Transcript telecom italia portfolio has been key for beni stabili

A Transforming
Deal on
Telecom Italia
Portfolio
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A TRANSFORMING DEAL
TELECOM ITALIA PORTFOLIO HAS BEEN KEY FOR
BENI STABILI …
In 2000, Beni Stabili invested in Telecom Italia’s first sale and lease-back (€2.9bn portfolio)
The portfolio included Telecom Italia most strategic properties
2000
Sale &
lease-back
>
227 asset
>
21 year
leases
67% of Beni
Stabili total
portfolio
BENI STABILI
2002-2006
Portfolio
refinancing Securitisation
2014
Termination
of
securitisation
2015
Major lease extension
15-year firm
2016
>
Lease extension from 6.4 to
>15 years
Landmark re-financing of
Telecom Italia portfolio
(€ 810 m)
>
Agreed capex plan on
selected strategic assets
(€ 38 m)
Acceleration of Beni Stabili
announced strategy
>
Buyback by TI of large
technological assets at OMV
(€ 126 m)
41% of Beni Stabili total
portfolio
A TRANSFORMING DEAL
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A TRANSFORMING DEAL
… AND TODAY IT IS A QUALITATIVE APPEALING INVESTMENT …
Geographically Diversified Portfolio
with Strong Concentration in Northern Italy
145 assets let to TI




100% Italy
€98m passing GRI
100% occupancy
14+6 years average lease maturity
Attractive location
 Macro: 80% (by value) in top 4 cities + Northern
region
Other
Centre
& South
20%
Milan
17%
Rome
10%
Naples
11%
Turin
3%
Other
North
39%
3%
Trentino Alto Adige
1% Friuli Venezia Giulia
Vale D’ Aosta<1%
Lombardia
27%
Veneto
12%
6%
Piemonte
6%
3%
Emilia-Romagna
Llguria
Valuation levels
Toscana 4%
Umbria 1% Marche
1%
 Low capital values (c. €1,500 / sqm) and passing
rents (c. €92 / sqm) - €1.5bn total portfolio value
 6.4% gross yield
Lazio
12%
1% Abruzzo
<1% Molise
Sardegna
Campania
12%
1% Puglia
2% Basilicata
<1%
Risk diversification
2% Calabria
 c. 40 large assets in Northern regions / large cities
 c. 100 smaller assets with proven liquidity
6%
BENI STABILI
Sicilia
A TRANSFORMING DEAL
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A TRANSFORMING DEAL
… TO ALLOW FOR A TRANSFORMING TRANSACTION
Creation of a New Dedicated “SICAF1” to manage
the TI portfolio
Transaction Structure
 New internally managed SICAF controlled by Beni Stabili, to
host entire Telecom Italia portfolio
 SICAF incorporation process in advanced stage:

Objective to obtain approval from Bank of Italy by early 2017
60%
20%
20%
 Contribution of the entire TI portfolio at value in line with
June 2016 appraisal values by 1Q2017 (€ 1.54 bn)
 Transfer of mortgage loan together with the assets (€ 810 m)
Real estate
service
contract
SICAF
New
Mortgage
Debt
 Beni Stabili will keep 60% of the SICAF share capital, while
two major international investors, Crédit Agricole Assurances
and EDF Invest, will each acquire a 20% stake
 Beni Stabili will provide real estate services to the SICAF
 The transaction represents an equivalent of around €620
million of Telecom Italia assets
Telecom Italia
Portfolio
A landmark transaction confirming the appeal of Italian real estate
for long-term international investors
““Società di Investimento a Capitale Fisso” (“SICAF”) is a closed-ended collective investment vehicle (“organismo di investimento collettivo del risparmio chiuso”) with the legal form of a
“limited company” (“Società per Azioni”) with fixed capital, authorized by the Bank of Italy (after consulting Consob).
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BENI STABILI
A TRANSFORMING DEAL
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A TRANSFORMING DEAL
IMPLEMENTING BENI STABILI STRATEGY IN THE
NEW SICAF …
Portfolio Today
Portfolio strategy
€1,54bn
Total Portfolio GAV
 Active asset management
20%
Geographical Breakdown
Top 4 Cities (1)
41%
Other North
Other Centre & South
# Assets
WALB
 Focus on Core assets in top 4 cities +
Northern Italy
39%
145
14.1 years
 Reduce number of assets
 Maintain a high lease duration
Continue a dynamic asset management strategy
enabling to extract value
Notes
1. Milan, Rome, Turin, Naples
BENI STABILI
A TRANSFORMING DEAL
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A TRANSFORMING DEAL
… WHILE OPENING A NEW CHAPTER FOR GROWTH AND VALUE
CREATION IN THE GROUP
Proforma
Diversify
tenant base
Reduce
LTV
Focus in
Milan
Target 2020
>
20% of TI portfolio vs 39% in June 2016
Target 2020
>
Below 45% LTV vs 50% in June 2016
Target 2020
>
28%
80% of the portfolio vs 51% in June 2016
-8 points
58%
A completely reshaped and improved
real estate and financial profile
BENI STABILI
A TRANSFORMING DEAL
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A TRANSFORMING DEAL
CLOSING REMARKS
To sum up, this milestone transaction …
A better quality portfolio: improved real estate and balance sheet quality
In line with European peers
It is just the beginning: stronger capacity for the development pipeline/acquisition plan
A new stage of the announced company strategy
BENI STABILI
A TRANSFORMING DEAL
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