Private & Confidential
PROPERTY FUND
TPARK LOGISTICS PROPERTY FUND
Roadshow Presentation
October 2009
PROPERTY FUND
Disclaimer
This document is not a fund prospect and investment contains risks. Please carefully study the
fund’s prospectus before making investment decisions.
The presentation may contain forward-looking statements that involve risks and uncertainties. Actual
future performance, outcomes and results may differ materially from those expressed in forward-looking
statements as a result of a number of risks,uncertainties and assumptions. Representative examples of
these factors include (without limitation) general industry and economic conditions, interest rate trends,
cost of capital and capital availability, completion from similar developments, shifts in expected levels of
property rental income and occupancy, changes in operating expenses, including employee wages,
benefits and training, property expenses and governmental and public policy changes and the
continued availability of financing in the amounts and the terms necessary to support future business. You
are cautioned not to place undue reliance on these forward-looking statements, which are based on the
Manager’s current view of future events.
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PROPERTY FUND
Overview of TLOGIS
Name
TPARK Logistics Property Fund (“TLOGIS”)
Type
Freehold, Closed-end, Listed property fund (indefinite life)
Sponsor / Property Manager
TICON Industrial Connection Public Co., Ltd. (“TICON”)
Fund Manager
BBL Asset Management Co., Ltd. (“BBLAM”)
Assets to be Acquired
15 freehold warehouses with land
Offer Type
Initial Public Offering (“IPO”)
Fund Size
Up to THB 1,533.00 mm (~US$ 45 mm) (153.30 mm units)
Offer Size
Up to THB 1,226.40 mm (~US$ 35 mm) (122.64 mm units)
Offer Price
THB 10 per Unit (Par value of THB 10)
Dividend Payment Policy
At a minimum of 90% of Net Profit payable
Guaranteed Revenue
Guaranteed gross revenue* to Fund for 7 years at THB 118.5 million
per year by Bank Guarantee
Bookbuilding Yield Range
~7.75% – 8.50% p.a.
Average Appraisal Value
THB 1,536 mm
Total Lettable Areas
70,731 sq.m. with total land plot areas of 90-1-12 Rai
Current Occupancy Rate
96.5%
Note: * Gross Revenue = (total rental income) – (Fee of common area service)
Common area service included electricity for road lights, security guards of the common area, maintenance of road and common facility, etc.
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PROPERTY FUND
Fund Structure
• Industrial PFPO focused on acquiring and operating industrial properties in Thailand
• Initial portfolio of 15 standard warehouses in 2 TICON logistics parks in Thailand, acquired from TICON
Logistics Park Co., Ltd. (“TPARK”)
• Investment policy focuses on investing in income-producing industrial properties
Guaranteed Gross
Revenue of THB 118.50
million/year by Bank
Guarantee by commercial
bank
BBLAM
as Fund Manager
Fund
Management
Services
Fees
Profit Sharing*
(Property
Mgt. Fees)
TICON
as Property Manager
Invest
TLOGIS
Management
Services
Acquisition
Pipeline
Distributions
Ownership of
Properties
Investors
• TICON
• Institutional investors
• Retail investors
Net Property
Income
Properties
Note: * Excluding sales & acquisition fee (subject to negotiation)
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PROPERTY FUND
Long-term Acquisition Growth Strategy
Sale and leaseback acquisitions of existing owner-occupied
warehouses
TLOGIS
Warehouses developed by other developers
Tranches of standard and custom-developed warehouses to
be developed by TICON in the future
TLOGIS
Initial tranche of 15 warehouses from TPARK at IPO
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PROPERTY FUND
Overview of Properties
• International modern standard warehouse buildings with mezzanines, within their own secure site
• An extra clear height of 8 – 12 meters
• Floor loading capacity of 3 – 5 tons per sq.m.
• Raised floor height of 1.2 - 1.3 meters
• Loading bay and dock leveler of 1 per 1,000 sq.m.
• Wide column span is designed suitably for install racking system and warehouse operation
• Manoeuvre area is well-designed to support all types of logistics activities
• Overhead doors with hydraulic dock levelers are provided for the ease of operation
• Superior facilities and infrastructure, i.e. main & park roads, ample parking, sprinkler system, power
distribution, landscaping and other infrastructure
• Minimum lettable areas 2,450 sq.m.
• Freehold properties
Locations
Lettable Areas
(sq.m.)
Occupancy
Rate (%)
No. of
Warehouses
No. of
Tenants*
1.
TPARK Wangnoi, Ayudhya
34,106
100.0%
5
2
2.
TPARK Bangna, Chachoengsao
36,625
93.3%
10
8
70,731
96.5%
15
10
Total
Note: * Some tenants rent more than 1 warehouse
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PROPERTY FUND
Appraisal Valuation
Company
Appraisal Value (THB)
THB per sq.m.
1.
Nexus
1,556,000,000
21,999
2.
Jones Lang LaSalle
1,516,000,000
21,433
1,536,000,000
21,716
Average
Note : * Nexus as at 14 August 2009 and JLL as at 1 August 2009
No. of
Buildings
No. of
Units
Total Lettable
Areas
(%)
TPARK Wangnoi, Ayudhya
2
5
34,106
48%
TPARK Bangna, Chachoengsao
3
10
36,625
52%
Industrial Estates/Parks
Total
5
15
70,731
100%
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PROPERTY FUND
Investment Merits
Access to
Quality
• Provide individual investors access to institutional quality portfolio
• Provide all investors to quality income stream, with diversity in revenue
concentration from high quality tenants
• Relatively stable dividend returns, no development risks with high and consistent
occupancy rate
• Strategic locations within a growing community which a potential appreciation of
land price
High Quality
Assets
•
•
•
•
•
New warehouses with low maintenance capital expenditure requirement
Free zone privileges for TICON Logistics Park at Bangna
BOI privileges are available to qualified tenants
Top quality warehouses with optimal infrastructure
Relatively well diversified warehouse portfolio in terms of: number/nationality/sector
of tenants, location of assets, size of factories, and age profile of remaining contracts
• Best-in-town property manager with for more than 19 years in the business
• New investment alternative with protection of capital loss from rising interest rate
Unique
Return Profile
due to property rental income increase
• Capital gain from increase in property value and growth through acquisitions
• Less price volatility compared to investment in stocks
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PROPERTY FUND
High Quality Assets and Lease Expiry Profile
Age of Warehouses by Lettable Areas
45%
40%
Lease Expiry Profile by Gross Revenue
45%
42%
37%
35%
35%
30%
30%
25%
21%
25%
20%
20%
15%
15%
10%
10%
5%
5%
0%
0%
< 1 Year
39% *
40%
1 Year
2 Years
29%
22%
10%
2010
2011
2012
after 2012
Average age of warehouse buildings is 1.3 years (as at 1 Sep.’09)
Note: Excluding 1 vacant warehouse
Note: Including 1 vacant warehouse
* In 2012, Cencar (Carrefour), which accounted for 27.64% of rental revenue,
committed to extend the lease for another 2 years from Feb 1, 2012 to Jan
31, 2014.
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PROPERTY FUND
High Quality Tenants
Gross Revenue Contribution by Country of
Tenants*
Denmark
3.2%
France
6.5%
Gross Revenue Contribution by Sector of
Tenants*
Consumer good
9.8%
Germany
13.1%
Trading
6.5%
Logistics
27.6%
Thailand
27.6%
Japan
21.0%
Netherlands
28.5%
Hypermarket
56.1%
Note: Excluding 1 vacant warehouse
Note: Excluding 1 vacant warehouse
* Some tenants rent more than 1 warehouse
* Some tenants rent more than 1 warehouse
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PROPERTY FUND
Tenants Profile
Lettable
Areas
(sq.m.)
Lease
Term
(Year)
Lease
Remaining
(Year)
Company
Location
Nationality
Sector
1.
Siam Makro
Wangnoi
Dutch
Hypermarket
10,706
10.0
9.0
2.
Cencar (or “Carrefour”)
Wangnoi
Thai
Hypermarket
23,400
3.0
3.0
3.
Leschaco (Thailand)
Bangna – FZ*
German
Logistics
4,900
3.0
3.0
4.
MITS Logistic (Thailand)
Bangna
Japanese
Logistics
11,250
3.0
1.0
5.
Chantasia
Bangna
French
Consumer good
5,775
3.0
1.0
6.
Pro-Log
Bangna – FZ
German
Logistics
2,450
3.0
2.0
7.
S.K. Asia
Bangna – FZ
Japanese
Trading
2,450
3.0
2.0
8.
ECCO (Thailand)
Bangna – FZ
Danish
Consumer good
2,450
3.0
3.0
9.
Sagawa Express
Bangna – FZ
Japanese
Logistics
2,450
3.0
2.0
10
Atotech (Thailand)
Bangna – FZ
German
Trading
2,450
3.0
1.0
Vacant (1 warehouse)
Bangna – FZ
Total
2,450
70,731
Remark : * FZ means Custom Free Zone with BOI privileges
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PROPERTY FUND
TICON Logistics Park (TPARK) Warehouses – Locations
TPARK Wangnoi is
located at Phaholyothin
Road KM.56 in Ayudhya
TPARK Bangna is located
at Bangna-Trad Road KM.39
in Chachoengsao
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PROPERTY FUND
Logistics Warehouses – TPARK Bangna
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PROPERTY FUND
Logistics Warehouses – TPARK Bangna
FZ5
FZ3
W3
13
PROPERTY FUND
Logistics Warehouses – TPARK Wangnoi
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PROPERTY FUND
Logistics Warehouses – TPARK Wangnoi
SM1
W2
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PROPERTY FUND
TLOGIS : Warehouses
16
PROPERTY FUND
Financial Projection for Jan. 1, - Dec. 31, 2010
Base Case
Gross Revenue*
(Rental and Service Income – Net)
Best Case
Worst Case
158.2
163.3
119.8
(5.9)
(5.4)
(9.0)
Gross Operating Profit
152.3
157.9
110.8
Total Expenses
(28.8)
(31.8)
(9.5)
Net Income from Investment
123.5
126.1
101.3
6.4
6.4
6.4
Distributable Net Income
129.9
132.5
107.7
Dividend payout Ratio
100%
100%
100%
Projected Distribution
129.9
132.5
107.7
Number of Units Issued (Million Units)
153.3
153.3
153.3
0.8474
0.8643
0.7025
96.5%
100.0%
69.0%
Operating Expenses
Amortisation of Issuing and Offering Cost
Distribution per Unit (Baht)
Occupancy Rate
Remark : Examined by Grant Thornton
* Gross Revenue = (total rental income) – (Fee of common area service)
Common area service included electricity for road lights, security guards of the common area, maintenance of road and common facility, etc.
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PROPERTY FUND
Tentative Timetable
Roadshow for Institutions
October 5-9, 2009
Site Visit
October 13, 2009
Bookbuilding
October 26-27, 2009
Final Yield & Pricing
October 27, 2009
Public Roadshow
November 4, 2009
Filing Effective
November 5, 2009
Subscription Period
November 12-20, 2009
Final Allocation (Small-Lot-First)
November 23, 2009
1st Trading Day (Tentative)
December 9, 2009
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