Preso To Antwerp Real Estate Final
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Transcript of Preso To Antwerp Real Estate Final
Babcock & Brown in Antwerp
Presentation to The Antwerp Real Estate Conference
1
Important Notice
The information contained in this presentation is given without any liability whatsoever to Babcock & Brown Limited or any of its related entities
(collectively “B&B”) or their respective directors or officers, and is not intended to constitute legal, tax or accounting advice or opinion. No
representation or warranty, expressed or implied, is made as to the accuracy, completeness or thoroughness of the content of the information.
The recipient should consult with its own legal, tax or accounting advisers as to the accuracy and application of the information contained
herein and should conduct its own due diligence and other enquiries in relation to such information.
The information in this presentation has not been independently verified by B&B. B&B disclaims any responsibility for any errors or omissions
in such information, including the financial calculations, projections and forecasts set forth herein. No representation or warranty is made by or
on behalf of B&B that any projection, forecast, calculation, forward-looking statement, assumption or estimate contained in this presentation
should or will be achieved.
Please note that, in providing this presentation, B&B has not considered the objectives, financial position or needs of the recipient. The
recipient should obtain and rely on its own professional advice from its tax, legal, accounting and other professional advisers in respect of the
addressee‟s objectives, financial position or needs.
This presentation does not confer any right of publication on the recipient. This presentation is incomplete without reference to, and should be
viewed solely in conjunction with, the oral briefing provided by B&B. Neither this presentation nor any of its contents may be reproduced or
used for any other purpose without the prior written consent of B&B.
© 2007 Babcock & Brown
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B&B is a Global Investment Firm
• Founded in San Francisco in 1977,
listed on ASX in Sydney on 6 October 2004.
• 1,400 employees.
• Operates in 30 offices in 19 countries.
• Four business divisions – Real Estate,
Infrastructure, Corporate & Structured Finance and
Operating Leasing.
• Strong “ownership culture” developed through long
history of investing alongside investors. Employees
own 40% of the Babcock & Brown Group.
• Total assets under management: EUR 42 billions
4
Principal Businesses in the Infrastructure Sector
Renewables
Development
Wind
Geothermal
Solar
Hydro
Biomass/Biofuels
Energy
Power Plants
Midstream
Pipelines
Transmission
Gas T&D
Electric T&D
Transport
Marine Ports &
Terminals
Rail
Toll Roads
Bridges/Tunnels
Airports
Development
Social
Development
Military and
Student
Housing
Schools
Hospitals
Prisons
Water
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Why B&B invests in ports?
• Terminals provide reliable cash flow over the long-term
• Ability to realise synergies within a global terminal portfolio
• Leverage B&B‟s rail industry presence
• Growth through expansion and acquisitions
• As a long term investor in infrastructure with significant
capital available to invest, our interest in ports does not
waiver with short term market trends – ports are one of
B&B‟s key long term businesses
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Where has B&B invested?B&B Current Port Facilities
Finland: Rauma, Pietarsari
Germany: Rostock, Munich
Italy: Melzo, Savona, Genoa, Venice,
Domodossola
Switzerland: Willer
France: Rouen, Le Havre
Spain: Tarragona
Belgium: Antwerp, Meerhout, Ghent
UK: Teesport, Hull
B&B Terminals in
development or in
bidding stage
Finland: Rauma
UK: Teesport
Belgium: Liege
Spain: Sagunto
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Where has B&B invested?B&B Current Port Facilities
Finland: Rauma, Pietarsari
Germany: Rostock, Munich
Italy: Melzo, Savona, Genoa, Venice,
Domodossola
Switzerland: Willer
France: Rouen
Spain: Tarragona
Belgium: Antwerp, Meerhout, Ghent
UK: Teesport, Hull
B&B Terminals in
development or in
bidding stage
Finland: Rauma
UK: Teesport
Belgium: Liege
Spain: Sagunto
8
Why Antwerp?
• Belgium in general and Antwerp in particular is today
the backbone of our port investment in Europe;
• We have acquired majority interests in WCT, Manuport
and Westerlund;
• All three companies play a pivotal role in the fields
of general cargo, speciality bulks and niche container terminals;
• All together they handle 18 Mtpa of which containers consist of
500,000 TEU;
• Our Belgian port operators represent 20% of our current total portfolio
in Europe (UK included);
The question is:
Why did B&B choose Antwerp as its
„home base‟?
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B&B Ports Strategy
B&B Port‟s strategy was (and still is) to look for:
• Stable port businesses;
• Businesses that we fully understand (dynamics, drivers, trade
pattern, etc);
• Businesses that have organic growth and investment potential
(i.e. improvement of facilities or hinterland enlargement);
• Businesses that operate on long term concessions or on freehold
owned land (landlord);
• Businesses between which we can develop operational and
commercial synergies;
10
Starting in the HARA-Range: an Obvious Choice
• We knew we had to focus on the HARA Range because of its:
• Overall Volumes (1.110 million tons of cargo in 2007)
• Quality and Number of Port Companies operating in the HARA range
• Central Geographical position in Europe
• Strong Hinterland
• We had the aim of becoming a leading port operator in Europe;
and
• We wanted to focus on a sector that had thus far attracted little interest (general cargo
and speciality bulk) but had strong fundamental drivers of growth and stability.
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But Where?
We had to look closer…
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Looking Closer
Our „port‟ should:
• Have a strong general cargo and speciality bulk traffic
core for B&B
• Have a good Traffic Growth
positive dynamics
• Host a Dense Community of Port Companies
increase our acquisition potential
• Be located into a Dense Transport Network (rail, roads, inland)
allow the development of the hinterland further and create follow-up synergies
• Serve a Large Hinterland
lower risks through multi-markets and multi-customers features
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Quick Score
PORT Le Havre Dunkirk Zeebrugge Ghent Antwerp R‟dam Zeeland Ams‟dam Bremen Hamburg
Country France France Belgium Belgium Belgium Holland Holland Holland Germany Germany
Total Traffic Excluding Liquid Bulk in
million tons
29 38 31 19 123 199 20 54 52 113
GC traffic (containers excluded) in
million tons
2 13 13 5 22 18 9 8 8 3
Minor Bulk traffic in million tons 3 2 2 9 9 23 11 17 0 23
Annual Traffic Growth over 2000-2006
period
1.3% 3.5% 1.6% 0.0% 4.0% 2.6% 3.1% 4.5% 6.4% 8.3%
Ranking based on previous items 7 6 6 7 2 1 6 4 5 6
Number of Possible Acquisition
Targets
low low low low dense dense low low low dense
Hinterland Position low good good strong strongest strongest good good good low
Winners Antwerp R'dam
number one
number two
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• Rotterdam and Antwerp were the two obvious starting points: nothing new!
However:
• B&B had a better network in Antwerp;
• There was a wider cluster of port operators in Antwerp;
• They were more diversified and market leaders in their segments;
• The Port Authority strongly advocated the development of general cargo in Antwerp
which set-up a very positive framework;
• Contacts with the Port Authority have always been easy and helpful;
• Antwerp is a forwarder port – a key point to develop a general cargo and specialty
bulk strategy;
• Antwerp provides the ability to create more added value into the logistics chain through
the sale of more sophisticated services.
Antwerp: B&B‟s Choice
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• MORE POTENTIAL OVERALL
• MARKET LEADER IN VARIOUS SEGMENTS
• MORE POTENTIAL FOR ADDED VALUE CREATION
• POSITIVE LOCAL ECONOMICS
• STRONG PORT SUPPORT
• PORT TO REGAIN TRADES CREATING VALUE ADDED SERVICES
• POTENTIAL TO CONSOLIDATE THE VALUE CHAIN AND HINTERLAND CONNECTIONS
Antwerp: Sum-up
Thank you