Logicor Investor Snapshot€¦ · Logicor –Investor Snapshot. 2 Highly Confidential Notice to...

05 November 2018

Logicor – Investor Snapshot

2

Highly Confidential

Notice to InvestorsThis document has been prepared by Logicor Financing S.à r.l. (the “Issuer”) solely for informational purposes. For the purposes of this notice, the presentation shall mean and include the slides that precede this notice, the oral presentation of the slides by the Issuer or any person on behalf of the Issuer, any audio-visual materials, any question-and-answer

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LOGICOR AT A GLANCE

01

4

Highly Confidential

Leading Pan-European Logistics Company with a Diversified Footprint

UK

26% of NOI

3.0m sqm

SOUTHERN

EUROPE

15% of NOI

2.6m sqm

NORDICS

REGION (2)

13% of NOI

1.3m sqm

NORTHERN

EUROPE

21% of NOI

2.9m sqmCEE

9% of NOI

1.4m sqm

FRANCE

16% of NOI

2.4m sqm

13.6m sqm

GLA

92.7%

Occupancy

>4 years

WALB

€594m

FY17 NOI (1)

Notes

Portfolio metrics as at 30-Jun-18 unless otherwise stated

1. Based on Special Purpose Accounting Polices

2. Nordics region includes 1 asset in Russia

623

Assets

€12.3Bn

GAV

€5.9Bn

NAV51% Net Leverage

5

Highly Confidential

Key Credit Highlights

Highly Attractive Market

Fundamentals within European

Logistics

Low European vacancy rate at 5.7% (1)

e-Commerce forecast to grow 12.3% (2) annually between 2017E and 2020E

Logistics property take-up outweighs development completions by more than 1.5x since 2009

A.

Strategically Located with a

Diversified Portfolio

Geographically diverse portfolio with presence in 17 countries across Europe

Focussed on large, supply constrained markets including UK, Germany and France

(approximately 60% of NOI)

Assets in key locations for distribution in each country

B.

High Quality and Diversified

Customer Base

No single customer accounts for >3% of total rent

Top 10 tenants represent <20% of rent roll

Pan-European customer solutions enabled by scale and an integrated platform

C.

Secure Financial Profile and

Policy Framework

Leverage policy of less than 55% LTV

Focus on reduction of liquidity risk by targeting multiple sources of funding, including the

institutional capital markets

100% owned logistics portfolio

D.

Best-in-Class Management with a

Proven Track Record

Average 20+ years experience

Dedicated local and regional managers to service local demand and customers

Relentless focus on active asset management and proactive lease expiry management

E.

Strong Shareholder Support

CIC (~$940 Bn of total assets)

Blackstone (~$439 Bn assets under management)

Blackstone remaining as strategic advisor

Logicor currently has €5.9 Bn of net asset value

F.

Note

1. Vacancy rates for Europe including UK, Germany, France, the Netherlands, Belgium, Spain, Italy, Poland, Hungary and the Czech Republic based on country weighting in line with the Logicor portfolio

2. Represents retail sales value excluding sales tax from European e-commerce for the period from 2017E to 2020E (as per Euromonitor)

6

Highly Confidential

`

Approximately 60% of Logicor’s NOI Comes from UK, Germany and

France with Assets in Key Strategic Locations

Assets Main Logistics Locations

Leeds

Bristol

Liverpool

Edinburgh

Glasgow

Leeds

Cardiff

Southampton

Manchester

Bristol London

Newcastle

Lille

Toulouse

Marseille

Orleans

Paris

Lyon

Strasbourg

UK Germany & Northern Europe France

Hannover

Bremen

Cologne

Erfurt

Leipzig

Dresden

Eisenach

Frankfurt

Mannheim

Stuttgart

Munich

Amsterdam

UtrechtRotterdam

Brussels

GhentAntwerp

Berlin

Linz

Vienna

Graz

Nuremberg

Dusseldorf

Hamburg

Source: CBRE (for main logistics locations)

7

Highly Confidential

A Pure Play Pan-European Logistics Company

Notes

Portfolio metrics as at 30-Jun-18

1. Based on NOI. Certain assets contain multiple buildings

2. Weighting is based on GLA (sqm). Freehold includes 60 ground lease assets whereby the ground is owned by the government or the unexpired ground lease term is >100 years. Leasehold includes 7 assets with ground lease terms from 2050 to 2106

Focus On Assets >10k sqm (1) 100% Wholly-Owned Freehold Ownership (2)

Average Asset Size: ~22k sqm

>10k sqm

93%

<10k sqm

7%

Wholly-Owned

100%

Leasehold

0.5%

Freehold

99.5%

8

Highly Confidential

Established Organisation with Best-in-Class Management Capability

Employees174

Property

Week’s (3)

Industrial Deal

of the Year

2018

1st

# of Customers>2,100

Average Experience (1)20+

yrs

2016 & 2017

IAS (2)

Property

Company of

the Year

1st

Countries17

• Over 1m sqm of potential

development

• In-house technical team

and network of local

partners

• >50 asset management

professionals

• Dedicated team with >25

years of total experience

• Track record of strategic

acquisitions and

disposals across Europe

Project Management &

Development

Asset Management

& LeasingTransactions

Highly Qualified

Management Team

Outstanding Reputation with

Customers & Partners

Best-in-Class Capabilities

Across the Whole Real Estate

Value Chain

Entrepreneurial Culture

Notes

1. Includes senior management and Regional Managing Directors

2. Awarded by the Industrial Agents Society (IAS) for Logicor’s UK operations

3. Industrial & Logistics Conference

2017 IAS (2)

Asset

Management

Initiative of the

Year

1st

9

Highly Confidential

Proven Track Record of Building & Managing a Real Estate Portfolio

Number of

Countries

in Operation

2013 20152012 2014 2017 – Present2016

Evolution of Logicor’s Portfolio

GLA (m sqm) as at year end

2.4 3.1

6.7

11.513.6 13.6 13.6

2012 2013 2014 2015 2016 2017 H1-18

4 5 1711 14 17

Portfolio now stabilised with ongoing optimisation through strategy of proactive leasing and refurbishment as well as

selective acquisitions, developments and disposal of non-core assets

17

Growth Phase Optimisation Phase

2014

GLA doubled as Logicor continued to expand in existing countries and entered new ones such as Germany & Italy

2015

Entered the Nordics region including Finland & Sweden and continued acquiring in existing markets

2016

Continued to expand within existing and new markets. In particular, 53% of GLA acquired was in Germany and 16% in the UK

2013

Continued expansion in the UK, France, Spain & Poland and entry into the Netherlands

November 2017 to Today

Acquisition of Logicor by an investment group led by CIC and focus on portfolio optimisation

2012

First acquisition in the UK followed by continued expansion into France, Spain & Poland

10

Highly Confidential

Predominantly Large Assets Located in Prime Logistics Locations

Rugeley Golden Triangle, UK Thomas-Dachser-Str. 4, Nuremberg, Germany

Torrija 81 Madrid, SpainKesko Campus Helsinki, Finland Łódź II Łódź, Poland

Garonor 15 Paris, France

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiW0MLPje_cAhUH2aQKHaa4DWEQjRx6BAgBEAU&url=http://vectorlogofree.com/logo-vector/flextronics-logo-vector-download.html&psig=AOvVaw0dIX_M_Gh2Q0T_sZ9wW_2h&ust=1534424152532436

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjAub7eiu_cAhUO6KQKHeMMDSkQjRx6BAgBEAU&url=https://www.primark.com/en/homepage&psig=AOvVaw2xp5PWcitVuUsa6yRzo2cM&ust=1534423396710389

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjhg4a4w8fdAhVNqaQKHSvAChcQjRx6BAgBEAU&url=https://www.logosurfer.com/logo/kesko-logo&psig=AOvVaw1kvQbc-1ulC-0nDf3jVovt&ust=1537462264643810

LOGICOR CREDIT STORY

03

12

Highly Confidential

Key Credit Highlights

Highly Attractive Market Fundamentals within European Logistics

Strategically Located with a Diversified Portfolio

High Quality and Diversified Customer Base

Secure Financial Profile and Policy Framework

Best-in-Class Management with a Proven Track Record


A.

B.

C.

D.

E.

F.

13

Highly Confidential

Logistics Market Snapshot

Structural Acceleration in

European e-Commerce Growth

Early Stages of Rental

Growth Cycle

Favourable Market Trends

Limited New Stock

Supply Chain Reconfiguration

and Outsourcing to Third-Party

Logistics

7%Prime Rents Today

Below 2007 Levels (5)

1/5th Per Capita Stock of Modern Logistics

in Europe Relative to the US (3)

12% Projected Annual e-Commerce Growth (1)

3% Growth of Third-Party Logistics Market (2)

7%

Decline in Vacancy in

European Logistics Since

2009 (4)

A Highly Attractive Market Fundamentals within European Logistics

Source CBRE, Euromonitor, Technavio, PMA

Notes

1. Represents retail sales value excluding sales tax from European e-commerce for the period from 2017E to 2020E

2. Compounded annual growth rate (CAGR) of the forecasted demand for third-party logistics services in Europe between 2016 and 2021 per Technavio

3. Per capita supply based on logistics stock divided by population. Europe represents modern stock and includes UK, France, Germany, Poland, Spain, Italy and the Netherlands. US represents investment grade stock


5. Based on PMA logistics prime rental values – calculated as an average of the rental values in the main European cities where Logicor owns assets weighted by its gross leasable area in those cities as at 30-Jun-18

14

Highly Confidential

11.8

15.7

11.8

9.18.3

4.0 3.7

USA UK Nether-lands

Ger-many

France Spain Italy

83100106

122

150163

195

223218237

266

308

343

377

165169

174179

185

191

2.62.8

3.13.3

3.5

0.0

1.0

2.0

3.0

4.0

5.0

100

120

140

160

180

200

Market Size Growth Rate

E-commerce and Third-Party Logistics Driving Demand, with Significant

Future Growth Potential


E-commerce requires 3x the logistics space used by brick and mortar retailers causing gross logistics real estate take-up

to outweigh development completions

Source Euromonitor, Technavio

Notes

1. European internet retailing market size calculated as the aggregate internet retail sales (excluding sale taxes) of the E.U. Member States, Switzerland, Norway, Ukraine and Belarus

2. EU third-party logistics services market size in terms of revenues

3. Internet retailing penetration rates calculated as the ratio of online retailing sales and the total retail sales (excluding sale taxes in both)

CAGR:

12.4%

European Internet Retailing Market Size (1)

$Bn

Demand for Third-Party Logistics

Services on the Rise in Europe (2)

Market Size (Revenues $Bn) Growth Rate (%)

Internet Retailing Penetration Rates (3)

Online Retail Sales as % of Total Retail Sales

in 2017 (%)

1.9x 4.2x

CAGR:

12.3%

Average:

7.4%

15

Highly Confidential

% of Stock

12.8%

5.7%

2009 2010 2011 2012 2013 2014 2015 2016 2017 H1-18

Demand-Supply Imbalances Driving Down Vacancy Rates and Increasing

Rents


71.769.5

65.463.4 62.8 62.4 62.6 62.8

64.8 65.4 66.2 66.5

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1-18

CAGR (6):

1.2%710bps

%

European Vacancy (4)

€ / sqm

European Prime Rents (5)

7.1

10.0 10.18.8 9.2 9.3 9.9

11.09.8

5.4

3.42.4

3.0 3.0 3.04.2

4.9 5.36.3

3.2

2009 2010 2011 2012 2013 2014 2015 2016 2017 H1-18

European Take-up Modern Logistics Supply

Source CBRE, PMA

Notes

1. Take-up per CBRE and defined as the gross leasing activity in a given period of time

2. Calculated as a % of Grade A modern warehouse stock (>1k sqm)

3. Data for UK, Germany, France, the Netherlands, Spain, Italy, Poland and the Czech Republic based on country weighting in line with the Logicor portfolio


5. Based on PMA logistics prime rental values – calculated as an average of the rental values in the main European cities where Logicor owns assets weighted by its gross leasable area in those cities as at 30-Jun-18

6. Compounded annual growth rate (CAGR) between 2012 and H1 2018

European Take-up (1, 2, 3) and Modern Logistics Supply (2, 3)

16

Highly Confidential

Key Portfolio Highlights

B Strategically Located with a Diversified Portfolio

Operational Assets Concentrated

in Key Logistics Locations

Pan-European

Customer Relationships

Largest Direct Owner of

Logistics Real Estate in Europe

Logistics Player Primarily

Focused on Assets >10,000 sqm

Focus on Core Economies

#1Logistics Player in Europe by Floor Area (1)

>90% Assets >10,000 sqm

~60%

NOI Derived from the

UK, Germany and

France

623 Assets

13.6msqm

Leasable Area

100% Wholly-Owned

17 Countries

>30Key Logistics

Locations

Notes


1. By direct ownership

17

Highly Confidential

Rank

Annual

Headline

Rent (€k)

% of Rent

(GRI)

Total

Area

(k sqm) % of Area

#

Leases

1 18,137 2.6% 365 2.7% 17

2 17,427 2.5% 412 3.0% 24

3 16,917 2.4% 266 2.0% 10

4 16,679 2.4% 161 1.2% 12

5 14,899 2.1% 324 2.4% 18

6 12,355 1.8% 206 1.5% 26

7 12,264 1.8% 180 1.3% 6

8 9,988 1.4% 208 1.5% 12

9 9,513 1.4% 210 1.5% 10

10 8,677 1.2% 112 0.8% 3

Total Top 10 136,858 19.7% 2,444 18.0% 138

Diverse Customer Base (1)

C High Quality and Diversified Customer Base

Notes


1. Customers presented in no particular order

2. Industry allocation based on Logicor management estimates

Top 10 Customers

% of NOI

Breakdown by Industry (2)

Automotive & Parts5%

Capital Goods3% Clothes &

Apparel3%

Construction6%

Consumer11%

Food & Drink7%Logistics

45%

Packaging & Logistical Supplies

2%

Resources & General Parts

3%Other13%

18

Highly ConfidentialHighly Confidential

Favourable Lease Expiry Profile

High Quality and Diversified Customer BaseC

1st Lease Break / Expiry Year 2018 2019 2020 2021 2022 2023 2024+

Total (€m) 71.6 128.7 122.7 97.5 53.3 48.2 173.6

% Total (2) 10% 19% 18% 14% 8% 7% 25%

Lease Rollover

(%)

Notes

1. Weighted average unexpired term to first lease break or lease expiration as at 30-Jun-18

2. Totals may not directly add to 100% due to rounding

1.5% 1.3%3.1%

1.4% 2.2% 0.9%1.7%

4.3%3.8%

2.9%3.6%

2.1%

2.4%

4.4%3.3%

3.3%2.7%

1.5%

2.8%

3.1% 2.7%

2.7% 1.8%

1.1%

3.2%

1.1%0.7%

1.0% 0.9%

0.7%

2.0%

2.5%0.3%

0.5% 0.6%

1.0%

11.8%3.6%

1.7%2.9% 3.2%

1.7%

UK Northern Europe France Southern Europe Nordics Region CEE

2018 2019 2020 2021 2022 2023 2024

>4 years WALB (1) with expiries geographically diversified across the portfolio allowing Logicor to benefit from both

stability and increasing market rents. ~25% of rental income expires or has first breaks in 2024 or thereafter

19

Highly Confidential

Robust Financial Policy Framework

D Secure Financial Profile and Policy Framework

Leverage Policy Leverage policy of less than 55% loan-to-value1.

Multiple Funding Sources

Focus on reduction of liquidity risk by targeting multiple sources of funding, including

the institutional capital markets

Staggered debt maturities to mitigate refinancing risk

Proactive management of liquidity

2.

Unsecured Debt Strategy Move towards a substantially unsecured funding model

Revolving credit facility to provide liquidity to meet short-term commitments3.

Growth Avenues

Selective customer-led development and acquisitions

Subject to leverage policy of less than 55% loan-to-value, funded by retained

operating cash flow, disposal proceeds and / or additional capital from shareholders

4.

Interest & FX Hedging

Preference for majority fixed rate debt with floating rate revolving facility

Natural hedge from unsecured currency denominated borrowings; FX risk on net

equity investment is not hedged

5.

Dividend Policy

No fixed dividend requirement

Excess liquidity to be paid out as dividends after ensuring cover for any short-term

commitments

6.

20

Highly Confidential

Delivered strong growth across all key financial metrics in 2017

430

474

2016 2017

567

594

2016 2017

619

641

2016 2017

702

735

2016 2017

D Secure Financial Profile and Policy Framework

Snapshot of Key Financials (1)

92%

93%

NOI Margin

+4.7%+3.5%

€m

Revenue

€m

Net Rental Income

€m

Operating Profit

Note

1. Using Special Purpose Accounting Policies

+4.8%

€m

Net Operating Income

+10.2%

21

Highly Confidential

Sheena Singla

General Counsel

20 years experience

E Best-in-Class Management with a Proven Track Record

Execu

tiv

e M

an

ag

em

en

t T

eam

Reg

ion

al M

an

ag

em

en

t T

eam

Total Management

Experience

>200 years

Regional Managing Directors Based in Local Markets with Close Proximity

to Clients & Assets

Mo Barzegar

CEO & Chairman

31 years experience

Bartosz Mierzwiak

Managing Director,

CEE

17 years experience

Buddy Roes

Managing Director,

Northern Europe

28 years experience

Jorma Lehtonen

Managing Director,

Nordics Region

32 years experience

Charlie Howard

Managing Director,

UK

20 years experience

Manel Vericat

Managing Director,

Southern Europe

10 years experience

Pierre Philippot

Managing Director,

France

26 years experience

Simon Clinton

CFO

22 years experience

22

Highly Confidential

Active Asset Management Approach with Local Country Teams

Logicor’s Headquarters

Logicor’s Regional Offices

London

Madrid

Lisbon

Barcelona

Paris

Amsterdam

DusseldorfWarsaw

BudapestMilan

Helsinki

Frankfurt

More than 50 asset management professionals across Europe

Focus on enhancing and repositioning assets to improve

occupancy and profitability

Active asset management

Customer relationship management

Provision of proprietary market information to inform

acquisitions and leasing decisions

Agile and entrepreneurial approach to leasing

Tenant retention rates stand at an average of approximately

75%

Asset Management Strategy

Leasing Strategy

Bucharest

Solihull

Luxembourg

E Best-in-Class Management with a Proven Track Record

Stockholm

Garonor

Lyon

23

Highly ConfidentialE Best-in-Class Management with a Proven Track Record

Proactive Lease Expiry Management

Relentless Focus on Active Asset Management

Sherburn, UK Ormes, FranceTamworth, UKGelsenkirchen, Germany

• Complex negotiation to secure new

long-term lease to XPO Supply

Chain on 60,000 sqm at Bonehill

Road, Tamworth

• No void and let on a 10+ year lease

• Worked closely with XPO to meet

customer requirements, extending

the property and agreeing a lease

surrender

• Supported XPO in pitching for key

contract with Premier Foods,

positioning the property as a suitable

solution for the situation

• The former owner bought it as a

piece of land in 2014 and was

unsuccessful in securing customers

• Purchased the land in mid-2016 and

secured Pilkington in Summer 2017

with almost 38,000 sqm build-to-suit

for 10 years, and secured another

11,000 sqm pre-let with the same

customer in less than 9 months

• Originally 2 units in Sherburn which

were vacant since construction in

2008 and faced significant

competition from nearby surplus of

vacant units

• Logicor purchased the property

vacant in 2015 and subsequently

combined 2 units to create single

52,000 sqm asset, repositioning the

building into the only one of this size

available nationally

• Lease completed with L&G Homes

in Jun-16 (backed by L&G plc) on a

10-year lease at £54/sqm – a record

rent for the park

• Large size asset with approximately

44,000 sqm of gross leasable area

• Fully let to a large customer until

31-Mar-18 when the customer

decided to vacate the property

• Management responded promptly

and took the decision to split the

asset into 3 separate units

• Strategy was a success and the

asset reached 100% occupancy

before 20-Jun-18

Innovative and Customer Centric Approach

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Highly Confidential

China Investment Corporation (“CIC”) Blackstone

Overview

China's sovereign wealth fund, with a mandate to diversify

China's foreign exchange holdings and seek maximum

returns for its shareholder within acceptable risk tolerance

Founded as a wholly state-owned company incorporated in

accord with China’s Company Law

Headquartered in Beijing, founded on 29 September 2007

with ~$940 Bn (2) of total assets

A sizable and diversified real asset portfolio across

continents

Core Investment Strategy

A long-term financial investor which invests on a commercial

basis

A diversified portfolio in public equity, fixed income and

alternative assets

Experienced in European investments, captures opportunities

in quality assets with growth potential

Overview

Operates as one globally integrated platform with

investments in the logistics, office, retail, hospitality and

residential sectors

Founded in 1985 and went public in 2007, 30+ year

investment record / A+ credit ratings (1)

Approximately $439 Bn (2) of assets under management

Blackstone Real Estate’s investor capital amounts to $119 Bn

and includes $32 Bn in Core+ investments, $72 Bn in

opportunistic investments and $16 Bn in debt investments

Core Investment Strategy in Europe

Operated in Europe for more than 22 years and currently

employs 97 Europe-dedicated real estate professionals

Blackstone Real Estate’s European total enterprise value is

€64 Bn

Blackstone continues to be actively involved in the business

of Logicor as strategic advisor

F Strong Shareholder Support

Notes

1. Ratings from Standard & Poor’s and Fitch

2. Data accurate as per latest reporting

Backed by Well Capitalised Shareholders with Long-Term Investment

Horizons and Deep Real Estate Experience

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Highly Confidential

Recap of Key Credit Highlights

Highly Attractive Market Fundamentals within European Logistics

Strategically Located with a Diversified Portfolio

High Quality and Diversified Customer Base

Secure Financial Profile and Policy Framework

Best-in-Class Management with a Proven Track Record


A.

B.

C.

D.

E.

F.

26

Highly Confidential

For further information, please kindly contact:

Courtney HugginsTreasurer, Logicor

+44 (0) 203 137 8412

+44 (0) 787 931 4292

[email protected]

www.logicor.eu

Ongoing updates will be provided through

bondholder calls and semi-annual reporting

&

mailto:[email protected]

http://www.logicor.eu/

SUPPLEMENTARY MATERIALS

APPENDIX

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Highly Confidential

Region # Assets

GLA

(m sqm)

WALB (1)

(years) Occupancy (1)

NOI

2017 (3) (€m)

NOI

H1 2018 (€m)

GAV (2)

(€m)

GAV (2)

(€/sqm)

GAV (2)

(%)

UK 174 3.0 6.1 93.7% 158 84 3,538 1,179 28.8%

Northern Europe 99 2.9 3.9 93.6% 130 67 2,615 902 21.3%

France 143 2.4 2.3 91.5% 84 50 2,013 839 16.4%

Southern Europe 76 2.6 3.5 94.1% 88 48 1,425 1,096 11.6%

Nordics Region 87 1.3 3.7 87.3% 81 41 1,657 637 13.5%

CEE 44 1.4 3.4 93.9% 53 29 1,030 736 8.4%

Total / Weighted

Average623 13.6 4.1 92.7% 594 318 12,278 903 100.0%

A Summary Portfolio Overview

Approximately 60% of Logicor’s NOI comes from UK, Germany and France with assets in key strategic locations

Notes

1. Based on in-place leases as at 30-Jun-18

2. GAV based on CBRE valuation report as at 30-Jun-18

3. Based on Special Purpose Accounting Policies

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Highly Confidential

Based on Special Purpose Accounting Policies Based on IFRS

€m 2016 2017 H1 2018

Revenue 702 735 392

Net Rental Income 619 641 337

Property Operating Expenses, Net of Recoveries (52) (47) (19)

Net Operating Income 567 594 318

Administrative Expenses (77) (123) (38)

Gain / (Loss) on Disposal of Investment Properties (60) 3 -

Fair Value Movements of Investment Properties - - 170

Operating Profit 430 474 450

Net Finance Expense (413) (345) (186)

Profit / (Loss) Before Tax 17 129 264

Taxation (25) (17) (37)

Profit / (Loss) for the Financial Period (8) 112 227

A Summary Financials

Income Statement

30

Highly ConfidentialA

Based on IFRS

€m 31-Dec-17 30-Jun-18

Investment Properties 12,183 12,342

Goodwill and Intangible Assets 651 651

Property, Plant and Equipment 3 3

Deferred Tax Asset 66 73

Trade and Other Receivables 33 50

Other Investments 42 42

Non-Current Assets 12,978 13,161

Cash and Cash Equivalents 557 527

Trade and Other Receivables 158 158

Current Tax Asset 11 12

Current Assets 726 697

Total Assets 13,704 13,858

Based on IFRS

€m 31-Dec-17 30-Jun-18

Borrowings (15) (21)

Loans Due to Owners of the Eurocor Group (38) (40)

Trade and Other Payables (249) (228)

Current Tax Liabilities (84) (79)

Current Liabilities (386) (368)

Borrowings (6,811) (6,816)

Loans Due to Owners of the Eurocor Group (2,150) (2,150)

Deferred Tax Liabilities (777) (803)

Non-Current Liabilities (9,738) (9,769)

Total Liabilities (10,124) (10,137)

Net Assets 3,580 3,721

Share Premium and Capital Contributions 3,613 3,537

Foreign Currency Translation Reserve (3) (13)

Retained Earnings / (Losses) (30) 197

Invested Capital 3,580 3,721

Summary Financials

Balance Sheet

31

Highly Confidential

GoldenTriangle

48%

London / SE22%

Yorkshire14%

Manchester / Liverpool

(NW)7%

Other9%

#1in the United

Kingdom

Assets Road Main Logistics Locations Airports

Nottingham

PeterboroughEdinburgh

Newcastle

Glasgow

LeedsManchester

Liverpool

LondonBristol

Cardiff

“Golden Triangle”

NorthamptonBirmingham

B

Number of Assets 174

Gross Leasable Area 3.0m sqm

Rent per sqm (2) €63.2

Occupancy 93.7%

WALB 6.1 years

Logicor’s Markets – UK

Market Overview & Trends

• UK is one of the largest logistics property markets in Europe

• Over the last 5 years, gross take-up has generally been in excess of annual completions

• Decrease in vacancy from 13.6% in 2010 to 9.1% in June 2018

• Strong rental growth, with 4.1% (1) CAGR 2013-2017

• Logicor has seen limited impact from the Brexit referendum

Logicor Portfolio

• Logicor’s largest market with a portfolio totaling 3.0m sqm across 174 assets

• Logicor is the largest logistics landlord in the UK• Largest concentration of assets in the Midlands Golden Triangle

Poised to benefit from structural trends driven by changes in technology, Logicor’s assets sit at the centre of

e-commerce supply chains that generate incremental demand for modern logistic spaces

Logicor Portfolio Key Highlights

Source CBRE, Real Capital Analytics

Notes

Portfolio metrics as at 30-Jun-18. Market position based on area owned

1. Based on CBRE EMEA European Logistics Index weightings for Birmingham, London and Manchester

2. Rent represents 30-Jun-18 base rent

Key Statistics NOI by Location

32

Highly Confidential

Rhine-Ruhr

26%

Rhine-Main

17%

Netherlands13%

Central Germany10%

Stuttgart9%

Munich7%

Hamburg / Bremen6%

Belgium5%

Other7%

B Logicor’s Markets – Northern Europe

Number of Assets 99



Occupancy 93.6%

WALB 3.9 years

Logicor is the largest warehouse owner in Northern Europe (1)



Notes

Portfolio metrics as at 30-Jun-18. Includes 3 assets in Austria (60k sqm). Market position based on area owned

1. Northern Europe consists of Germany, Belgium, the Netherlands and Austria


#1in Northern

Europe (1)

Assets Road Main Logistics Locations


• Germany is the largest logistics market in the EU

• Export-oriented economy supporting continent’s largest industrial sector

• Central geographic location, extensive and sophisticated infrastructure network and large population contribute to strength of logistics market

– Northern Europe has highest 2017 take-up in Europe with 9.5m sqm

• Given Germany’s polycentric structure, there are multiple locations with strong demand for logistics space

• Vacancy in Germany, Logicor’s largest market in Northern Europe, has decreased from 4.0% in 2013 to 2.0% as of 30 June 2018, and headline rents have increased at a CAGR of 1.0% over the same period, according to CBRE

Logicor Portfolio

• 2.9m sqm of lettable area across 99 assets• Assets strategically located in the main logistics corridors of Germany,

the Netherlands and Belgium

– Rhine-Main (Frankfurt) and Rhine-Ruhr (Dusseldorf / Cologne) areas

– South of the Netherlands (Tilburg, Roosendaal and Venlo)

– Willebroek and Brussels in Belgium


Hamburg

HannoverBerlinBremen

CologneErfurt

Leipzig

Dresden

Eisenach

Frankfurt

MannheimNuremberg

Stuttgart

Munich

LinzVienna

Graz

Dusseldorf

Rotterdam

BrusselsGhent

Amsterdam

Venlo

Utrecht

Antwerp

Rhine-Main

Rhine-Ruhr

33

Highly Confidential

Paris / Ile-de-France43%

Lille14%

Lyon10%

Marseille6%

Orleans5%

Other21%

Lille

Strasbourg

Orleans

Lyon

Marseille

Toulouse

Paris

B Logicor’s Markets – France

Number of Assets 143



Occupancy 91.5%

WALB 2.3 years

Highly developed logistics market with Logicor particularly well placed in the French logistics corridor from

Lille to Marseille


Notes


1. One asset has been sold since 30-Jun-18




• Highly developed logistics market focused on the logistics corridor going from Lille to Marseille

• Greater Paris / Île-de-France is one of the largest logistics locations in Europe with 11m sqm of stock

• Vacancy in the French logistics market decreased from 8.4% in 2013 to 5.4% as of 30 June 2018, and headline rents increased at a CAGR of 1.5% over the period from 2013 to the six months ended 30 June 2018, according to CBRE

Logicor Portfolio

• 2.4m sqm of lettable area across 143 assets (1)

• 79% of NOI concentrated in the French logistics backbone (Lille, Paris, Orleans, Lyon and Marseille)

• Logicor owns a large scale logistics park, located 12 km from Paris on one of the main highways leading to Paris, from CDG airport and Northern Europe

#1 in France



Key Statistics NOI by Location (3)

34

Highly Confidential

Madrid33%

Milan25%

Lisbon17%

Barcelona9%

Other Northern

Italy10%

Other7%

B Logicor’s Markets – Southern Europe

Porto

ZaragozaMadrid

LisbonValencia

TarragonaBarcelona

Girona

Milan

Florence

Rome

BolognaGenova

Turin

Verona

Number of Assets 76



Occupancy 94.1%

WALB 3.5 years

Logicor has the largest industrial presence in Southern Europe, where demand continues to outpace supply

Source CBRE, Real Capital Analytics, Eurostat

Notes


1. Includes data for Italy and Spain; weighted by modern stock




• Demand in Southern Europe continues to outpace supply

– Gross take-up outpaced completions each year since 2013 (1)

• Vacancy in Italy and Spain, in aggregate, has decreased from 11.1% in 2013 to 4.6% as of 30 June 2018, and headline rents have increased at a CAGR of 1.9% over the same period, according to CBRE

• Spain: 5th largest economy in the EU

• Portugal: scarcity of quality logistics supply in Lisbon and Porto

Logicor Portfolio

• 2.6m sqm of lettable area across 76 assets (34 in Spain, 24 in Italy, 18 in Portugal)

• Largest industrial presence in Italy, Portugal and Spain

– 92% of Spanish NOI concentrated in Madrid & Barcelona with over 72% of NOI in Madrid’s Henares corridor, one of Spain’s main logistics corridors

– 70% of the Italian NOI concentrated in the Milan and Northern Italy market

• 100% occupancy recently reached in Portugal


#1in Southern

Europe



35

Highly Confidential

Helsinki50%

Southern Finland

20%

Central Finland

11%

South Sweden

9%

Stockholm9%

Other2%

Jyväskylä

TampereLahti

Helsinki

Turku

Stockholm

Malmö

Gothenburg

Helsinki

B Logicor’s Markets – Nordics Region

Number of Assets 87



Occupancy 87.3%

WALB 3.7 years

Logicor owns one of the largest portfolios in the Nordics region, with well positioned assets in close proximity to key

logistics routes


Notes


1. Includes 1 additional asset in Russia




• Finland and Sweden are stable economies with good fundamentals and infrastructure

• Helsinki is Finland’s dominant logistics hub with other clusters around the largest cities (Lahti, Jyväskylä, Tampere and Turku)

• Sweden’s logistics market is concentrated on the axis from the Port of Gothenburg to Stockholm

Logicor Portfolio

• 1.3m sqm of gross leasable area across 87 assets (77 in Finland and 9 in Sweden) (1)

• Assets are well positioned in close proximity to key logistics routes• 63% of the Finnish portfolio (by NOI) is concentrated in Helsinki and

24% in other properties in southern Finland• Top 4 assets contribute approximately one third of the Finnish portfolio’s

NOI

#4in the Nordics

Region

Assets Road Main Logistics Locations Ports Airports



36

Highly Confidential

Silesia20%

Central Poland20%

Warsaw13%

Budapest11%

Bucharest10%

Poznan9%

Prague6%

Other11%

Timisoara Ploiesti

Bratislava

Prague

Bucharest

Budapest

Wrocław

WarsawPoznań

Łódź

Strykow

Mysłowice

B Logicor’s Markets – Central & Eastern Europe

Number of Assets 44



Occupancy 93.9%

WALB 3.4 years

Logicor is one of the major distribution facilities providers and one of the largest players within the industrial real estate

sector in the CEE area


Notes




• Poland is by far the CEE’s largest logistics market

• Poland experienced increasing market demand and decreasing vacancy in 2017 driven by third-party logistics operators and retailers

– Vacancy in Czech Republic, Poland, Hungary, in aggregate, has decreased from 12.2% to 3.8% as of 30 June 2018, according to CBRE

• Poland’s logistics stock is spread across the key clusters of Warsaw, Strykow / Lodz, Poznan and Silesia

Logicor Portfolio

• 1.4m sqm of gross leasable area across 44 assets (28 in Poland, 9 in Hungary, 5 in Romania, 1 in Czech Republic and 1 in Slovakia)

• One of the largest players in Polish logistics real estate market• Over 1m sqm of land available for future development in Romania

(comprising approximately 430k sqm of buildable GLA)


#5 in CEE



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