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Leighton Holdings Limited Investor Presentation on
Leighton Properties Pty Limited
Presentation to Analysts9.30am, 2 July 2003
Leighton Holdings Limited Investor Presentation on
Leighton Properties Pty Limited
Presentation to Analysts9.30am, 2 July 2003
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Presentation outline
Background of Group Strategy/History– Dieter Adamsas, LHL Deputy CEO & CFO
Leighton Properties Overview – Vyril Vella, Managing Director
Queensland Operations– Bob Borger, Queensland Manager – Jon Barker, Development Manager
Victorian Operations– Bill Beck, Manager, Victoria
New South Wales Operations– Mark Gray, Manager NSW Projects
Questions and Conclusion
Background of Group Strategy/History– Dieter Adamsas, LHL Deputy CEO & CFO
Leighton Properties Overview – Vyril Vella, Managing Director
Queensland Operations– Bob Borger, Queensland Manager – Jon Barker, Development Manager
Victorian Operations– Bill Beck, Manager, Victoria
New South Wales Operations– Mark Gray, Manager NSW Projects
Questions and Conclusion
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BackgroundDieter Adamsas
Deputy CEO and CFO Leighton Holdings Limited
BackgroundDieter Adamsas
Deputy CEO and CFO Leighton Holdings Limited
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Leighton Holdings Welcome
Diversity a key strategy of GroupProperty development a good fit with contractingMixed performance historicallyStrategic re-alignment in 1990’sOutlook now very positive
Diversity a key strategy of GroupProperty development a good fit with contractingMixed performance historicallyStrategic re-alignment in 1990’sOutlook now very positive
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Leighton Properties OverviewVyril Vella
Managing Director Leighton Properties Pty Limited
Leighton Properties OverviewVyril Vella
Managing Director Leighton Properties Pty Limited
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Leighton Properties Overview
Property DeveloperEquity ContributorFocus is on commercial, industrial and bulky goodsActivities confined to eastern seaboardJV’s preferredStrong association with JFGForward market conditions generally favourableDemand for property strongWorkload at record high
Property DeveloperEquity ContributorFocus is on commercial, industrial and bulky goodsActivities confined to eastern seaboardJV’s preferredStrong association with JFGForward market conditions generally favourableDemand for property strongWorkload at record high
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Background
Established in 1972Since then have completed over 70 development projectsThese have included several landmark projects:
Brisbane Industrial market– Focus on Gateway precinct, Yatala & Heathwood– Rents from $57m2 to $93m2
– Yields 8.8%
Bulky Goods– Continuing growth but limited zoned sites in BCC– Better opportunities outside
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Viridian Project Noosa
50 % Joint Venture withAriadne8 Homes - $22.7m23 Villas - $34.50m147 Resort Units +Conference Centre & Health Spa - $ 130mLand purchase settled 23 May 20037 of 8 Homes pre-sold22 of 23 villas pre-soldNegotiating with resort operatorsResort completion –February 2005
50 % Joint Venture withAriadne8 Homes - $22.7m23 Villas - $34.50m147 Resort Units +Conference Centre & Health Spa - $ 130mLand purchase settled 23 May 20037 of 8 Homes pre-sold22 of 23 villas pre-soldNegotiating with resort operatorsResort completion –February 2005
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Viridian Project Noosa
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MacArthur Central Brisbane
Retail purchased by Investa- $96.95mSettled 25 June 2003Joint Venture with SeymourFully Leased Brisbane CBD centreWoolworths / Big W /Dymocks
Retail purchased by Investa- $96.95mSettled 25 June 2003Joint Venture with SeymourFully Leased Brisbane CBD centreWoolworths / Big W /Dymocks
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MacArthur Central Brisbane
24,800m2 office tower above Retail Centre Completion December 200310,500m2 currentlypre leased Value $123m
24,800m2 office tower above Retail Centre Completion December 200310,500m2 currentlypre leased Value $123m
City of Casey– Fastest growing city – Stage 1 20,000m2
– Future stages
City of Casey– Fastest growing city – Stage 1 20,000m2
– Future stages
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Deer Park– Large scale industrial estate
Scoresby– Homemaker Centre and Industrial
Monash– High Tech research Facility
Burwood– Mixed use office and retail complex
Deer Park– Large scale industrial estate
Scoresby– Homemaker Centre and Industrial
Monash– High Tech research Facility
Burwood– Mixed use office and retail complex
Prospects
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New South WalesMark Gray
Leighton Properties Pty Limited
New South WalesMark Gray
Leighton Properties Pty Limited
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Market Overview - Sydney
Sydney is global city, external factors influence property market
Growth restrained 2000 to 2003 by world events– Sluggish overseas economies– Iraq
Demand negative as businesses cut costs to improve profitability
Continuing strong appetite for investment property
Limited supply coupled with positive sentiment should create DEMAND LEAD UPSWING 2004 to 2007
Sydney is global city, external factors influence property market
Growth restrained 2000 to 2003 by world events– Sluggish overseas economies– Iraq
Demand negative as businesses cut costs to improve profitability
Continuing strong appetite for investment property
Limited supply coupled with positive sentiment should create DEMAND LEAD UPSWING 2004 to 2007
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Market Overview - Sydney
Survey just released by Jones Lang LaSalleCommercial markets compared to 12 months ago show we are in a troughConsistent with LPPL view of upswing 2004-2007
Survey just released by Jones Lang LaSalleCommercial markets compared to 12 months ago show we are in a troughConsistent with LPPL view of upswing 2004-2007
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2003 to 20072003 to 2007
--North Ryde
--Parramatta
North Sydney
Sydney – Secondary
Sydney – Prime
YieldVacancyIncentiveRentLocation
Market Overview - SydneyMarket Overview - Sydney
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Strategy
LPPL positioned to meet demand in:Sydney - Prime - KENS Project
- Secondary - 233 Castlereagh
North Sydney - 100 Pacific Highway
Parramatta - 101 GeorgeStreet
North Ryde - Julius Avenue,Riverside
LPPL positioned to meet demand in:Sydney - Prime - KENS Project
- Secondary - 233 Castlereagh
North Sydney - 100 Pacific Highway
Parramatta - 101 GeorgeStreet
North Ryde - Julius Avenue,Riverside
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KENS Project Sydney
Seek limited precommitmentMarket in 2005 to meet demand
Seek limited precommitmentMarket in 2005 to meet demand
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KENS Project Sydney
Pre-lease to WestpacTake-out to Westpac OfficeTrustExposed to delivery risk
Pre-lease to WestpacTake-out to Westpac OfficeTrustExposed to delivery risk
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KENS Project Sydney
76,700m2 NLA854 carsProgressive take-up aligned to lease expiryCompletion progressively through 2006 including integrated fitout7 stages
76,700m2 NLA854 carsProgressive take-up aligned to lease expiryCompletion progressively through 2006 including integrated fitout7 stages
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233 Castlereagh Street Sydney
JV with Real Estate Partners18,000m2 B+ Grade200 cars (approx)Target 10/2004 completion
JV with Real Estate Partners18,000m2 B+ Grade200 cars (approx)Target 10/2004 completion
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100 Pacific Highway North Sydney
50/50 JV with ISPTAchieved DA in March21,000m2 NLA – A Grade1,200m2 footprint129 cars
50/50 JV with ISPTAchieved DA in March21,000m2 NLA – A Grade1,200m2 footprint129 cars
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101 George Street Parramatta
DA approved for 17,800m2
A Grade301 carsCommencing October, complete mid 2005
DA approved for 17,800m2
A Grade301 carsCommencing October, complete mid 2005
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Lots 8 & 9 Riverside North Ryde
DA approved 36,000m2JV with ISPTPotential to build in stagesSeeking pre-commitment
DA approved 36,000m2JV with ISPTPotential to build in stagesSeeking pre-commitment
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56 Delhi Road North Ryde
JV with land ownerStrata officeCommence 3rd Qtr 2003Complete 4th Qtr 2004
JV with land ownerStrata officeCommence 3rd Qtr 2003Complete 4th Qtr 2004
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56 Delhi Road North Ryde
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Summary
Quality projects in each of the principal commercial marketsTake advantage of upswing to 2006Continue to seek and purchase assets where added value can be established, including bulky goods and industrial in west and south-westernSydney
Quality projects in each of the principal commercial marketsTake advantage of upswing to 2006Continue to seek and purchase assets where added value can be established, including bulky goods and industrial in west and south-westernSydney
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Questions and ConclusionDieter Adamsas
andVyril Vella
Questions and ConclusionDieter Adamsas
andVyril Vella
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Summary
13 projects with total end value of $1.8bnWorth $1.2bn to Leighton PropertiesManage risk through joint ventures, pre-commitments and cap on capital employedExpect stronger contribution to Group over next few years
13 projects with total end value of $1.8bnWorth $1.2bn to Leighton PropertiesManage risk through joint ventures, pre-commitments and cap on capital employedExpect stronger contribution to Group over next few years