Overview of Consultatio Real Estate

Transcription

1

2

3 Disclaimer The following documents contain the general description and background of Consultatio S.A. and its subsidiaries (collectively designated hereafter as Consultatio or the Company ) as of the date hereof. This is an information summary and does not purport to be fully exhaustive in this respect. No representations or warranties, either express or implicit, are made as to the accuracy, objectivity or sufficiency of this information, which shall not be relied on for any purposes whatsoever. These documents may contain certain forward-looking statements and information in relation to Consultatio which reflect the current views and/or expectations of the Company and the Company s management in respect of the Company s performance, activity and future events. Such forward-looking statements include, among others, statements that may predict, forecast, signify or imply future results, performance or achievements, and may contain words such as understands, anticipates, expects, estimates, it is likely or other terms or expressions with a similar meaning. These statements are subject to a number of risks, uncertainties and assumptions. The Company cautions readers that certain relevant factors might be the cause for actual results to differ substantially from the plans, goals, expectations, estimates and intentions expressed in this document. Neither the Company nor any related companies, directors, officers, representatives or employees thereof shall in any event be liable as to third parties (including investors) for any investments or business decisions adopted or acts performed by them on the basis of the information and statements contained herein or for any consequential, special or similar damages derived therefrom. This document is not in itself and is not part either of an offer or a solicitation of offers to buy, subscribe or otherwise acquire any securities issued by the Company, and it is not the basis for and shall not be deemed, either in whole or in part, to be the basis for or otherwise related to any agreement to purchase or subscribe securities issued by the Company, and shall not be interpreted in this manner. Any persons intending to purchase or subscribe securities of the Company under the proposed offer are advised that such purchase or subscription may solely be made on the basis of the information contained in the offering circular related to the proposed offer. Any market information and Company s competitive position data, including market projections, used in this document have been derived from in-company studies, market research reports, publicly available data and industry publications. Although the Company has no reason to believe that this information or these reports are inaccurate in any material respect, the Company hereby states that it has not independently checked any competitive position, market share, market volume, market growth or other. 3

4 Overview of Consultatio Real Estate Consultatio is the leading real estate developer in Argentina for innovative and large-scale projects in the high-end residential and office markets Business Segments Ownership structure Masterplanned Communities Commercial Properties Residential Towers Tourist Residencies E. Costantini Public Pension Fund 1 Float in Merval 69,3% 24,9% 5,8% 1 ANSeS (Administracion Nacional de la Seguridad Social) Business Model Focused on high-end & AAA projects Unique land banks in high growth areas Scale and visibility of the project Conservative capital structure approach Community acceptance Uniqueness of the project proposal Key Metrics Contracted Sales U$S 2,8 Bn Office Towers Developed 148,500 m2 Remaining Sales U$S 2,9 Bn Owned Office Towers 13,900m2 Executed Investment U$S 1,8 Bn Residential Towers Developed Remaining Investment U$S 1,0 Bn Ticker Developed Land (Master Planned Communities + Tourist Residences) Land Bank (Master Planned Communities + Tourist Residences) 258,000 m2 CTIO AR (BCBA) 1,815 has Last Stock Price (08/31/2017) ARS 41,55 1,412 has Market Cap (08/31/2017) USD 973 4

5 Solid track-record, strong reputation and brand recognition, with 13 projects in different stages of development Masterplanned communities (Buenos Aires, AR) Tourist Residences (UY) Development Pipeline (Buenos Aires, AR) Nordelta Puertos Las Garzas (Uruguay) Oceana Puerto Madero Oceana Nordelta Largest master-planned community in Latam. Launched in First eco-walking master planned community in Latin America. Launched in Ultra-exclusive residential resort near Punta del Este, Uruguay. Launched in Planned to be luxury waterfront residential buildings. Estimated Friends and Family launch in Residential Towers (Miami, U.S.) Residential Towers (Buenos Aires, AR) Commercial Properties (Buenos Aires, AR) Oceana Key Biscayne Oceana Bal Harbour AAA projects in premium locations surrounded by ocean. Delivered in 2014 and 2016 respectively. Quartier Ocampo Grand Bourg Torre Oro Three of Buenos Aires best known luxury buildings. Delivered in 2001, 2004 and 2005 respectively. Catalinas Plaza Alem Plaza Catalinas Norte Landmark AAA office center located in Buenos Aires most desirable and fastest-growing business district. Completion in 1995, 1998 and 2016 respectively. Under development Fully delivered projects 5

6 Corporate Structure Eduardo Costantini ANSES¹ Float 69.3% 24.9% 5.8% CONSULTATIO S.A. (BCBA: CTIO AR) Commercial Properties Master Planned Community: Puertos 50.0% 45.0%² 100% 55.1% % 3 Nordelta S.A. Las Garzas Blancas SA Consultatio Argentina SAU Consultatio Real Estate Inc. Consultatio Brokerage Inc. 80.0% 4 100% 55.1% 3 Oceana Puerto Madero Consultatio Key Biscayne LLC Consultatio Reatly LLC. 50.0% %² Oceana Nordelta Consultatio Bal Harbour LLC ¹ Administration of Social Security ² Economic Rights; 100% of Voting Rights ³ The remaining 44,9% belongs to Eduardo Costantini 4 The remaining stake belongs to Consultatio Inmobiliario Fondo Común de Inversión Cerrado Ley

7 A robust portfolio and a disciplined investment process are the keys to support Consultatio s growth Consultatio is actively seeking for opportunities across business lines and locations to deliver best in class returns with minimum risk to its shareholders 1 Pipeline Strategically located plot in Puerto Madero neighborhood, City of Buenos Aires, facing the main channel to develop a residential tower for the luxury market under the Oceana brand. More than 1,375 hectares of undeveloped land to support future growth in the masterplanned communities segment in Argentina. +US$ 400MM cash available for investments. General development criteria 2 Targeted opportunities in corporate office and residential segments in the City of Buenos Aires. Investment rationale Argentina s real estate market is significantly undersupplied compared to regional peers. 3 Investment and vacancy rates at minimum levels in the last years, together with estimated GDP growth, allow for significant upside in corporate office markets. Increased availability of mortgage loans for end users, after impulse given by the government. Capital markets and presales financing boosted by tax amnesty. 7

8 Attractive development pipeline: Oceana Puerto Madero Consultatio acquired a strategically located plot in Buenos Aires for new Luxury residential tower Oceana Puerto Madero We acquired an 11,362 sqm plot in Puerto Madero, a top notch neighborhood in the City of Buenos Aires, for U$S 44MM. Approx. 26,000 sqm of saleable area on a waterfront property facing the main channel. Planned to leverage on the success of our Oceana premium brand in Miami. Optimized project management and strong presales ratio. Friends and family planned for 4Q

9

10

11 Established dominance in the master-planned community product Consultatio was the first company to introduce the concept of Masterplanned communities in Argentina, developing in a suburban area all the services offered by a city, like education, health, shopping mall and recreation, among others. Master Planned Concept Development and sale of plots to individuals for the construction of family housing units and larger plots to third-party real estate developers for the construction of urban complexes and stores. All facilities of a small town. Artificial lakes and river access. Proximity/Access Nordelta: Tigre, Buenos Aires Province, 30 km north of Buenos Aires City. Access to Panamericana Highway through a 7 km road, built by Nordelta. Puertos: Escobar, Buenos Aires Province, 44 km north of Buenos Aires City. Access to Panamericana Highway through a 3 km road built by Consultatio. Commercial and recreational areas. Scale 40,000 inhabitants in ,100 hectares: o +1,725 hectares developed. o +1,375 hectares to be developed. 40 private family neighborhoods with more than 12,100 plots* o 24 neighborhoods launched (7,100 plots). o 16 neighborhoods to be launched (5,000 plots)*. More than 2,3 million sqm of saleable area for condominiums, malls, and other urban complexes*. Puertos Nordelta Buenos Aires *Projected 11

12 Master-planned communities Consultatio launched Nordelta, the largest and most successful master-planned community in Latin America Nordelta Launched in ,700 hectares: o +1,380 hectares developed, with +40,000 residents living in 2,800 homes and 4,000 condominiums. o +320 hectares expected to be fully developed by US$2,3 billion total investment (own and third-party capex) Complex development issues: o 25 million sqm of soil moved to construct central lake and build streets and utility infrastructure. o linked via a 16km internal ring road. Extensive value-added infrastructure: o Commercial space. o Sports facilities (including golf course designed by J. Nicklaus). o Schools. o 5 Stars Hotel. o Medical centers. o Sailing facilities. 50% owned by Consultatio S.A. 12

13

14

15

16 Nordelta (Tigre, Buenos Aires Province, ARG) 16

17 Nordelta (Tigre, Buenos Aires Province, ARG) 17

18 Nordelta (Tigre, Buenos Aires Province, ARG) 18

19 Master-planned communities To replicate and improve the successful development of Nordelta, Consultatio launched Puertos Puertos Launched in ,400 hectares: o +425 hectares developed. o +975 hectares expected to be fully developed by Since its launch in 2010, 7 neighborhoods have been launched of 20 neighborhoods projected, with almost 2,000 plots sold. Will be the first ecowalking community in Argentina. Designed so that every service and basic infrastructure is at walking distance. US$15mm investment for the construction of a 2 miles exclusive access route. 100% owned by Consultatio S.A. 19

20 Master-planned communities Main Financial Figures Nordelta Up to date Total Project Remaining % Contracted Sales (MM) USD 887 Total Sales (MM) USD USD % Area Developed (Has) Total Area (Has) % SQM Sold (MM) 4,68 Total SQM (MM) 6,06 1,38 23% Executed Investments (MM) USD 462 Total Investments (MM) USD 807 USD % Accounts receivables* (MM) USD 39 Puertos Up to date Total Project Remaining % Contracted Sales (MM) USD 191 Total Sales (MM) USD USD % Area Developed (Has) 425 Total Area (Has) % SQM Sold (MM) 1,47 Total SQM (MM) 5,10 3,63 71% Executed Investments (MM) USD 211 Total Investments (MM) USD 753 USD % Accounts receivables* (MM) USD 26 Existing lots to be sold (MM) Existing lots to be sold (MM) USD USD Investment Rationale Flexibility to maximize value in volatile market conditions by adjusting development structure and target buyers: Individual plots vs. macro plots Final users vs. investment focused buyers Pre-sales financing throughout the construction cycle Selling process overview 35% collected as down payment Remaining value collected in 24 or 36 monthly installments Nordelta Contracted Sales & Average Price per Sqm $ 90,0 $ 80,0 $ 70,0 $ 60,0 $ 50,0 $ 40,0 $ 30,0 $ 20,0 $ 10,0 $ - $ 77,0 $ 55,4 $ 63,4 $ 83,4 $ 52,4 $ 65,4 $ 50,5 $ 31,3 $ 26,2 $ 21,9 $ 62,7 $ 75,1 $ 29, Contracted Sales (MM USD) Av. Price per Sqm $ 450 $ 400 $ 350 $ 300 $ 250 $ 200 $ 150 $ 100 $ 50 $ - Puertos Contracted Sales & Average Price per Sqm $ 70,0 $ 60,0 $ 50,0 $ 40,0 $ 30,0 $ 20,0 $ 10,0 $ - $ 58,2 $ 56,7 $ 2,8 $ 18,2 $ 2,7 $ 13,4 $ 28,4 $ 11, $ 250 $ 200 $ 150 $ 100 Contracted Sales (MM USD) Av. Price per Sqm 20 $ 50 $ -

21 Puertos (Escobar, Buenos Aires Province, ARG) 21

22 Puertos (Escobar, Buenos Aires Province, ARG) 22

23 Puertos (Escobar, Buenos Aires Province, ARG) 23

24 Puertos (Escobar, Buenos Aires Province, ARG) 24

25

26 Catalinas Norte Tower (Ciudad Autónoma de Buenos Aires, ARG)

27 Commercial Properties Consultatio s three office buildings are strategically located in the most representative commercial area of Buenos Aires City. Catalinas Norte Tower AAA business office project oriented to premium clients delivered in Jul 16. Total developed area: 76,000 sqm, with 48,000 sqm of saleable area. 500 parking spaces. In 2013, 70% of the tower was pre-sold to the BBVA Group and 9% was sold in 2013 to institutional investors. Consultatio retained 9,980 sqm of leasable area. 93% occupancy rate as of Aug 17. Average rent rate U$S 37/per month (triple net contracts). Catalinas Plaza & Alem Plaza Towers Catalinas Plaza and Alem Plaza towers were completed in 1995 and 1998, respectively. CATALINAS NORTE TOWER Total Leasable Area (SQM) Leasable Area CTIO (SQM) % Occupancy 93% Annual Lease Income (MM) USD 4,2 CATALINAS PLAZA TOWER Y ALEM PLAZA TOWER Total Leasable Area (SQM) Leasable Area CTIO (SQM) % Occupancy 100% Annual Lease Income (MM) USD 1,4 Investment Rationale Contributes to the commercial diversification strategy by adding leasable area and increasing stability in the cash flows of the company Total developed area: 72,500 sqm, with 43,900 sqm of saleable area. 512 parking spaces. Commercial area of 860 sqm. Consultatio retains property over 3,861 sqm. 100% occupancy rate since Average rent rate U$S 30/per month (triple net contracts). 27

28 Catalinas Norte Tower (Ciudad Autónoma de Buenos Aires, ARG) 28

29 Catalinas Norte Tower (Ciudad Autónoma de Buenos Aires, ARG) 29

30 30

31

32 Oceana Key Biscayne (Florida, US) 32

33 Oceana Key Biscayne (Florida, US) 33

34 Oceana Key Biscayne (Florida, US)

35 Residential Towers Consultatio acquired strategically located properties in US where scarcity value is assured, and is developing Luxury residential towers, leveraging from its expertise in the high-end market Oceana Key Biscayne The Oceana residential projects are located in Miami, U.S. and are aimed at the ultra high net worth segment. 4,2 oceanfront hectares. 142 residential units & 12 vilas. Underground parking. Oceana Bal Harbour Luxury residential towers project, located in one of South Florida s most exclusive oceanfront properties in Miami. OCEANA KEY BISCAYNE Up to date Total Project Remaining % Contracted Sales (MM) USD 595 Total Sales (MM) USD 624 USD 30 5% Total Investments (MM) USD 358 Total Investments (MM) USD 372 USD 14 4% Saleable Area (SQM/SQF) OCEANA BAL HARBOUR sqm sqf Deliveries Start Date Aug-14 Up to date Total Project Remaining % Contracted Sales (MM) USD 923 Total Sales (MM) USD USD % Total Investments (MM) USD 632 Total Investments (MM) USD 712 USD 80 11% 2,2 hectares. 240 Residential Units & Underground parking. Saleable Area (SQM/SQF) Investment Rationale sqm sqf Deliveries Start Date Nov-16 Part of the geographical diversification strategy to reduce risk. Unique product. 35

36 Oceana Bal Harbour (Miami FL, US)

37 Oceana Bal Harbour (Miami FL, US)

38 Oceana Bal Harbour (Miami FL, US)

39 Jeff Koons Pluto and Proserpina Destination: Oceana Bal Harbour Mirror-polished stainless steel with transparent color coating and live flowering plants 129 x 70 x 53 inches (327.7 x x cm) Edition 1 of 3 39

40 Oceana Bal Harbour (Miami FL, US)

41

42 Las Garzas (Rocha, Uruguay) 42

43 Tourist Residencies Ultra-exclusive gated residential resort near Punta del Este, Uruguay. Land Bank with High Growth Potential Las Garzas Blancas Gated Community Development in touristic areas - 20 min from Jose Ignacio. Identification of new tourist areas by location and natural factors Aimed at high income individuals in South America. Launched in hectares 474 lots of 2,500 square meters 1,800 meters of beach front. 45% owned by Consultatio S.A. Up to date Total Project Remaining % Contracted Sales (MM) USD 49 Total Sales (MM) USD 155 USD % SQM Sold (MM) 0,48 SQM Estimated (MM) 1,28 0,80 63% Executed Investments (MM) USD 65 Total Investments (MM) USD 82 USD 17 21% Investment Rationale Part of the geographical diversification strategy to reduce risk Offer a high quality product, in line with the company's portfolio and the expectation of its clients Unique location Las Garzas Blancas Contracted Sales (MM USD) $ 29,9 Selling process overview Selling process is adjusted in reaction to changes on demand and economic fundamentals. $ 7,2 $ 3,6 $ 0,6 $ 1,8 $ 2,3 $ 1,0 $ 1,2 $ 1,

44 Las Garzas (Rocha, Uruguay) 44

45 Las Garzas (Rocha, Uruguay) 45

46

47 Investments Highlights Leading real estate developer in Argentina with unique capability and access to develop high-growth, high-margin real estate projects Attractive and diversified project portfolio, across countries and business lines Self-financing projects Solid financial position Resilient business model in volatile market conditions Strong reputation and loyal clientele that identifies with the Consultatio brand High quality growth supported by an extensive land bank and a constant search for new opportunities Highly experienced Management team 47

48 Investments Highlights Attractive and diversified project portfolio across business lines Self-financing projects Total estimated remaining sales value (U$S 2,9 bn) Las Garzas Blancas Oceana Bal Harbour Oceana Key Biscayne Pre-sales financing throughout the construction cycle Conservative capital structure approach, never raising debt in the public capital markets Resilient business model in volatile market conditions Nordelta Puertos Argentina 82% Office segment estimated NOI: US$6,0mm Solid financial position +US$400mm in cash available for opportunistic investments Plans to expand activities in the office rental and residential segments in Buenos Aires and other major cities Focus on high end & AAA projects Masterplanned communities flexible business model Low leverage provides the company with high flexibility regarding its cash flow management Performance since IPO vs Index CTIO may 08 ago 08 nov 08 feb 09 may 09 ago 09 nov 09 feb 10 may 10 ago 10 nov 10 feb 11 may 11 ago 11 nov 11 feb 12 may 12 ago 12 nov 12 feb 13 may 13 jul 13 oct 13 ene 14 abr 14 jul 14 oct 14 ene 15 abr 15 jul 15 oct 15 ene 16 abr 16 jul 16 oct 16 ene 17 abr 17 jul 17 Source: Bloomberg as of Aug 31, 2017 MERVAL 48

49 Investments Highlights Strong reputation and loyal clientele that identifies with the Consultatio brand Raised over US$125mm of third party equity for Las Garzas Blancas, Key Biscayne and Bal Harbour projects Strategic partnerships with highly regarded real estate companies and artists, both local and international Yearly sales by project (as % of total) Quartier Ocampo Grand bourg Torre Oro Key Biscayne Bal Harbour Extensive land bank to support high quality growth Consultatio owns 100% of land. Over 1,375 hectares of undeveloped land with approved permits in Nordelta and Puertos Superior management team 100% 80% 60% 40% 20% 0% Average of 63% sold in the first year Year 1 Year 2 Year 3 Year 4 Unique know-how in the development of masterplanned communities Proven capacity to anticipate market trends and innovate More than 300 employees in three different countries (including 186 construction workers) 49

50