Risk-managed commercial property investments

Transcription

1 w w w.centur yblue.co.za M: (+27) T: (+27) N o r t h b a n k B u i l d i n g, 4 t h F l o o r, N o. 1 N o r t h b a n k L a n e, C e n t u r y C i t y,

2 INVESTMENT PROSPECTUS INTRODUCTION Century Blue Trust commenced trading on the 20th January 2014 following the merger of the commercial property investment portfolios of three property investment companies. Century Blue Trust is a Vested Inter Vivos trust that currently has 40,507,666 investment units in issue held by a small group of investors that seek superior capital growth with a high degree of predictability and risk management. INVESTMENT OBJECTIVES The objective of Century Blue Trust is to invest in commercial properties to achieve maximum capital growth in such a way that risk is managed and mitigated. This is achieved by strategically investing in commercial property located in successful high growth areas, in high quality buildings and through rental stream diversification. As part of this strategy, Century Blue Trust is currently focused on investing in AAA Grade commercial property in Cape Town and, in particular, the highly successful Century City node. CENTURY CITY SUCCESS Century City is a real Cape Town success story, with the development of Century City having being propelled by the Rabie Group through their application of the Live, Work, Play concept. Century City includes: World Class conference centre that can accommodate 1480 delegates. Over 260,000 m2 of AAA grade office accommodation Advanced technology based security systems Fiber optic high speed internet access World class health & gym facilities Three, four and five star hotels One of the finest shopping malls in the southern hemisphere Canal side residential accommodation Century Blue Trust T: (+27) M: (+27) Northbank Building, 4th Floor, No. 1 Northbank Lane, Century City, 7441

3 INVESTMENT PROSPECTUS GROWTH AND YIELDS Century Blue Trust consistently achieves optimal rental yields across its entire portfolio. This is achieved through a strategy of only investing in areas and in commercial property that is of high quality and in prime locations. The properties have superior levels of security management and are highly desirable to tenants. This methodology has enabled Century Blue Trust to achieve occupancy levels which are consistently in excess of 95%. Century Blue Trust also has a very strong tenant risk management and diversification strategy as an additional measure to mitigate the impact of any distressed tenant risk. ANNUAL RETURNS Property Valuations and Reserve Cash Since the outset the value of the commercial property portfolio has experienced excellent growth, from 1st March 2013 to 28th February 2016 the Century Blue Trust portfolio has grown from R54.23m to R119.63m. This commercial property portfolio R value is based on very conservative bank format property valuations plus reserve cash R Feb 13 Feb 14 Feb 15 Feb % Portfolio Value Growth in 3 Years Century Blue Trust T: (+27) M: (+27) Northbank Building, 4th Floor, No. 1 Northbank Lane, Century City, 7441

4 INVESTMENT PROSPECTUS ANNUAL RETURNS Net Asset Value In line with the portfolio value growth the Net Asset Value has also grown steadily at an annualised rate of 17% R going from a value of R40.50m on 1st March 2013 to R61.1m on 28th February In other words Century Blue Trust has grown its Net Asset Value 50.8% in 36 months R Feb 13 Feb 14 Feb 15 Feb 16 50% Capital Growth in 3 Years TRUSTEES The oversight of the performance of Century Blue Trust is entrusted to five Trustees as stipulated in the Trust Deed. The current Trustees are: Trustee: Dave Welbourne (Former Managing Director of RSA subsidiary of Dow Jones listed professional services company) Beneficiary Nominated Trustee: Vees Moodley (Chemical Engineer/Marketing Director) Beneficiary Nominated Trustee: Alan Sloan (HR Specialist) Legal Trustee: Brendan Commins (Attorney) Finance Trustee: Carl May (Chartered Accountant) Each Beneficiary nominated Trustee may stand for a period of 2 years. All Trust decisions require the approval of 4 out of 5 of the Trustees. Century Blue Trust T: (+27) M: (+27) Northbank Building, 4th Floor, No. 1 Northbank Lane, Century City, 7441

5 INVESTMENT PROSPECTUS MANAGEMENT SERVICE The management of the Century Blue Trust, assets and business is handled by African Opportunity Investments under a formal service agreement. This management team is headed by Dave Welbourne. The team has over 30 years experience of successfully investing in and managing commercial property in Cape Town. The management service provided by African Opportunity Investments includes: Property Purchases Property Disposals Tenant Sourcing and Installation Tenant Lease Terminations Monthly Administration Annual/Quarterly Administration Daily Operations Beneficiary/Investor Relations Administration DAVE WELBOURNE Trustee/CEO Century Blue Trust is managed by Dave Welbourne and his team who are based at the Northbank Building in Century City. Dave has a long track record of managing and investing in commercial property in Cape town, initially starting as an owner occupier when he purchased office premises for their Oil & Gas Services business and as this business prospered he guided the group s investment into further commercial property. Based on the success of these investments came the desire to expand this business and open the opportunity to other investors culminating in the establishment of Century Blue Trust. Dave Welbourne is originally from the UK but is now a South African citizen, he is married to Mandy and has four children. Century Blue Trust T: (+27) M: (+27) Northbank Building, 4th Floor, No. 1 Northbank Lane, Century City, 7441

6 INVESTMENT PROSPECTUS COMMERCIAL PROPERTY PORTFOLIO Currently Century Blue Trust currently owns approximately 6500m2 of AAA Grade commercial office property in the Century City area. As a commercial property investment fund we are continually seeking to expand the investment portfolio and our yields. Whilst continuing to ensure risk is effectively managed. Properties investments include: Colosseum Section 1, Century City Northbank Building, Century City Boulevard Place, Century City Century Square, Century City Greenford Block C, Kenilworth Race Course Century Blue Trust T: (+27) M: (+27) Northbank Building, 4th Floor, No. 1 Northbank Lane, Century City, 7441

7 COLOSSEUM SECTION 1 The Colosseum section 1 is perfectly situated office space with easy access in and out of the Century City area. In addition to the office space there is a 246m2 outdoor patio area which opens up from a separate gate and the boardrooms alike. Office floor space: 965m2 Parking Bays: 46

8 NORTHBANK Ideally located, adjacent to the world class Canal Walk shopping mall, Northbank offers electronic security systems, including CCTV surveillance. All parking bays are secure and all entrances into the building have security keypads or require an electronic tag for entry. Office floor space: 2043m2 Parking Bays: 70

9 BOULEVARD PLACE This A grade office space is in a prime position in Century City. Close to Canal Walk Shopping Centre, with easy access to highways as well as the rest of the Century City precinct. This a great position for any business close to public transport. Boulevard Place offers 24hr onsite security with CCTV cameras. Sections: 9, 17, 19, Office floor space: 1516m2 Parking Bays: 72

10 CENTURY SQUARE The Century Square complex is in a very successful development that caters for the smaller tenant with office units from 50m2 to 500m2. The complex offers 24hr on-site security reception services with multiple CCTV cameras around the complex for added peace of mind. Sections: 1-8 Office floor space: 1177m2 Parking Bays: 43

11 GREENFORD BLOCK C The property comprises a modern "A Grade" sectional title office unit situated within the Greenford Eco Estate at Kenilworth Race Course. Office floor space: 555m2 Parking Bays: 34

12 INVESTMENT PROSPECTUS PURCHASE &SALE OF INVESTMENT UNITS Century Blue Trust conducts an annual net asset value (NAV) valuation on the 28th of February each year using two methods: A full valuation of the property portfolio is prepared by professional evaluators. In accordance with the requirements of the Century Blue Trust finance bank standards. This provides a conservative valuation. A full valuation of the property portfolio is prepared by one or more commercial property brokers. This provides a more optimistic asking price valuation. In addition to the above valuation methods a median valuation is calculated from the above two methods. The above property valuations are subsequently fed into a net asset value calculation sheet along with current cash balances and the current bond finance values. This information is provided to all of the Century Blue Trust investors on an annual basis with a quarterly cash/bond balance updates as guidance information to enable unit sellers to establish a fair equitable unit price with unit buyers. Once a transaction unit price is agreed the transfer of ownership of units is a quick and simple process. Century Blue Trust T: (+27) M: (+27) Northbank Building, 4th Floor, No. 1 Northbank Lane, Century City, 7441