BLUE VISION A/S COMPANY PRESENTATION. November 2017

Transcription

1 BLUE VISION A/S COMPANY PRESENTATION November

2 Introduction to Blue Vision A/S Blue Vision A/S is listed on Nasdaq Copenhagen. The only activity in Blue Vision A/S is ownership of 79.3 % of the Portuguese company Portinho S.A. Blue Vision A/S s mission is to enhance the value of the investment in Portinho S.A. Blue Vision A/S wants to realise the assets in Portinho S.A. within a time frame of months and estimates the value to be in the range of DKK per Blue Vision A/S share. Following realisation of the assets, Blue Vision A/S will in one or more stages distribute net proceeds to the shareholders, expectedly by means of a share buy-back programme. 2

3 Portinho S.A. (1) Portinho S.A. s activity is to own and develop a plot of land of 31,123 m2 on the holiday island Madeira, Portugal. The plot has been developed and a building licence for erection of buildings of a total of 66,250 m2 has been granted, however for the exclusive building of a 5-star boutiqe hotel with 100 rooms of a total of 10,000 m2 and 160 apartments of 30,000 m2 for sale and renting. Portinho S.A. is also, besides Blue Vision A/S, owned by an investor with local knowledge, experience and expertise from similar building projects. Blue Vision A/S is in the process of negotiating with a number of potential buyers with a view to selling all or a part of the shares and/or the assets in Portinho S.A. Reference is made to the Company s announcements on 3

4 Portinho S.A. (2) The plot is located on a steep hillside, giving all hotel rooms and apartments a full view of the sea. The plot is the last available piece of land located right by the sea, on which it is possible to build. There is access to the plot by public road. Portinho is about 20 minutes drive from the airport. 4

5 The Project The plot has been developed and a building licence has been granted for the erection of both hotel and apartments. The total project consists of a hotel section and a section of apartments, which can be sold together or individually, and common areas. Extensive project material has been prepared and a building offer has been obtained from a third party. Establishment of infrastructure has been initiated in September

6 The Hotel Section(1) A 5-star boutique hotel of 10,000 m2 has been planned. The following agreements have been concluded with Altis Hotels, which is a wellreputed hotel chain. The agreements concern: establishing 15-year guaranteed lease agreement of the planned hotel. administration agreement with Altis Hotels in relation to the attached apartments. The administration agreement for the apartments will ensure Portinho S.A. a current net income of approx. EUR 0.3 million during the first year and up to EUR 0.5 million from the fifth year and onwards. total construction costs for the hotel section of EUR 12.5 million. The amount is based on already obtained offers from a third party in cooperation with the local minority shareholder in Portinho S.A., who has large experience from similar construction works. 6

7 The Hotel Section(2) Advance approval of the financing of the construction work has been obtained, both for hotel and apartment sections. The Company is involved in ongoing negotiations regarding sale of the hotel section and sale of the entire project. 7

8 The Apartment Section The apartment section will consist of 160 apartments distributed onto 30,000 m2, with an average of 120 m2 per apartment. The rest of the area shall constitute common areas, including a two-storey parking garage. According to the agreement, Altis Hotels must have access to a number of the apartments, which are thereby included in the running of the hotel, and thus ensures the owners of the apartments a fixed rental income. The sale of the apartments is supported by the individual buyers receiving an annual return of 5 %, if the buyer would like to purchase an apartment serviced by Altis Hotels. Altis Hotels will have a right of disposal of the apartment in 46 weeks and the buyer in 6 weeks a year. Sale of 160 apartments of a total of 30,000 m2 at an average price of EUR 0.3 million per apartment. Total sales revenue of EUR 48 million. The apartments are sold as a project sale. Total construction costs of EUR 26 million. 8

9 Valuation The assets in Portinho S.A., and thereby also in Blue Vision A/S, depend on the ongoing improvement and development of the real estate project. More information regarding the values on the following slides. Assets in Portinho S.A. 1, ,60 1,40 DKK per share 1,20 1,00 0,80 0, ,40 0,20 0,00 Share Price Book value of equity Improvement of hotel Full development 9

10 Improvement of Hotel Blue Vision is conducting ongoing negotiations regarding the sale of the hotel section to an international investment fund. If such sale materialises, the management estimates that it will involve an increase in the book value per share to at least DKK In this calculation, it is assumed that the total value of the plot is distributed equally between the hotel section and the apartment section. 10

11 Full Development Based on previously described conditions, the management estimates that a full development of the apartment project will increase the book value per share to DKK However, a full development will involve a longer time frame (24-30 months), and involve a number of risk parameters, including access to financing, proceeds from sale of apartments and construction risk. The management has decided, to the extent possible, to sell the shares/assets in Portinho S.A. at a point in time, when it is most opportune compared to Blue Vision A/S not wanting to assume the actual role of project developer. 11

12 Distribution of Proceeds The board of directors has decided to distribute the net proceeds upon the expected sale of Portinho S.A. This is planned to be executed through a share buy-back programme of own shares in one or more stages. The share buy-back programme is conditional on the tax consequences of the share buy-back programme having been clarified with the Danish tax authorities. 12

13 Local Roots 20.7 % of Portinho S.A is owned by local contractor and real estate developer Tome Brazao from the company Interpatium. Tome, who was born and still lives in Funchal, has more than 20 years of experience in real estate development on Madeira. Tome has a solid and extensive local network of business partners relevant for Portinho S.A., including architects, contractors, workmen, financing institutes etc. Interpatium: Solar da Nora Interpatium: Madelenas Palace Interpatium: Madeira Mar 13

14 Local Community The plot is isolated in a small bay. At the moment, a small projection of rocks blocks for direct access to the neighbouring town Canico de Baixo, and the establishment of a pedestrian underpass has therefore been planned in cooperation with the municipality. The underpass will connect Portinho to Canico de Baixo. Canico de Baixo is a cosy town, primarily focused on tourism and with many local and good restaurants and a nice promenade by the beach. Canico de Baixo is planning to establish a public beach park, which may also be used by the guests of Portinho. 14

15 Madeira The Portuguese island Madeira is located in the Atlantic off Morocco. The island is an attractive tourist destination, among others because the Gulf Stream ensures a stable and pleasant climate all year through. Throughout the last years, Madeira has focused largely on tourism, and the airport has been expanded for the purpose of attracting more and larger airlines from more destinations. The number of tourists has increased significantly in recent years. In 2016, the island attracted 1.4 million tourists. When purchasing real estate on Madeira, it is possible to obtain a so-called Increase in the number of tourists on Madeira Golden Visa, which 15% makes it possible for 11.4% 8.8% 10% citizens outside the EU 6.0% 6.2% 5.5% 6.5% 4.2% to get a Schengen visa. 5% 0% 6.0% -5% -10% -15% -10.0% -7.8% -4.1% (t.o.m. Maj) Source: 15

16 The Real Estate Market in Portugal The real estate market i Portugal is improving significantly after a number of challenging years. Market improvement is noted both in relation to business properties and private residences. 115 House price index in Portugal Source: 16

17 Share Capital The Company has million outstanding shares listed on Nasdaq Copenhagen of a nominal value of DKK 1.00 per share. There are million class A shares and 10.4 million class B shares. All shares carry the same rights. The Company owns 1.12 % own shares. The Company is controlled by majority shareholder Jeanette Borg, who directly or indirectly through companies owns more than % of the share capital. Jeanette Borg is married to managing director Henning Borg. The rest of the share capital is free float and two shareholders own more than 5%. Average share trading turnover is approx. DKK 292,000 in the last 180 days. (re. as of 13 September 2017) 17

18 Significant Financial Facts As general reference is made to Blue Vision A/S s financial reports, most recently the interim report for the second quarter 2017, disclosed on it can seperately be stated that the Company: ( NB: The interim report has been prepared prior to the performed capital increase, cf. below) has an uncapitalized tax asset corresponding to DKK 0.19 per share. after the performed capital increase of DKK 10.4 million at the end of August 2017 has no debt and holds cash resources for an estimated months operation. In addition, the majority shareholder has granted a letter of support until 31 March expects a profit of DKK 5 10 million for the year has an outstanding account against Portinho S.A., with an original principal of EUR 10,691,392. the value of Portinho S.A. is calculated based on certified real estate appraiser CBRE s valuation report as of the beginning of 2016.

19 More Information Article on Ejendomswatch regarding Blue Vision: article ece Share analysis of Blue Vision, prepared by AptoCapital: Vision-sum-of-the-parts-analyse-august2017.pdf Location of plot on Google Maps: data=!3m1!1e3?hl=da Altis Hotels: 19

20 The Management The Management: Knowledge & Experience Niels Troen, chairman Claus Abildstrøm, board of dir. Gert Mortensen, board of dir. Thomas Borg, board of dir. Henning Borg, CEO Financing, banking, international capital markets General management Law M&A, cross border transactions Asset management Property investments and administration Extensive international network 20

21 Company Information Contact: Henning Borg Tel: Address: Rosenvængets Hovedvej 14, 2 DK Copenhagen Ø Web: Registration: Central business reg. no Advisers: Auditor: KPMG, København Attorneys-at-law: Danders & More, Copenhagen 21