Company Presentation 2Q 2018

Transcription

1 Company Presentation 2Q 2018

2 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. 2

3 Company overview > Consultatio at a Glance A leading high-end residential and commercial real estate developer Developed more than 235k sqm of residential and office towers and more than 1,800 has. of sellable land plots Attractive & diversified business segments Successful track-record with unique prospects Over 27 years as a developer with a proven track-record of creating value and managing risk. Attractive long term fundamentals and undersupply of high-end & AAA projects. Extensive and unique land bank in high growth areas. Big scale, high visibility planned communities with significant revaluation potential. Master-planned communities Residential buildings Office towers Sought after brand, known for design quality; loyal clientele. Strong balance sheet and robust cash flow generation. Key consolidated figures CTIO main shareholders As of June 30, 2018 Contracted sales Potential Sales Value (PSV) US$ 3.2 bn US$ 4.5 bn Free-float 6% Executed investments ¹ Remaining investments ¹ Developed land (master-planned communities) US$ 2.4 bn US$ 1.6 bn 1,850 has. Anses 25% Land bank (master-planned communities) Residential & Office Towers developed (sellable area) Residential & Office Towers in pipeline (sellable area) 1,250 has. 235,049 sqm 154,619 sqm Eduardo Costantini 69% Ticker CTIO AR (BYMA) Market cap US$ 479 M ¹ Investments include land acquisition cost and construction costs (incl. VAT). Excludes Income Taxes. 3

4 Company overview > Business segments Attractive and diversified real estate portfolio Flexible business model and ability to presell products underpin our financing structure Master-planned communities Development and revaluation of land for mixed use purposes. Sale of land lots to end consumers and macro-lots to developers Residential buildings Development of for-sale residential buildings Office towers Development of for-lease AAA corporate office buildings For sale lots For sale properties For lease portfolio Recurring cashflows determined by new product launches and sales speed 30-year business cycles Presales as main source of financing Margin business 5-year business cycles Presales as main source of financing U.S. and Argentine developments; next phase to focus on Argentina Recurring cashflows determined by leases 10-year business cycles Equity or debt as main sources of financing 4

5 Company overview > History and track-record Consultatio initiating its third asset expansion phase Successfully delivered 5 residential & 3 office towers and 31 gated communities Launch and early expansion through opportunistic acquisitions Local IPO and aggressive expansion through development across geographies Expansion focused in Argentina 1991 Acquisition of Catalinas Plaza and Alem Plaza land plots 1998 Purchase of 50% share of Nordelta S.A Delivery of Quartier Ocampo 2005 Delivery of Torre Oro 2008 IPO on BA Stock Exchange raised US$110 M Las Garzas Blancas commercial launch 2010 Commercial launch of Puertos Acquisition of Catalinas Norte land plot 2013 Presale of 79% of Catalinas Norte Commercial Launch of Oceana Bal Harbour 2016 Delivery of Oceana Bal Harbour Delivery of Catalinas Norte 2018 Commercial launch of Oceana Puerto Madero Delivery of Catalinas Plaza Tower 1999 Nordelta commercial launch Delivery of Alem Plaza Tower 2004 Delivery of Grand Bourg Tower 2007 Acquisition of Puertos land plot Acquisition of Las Garzas land plot in Uruguay 2009 Acquisition of Oceana Key Biscayne land plot 2012 Commercial launch of Oceana Key Biscayne Acquisition of Bal Harbour land plot 2014 Delivery of Oceana Key Biscayne 2017 Acquisition of Oceana Puerto Madero, Oceana Nordelta and Project Huergo land plots. Acquisition of 3 land plots in Catalinas II corridor. 5

6 Company overview > Our projects Experience managing multiple projects in different stages of development Developed more than 235k sqm and more than 1,800 hectares of land Master-planned communities Office towers 65% 34% 80% 100% 100% 0% Nordelta Nordelta, AR Puertos Escobar, AR Las Garzas Rocha, URU Catalinas Plaza & Alem Plaza Buenos Aires, AR Catalinas Norte Buenos Aires, AR Catalinas II Buenos Aires, AR Residential buildings 100% 100% 100% 100% 100% 6% 0% 0% Quartier Ocampo Buenos Aires, AR Grand Bourg Buenos Aires, AR Torre Oro Buenos Aires, AR Oceana Key Biscayne Florida, USA Oceana Bal Harbour Florida, USA Oceana Puerto Madero Buenos Aires, AR Oceana Nordelta Nordelta, AR Project Huergo Buenos Aires, AR As of June 30, Construction progress

7 Industry Update

8 Industry update > Housing market The housing sector Attractive fundamentals for broad sector opportunity, high-end remains resilient Historic underinvestment in the residential real estate sector & low penetration of mortgage credit in the economy Housing Deficit (million houses) Mortgage Lending/GDP (%) Qualitative Quantitative 2,0 23,3% 1,5 1,2 1,6 1,5 1,3 1,5 0,6 0,8 0,9 6,5% 5,8% 4,6% 2,4% 1,3% Chile Peru Colombia Uruguay Venezuela Argentina Since UVA indexed loans, access to housing market improved To meet demand, developers need to increase investments Transactions (thousands) Mortgage-backed transactions in City of Buenos Aires % 30 22% 12% 15% 18% 19% 20 13% 13% 13% 11% N of Transactions (8 months) N of Mortgages (8 months) % Mortgages (8 months) Construction cost in City of Buenos Aires 170 Apr % Aug Jan 09 Jun 09 Nov 09 Apr 10 Sep 10 Feb 11 Jul 11 Dec 11 May 12 Oct 12 Mar 13 Aug 13 Jan 14 Jun 14 Nov 14 Apr 15 Sep 15 Feb 16 Jul 16 Dec 16 May 17 Oct 17 Mar 18 Aug 18 Sources: Local financial regulators, Colegio de Escribanos de la Ciudad de Buenos Aires, Reporte Inmobiliario, Cámara Argentina de la Construcción 8 Construction cost Index (in US$)

9 Industry update > AAA office market Buenos Aires AAA office market An undersupplied market relative to other Latam countries, with limited new space entering the market Demand for corporate space has absorbed incoming inventory in the AAA segment AAA Corporate Office supply and demand Post global crisis Domestic FX controls The Macri era months 2018 Source: Cushman & Wakefield, Colliers, CBRE Vacancy rates are at minimum historical levels Net absorption ('000 sqm) New inventory ('000 sqm) Low penetration of AAA office sector compared to the region Vacancy rate AAA in City of Buenos Aires 9,0% 9,0% 5, ,0% 6,0% 6,5% 6,0% 6,5% 6,0% 3,6% 6,3% 286 4,0 2,0 2, ,4 87 1, , months 2018 Vacancy rate AAA (%) Vacancy rate AAA - Hist. Average (%) = 6.6% Sources: Cushman & Wakefield,, Colliers, CBRE, Newmark Knight Frank 9 Mexico City Sao Paulo Rio de Janeiro AAA Corporate office stock (MM sqm) Source: Newmark Knight Frank Santiago Bogotá Buenos Aires Lima AAA Corporate office stock (sqm / '000 inhabs.)

10 Master-planned communities

11 Business segments > Master-planned communities > Summary Pioneers of the Master-planned communities in Argentina With the launch of Nordelta in 1999, Consultatio is the undisputed leader in transforming lifestyles in Northern Buenos Aires Significant sellable area remains Product highlights As of June 30, 2018 Nordelta Puertos Las garzas Location Nordelta, Northern BA Escobar, Northern BA Rocha, Uruguay Land acquisition Sales launch Delivery (est.) Land size 1,700 has. 1,400 has. 240 has. Sellable plots 6,639 6, Sellable area (FAR, sqm) 7.2 M 5.6 M 1.3 M Sales progress 1 70% 28% 40% Development and sale of plots to individuals for the construction of single family housing and larger plots to third-party developers for the construction of condominiums, stores and services. Communities include all services offered by a city including schools, medical, recreational and retail facilities, among others. Artificial lakes and river access. Commercial and recreational areas. Demand drivers The northern suburbs Buenos Aires has been expanding to the north, particularly among upper class residents. New infrastructure, retail and amenities are accompaning migration to these areas. Nordelta Puertos The increase in crime in Buenos Aires has forced residents into gated communities located in the city suburbs with 24/7 private security. Countryside lifestyle provides an excellent quality of life to residents by offering larger spaces and closer to nature. Great access on the Panamericana Highway. City of Buenos Aires ¹ As % of total sellable area. 11

12 Business segments > Master-planned communities > Business model A business model based on a simple premise: land revaluation We start with raw, undervalued land, attract residents and generate demand for the last precious land plots 1 5 Nordelta and Puertos launch neighborhoods and sell land plots to families 2 Commercial amenities make residential lots more valuable Valuable asset base generates substantial cash flow When project starts to consolidate, we sell macro lots to third party developers for residential buildings 4 3 Nordelta/Puertos sells land for commercial assets New homeowners generate demand for commercial assets 12

13 Business segments > Master-planned communities > Product Our scale, flexibility and variety of services are key differentiators Comfort and safety for family members combined with flexible development planning and a conservative financing model Key innovative concepts The Masterplanned community concept Combines all facilities of a small town: infrastructure, residence, education, health, professional development, sports, recreation and commercial activities in a safe and planned community. Artificial lakes, riverside locations and access to the river Delta waterfront provide recreational activities and create a beautiful landmark. Leisure areas where residents can practice sports such as golf, tennis, sailing and soccer among others. Scale Scale provided by 1,700 hectares of land in Nordelta and 1,400 hectares in Puertos, ensures a critical mass to carry out all activities and developments required for our master-planned communities. Proximity / Access Unique location. High net worth residents dominate northern migration. To ensure safe and easy access, Consultatio built new roads to connect our projects with the Panamericana Highway. Ultimate operator City Mayor The Nordelta/Puertos Management Committee acts as a City Mayor performing different activities to regulate, develop and organize with a global vision. Town-planning ensures current and future residents will enjoy an organized, structured and well dimensioned community. Specialized resources will be dedicated by Nordelta/Puertos to ensure the community is kept clean and organized in all aspects. Self-funded Projects Conservative capital structure with very low leverage. Pre-sales as our main source to finance construction. Land acquisition at very low prices. Flexible model Flexibility to maximize value in volatile market conditions by adjusting development structure and target buyers: individual plots vs. macro plots; end users vs. investment focused buyers. Master-planned communities flexible model allows us to adjust development speed to demand. As a consequence, we are not forced to develop what has not been sold. 13

14 Business segments > Master-planned communities > Nordelta Nordelta today Over 20 years, we transformed a raw landscape into a complex community with 30,000 residents and 10,000 nonresident commuters daily 24 neighborhoods 40,000 inhabitants Over US$1.5 billion invested by third parties 1,700 1,705 hectares 11,320 residential and commercial units Over US$515 million Executed investments by Nordelta S.A As of June 30,

15 Business segments > Master-planned communities > Nordelta A 1,700 hectare piece of land with more than 40,000 inhabitants Based on demand, we can add attractive waterfront to maximize returns Master plan summary Low density 22% 31,000 inhab. 5,016 plots 78% 9,000 inhab. 1,430 plots (estimated) High density 51% 49% 33,000 inhab. 850,108 sqm 32,000 inhab. 900,000 sqm (estimated) Developed Under development As of June 30,

16 Business segments > Master-planned communities > Nordelta characterized by a unique range of services Scale allows Nordelta to include a wide variety of services unseen in peers projects Otamendi and Las Lomas private healthcare developments. A new 24,000 sqm premium medical center announced for 2019 by Swiss Medical. Windham 5-star hotel. El Muelle, social events and gatherings facing the Central lake. Largest educational center in Argentina. 40 hectares educational area. 5 schools students. Nordelta Golf Club: designed by Jack Nicklaus. Tennis courts and soccer fields, fully equipped gyms, swimming pools, solarium and sauna. Access granted to Luján River by water. Judaica Norte synagogue A 24,500 sqm shopping mall (5,700 sqm under construction). Over 70 stores: supermarkets, gas stations, banks and retail. 23 restaurants. Yachting and rowing facilities. La Sagrada Famila church. As of June 30, cinemas.

17 Business segments > Master-planned communities > Nordelta The City center The final phase of the project includes the creation of an urban center Product highlights Big numbers Integrated area open to outside visitors. The heart of Nordelta, an urban city center. Designed by Gehl Architects following the careful design of public space as a main character of city life: pedestrian centered, street hierarchy, abundance of public spaces and human scale. Mixed uses Residential. Office. Retail Education: university and schools. Healthcare: new facilities already awarded for a Swiss Medical clinic. Cultural: Museum. 685,000 sqm 32,000 5,870 Buildable area (FAR) Users including residents and non-residents Sellable units 312,000 sqm 245,000 sqm 48,000 sqm Residential mixed-uses commercial 7-stage development 80,000 sqm institutional and equipment Stage Green Loop 6 7 Waterfront Square 17

18 Business segments > Master-planned communities > Nordelta Nordelta Tigre, Argentina 18

19 Business segments > Master-planned communities > Nordelta Nordelta Tigre, Argentina 19

20 Business segments > Master-planned communities > Puertos Puertos today Following our experience with Nordelta, we launched Puertos in neighborhoods 2 schools 800 students 1,400 hectares 1,999 lots sold Over US$233 million executed investments by CTIO As of June 30,

21 Business segments > Master-planned communities > Puertos Launched in 2010, Puertos is our second master-planned community With a total area of 1,400 hectares, Puertos is almost the size of Nordelta Master-plan summary Low density 36% 13,764 Hab. 2,294 Plots 64% 24,681 Hab. 4,114 Plots (Estimated) High density 1% 298 Hab. 5,965 sqm 99% 26,476 Hab. 529,514 sqm (Estimated) Developed Under development As of June 30,

22 Business segments > Master-planned communities > Puertos By capitalizing on Nordelta s success, Puertos was well received Since its first launch in 2010, the project sold 1,999 lots, 2 macrolots and 16 residential units from our first set of buildings Product highlights Big numbers Puertos has been designed for suburban or urban residents living in Buenos Aires seeking to improve their lifestyles. The community offers security, tranquility and contact with nature without resigning the comfort and infrastructure of the city. 1,400 hectares buildable area (FOT) +425 hectares developed The masterplan has 1,400 hectares with a grand central lake that covers 200 hectares. It provides residents with a full range of services such as schools, medical care, retail stores, a sports club, a natural reserve, a maritime academy and commercial area. 18 neighborhoods +975 hectares expected to be delivered by 2040 The project was launched in As of today 7 neighborhoods were successfully launched: Vistas, Marinas, Ceibos, Acacias, Muelles, Araucarias and Costas, of which 6 have already been delivered to their owners. US$233 million Investments up to date 60 hectares natural reserve As of today, we launched 7 neighborhoods, sold almost 2,000 plots and delivered 6 of them to our customers 2007 Land acquisition Panamericana access Plaza Central lake 2016 Northfield school 2018 St. John s school Ceibos Marinas Vistas 2010 Acacias Muelles 2013 Araucarias 2015 Costas mixed use buildings, starting the city center As of June 30,

23 Business segments > Master-planned communities > Puertos The Puertos commercial area First mixed-use building launched to increase visitor flow and attract more residents Product highlights Location of City center (mixed-use project) New mixed-use project launched in 4Q ,100 sqm of sellable area, marking the beginning of the new city center build-up. 3 buildings of which 3,200 sqm are residential (townhouses & condos) and 1,900 sqm will be commercial use. Designed by Adamo Faiden Achitects. 23

24 Business segments > Master-planned communities > Puertos Puertos Escobar, Argentina 24

25 Business segments > Master-planned communities > Las Garzas Las Garzas Exclusive gated residential resort near Punta del Este, Uruguay Project description Big numbers Located in a touristic area - 20 minutes away from José Ignacio in a unique location. 240 hectares masterplan designed to preserve the tranquility of the region and its natural beauty, preserving more than 50% of the land for green spaces and common areas. 240 hectares land plot 474 sellable lots 2,500 sqm average lot size Targeting upper-scale individuals from South America. To improve access, we built a unique bridge over Laguna Garzon designed by the renowned Uruguayan architect Rafael Viñoly. 2 km beach front 25 minutes to José Ignacio 45% owned by Consultatio Major events in Las Garzas Location 2008 CTIO sells land to Las Garzas Blancas S.A. for US$ 25.8M. Keeps 45% participation. Commercial launch. Approvals Capital Reduction of US$ 7M Beach Club Opening. First houses inauguration CTIO acquires land for US$ 25.8M Construction begins Delivery of 1st stage Delivery of the bridge. As of June 30,

26 Business segments > Master-planned communities > Las Garzas Exclusive amenities to enjoy nature Designed for families seeking relaxation and tranquility Waterfront deck Beach club Massage room with sauna Gym Tennis courts Living room and restaurant managed by a local cheff Adult pool with jacuzzi Children swimming pool and playground Food and beverage service at the beach Horseback riding, bike journeys 26

27 Business segments > Master-planned communities > Las Garzas Las Garzas Rocha, Uruguay 27

28 Business segments > Master-planned communities > Financials Historically strong and value generating sales performance Nordelta Total project As of today Remaining Remaining (%) Contracted sales US$ 2.4 bn US$ 951 M US$ 1.5 bn 61% Area developed 1,700 has. 1,380 has. 320 has. 19% Sellable plots 6,639 5,172 1,467 22% Sellable area (FAR, sqm) 7.2 M 5.1 M 2.1 M 30% Executed investments 1 US$ 1,028 M US$ 515 M US$ 513 M 50% Accounts receivables - US$ 37 M - - Inventory - US$ 183 M - - Puertos Total project As of today Remaining Remaining (%) Contracted sales US$ 1.9 bn US$ 210 M US$ 1.7 bn 89% Area developed 1,400 has. 470 has. 930 has. 66% Sellable plots 6,083 1,999 4,084 67% Sellable area (FAR, sqm) 5.6 M 1.6 M 4.0 M 72% Executed investments 1 US$ 902 M US$ 233 M US$ 669 M 74% Accounts receivables - US$ 23 M - - Inventory - US$ 59 M - - Contracted sales (US$ million) Price per sqm (US$/sqm) 74,2 79, , ,8 26,0 20,2 22, ,8 13, M' ,2 56, ,4 13,7 23,1 2,3 18,2 2,7 6, M' 2018 Las Garzas Total project As of today Remaining Remaining (%) Contracted sales US$ 138 M US$ 55 M US$ 83 M 60% Sellable plots % Sellable area (FAR, sqm) 1.3 M 0.5 M 0.8 M 60% Executed investments 1 US$ 82 M US$ 66 M US$ 16 M 20% 98 0, , , ,3 1,0 1,2 7, , ,8 ¹ Total Investments include land acquisition cost, construction costs, sales commissions, G&A expenses, VAT and sales taxes. Excludes Income Taxes M' 2018 As of June 30,

29 Residential Buildings

30 Business segments > Residential buildings > Buenos Aires Initial launches in Buenos Aires Three iconic residential buildings consolidate the Consultatio brand Our initial residential buildings Product highlights As of June 30, 2018 Quartier Ocampo Grand Bourg Torre Oro Delivery Sellable area (sqm) 12,912 7,430 14,509 Potential sales value US$ 28M US$ 22M US$ 36M Units Avg. sale price US$ 2,150/sqm US$ 2,975/sqm US$ 2,500/sqm Investment US$ 18M US$ 14M US$ 19M Pre-tax IIRR 15% 24% 20% Sales progress 100% 100% 100% Landmark properties in Palermo Chico, the most exclusive neighborhood in Buenos Aires City. The projects were designed for the premium residential market. Sold under the Consultatio brand which provided a performance guarantee. Generated average presales of 70% in launch year. Annual sales (as % of total) Location: the Libertador corridor Quartier Ocampo Grand bourg Torre Oro Quartier Ocampo 100% 73% 70% sold in the first year on average Grand Bourg Torre Oro 40% 55% 15% 12% 5% 0% 0% Year 1 Year 2 Year 3 30

31 Business segments > Residential buildings > Miami Our experience in the US: Oceana was born Two luxury residential towers in the US developed where scarcity was assured Projects As of June 30, 2018 Oceana Key Biscayne Oceana Bal Harbour Delivery Saleable area (sqm) 44,900 63,398 Contracted sales /Total PSV US$ 617M / US$ 629M US$ 964M / US$ 1,208M Units sold /Total units 152 / / 240 Executed investments/ Total investments 1 US$ 369M / US$ 372M US$ 669M / US$ 695M Avg. sales price US$ 14,000/sqm US$ 19,000/sqm Pre-tax IIRR 25% 33% Sales progress 99% 75% ¹ Total Investments include land acquisition cost, construction costs, sales commissions, G&A expenses, VAT and sales taxes. Excludes Income Taxes. Annual sales (as % of total) Product highlights The Oceanas are located in Miami, U.S. and are aimed at the ultra premium segment. The buildings are uniquely situated and offer exceptional views to the ocean. Oceana combines resort-style amenities with a best-in-class artistic design, from the spa/sauna and fitness center to the art gallery and restaurants. The Oceana buildings have a distinct focus on art, featuring exclusive pieces in every common area, including two Jeff Koons pieces in Bal Harbour. Presales and equity investors provided a major source of funding. As of June 2018, we have 2 units in stock in Oceana Key Biscayne and 59 units in stock in Oceana Bal Harbour, valued at US$ 244M. Prime locations: Key Biscayne & Bal Harbour 83% Oceana Key Biscayne 63% sold in the first two years on average Oceana Bal Harbour Oceana Key Biscayne Oceana Bal Harbour 42% 30% 9% 5% 8% Years 1 & 2 Years 3 & 4 Years 5 & 6 31

32 Business segments > Residential buildings > Miami Oceana Key Biscayne Florida, United States 32

33 Business segments > Residential buildings > Miami Oceana Bal Harbour Florida, United States 33

34 Office Towers

35 Business segments > Office towers > Summary Highly desirable locations with top tier tenants Three well-known AAA office towers in the Catalinas business area Project description Top tier tenants Office towers are located in today s most dynamic and demanded commercial area in the City of Buenos Aires. Immersed in Buenos Aires Central Business district and close to Retiro Transport Hub, the Alem Ave. metrobus and 5 subway lines. According to main brokers reports, Catalinas submarket has an average lease rate of US$ 37/sqm. AAA office towers, built with the latest technology and design. Our latest project, Catalinas Norte, received a LEED Gold certification. The Catalinas Office Towers Catalinas Plaza and Alem Plaza towers were completed in 1995 and 1998, respectively. Catalinas Norte was delivered in July In 2013, 70% of total leasable area was presold to BBVA Group and another 9% was sold in 2013 to institutional investors. Portfolio metrics As of June 30, 2018 Catalinas Plaza Alem Plaza Catalinas Norte Delivery Total Gross leasable area 19,600 sqm 24,300 sqm 48,000 sqm 91,900 sqm Total floors Ownership CTIO 12% 6% 21% - GLA CTIO 2,300 sqm 1,560 sqm 10,140 sqm 1 14,000 sqm Occupancy rate 100% 100% 100% 100% Annual rental income US$ 800k US$ 600k US$ 3.9M US$ 5.3M Avg. lease rate (monthly) US$ 29/sqm US$ 34/sqm US$ 37/sqm US$ 35/sqm ¹ Of which 8,690 sqm are rented, 725 sqm are vacant and 725 sqm are used as Headquarters. 35

36 Business segments > Office towers > Catalinas Norte Catalinas Norte Tower Buenos Aires, Argentina 36

37 Pipeline

38 Pipeline > Overview Consultatio today: defensive mode prepared for quick reaction We built a solid pipeline since 2017 land acquisitions with very low downside risk Unique landbank acquired in 2017 at very attractive valuations. For instance we paid an incidence of US$ 1,700/sqm for Catalinas II plot valued at US$ 6,000/sqm after delivery. We have no financial debt of any kind so there s no pressure to achieve minimum sales targets. We can wait for the best moment to launch. Clients are our best source of funding as we presold 42% of Oceana Puerto Madero in November 2017 at US$ 8,000/sqm and we just started constructions works in 3Q 18. Strong AR$ depreciation improved developers dollar margins through cost reduction. Pipeline Oceana Puerto Madero Buenos Aires, AR Oceana Nordelta Nordelta, AR Project Huergo Buenos Aires, AR Catalinas II Buenos Aires, AR Total Acquisition Segment Residential Buildings Residential buildings Residential buildings Office Towers Land price US$ 44M US$ 11M US$ 20M US$ 140M Sellable/leasable area 26,863 sqm 17,966 sqm 26,045 sqm 86,858 sqm Total PSV US$ 227M US$ 87M US$ 112M US$ 521M US$ 215M 157,732 sqm US$ 947M CTIO share 80% 50% 70% 100% ¹ Calculated as US$ 6,000/sqm assuming the project was sold today. 38

39 Pipeline > Residential buildings New residential in Argentina In 2017, we purchased three lots for US$ 75 million to develop new residential projects in Buenos Aires Projects As of June 30, 2018 Oceana Puerto Madero Oceana Nordelta Project Huergo Construction start Status Under construction Municipal approvals Product design Delivery Sellable area 26,863 sqm 17,966 sqm 26,045 sqm Contracted sales /Total PSV US$ 77M / US$ 227M US$ 87M US$ 112M Units sold /Total units 80 / TBD Avg. sales price US$ 8,468/sqm US$ 4,818/sqm US$ 4,285/sqm Land price 3 US$ 44M US$ 11M US$ 20M Construction costs (incl. VAT) Selling process US$ 75M US$ 45M US$ 63M Product highlights Limited supply of luxury residences in the City of Buenos Aires dominated by a few big real estate developers. Ability to pre sell, increasing target IRR s. Oceana combines resort-style amenities with a best-in-class artistic design, from the spa/sauna and fitness center combined with an art collection. Location Presales leveraged on brand prestige. Our purchase agreements o sell the units are structured as follows: 10% collected on reservation day. 20% collected at purchase agreement signature. Oceana Puerto Madero Project Huergo Central Business District 70% payable in 30 monthly installments in ARS adjusted by UVA s converted at purchase agreement date. Puerto Madero Payment structure acts as hedge against cost inflation as most of our contractors make adjustments applying Construction Cost Index (CAC Index). Including down-payment and installments acts as insurance against default. Macrocentro Delivery of units only upon full payment. ¹ Sellable area includes 2,166 sqm of retail space. 2 Considers only residential average sales price. 3 Net of acquisition costs. 39

40 Pipeline > Residential buildings Oceana Puerto Madero After securing 42% of sellable area for US$ 88 million, we started construction works in 3Q 18 Oceana Puerto Madero In 2Q 17, we acquired an 11,362 sqm land plot in Puerto Madero for US$ 44 million (of which we paid 80%). The project has 26,860 sqm of sellable area and an estimated construction cost of US$ 75 million (incl. VAT). We have an 80% stake in the project and the rest belongs to Consultatio Inmobiliario Fondo Común de Inversión Cerrado Ley Status: 34% sold and 8% reservations. We started construction in 3Q 18 and final delivery is expected for Business partners The development of Oceana Puerto Madero includes an agreement and creative association with Faena Group. Both teams will be working on the conception of the project. The land acquisition agreement includes a fee for marketing and advisory services. This fee will be calculated as the 30% over the difference between the actual selling price per sqm and $5,

41 Pipeline > Residential buildings Oceana Puerto Madero Buenos Aires, Argentina 41

42 Pipeline > Residential buildings Oceana Nordelta A unique location inside our master-planned community project surrounded by water and near Nordelta s city center Project description In 3Q 17, we acquired a 23,080 sqm land plot in Nordelta for US$ 11 million (of which we paid 50%). We have a 50% stake on the project and the rest belongs to Consultatio Inmobiliario Fondo Común de Inversión Cerrado Ley The project has 17,966 sqm of sellable area and an estimated construction cost of US$ 45 million (incl. VAT). Status: commercial launch and construction planned for Delivery expected in

43 Pipeline > Residential buildings Oceana Nordelta Tigre, Argentina 43

44 Pipeline > Residential buildings Project Huergo Acquisition of a new land lot in Macrocentro area facing Puerto Madero. This area will be transformed by new infrastructure works already in progress. Project description Location: Macrocentro area facing Puerto Madero In 4Q 17, we acquired a 3,920 sqm land plot in Macrocentro for US$ 20 million in a public auction, held by the Argentinean National Administration. We have a 70% stake on the project and the rest belongs to Consultatio Inmobiliario Fondo Común de Inversión Cerrado Ley The project has a potential sellable area of 26,045 sqm and an estimated construction cost of US$ 63 million (incl. VAT). As of today, our preliminary sketches include mostly residential uses but also retail and commercial spaces. Status: delivery expected in Paseo del Bajo Central Business District Puerto Madero 44

45 Pipeline > Office towers Catalinas Norte II Consultatio recently acquired 3 adjacent lots in the Catalinas submarket for US$ 140 million Project description Location In 4Q 17, we acquired three adjacent lots located in Catalinas district, each with an area of 3,200 sqm for a total US$ million (already paid). The project has a potential leasable area of 86,000 sqm AAA office space and an estimated construction cost of US$ 232 million (incl. VAT). 100% is owned by Consultatio. As of June 30, 2018 Catalinas II Delivery 2023 Gross leasable area 86,858 sqm Ownership CTIO 100% Land price US$ 140M Construction costs (incl. VAT) US$ 232M Target Pre-tax IRR 15.2% Annual rental income US$ 44M Initial lease rate (monthly) US$ 42/sqm Typical development timeline of an Office Tower Tentative development timeline: 2019: Start development and construction. 2023: Delivery. Status: Product design. Building permits: not started yet until business design is internally approved. Project Schedule Year 1 Year 2 Year 3 Year 4 Year 5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Pre-feasibility analysis of the project 2 Product definition - Product design 3 Selection of working teams 4 Preliminary sketch 5 Definition of Preliminary draft and budgeting 6 Municipal presentation and approval 7 Development of a bidding file 8 Contractor tender. and other companies 9 Demolition and construction 10 Post construction 45

46 Pipeline > Office towers New Catalinas Business District Paseo del Bajo and Catalinas Norte II will consolidate Catalinas Business District 46

47 Company Structure

48 Organizational structure > Portfolio ownership Project structure We have control over all our projects currently under development, except for Nordelta where we share equal voting rights with our partners Master-planned communities Residential buildings US Residential buildings Office towers 49.9% 80% % 100% Nordelta Oceana Puerto Madero Oceana Key Biscayne Catalinas Plaza 100% 50% % 100% Puertos Oceana Nordelta Oceana Bal Harbour Alem Plaza 45% 1 Las Garzas Blancas 70% 2 Huergo Project 100% Catalinas Norte 100% Catalinas II ¹ Economic Rights; 100% of Voting Rights. 2 The remaining stake belongs to Consultatio Inmobiliario Fondo Común de Inversión Cerrado Ley

49 Organizational structure > Corporate structure Corporate structure A clean structure controlled by its founder Eduardo Costantini ANSES¹ Free float 69.1% 24.9% 6% 100% 49.9% 45%² 55.1% % % 4 Consultatio Argentina S.A.U. Nordelta S.A. Las Garzas Blancas S.A. Consultatio Real Estate LLC Consultatio Design Inc. Consultatio Brokerage Inc. 80% 3 100% 100% 55.1% 4 UTE Puerto Madero Consultatio Key Biscayne LLC Consultatio Design LLC Consultatio Realty LLC 50% 3 67% UTE Nordelta Consultatio Bal Harbour LLC 70% 3 Huergo Project ¹ ANSES (Administration of Social Security). ² Economic Rights; 100% of Voting Rights. 3 The remaining stake belongs to Consultatio Inmobiliario Fondo Común de Inversión Cerrado Ley The remaining stake belongs to Eduardo Costantini 49

50 Organizational structure > Team and corporate governance Top-tier management supported by experienced directors Senior Management team with a proven track-record and average experience of over 7 years in the company Senior Management Eduardo Costantini Founder, CEO and Chairman Founder, Chairman and CEO since He is also founder and Chairman of Consultatio Asset Management, one of the largest mutual fund managers in Argentina. Eduardo is an Economist from Universidad Católica Argentina and an MA in Quantitative Economics from University of East Anglia, UK. Board of Directors Eduardo Costantini Founder, CEO and Chairman José Chouhy Executive Director He has been in the Company since He was involved in all of our projects in Argentina. José is an Industrial Engineer from Universidad de Buenos Aires. Cristián Costantini Vice Chairman Vice Chairman and Director of Office and Residential towers since He has a Licentiate degree in Business Administration from University of Buenos Aires. Marcos Corti - Chief Operating Officer He has been in the Company since He managed Consultatio s US projects and moved to Argentina to manage the new local projects. Marcos is an architect from Universidad de Buenos Aires and has an MBA from Universidad de Belgrano. Carlos Reyes Terrabusi Regular member (Independent) Prior Capital Markets Manager at Banco Río S.A. and Director of The Boston Consulting Group. He has a Licentiate degree in Business Administration from UADE and a Masters in Finance from UCEMA. Gonzalo de la Serna - Chief Financial Officer He has been in the Company since Previously worked for Telecom Argentina and Metlife as a Financial Analyst and Trader. Gonzalo holds a Licentiate degree in Economics from University of Buenos Aires and a Certified International Investments Analyst from ACIIA. Victor Dibbern Regular member (Independent) He has been a member of the Board since Currently serves as the General Manager of BACS. 50 Diego Moresco CEO of Master-planned communities He has been in Nordelta S.A. since 1998 He previously worked in Dragados y Obras Portuarias as site manager in sea and river port constructions. Diego is a Civil engineer focused in transport and communication routes from Universidad de Buenos Aires. He has a degree in Managment Development Program from IAE. José Torello Regular member (Independent) He is a lawyer and works as Chief of Advisors of Mauricio Macri, current President of Argentina. He also serves as National representative of Pro Political Party and member of ANSES advisors committee.

51 Organizational structure > Activities A pure real estate developer that is passionate about design Fully integrated from conception to delivery Our Offices: Headquarters Tigre Miami Master-planned communities Residential buildings Office towers Business development Inhouse Tigre + Catalinas Inhouse Catalinas Inhouse Catalinas Concept design Inhouse Tigre + Catalinas Inhouse Catalinas Inhouse Catalinas Product design Outsourced Awarded architects Outsourced Awarded architects Outsourced Awarded architects Construction Inhouse Tigre Outsourced Awarded contractors Outsourced Awarded contractors Administration Inhouse Tigre Inhouse Catalinas + Miami Inhouse Catalinas Finance Inhouse Tigre + Catalinas Inhouse Catalinas Inhouse Catalinas Sales team Inhouse Lago Norte + Local brokers Outsourced Local brokers Outsourced Local brokers Marketing Inhouse Tigre Inhouse Catalinas Inhouse Catalinas 51

52 Appendix

53 Appendix > Nordelta timeline Nordelta, a development story A 20-year story of growth, showing our long term view and determination. Nordelta went through two economic crashes and three years of local exchange rate controls Strong investments in infrastructure. First launches with good public reception. Commercial agreements to attract visitors and public services developments. Condominiums by 3rd party developers Commercial consolidation 1998 Purchase of 50% shares of Nordelta S.A Agreement with Telecom Mc Donald s. Pecom gas station. 2 schools begin classes. Main access to Nordelta. Fundación Nordelta Centro Médico Nordelta Nordelta Mall. Water treatment plant Club náutico Golf course designed by Jack Nicklaus First macroplots sold in Canal Mayor Macroplots sold in Puerto Escondido area, Islas del Canal and Islas del Golf. Paseo Bahìa Grande inauguration stars hotel. YPF gas station. Cinemas in Nordelta commercial center New public skatepark. Judaica Norte, Jewish cultural center. Launch of Nordelta s City Center designed by Gehl Architects. Swiss Medical announces the construction of a new 24,000 sqm healthcare center Camino de los Remeros (second access road) Northfield school Parish Church Sagrada Familia. Nordelta Mall: 9,000 sqm expansion of the commercial area Alameda Castores I La Isla Caletas Glorietas Castores II Barrancas del lago El Portal El Golf Los Sauces Los Alisos Los Lagos El Palmar Bahía Grande Puerto Escondido Islas del Canal Islas del Golf Senderos Lagos del Golf Castaños Tipas El Yatch Virazón Carpinchos 53 Neighborhoods Condos

54 Appendix > Miami timeline and structuring Major events & financial structuring Besides presales, equity investors have been our primary source of funding Major events in Oceana Key Biscayne Major events in Oceana Bal Harbour Land acquisition Commercial launch. Construction starts. Consultatio buys 12,6% shares. Keeps 100% Land acquisition. 1st Equity raise US$ 83,6 million. Construction starts. Construction loan from HSBC (already cancelled) st Equity Raise US$ 25 million 2nd Equity Raise US$ 27.5 million Completion & Delivery Commercial launch Completion & Delivery Oceana Key Biscayne: financial structure US$ 375.1M total investment financed with Equity, Presales and Land seller finance: a) Equity: US$ 132.5M (35% of total investment) US$ 110.5M Consultatio (US$ 80M were land) US$ 22M Third party investors b) Presales: US$ 242.5M (65% of total investment) c) Land seller finance (Fortune) payable through a distribution waterfall: i. Equity ii. Preferred return of 15% for developers iii. Fortune charges 8% of Item II (the land seller) iv. Developers 80% / Fortune 20% (land seller). Current phase Oceana Bal Harbour: financial structure US$ 695.6M total investment financed with Equity, Construction loan and Presales: a) Equity: US$ 173.6M (25% of total investment) US$ 90M Consultatio (67%) US$ 83.6M Investors (32%) b) HSBC construction loan: US$ 169.6M (24% of total investment) c) Presales: US$ 352.3M (51% of total investment) 54

55 IR contacts: Inés Lanusse IRO