company presentation

2015
company presentation
company presentation
Company profile
Our business
Europe is a leading real estate development and
investment company, operating throughout Central
and Eastern Europe, and focusing on the development of largescale commercial and residential projects.
2
Our diversified assets portfolio currently consists of:
• shopping malls and retail properties
• business parks and office complexes
• large-scale residential and mixed-use projects
• Income-yielding residential properties
• land-bank designated for future projects
At the end of 2015, we own, develop and manage properties
and projects in Bulgaria, Czech Republic, Germany, Hungary,
Latvia, Poland, Romania and Serbia, with on-the-ground teams
comprising over 150 professionals. Our company’s head-office is
based in the Netherlands.
AFI Europe is part of the AFI Group, an international holdings and investments conglomerate.
Total asset value
Competitive advantage
€1.225m
Proven track-record in the development and management of successful large-scale projects and properties
Ability to attract and retain high caliber tenants including reputable retailers and multinational corporations
Residential
projects
3%
(€35m)
Commercial
properties
77%
(€941m)
Land bank
20%
n-the-ground presence by in-house
O
multi- disciplinary teams of highly skilled professionals
with local knowledge and connections, as well as international networks
Good relationships with banks and
ability to raise debt financing
(€249m)
As at 31 December 2015 based on CBRE valuation as of 30 September 2015, taking
into account AFI Europe’s actual percentage interest in each project/property
Commercial properties include €62M under development
Residential projects and land bank include equity companies
Mixed Portfolio combining income-generating
properties and further growth through the development
of additional properties in the company’s land bank
company presentation
Financial highlights
in €’000
NOI for 2015
€61,499
Operating profit for 2015
€ 95,770
Net profit for 2015¹
€50,036
Total equity on 31 Dec 2015²
€623,724
Total balance sheet on 31 Dec 2015
3
€1,382,561
1. Net profit excludes interest expenses in relation to a shareholder loan (€3,091)
2. Total equity includes a shareholders loan (€196,823)
company presentation
Financial highlights
Countries of operation
4
6
1.Romania
2. Czech Republic
3.Serbia
9
5
4.Germany
4
2
5.Poland
6.Latvia
8
1
7.Bulgaria
3
8.Hungary
7
9. Netherlands (headquarters)
Revenues by country
Asset value by country
€64m
€1,225m
0.4%1%
57
61%
9%
2
60%
11%
4
1% 2% 2%
5%
6 8 15
7
8%
3
2
4
1
10%
1
3
17%
2
In 2015, taking into account the actual percentage interest in each project
12%
s at 31 December 2015, based on CBRE valuation as at 30 September 2015,
A
taking into account AFI Europe’s actual percentage interest in each project
company presentation
Financial highlights
Commercial property GLA (m2)
450,000
389,508
400,000
425,495
404,532
5
360,568
350,000
293,106
300,000
292,163
250,000
233,508
190,169
200,000
150,000
134,472
100,000
50,000
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
Rental income and sale of residential units (€’000)
80,000
70,000
66,243
60,213
60,000
50,000
40,000
33,384
51,324
48,860
47,500
33,823
30,374
30,000
23,058
19;459
20,000
13,466
10,000
0
64,335
7,732
7,159
2009
Rental income
2010
2011
Sale of residential units
2012
2013
2014
2015
company presentation
Financial highlights
Leverage breakdown and key accounting policies
As at 31 December 2015
Commercial properties
(in €’000)
Commercial properties under Residential units for sale and
development (in €’000) under development (in €’000)
Land bank
(in €’000)
Total
(in €’000)
Assets value
947,550
72,509
30,449
236,701
1,287,209
Bank Loans
478,862
28,925
10,687
16,360
534,834
51%
40%
35%
7%
42%
468,688
43,584
19,762
220,341
752,375
Loan to value ratio
Net asset value
• IFRS accounting since 2005, audited by KPMG
• Reporting in Euros
• Assets valued by independent appraisers at least once a year
• Investment properties and investment properties under development stated at fair value
• These figures represent a percentage interest of 100%, and exclude equity companies
Commercial properties by country
Country
Number of properties
GLA
(in ‘000 m2)
NOI 2015*
(in €’000)
Market value**
(in €‘000)
Average occupancy rate
Bulgaria
1
44
539
24,693
21%
Czech Republic
4
41
4,178
79,903
73%
Poland
1
2
264
3,194
100%
Romania
5
151
40,187
581,666
96%
Serbia
1
33
5,750
71,049
93%
Germany
31
87
5,351
118,826
88%
TOTAL
44
358
56,269
879,331
* Taking into account AFI Europe’s actual percentage interest in each project/property
** Market value based on CBRE valuation as at 30 September 2015
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company presentation
Financial highlights
Commercial properties
Country
City
Type
% Holding
GLA*
(in '000m2)
Market Value**
(in €'000)
Annual NOI 2015
(in €'000)
Average Occupancy
Rate December 2015
AFI Palace
Cotroceni
Romania
Bucharest
Retail
98%
81,084
427,998
30,605
99%
AFI Park 1 + 2 + 3
Romania
Bucharest
Offices
100%
37,242
85,957
5,340
97%
AFI Palace Ploiesti
Romania
Ploiesti
Retail
100%
32,450
67,710
4,242
99%
Broadway Palace
Prague
Retail, offices
100%
8,877
13,421
1,142
65%
Classic 7
Czech
Republic
Czech
Republic
Prague
Retail, offices
100%
27,021
61,792
2,891
84%
Evropska Business
Centrer
Czech
Republic
Prague
Offices
100%
4,974
4,690
145
28%
Serbia
Belgrade
Offices
53.70%
33,167
71,050
5,750
92%
Bulgaria
Varna
Offices
100%
43,999
24,693
539
21%
Poland
Krakow
Retail
100%
2,041
3,194
264
100%
Gerrmany
Berlin
Rental
appartments
100%
87,324
118,826
5,351
87%
358,179
879,331
56,269
Name
Airport city
Belgrade
Business Park
Varna
Osiedle Europejskie
AFI Germany
Portfolio
TOTAL
*Taking into account the percentage interest in each project/property
** Based on CBRE valuation as at 30 September 2015
Commercial properties under development
Name
ACB phase 4
Classic 7 phase 3
AFI Park 4+5
Butterfly
Total
City
% Holding
GLA
(in ‘000 m 2)*
Pre-leased
(in 000 m2)
Annual rent income
based on full occupancy
(in €’000)*
Belgrade
53.70%
6,381
74%**
1,300
12,583
11,882
Q1 2016
Prague
100%
6,497
100%
1,080
6,475
11,800
Q2 2016
Bucharest
100%
32,578
50%***
5,700
40,379
54,196
Q1 2016
Prague
100%
21,762
-
4,300
12,716
43,700
Q2 2017
-
-
67,218
-
12,380
72,108
121,578
-
* Data is based on the company holding percentage
** As of March 2016- 92% pre-leased
*** Out of which 15% are presently under HOT
Book value
(in € ‘000)*
Development cost
(in €’000) *
Completion
date
7
Acquisition of Złota 83, Warsaw
In March 2015 AFI Europe completed the acquisition of a property located at the center
of Warsaw (Złota 83) for a purchase price of approximately €2.2m. The company plans
to redevelop the old six-story building on the site (initially constructed in 1899) into
a high-end mixed-use residential and retail complex with GSA of approx. 5,000 m 2.
Purchase of land for an office project in Krakow
In March 2015 AFI Europe signed two preliminary agreements for the purchase of two adjacent
land plots in Krakow, with a total area of 10,757 m2. The two transactions were completed in
June and December 2015, for a total purchase price of approximately €5m. The company plans
to develop on the site an office project with GLA of 24,350 m2.
company presentation
Main events in 2015
8
Sale of a commercial center in Krakow
In November 2015 AFI Europe signed an agreement for the sale of a commercial center in Krakow
for the price of approx. €3.2m. The transaction was completed in the first quarter of 2016.
company presentation
Main events in 2015
9
Sales of two properties in Aachen
During 2015 the company sold its two properties in Aachen in two separate transactions for
an aggregate purchase price of €9.56m.
Sale of a property in Berlin
In November 2015 the company signed a contract for the sale of its asset at Schloßstraße 95,
Berlin, for a purchase price of €9m. The transaction is expected to be completed during the first
quarter of 2016.
company presentation
Main events in 2015
10
Major financing transactions successfully completed
During 2015 AFI Europe signed and completed significant (re)financing transactions, including:
Airport City Belgrade: Finance of the development and construction of the fourth phase of
the project with a loan in the amount of €16m, and refinance of the two office buildings built
during the project’s first phase with a new loan in the amount of €21m
Finance of the development and construction of AFI Park 4&5 with a loan in the amount of €39m
Refinance of AFI Palace Ploiesti with a new loan in the amount of €38m
Classic 7 Business Park: Refinance of the existing building developed in phases 1 and 2 of
the project, with a new loan in the amount of €33m, and obtaining another loan of €7m for
financing the development and construction of phase 3
Finance of the development and construction of Butterfly – an office project in Karlin, Prague
with a loan in the amount of €24.5m
•
•
•
•
•
Property valuation
The consolidated financial statements of AFI Europe are prepared in accordance with International
Financial Reporting Standards (IFRS), which include the application of the fair value method.
Accordingly, the company’s properties are appraised on a regular basis by independent experts.
During the third quarter of 2015 AFI Europe engaged the services of CBRE for the valuation of all
of its investment properties and investment properties under development (IPUD), as well as for
the valuation of some of those projects that are classified as inventory in AFI Europe’s financial
statements.
Based on the results of such valuation, AFI Europe recognized a profit from the revaluation of
investment property in the amount of approximately €51.62m, and a loss from IPUD of approximately
€273k. The company also recognized an impairment loss of approximately €5.97m on its inventory.
company presentation
Highlighted projects
AFI Palace Cotroceni
(Bucharest, Romania)
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Developed by AFI Europe and opened in 2009, AFI Palace
Cotroceni has become Romania’s largest and most
dominant shopping mall.
Located in the heart of Bucharest, this project has
won several awards, including “Best Shopping Centre
Development”, “Best Overall Development”, “Best Shopping
Mall” and “Best Real Estate Project”.
www.aficotroceni.ro
GLA
82,400 m2
Occupancy
99%
Average footfall
50,000 visitors per day
NOI 2015
€30.71m
company presentation
Highlighted projects
AFI Park
(Bucharest, Romania)
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AFI Park is an award-winning complex of premium
office buildings, developed by AFI alongside the
adjacent AFI Palace Cotroceni, with a total GLA
of 152,000 m 2 . Together, they feature the biggest
complex of retail and business in Romania and one
of the biggest in CEE.
The business park consists of five class A office
buildings, surrounding the highly successful
shopping mall, and built to the highest international
standards. The tenants benefit from a range of
advantages, ranging from luxurious modern offices
to the vibrant central location.
The project was developed in phases. The first
building was inaugurated in 2012. Buildings 2 and
3 were completed and inaugurated in 2014, and the
construction of buildings 4 & 5 was completed in
the first quarter of 2016.
www.afieurope.ro
GLA
69,820 m2
Occupancy:
Buildings 1,2,3 - 97%
Buildings 4,5 - 50% (pre-lease)
company presentation
Highlighted projects
AFI Palace Ploiesti
(Ploiesti, Romania)
13
Opened in October 2013, AFI Palace Ploiesti is the first and
only modern shopping mall in the city center of Ploiesti,
Romania.
The shopping mall offers over 100 national and international
leading fashion brands spreading over two floors, along
with 13,000 m² of hypermarket store and more than 7,000
m² of entertainment.
www.afipalaceploiesti.ro
GLA
32,450 m2
Occupancy
99%
Average footfall
15,000 visitors per day
NOI 2015
€4.24m
company presentation
Highlighted projects
Classic 7 Business Park
(Prague, Czech Republic)
14
Classic 7 Business Park is a uniquely designed office project
that blends past with the present in Holešovice, one of
Prague’ s most vibrant districts.
In the project’ s initial phase two old buildings of a historical
steam-mill were restored and redeveloped. A modern
office building was added in the second phase, and a
fourth building, currently under construction, will complete
the development.
The office tenants benefit from underground parking lots
as well as retail and food venues on the ground level.
Winner of the “Best Office Project” award in the Czech
Republic in 2009.
www.classic7.cz
GLA
> 27,081 m2
GLA office space upon completion
> 35,500 m2
Occupancy
84%
NOI 2015
€3.01m
c o m p a npresentation
y presentation
company
Highlighted projects
Airport City Belgrade
(Belgrade, Serbia)
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Airport City Belgrade is Serbia’ s leading business park,
offering a multi-use commercial facility that merges the
latest construction technologies with a tenant focused
approach.
The project’s eight office buildings and the nearby
redeveloped historical hangar are designed, built and
operated in a way that implements the concept of “city
within a city”.
The construction of the eighth building in the project was
recently completed, the ninth building is already under
development, and additional buildings are planned.
www.airportcitybelgrade.com
GLA
68,767 m2
Occupancy
92%
NOI 2015
€10.5m
company presentation
Highlighted projects
Osiedle Europejskie
(Krakow, Poland)
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This project is a large-scale residential development in
one of Krakow’s fastest growing districts. It consists of 23
apartment buildings that have already been completed,
3 buildings that are presently under construction, and 6
more that are planned. Upon completion, the number of
apartments in this project will be 2,363.
The project is designed to satisfy the needs of the modern
family, and includes facilities such as playgrounds and an
indoor kindergarten. The residents also benefit from both
proximity to green areas and excellent access to the city
center.
In 2015 AFI Europe sold the small commercial center which
serves this neighborhood.
www.osiedleeuropejskie.pl
GLA
> 2,040 m2
Number of apartments upon completion
2,363
company presentation
Highlighted projects
Tulipa Třebešín
(Prague, Czech Republic)
17
Tulipa Třebešín is one of AFI Europe’s newest projects
in the city of Prague.
Located in Prague 3, this mixed-use project is
developed in phases. The project’s initial phase,
currently under construction, consists of two
residential buildings with 183 apartments, and it
will ultimately include several apartment buildings,
alongside retail and office properties.
Ultimately, the gross floor area (GFA) of 83,300 m²
will be composed of 75,000 m² residential, 7,700 m²
commercial, and 600 m² kindergarten.
On the land designated for the project there are
presently warehouses and logistics facilities, as
well as an office building, which are generating
income while the residential development is already
ongoing.
www.tulipatrebesin.cz
Land area
47,000 m2
GFA
83,300 m2
Number of
planned apartments
700
Present GLA
46,300 m2
Income generating properties
AFI Park (Bucharest, Romania)
The completion in the first quarter of 2016 of the construction of buildings 4 & 5, the last two
office towers in this project, adds to AFI Park 32,000 m2 GLA.
company presentation
Under Development
18
Classic 7 Business Park (Prague, Czech Republic)
In Phase 3 of this project, a fourth and final office building is being constructed, adding to the
complex approximately 6,300 m² GLA. The works are expected to be completed in the second
quarter of 2016.
Income generating properties
Airport City Belgrade (Belgrade, Serbia)
Phase 4.1, adding to this project approx. 11,800 m² GLA, will be completed in the first quarter
of 2016. 92% of it is already (pre)leased. The construction of Phase 4.2 started in January 2016.
company presentation
Under Development
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Butterfly (Prague, Czech Republic)
The construction of this project in Karlin, resulting in GLA of approximately 21,762 m², is underway
and is expected to be completed in the fourth quarter of 2017.
Residential projects
Osiedle Europejskie (Krakow, Poland)
214 residential units are currently being constructed in Phase 11 of this project, expected to be
completed in the fourth quarter of 2016.
company presentation
Under Development
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Tulipa Třebešín (Prague, Czech Republic)
183 apartments are being built in first phase of the project, which is expected to be completed
in the first quarter of 2017. Approximately two thirds of the apartments have already been sold.
Residential projects
Central Garden (Belgrade, Serbia)
The first phase of this project was completed in 2015, with the delivery of 89 residential units.
The construction of the second phase is currently underway, with 89 additional units being built,
of which more than 70% have already been sold. The construction of the project’s third phase
will begin in 2016.
company presentation
Under Development
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​A FI Europe N.V.
Herengracht 456
1017 CA Amsterdam
The Netherlands​
+31 20 4218 928
[email protected]
www.afi-europe.eu