PARIS SITE TOUR - Segro/media/Files/S/Segro/documents...leaseback) • B22 acquired in December 2011...
Transcript of PARIS SITE TOUR - Segro/media/Files/S/Segro/documents...leaseback) • B22 acquired in December 2011...
PARIS SITE TOURMARCO SIMONETTIBUSINESS UNIT DIRECTOR, SOUTHERN EUROPE
Agenda
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Agenda
• Presentation French business / Q&A – 9.00-9.30
• Site Visits 10.00 – 12.00am
• Buffet Lunch at Marriot Bourget 12.00 – 12.45am
• Site Visits 1pm – 2pm
• Stop at CDG airport – 2.15pm
• Stop at Gare du Nord – 3.30pm
Eric Veron – General Manager Vailog
Marco Simonetti – Business Unit Director Southern Europe
FRANCEMARCO SIMONETTIBUSINESS UNIT DIRECTOR, SOUTHERN EUROPE
Portfolio strategically placed on France’s logistics “spine”
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Portfolio Description – France
Portfolio size 1.1m sq m completed assets
Portfolio value (based on assets under management)
€1,194m including land and development€984m completed assets
True equivalent yield 5.7%
Headline rent (share) €47m pa
Vacancy (by ERV) 2%
WAULT to break/expiry
4.8 / 6.5 years
Paris IdF, €854m
Lyon, €199m
Marseille, €141m
€1,194mAUM
France portfolio locations focused on Paris, Lyon and Marseille
Big box, €670m
Urban, €314m
€984mAUM
All assets Completed assets
Strong portfolio performance vs benchmark
Portfolio Benchmark Relative
3 year 15.8 11.1 +4.9
5 year 10.9 8.6 +2.1
5
-5
0
5
10
15
20
25
2012 2013 2014 2015 2016 2017
Tota
l Pro
perty
Ret
urn,
%
Relative return Benchmark SEGRO
SEGRO France portfolio total property return vs MSCI-IPD benchmark, 2012-17, %
Source: MSCI-IPD
France portfolio TPR vs benchmark, 2012-17(%)
TPR and benchmark calculated annually by MSCI-IPD
Favourable occupier supply-demand dynamics
France prime big box warehouse rental values (new or redeveloped space), 2017(€ per sq m per year)
Lille38–46
Ile de France45–65
Lyon45–46
Marseille41–43.5
France logistics supply-demand dynamics(m sq m)
Source: CBRE6
0.0
0.5
1.0
1.5
2.0
2.5
0.0
1.0
2.0
3.0
4.0
5.0
2010
2011
2012
2013
2014
2015
2016
2017
No. of years’ supply
Take
-up
/ av
aila
bilit
y, m
sq
m
Average availability
Take-up
Available space as multiple of annual take-up
Growing investor demand for prime warehouses
7Source: CBRE
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2009 2010 2011 2012 2013 2014 2015 2016 2017
Industrial Logistics
0%
2%
4%
6%
8%
10%
12%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
10.0%
6.0%
4.75%
France warehouse investment volumes, 2008-17(€ billions)
France prime big box yields
Paris-IdF — one of Europe’s most powerful economic centres
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0.0
0.5
1.0
1.5
2.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Lille, 7%
Paris, 39%
Lyon, 11%
Marseille, 7%
Others, 36%
Average: 0.9m sqm
2017 take-up by region
Paris region take-up, million sq m€649bn
12million
1million
50%
GDP: 30% of France GDP
Population: 20% of France
Companies, employing 6.1m people
Proportion of SEGRO France portfolio
Source: INSEE, French Ministry, Invest in France, ADP, ORIE, SNCF, CBRE
Grand Paris and Olympics infrastructure enhance occupier demand
SEGRO Assets
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Portfolio of big box and urban warehousing serving Paris Ile de France
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1st Ring Road: Périphérique
2nd Ring Road: Motorway A86
3rd Ring Road: N104
x
x
Completed asset
Under construction
SEGRO Business Park La Courneuve
SEGRO Logistics Park Garonor
SEGRO Logistics Park Gonesse (Sedifrais)
SEGRO Logistics Park Marly-la-Ville
SEGRO Logistics Park Saint-Witz SEGRO Logistics Park Wissous
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6
20
4
12
13
French Portfolio – Lyon and Marseille
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SEGRO Logistics Park Genas Vailog Saint-Quentin-Fallavier SEGRO Logistics Park Clesud
SEGRO Logistics Park Corbas Merieux SEGRO Logistics Centre Pusignan SEGRO Logistics Park Saint-Martin-de-Crau
Driving returns through active asset management and development
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Significant increase in SEGRO development activity
0
20
40
60
80
100
2013
2014
2015
2016
2017
1H18
Und
erco
nstru
ctio
n
Dev
elop
men
t com
plet
ions
, 00
0 sq
m
74,195 sq m £5.8m 8.4%
Current development pipeline (June 2018)
Space under development (100%)
Potential headline rent (share)
Estimated yield on cost
£4m
Potential rent from future pipeline (share)
SEGRO Logistics Centre Mitry-Mory
0%2%4%6%8%
10%12%14%16%
Jan-
10
Jan-
11
Jan-
12
Jan-
13
Jan-
14
Jan-
15
Jan-
16
Jan-
17
Jan-
18
Vac
ancy
rat
e
SEGRO France
Paris market
SEGRO France vacancy rate consistently below Paris market
SITE TOUR
Site Visits
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14
19
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Paris
Gennevilliers
Gennevilliers Le Blanc-Mesnil
Garonor
Aulnay-sous-Bois
Paris DC6 - Gennevilliers
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• Cross-dock parcel delivery warehouse
• Development completed in September 2017
• Pre-let to FedEx on a twelve year lease
• Prime location near to Paris’ inland river port
Gennevilliers
Ownership SEGRO Vailog
Occupiers FedEx
Value (30 June 2018) €15.5m
Area 12,600 sq m
Headline rent Confidential
ERV Confidential
Vacancy (30 Sept 2018) 0.0%
WAULT (Break / Expiry) 10.9 / 10.9
Paris DC7 “Paris Air 2” – Gennevilliers
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• Multi-storey urban logistics warehouse
• 50,000 sq m pre-let let to IKEA
• 12,800 sq m pre-let to Leroy Merlin
• Completion in December 2018
• Fully leased at above appraisal rental levels
Ownership SEGRO Vailog
Occupiers IKEA, Leroy Merlin
Value (30 June 2018) €46.0m
Area 62,800 sq m
Headline rent n/a
ERV n/a
Vacancy (30 Sept 2018) 0.0%
WAULT (Break / Expiry) n/a
Carré des Aviateurs – Le Blanc Mesnil
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Picture SPIRIT
Picture Drancy
Le Blanc-Mesnil
• Multi-let urban warehouse park
• Acquired by SEGRO in 2003 through a sale & leaseback scheme to Baxi, a French boiler manufacturer
• Prime location close to Paris and CDG Airport
Ownership SEGRO
Occupiers Multi-let
Value (30 June 2018) €71.2m
Area 37,800 sq m
Headline rent €4.2m
ERV €4.4m
Vacancy (30 Sept 2018) 6.1%
WAULT (Break / Expiry) 2.6 / 5.2 years
SEGRO Logistics Park – Garonor
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Picture SPIRIT
Picture Drancy
Aulnay-sous-Bois
• Multi-let urban warehouse park• B23 acquired in 2008 from DHL (sale &
leaseback)• B22 acquired in December 2011 from FEL• Refurbishment works completed in 2014• Prime location adjacent to one of the most
important European motorways (300m frontage on the main French motorway A1)
• Close proximity to Charles de Gaulle & Bourget Airports
Ownership SEGRO
Occupiers Multi-let
Value (30 June 2018) €49.7m
Area 35,700 sq m
Headline rent €3.0m
ERV €3.1m
Vacancy (30 Sept 2018) 4.0%
WAULT (Break / Expiry) 1.3 / 5.1 years
SEGRO Logistics Park – Aulnay-sous-Bois
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• Multi-let logistics park
• Building A - pre-let signed with Carrefour: completed in March 18
• Building B - pre-let signed with Chronopost: completed in July 2018
• Building C - awaiting future pre-let
Picture SPIRIT
Picture Drancy
Aulnay-sous-Bois
Ownership SEGRO
Occupiers Carrefour, Chronopost
Value (30 June 2018) €78.6m
Area 37,700 sq m
Headline rent €3.8m
ERV €3.7m
Vacancy (30 Sept 2018) 0.0%
WAULT (Break / Expiry) 9.8 / 11.6 years