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					Lend Lease Melbourne Investor Day - 20 October 2009
Overview

Brad Soller
Chief Financial Officer
Agenda

                     8.45am    The Gauge - Welcome
                                    Brad Soller       -   Chief Financial Officer
                                    David Hutton      -   Global Head of Development
                                    Tony Costantino   -   CEO Bovis Lend Lease Australia
                                    Maria Atkinson    -   Head of Sustainability
                                    Paul Yousseph     -   Project Director, ANZ
   Lend Lease                       Toni Blume        -   Head of Project Management &
                                                          Design, Myer
Melbourne Investor
                     10.00am   Site Visit of Victoria Harbour Precinct – ANZ, Myer
       Day
                     12.00pm   Site Visit to Edgewater
                                    Jill Lim          - Project Director, Edgewater

                     2.00pm    Site Visit to the new Royal Childrens’ Hospital
                                    David O’Shaughnessy – Project Director, RCH

                     3.15pm    Conclusion of the day’s events                              2
Corporate Action since 30 June 2009

  Lend Lease proposal to staple a trust to LLC
      There is no change to Lend Lease’s strategy or business model
      Lend Lease has no ambitions to become a REIT
      The stapled structure will provide flexibility in how Lend Lease holds future passive assets
      Existing company assets cannot be transferred to the trust including LLP
      To be voted on by LLC shareholders at our AGM on 12th November 2009
      Trust initially capitalised at circa A$500k
  Lend Lease proposal to acquire remaining shares in Lend Lease Primelife
      Proposal to acquire remaining 57% of shares at 31 cents per share (cost of circa A$170 million)
      Expected to be accretive to future earnings
      In line with Lend Lease’s strategy to increase exposure to the retirement sector
      Increases LLC’s gearing from c.3% to c.9% of net debt to total tangible assets less cash
      Independent Expert report out mid November
      Subject to vote by LLP shareholders at their AGM to be held on 8th December 2009


                                                                                                        3
Project Wins since 30 June 2009

 Project wins since year end
     A$250 million Catholic Schools Education contract for Bovis Lend Lease
     Acquisition of retirement/ aged care assets from PTN for A$76 million
     Reaching financial close on US$125 million Phase A of PAL program
     Launch of Capella Capital – PPP origination capability in Australia
     Financial close on £180 million 1st phase of Birmingham Schools’ program
     Sale of the Dome




                                                                                        Knoxfield - Waterford Park, Melbourne
                                                             a retirement village owned and managed by Lend Lease Primelife     4
Lend Lease Melbourne Investor Day - 20 October 2009


David Hutton
COO Asia Pacific
Content

                     Victoria Harbour Project

                     Development/ Asset Management in Lend Lease Asia
                     Pacific
                         Key Sectors
                         Sector Trends & Sales update
   Lend Lease
                     Competitive Positioning
Melbourne Investor
       Day           Commercial Approach




                                                                        6
Victoria Harbour:
Overview and History

  Victoria Harbour is a 30 hectare parcel in the centre of the Docklands precinct surrounded by
  2.5km of water frontage
  Considered the ‘jewel in the crown’ of Docklands, the 20 year Development Agreement includes
  350,000m2 commercial; 22,000m2 retail; 20,000m2 community/mixed use; 2,069 (min)
  apartments, 178 marina berths; 6hs parkland & public open space
  In 2001, Lend Lease Development was selected as the developer for Victoria Harbour and began
  work on nab@Docklands
  Dock 5, the first residential building, commenced in 2004
  In Feb 2006, Lend Lease committed to the Merchant Street retail development (which included
  the Gauge) to create the “heart” of Victoria Harbour
  In the 3 years since early 2006 LLD has commenced:
          - 5 commercial buildings (180,000 sqm)
          - 3 residential buildings (230 units)
          - Merchant Street Retail Centre and Children’s Hub
                                                                                                  7
Victoria Harbour:
Projects as at October 2009


                    The Gauge   Ericsson House             nab @ Docklands        The Mosaic
                                                                                               The Montage


Dock 5




                                                                                               Myer

 The Merchant




                                                                                                ANZ


833 Bourke Street




                                                                                               Merchant Street Retail

Children’s Hub                   Note: Future development site uses may change.

                                                                                                                        8
Victoria Harbour:
Committed & Completed Projects

Commercial Projects
                                    Indicative Completion
                        GFA                Value
                                                            The Gauge

 NAB                  70,200 sqm
 Ericsson             26,325 sqm
 The Gauge            10,590 sqm
 LUCRF                 3,107 sqm
                                                                  ANZ
 Myer                 34,247 sqm
 ANZ                 102,758 sqm
                  247,227 sqm              c$1.4b

Remaining GFA:        100,000 sqm
                                                                 NAB
                                                                        5
Victoria Harbour:
Committed & Completed Projects
Residential Projects
                                        Approximate
                                      Completion Units
                                           Value
  Dock 5                  148 units        $158m
  Mosaic                   71 units        $50m
  Montage                  84 units        $60m          Convesso (artists impression)
  Merchant                133 units        $58m
  Convesso                220 units        $260m
                         656 units        $586m

Remaining GFA:         243,000 sqm
                                                                                     Merchant
                                                                                                10
 LL APAC Development/Asset Portfolio


Master planned communities in major growth
corridors, Australia wide




Apartments in Sydney & Melbourne




Commercial & mixed use in prime CBD
positions




Retail regional centres – development/
management




Retirement & Aged Care Australia wide
                                             * Locations excluding LL Primelife   11
 Market Outlook

  Home Loan Affordability
  Proportion of Monthly Income as repayment
                                       %
                                  45
                                           Sydney     Melbourne
                                  40       Brisbane   Adelaide
                                           Perth
                                  35

                                  30

                                  25

                                  20

                                  15

                                  10
                             91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 f
                                                                                 as at June
•Affordability in Melbourne at its best level since 1999
Source: REIA, ABS, BIS Shrapnel                                                               12
                                                                                              12
Delfin Lend Lease Trading Update

  Residential Sales        Sales YTD
                           (Sept 09)
Sales                          983
Victoria                       337
Queensland                     152
NSW/ACT                        399
South Australia                95
  July, August and Sept sales have
  continued recent improvement and
  reflect 2007 historic sales momentum.
  Enquiry strong in all markets.
  Revenue escalation being achieved in
  all markets and margin growth also
  being achieved.
  Carry in of 886 and proposed carry over
  of 1,000.
  NSW sales have shown largest
  improvement in portfolio performance.
  FHB for last quarter was 27%
  (historically 16-18%) and expected to                      Mawson Lakes            Lakeside at Pakenham
  slow in next quarter.                     Improving conditions but DLL remains cautious in market outlook.   13
Delfin Lend Lease Residential Market Trends

 Melbourne
 Remains strong. Positive outlook based on stock                                                                        SEQ
 deficiency and affordability. DLL looking to invest                                                                    Rebounded recently with strong sales
 further in this market.                                                                                                momentum. Fundamentals remain
                                                                                                                        strong. DLL well positioned in this
     ACT                                                   Growth                                     Downturn          market.
     Strong property market. Longer term                                  Melbourne
     outlook to be influenced by                                    ACT                          Gold Coast
     Government decisions. DLL well
                                                           Townsville                                     Cairns
     positioned in this market.


                                                       Adelaide                       Property
Adelaide                                                                                                   Sunshine
                                                                                       Cycle
                                                                                                            Coast
Remains Australia’s most affordable city.                                              Clock
Long term outlook influenced by
employment prospects. DLL has a strong                   Brisbane
market presence and brand.

                                                                                                  Perth
                                                                            Sydney


                                                            Recovery                                      Stabilise   Perth
                                                                                                                      Market has slowed due to affordability
 Sydney                                                                                                               constraints. Long term fundamentals
                                                                                                                      remain strong based on infrastructure
 Market appears in recovery. Growing stock deficiency                                                                 and mining projects recently
 provides for positive outlook in medium term. Suits                                                                  announced.
 Delfin Lend Lease as currently have good project mix in
 this market.
                                                                                                                                                               14
 Apartment Trends

Sydney “set to recover”
  Apartment approvals are currently (in trend terms) at 30% of the level they were at the start
  of 2004
  Chronic undersupply of accommodation action in NSW and unless there is an increase in
  supply (which looks as though it will be insufficient) prices will go higher (significantly so)           Growth                               Downturn
  and affordability will deteriorate again
  Even greater demand for apartment living (if it is cheaper than conventional housing)
  The Sydney market has moved out of the bottom of real estate cycle, as preliminary data
  highlight

Melbourne “consistent growth”
  The most significant feature of the Victorian property market remains its continual resilience
                                                                                                                                     Property 
  In spite of large swings in housing affordability since the start of the decade the supply of                                        Cycle 
  apartments has remained remarkably stable                                                                                            Clock
  Significant undersupply of accommodation in the State due to rate of completions being
  stable while population growth has increased
  The shortage of accommodation should serve to underpin demand for all forms of
  accommodation in the short term
                                                                                                                     Melbourne
Brisbane “the worst is over’                                                                                               Sydney 
   Brisbane market has seen a softening in activity since around 2004                                                                Brisbane 

   The Brisbane CBD is operating at reduced volumes – 30% below its peak                                    Recovery                             Stabilise
   Current market parameters for new stock to be about $8,000m2 as a minimum to be feasible,
   extending up for premium product
   The Brisbane CBD apartments market is likely to be in a holding pattern with little new stock
   (apart from Meriton – 700 apartments across two projects) brought to market, and soft
   (cyclical and structural) demand unlikely to change significantly in the short term
                                                                                     Source: BIS Shrapnel                                                    15
Commercial Office Outlook

                                                                                 Perth
                                                                                 The correction in Perth rents will continue for
   Growth                                          Downturn                      the next three years due to the elevated                     Singapore
                                                                                 vacancy rate.
                                                                                                                                              There is a large development
                                                                                 Prime gross effective rents will start to                    pipeline that will cause further
                                                                                 increase in 2013 (4.3%) and 2014 (3.3%).                     rental corrections in the short
                                                     Perth
                                                                                                                                              term.
                                                                                                                                              The market will have a tenant
                                                      Singapore
                                                                                                                                              bias through 2011 and be
                        Property                                                 Brisbane                                                     considered balanced in 2012
                                                      Brisbane
                         Cycle                                                                                                                and 2013.
                                                                                 The correction in Brisbane rents will continue for
                         Clock
                                                        ACT
                                                                                 the next 15 months.
                                                                                 Prime gross effective rents will start to increase in
                                                                                 2011 (4.2%) and 2012 (4.0%) before averaging
                                                                                 rental growth above 5.0% in 2013 and 2014.

                                          Sydney
                                    Melbourne
                                                                                                                       ACT
    Recovery                                       Stabilise
                                                                                                                       Rental growth in Canberra is relatively
                                                     Sydney                                                            inelastic and is driven by new construction.
                                                     There is forecast to be a demand                                  Prime gross effective rents are forecast to
                                                     recovery in 2011 to precipitate a                                 increase by 2.2% per annum in 2010-2012,
                                                     three year period of double digit                                 before increasing by 5.8%(2013) and
     Melbourne                                       rental growth (2011 to 2013).                                     4.2%(2014).
     There is forecast to be a demand
     recovery in 2011 to precipitate a three
     year period of double digit rental
     growth (2012 to 2014).
                                                                                                                                   Source: Jones Lang LaSalle Research
                                                                                                                                                                                 16
Competitive Positioning


    Dominate in chosen sectors
    Market knowledge
                                                                              NAB

    Brand
                                 Lakeside, Pakenham
    Integrated capability
    Backlog / diversification
                                                                   Jacksons’ Landing

    Capital Model                                           Macarthur Shopping Centre


    Partnering                   The Terraces, Queensland




                                                                                        17
Lend Lease Melbourne Investor Day - 20 October 2009
Bovis Lend Lease

Tony Costantino
CEO
Strategy Overview

                                                             Sectors
  Balance of strong portfolios of work in
  different markets

  No.1 or 2 in each sector

  Balanced GPM types and risk profiles

  Lend Lease integrated model
                                               Fee vs Risk             Internal vs External

  Stable workforce
                                             30%                          20%
  Maintain focus on operational excellence
                                                     70 %
  Excellence in safety                                                             80%

                                                                                              19
Market Outlook


 Government and Infrastructure spend continues
    Health
    Education
    Universities
    Water


 Private/ institutional clients
                                                 The new Royal Children’s Hospital
     Confidence has returned
     Yet to be translated into projects


 Maintaining market share in a smaller market



                                                                                     20
Competitive Landscape


 2008/09 HIA Reed Construction 100 report rankings:
     Number 1 Commercial and Community (including Health)
     Number 2 overall


 Competitors vary by sector

 Increased focus on alliances for large capital projects
      eg Hospitals and infrastructure


 Market remains competitive



                                                            Melbourne Recital Hall and Melbourne Theatre Company

                                                                                                                   21
Trading Performance Update

        Backlog GPM by Sector FY09   Backlog GPM by region FY09




                                                                  22
Recent Industry Recognition


The Gauge, Victoria Harbour
Master Builders Association, Victoria
  Best Sustainable Award and Health and Safety
  Sustainable Architecture Award at The Royal Australian
  Institute of Architects (AIA) Vic



Melbourne Recital Hall and Melbourne Theatre Company
Master Builders Association, Victoria
 Master Builder of The Year
 Overall Project Winner




                                                           23
 Current Project Pipeline in Victoria


ANZ Centre - just completed

Current projects
    The new Royal Children’s Hospital
    Myer
    Telstra office fitouts
    Telstra land and buildings
    The Merchant
    500 Bourke Street

Pipeline                                                 ANZ Centre


     Preferred tenderer on Melbourne Wholesale Markets
     PPP - Parkville Comprehensive Cancer Centre
                                                                      24
Plan for Growth/Outlook


 Ongoing commitment to Government/PPPs
      Infrastructure e.g. water
      Health
      Education – schools and universities
 Lend Lease integrated projects
      Victoria Harbour
      Residential                                       The Merchant


 Institutional investment opportunities
 Diversifying MultiSites beyond retail and commercial
 Sustainability
      Asset refurbishment market



                                                                       25
Lend Lease Melbourne Investor Day - 20 October 2009


Maria Atkinson
Global Head of Sustainability
Presentation

                     Strategy to be a sustainable leader


                     Progress to date


                     Leadership Activities
   Lend Lease
Melbourne Investor        Green Buildings
                          Sustainable Precincts
       Day                Carbon Reporting and Climate Positive Developments
                          Business Opportunities




                                                                               27
Sustainable Buildings &
Climate Initiative
Green Building




                 29
30
From Buildings to Precincts


     Future – the opportunity
                                Sustainable Lifestyle


     Tomorrow
                                Sustainable Precincts


     To date
                                Sustainable Buildings




                                                        31
32
16 Founding Projects in 10 Countries




                                                               ++
                  DOCKSIDE GREEN              ELEPHANT & CASTLE      STOCKHOLM ROYAL SEAPORT

               + +                     TORONTO WATERFRONT
                                                               +  ALBERT BASIN
                                                                                                        MAGOK URBAN


              + +
                                       LOWER DON LANDS                                                  DEVELOPMENT PROJECT

       TREASURE ISLAND
REDEVELOPMENT PROJECT
                                   DESTINY FLORIDA

                                                                                           +                 +
                                                                                                  MAHINDRA WORLD CITY JAIPUR


                                                                                          + GODREJ GARDEN CITY




                 +                 PANAMA PACIFICO




                                          +     PEDRA BRANCA
                                                SUSTAINABLE
                                                                    +
                                                                    +
                                                                           MENLYN MAINE

                                                                         ZONK’IZIZWETOWN CENTER               VICURBAN@OFFICER



     Lend Lease Projects
                                                URBANISM

                                                                             VICTORIA HARBOUR DOCKLANDS, MELBOURNE +
                                                                                                                   +
                                                                                                                                 33
Lend Lease Melbourne Investor Day - 20 October 2009
ANZ Centre

Paul Yousseph
Project Director
Project Overview


 ANZ ‘s new Global Headquarters
 Australia’s largest single tenanted office building
 Location: Victoria Harbour, Melbourne
 Project Size:     83,500sqm net lettable area
                   135,000sqm built area
 6,500 occupants
 1,900sqm Retail
 Commencement Date: October 2006
 Completion Date: October 2009
 Sustainable Initiatives


                                                       35
The Project Team




                     Owner / Occupier            ANZ


                      Development            Lend Lease
                      Management             Development


                   Project Management                          Lend Lease Integrated
                                           Bovis Lend Lease
                   Design & Construction                         Property Solution


                    Architectural design
                                           Lend Lease design
                    Sustainable design




                                                                                       36
Our Approach


Sustainable Solutions
  Ability to influence outcomes
  Integrated approach
  Wealth of knowledge and expertise




                                      37
Our Value Proposition


Value Proposition             Value to Client

Inherent knowledge of         Focus on optimising owners’
commercial industry           and tenants end outcome

Early capping of              Owner / tenant outcome
Development, Design and       certainty
Construction risk

Upfront , in house services   Streamlined process resulting in
embedded in the Lend          time saving and creating value
Lease approach                through an innovative front end
                              focus and problem solving




                                                                 38
Lend Lease Melbourne Investor Day - 20 October 2009
Myer, Melbourne
Toni Blume
Head of Design & Project Management, Commercial
Bovis Lend Lease
Project Overview


 Lend Lease integrated team:
        Building Owner                            APPF Commercial
        Developer/Development Management          Lend Lease Development
        Design, Project Management & Construction Bovis Lend Lease including Lend Lease design
 Project :     National Support Office for Myer Australia – relocating from Lonsdale St Melbourne
 Location:     800 Collins St, Melbourne
               opposite ANZ, Victoria Harbour
 Project value: total building including
                integrated fitout = $180M
 Construction: commenced March 2008
 Completion : late March 2010


                                                                                                    40
Project Offer

 New commercial office with integrated tenant fitout
 10 year lease with 5 year option
 28,850sqm Commercial lettable area
 Large floorplates 2,900sqm NLA
 880sqm Retail area
 310 car and 100 bike spaces above ground over
 three carpark levels
 Achieved 5 star Green Star Design rating (V3) and
 registered for As Built rating(V3)
 Targeting 4.5 star NABERS energy design rating
 Innovative façade with feature vision panels and
 clear glass ‘shop windows’ across large floor plates
 Large outdoor terraces approx 600m2
                                                        41
Our Service


End to end role including:
  Master planning
  Development feasibility
  Total development packaging
  Lease negotiations
  Development management
  Design and construction management
  Value management role using in-house specialists
  Fast tracked response and decision making
  Speed to market
  Tenant management role during development
  Building owner management
                                                     42
Our Competitive Advantage


 Victoria Harbour masterplan with a variety of
 commercial office sites to tailor buildings to
 commercial tenant needs
 Lend Lease integrated model provides a total
 packaged property solution at a competitive price
 Strong national relationship with Myer via our retail
 business
 Quality, innovative and integrated design
 Lend Lease track record for delivery on time and
 budget
 Recognition as the market leader in developing
 sustainable property projects

                                                         43
Lend Lease Melbourne Investor Day - 20 October 2009
Edgewater

Jill Lim
Project Director
Edgewater overview

 Location     7km west of CBD
 Size         95 hectares / 1,100 homes
 Time frame   2001 – 2012
 Value        $292 million
 History      Former munitions site
              purchased from ComLand
 Features
                Approx. half the project is open space
                1.5 km Maribyrnong River frontage
                7 hectare artificial lake
                Marina with public/private moorings
                Central retail/business precinct
                Proximity to surrounding schools,
                shopping, recreation, CBD



                                                         45
Edgewater trading history


  598 land lots (sold out FY09)
  500+ apartments/high density
  residential in planning/under
  construction



                                                             Development by type


  29.9 hectares residential land    Commercial land     4%


                                    High density land        11%

  3.75 hectares commercial land     Residential land                               34%


  9.6 hectares high density sites       Open space                                       51%




                                                                                               46
Edgewater trading history


  Highest residential land sale
      Skyline Drv 334 sqm - $650,000 (June
      2007)


  Highest residential built form sale
      Infinity 198 sqm - $930,000 (October
      2009)


  Highest commercial land sale
      Site 7C off Gordon Street – 1.82 hectare
      - $9.5 million (incl. GST) (December
      2007)



                                                 47
Edgewater current trading


  The Outlook - built form project
      60 - 80 dwellings per hectare
      119 built form homes
      8 different built form products
      32 sold to date (K, 1, 2 & 3)
      Price range from $460,000 - $1.2m
      Floor plans range from 126 sqm –
      375 sqm
      1 apartment site (10)
      Built form designed by Lend Lease




                                          48
Edgewater competitive landscape


                               Essence             Ascot Chase       Banbury           Callaway Park
                                                                     Village
 Developer                     Stocklands          Urbex             Cedar Woods       Australand
                                                                     Properties Ltd
 Location                      Maribyrnong         Ascot Vale        Footscray         Sunshine West
 Product         Total lots    123                 200+              380               250
                 Price range   $390k - $580k       $550k - $950k     $430k - $550k     $344k - $554k
                 Product       3 - 4 bedroom       2 - 5 bedroom     2 - 4 bedroom     2 - 4 bedroom
                 range
                 Avg home      18 sq               21 sq             18 sq             18 sq
                 size
 Trading                       Final homes         Initial release   Stage 2 selling   Stage 5 selling
 Target market                 First-second home   Second+ home      First home        First-second
                               buyers              buyers            buyers            home buyers

                                                                                                         49
Edgewater price growth - Land

     $600,000
                                     Average sale price
     $500,000

     $400,000

     $300,000

     $200,000

     $100,000
                FY02   FY03   FY04        FY05            FY06   FY07    FY08    FY09




      $1,800                         Average/sqm price
      $1,600
      $1,400
      $1,200
      $1,000
        $800
        $600
        $400
                FY02   FY03   FY04         FY05           FY06    FY07    FY08    FY09

                                                                                         50
Lend Lease Melbourne Investor Day - 20 October 2009
The new Royal Childrens’ Hospital Project

David O’Shaughnessy
Project Director
Project Introduction


     Healthcare provides an opportunity for Bovis Lend Lease to capitalise on large government
     infrastructure spend in a changing market environment
     Introduction in Australian market to PPPs, building on the Bovis PPP business in the UK
     Large scale, complex nature of the project suits our capabilities and capacity to deliver




                                                                                                 52
Project Overview

  Public Private Partnership project under the “Partnership Victoria” delivery model – 25 year concession term
  Consortium
         Sponsor:                             Amber Infrastructure (old Babcock and Brown)
         Design and Construction Provider:    Bovis Lend Lease
         Hard Facilities Management Provider: Spotless Group

  Two Stage Project
           Stage 1     140,000m2                Facility Works           Completion
                       48,000m2                 Carpark                  Dec 2011
           Stage 2     48,0000m2                Project Co. Works        Completion
                       25,000m2                 Carpark                  Dec 2014

  Role
         Project Management, design, construction, commissioning, finalisation and transition

  Key Tenants
         Royal Childrens’ Hospital
         University of Melbourne (Department of Paediatrics)
         Murdoch Childrens’ Research Institute
                                                                                                                 53
Project Attributes

  Size of final site is less than 4.1ha.
  Additional patient capacity is 35,000 patients per annum
  Total beds – 353 with 85% of single beds and 80% with views to parkland
  2,165 car spaces, 500 bike spaces
  Non core offering – 98 room hotel, gymnasium, supermarket, childcare, consulting suites, food and beverage
  Community Partnerships – partnerships with Melbourne Aquarium, Zoo, Scienceworks, Starlight Foundation, Bean
  Bag Theatre
  Ecologically Sustainable Development (ESD)
        Reduction in greenhouse gas emissions – 48%
        Reduction in water demand – 20%
  4,500 rooms, 74 departments
        Inpatient wards
        Emergency and operating theatres
        Clinical support areas (pathology, imaging, etc)
        Ambulatory care, allied health, community health, mental health
        Research and Education
        Family and Child precinct
  Evidence based design
                                                                                                                 54
Project Status

Program:         On program to deliver to contracted timeframes
Design:          Have completed all user groups
                 Final design submission (design stage 3) made to 92% of first stage of the project
                 State have endorsed 75% of the design
Construction:    Structure due to top off in November, ahead of schedule




                                                                                                      55
Questions?




             56
Lend Lease Melbourne Investor Day - 20 October 2009

				
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Description: Shopping Centre Investor Project Agreement document sample