estimated date of completion: December 2017
MassbuildExtension
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DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED
Corporate Campus
• Primary gross lettable area: ±30 000 m²
• Segment: Office
• 50% JV partnership with Zenprop
• First tenant secured
• Development of Phase I commenced
• Estimated gross lettable area of
first building: ±5 800 m2
• Estimated date of completion of first building:
December 2017
CorporateCampus
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CURRENT DEVELOPMENTS
The Atria
• Primary gross lettable area: ±35 000 m²
• Segment: Office and mixed-use
› 2 office buildings
› 1 residential tower with ±120 apartments
› 1 hotel
• 50% JV partnership with Barrow Group
• Development of Hotel has commenced with
a gross lettable area of ±8 500m2
• Estimated date of completion of
Hotel: March 2019
The AtriaThe Atria
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CURRENT DEVELOPMENTS | CONTINUED
Waterfall Point
• Total saleable area: ±9 584 m²
• Segment: Sectional title - office
• Total development profit: ±R25.0 million
• Estimated date of completion: October 2018
• Development sold subject to conditions Waterfall Point
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CURRENT DEVELOPMENTS | CONTINUED
Deloitte - corporate consolidation
• Primary gross lettable area: ±42 000 m²
• Segment: Office
• Estimated date of completion: First quarter 2020Deloitte
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MALL OF AFRICA
WATERFALL
CITY
LOGISTICS
PRECINCT
DISTRIBUTION
CAMPUS
FUTURE DEVELOPMENTS
Sanlam Joint Venture
• 100 Ha of additional land
• Attacq has the right to increase its shareholding to 50%
• Economies of scale
• Availability of bridging funding
• Attacq appointed as the developer and asset manager
RETAIL
JV DEAL
RETAIL AND INDUSTRIAL / WAREHOUSING
INDUSTRIAL / WAREHOUSING
MAS properties: Germany and Scotland
MAS REAL ESTATE INC.
INVESTMENT
9%
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MAS
• Attacq’s sole entry point into Central and Eastern European markets
• 30.57% held by Attacq at 31 March 2017
• Attacq equity accounts for MAS as at 31 December 2016
› R2.4 billion equity accounted value vs market value of R3.3 billion
• MAS strategy: focus on income; distribution per share guidance of 30%
per annum through to 2019
• Lukas Nakos, CEO
• Historical markets: Western Europe; Germany, UK and Switzerland
• Expanded investment focus to Central and Eastern Europe via Prime
Kapital Investment JVs:
› Development JV focusing on new developments
› Investment JV focusing on accretive acquisitions
MAS’ Lewes development
West Hills Mall
REST OF AFRICA:
RETAIL INVESTMENTS
5%
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AFRICA
• 6 operational malls as at 31 May 2017
• Portfolio includes dominant assets in major cities of Accra, Lusaka and Lagos:
› Accra Mall
› Manda Hill
› Ikeja City Mall
› Kumasi City Mall (opened 10 May 2017)
• Weak commodity cycle, strong USD and high inflation challengescontinue
• 2020 contractual liquidity event
• Focus remains:
› Settling West Hills Mall, Achimota Mall
– and the newly opened Kumasi City Mall
› Managing assets through the cycle
› Improving liquidity in the portfolio
PROPERTY GLAVALUATION
(USD’000)ATTACQ SHARE
(USD’000)VALUE
(USD’000)VACANCY
%
Operational portfolio summary* 127 660 m² 544 718 101 796 4 267 / m² 4.0
West Hills Mall* Data provided at 100% level
Attacq owns 31.8% of AttAfrica and 25% of Ikeja City Mall
Information above correct as at 31 December 2016
Eikestad Mall
CONCLUSION
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2 Focussed approach
– four value drivers
SUMMARY OF ATTACQ JOURNEY GOING FORWARD
1 The next step in the Attacq journey
- REIT conversion
3 Target return to achieve a 15%
total return per share over 3 year period
Management Target
of three year rolling
CAGR of 20% on distributions
Brooklyn Mall
QUESTIONS
AND ANSWERS