KPMG - IERE

Recommendations

Info

Part V Property Portfolio Property Portfolio This section details the breakdown of the Property Portfolio, as at the date of this Prospectus. The Market Values, Net Annual Rent and Estimated Net Annual Rental Value figures referred to in this Part V are derived from the Valuation Report of the Independent Valuer, on the basis described and as set out in Part VI of this Prospectus. Where the Group is Committed to Acquire properties, any such acquisition will be subject to the satisfaction of all conditions and completion provisions. Overview As at the date of this Prospectus, the Group owned a total of 10 properties and was Committed to Acquire a further 10 properties. The Property Portfolio was valued by the Independent Valuer at a Market Value of A488.3 million on 30 September 2006 (A281.2 million of which is owned; A207.1 of which is Committed to be Acquired). The aggregate Net Annual Rent of the Property Portfolio is A31.3 million (A17.7 million in respect of properties which are owned; A13.5 million in respect of properties which are Committed to be Acquired). The Group has freehold interests in all of the properties owned by it and has entered into contracts to acquire freehold interests in all of the properties Committed to be Acquired, other than the logistics property in Amsterdam, where the purchase agreement contemplates the transfer of a 50 year leasehold interest. Property Portfolio The Property Portfolio (including acquired properties and Committed to be Acquired properties) can be summarised as follows: Property Country Sector Main Tenant Expected Completion* Net Annual Rent (B) Estimated Net Annual Rental Value (B) Net Initial Yield Market Value Acquired Properties Alovera Spain Logistics TechData — 1,615,591 1,596,389 5.63% 26,750,000 Leuven Belgium Office KVLV — 1,293,348 1,173,150 6.95% 18,500,000 Solingen Germany Logistics Strauss Innovation — 965,003 1,010,625 5.80% 15,800,000 Marseille France Logistics SDV/Transagrue — 1,245,376 1,272,942 5.95% 19,700,000 Heusenstamm Germany Office Deutsche Telekom — 5,231,338 5,356,430 5.62% 88,900,000 Ecully France Office BASF/IBM/Scotts — 2,204,889 2,377,100 6.48% 32,100,000 Nanteuil France Logistics Nissin — 585,920 590,700 6.25% 8,840,000 Sun France Office Sun Microsystems — 1,421,788 1,421,332 6.41% 20,940,000 Nova France Office Euromaster, Pechiney — 671,036 647,095 6.55% 9,660,000 Cergy France Office Valeo — 2,499,758 2,314,795 5.92% 40,000,000 Subtotal Acquired 17,734,047 17,760,558 281,190,000 Committed to be Acquired** Properties Warsaw Poland Logistics GEFCO Pre Admission* 597,667 603,009 6.83% 8,750,000 Riesa Germany Retail Toom, Real Pre Admission 3,879,591 4,012,633 6.26% 57,340,000 Rheda Germany Retail Martkauf Pre Admission 846,965 877,680 6.25% 12,930,000 Lutterberg Germany Logistics DHL Pre Admission 2,254,003 2,598,750 6.08% 35,500,000 Prague Czech Republic Logistics Bax Global Pre Admission 895,042 889,515 6.95% 12,900,000 Amsterdam Netherlands Logistics Christian Salvesen Q1 2007 420,193 455,400 6.21% 6,250,000 Roth Germany Retail Martkauf Q1 2007 1,315,671 1,254,831 5.89% 21,310,000 Tiel Netherlands Logistics DHL Q1 2007 1,237,291 1,238,490 6.13% 18,800,000 Villeurbanne France Office Merial Q1 2007 1,366,000 1,178,800 5.82% 22,100,000 Girona Spain Logistics Bax Global Q1 2007 715,688 726,100 6.06% 11,250,000 Subtotal Committed to be Acquired 13,528,111 13,835,208 207,130,000 Total 31,262,158 31,595,766 6.07% 488,320,000 * This column indicates the expected and assumed completion date for the respective Committed to be Acquired properties. There can be no assurance that these Committed to be Acquired properties will be acquired in the time period indicated. ** Assets for which the Group has contractual commitments to purchase, subject to purchase, subject to the satisfaction of all conditions and completion provisions. 57
The 5 largest properties account for 52 per cent. of the Property Portfolio (including acquired properties and Committed to be Acquired properties) by Market Value. Geographical Spread The geographical weightings of the Property Portfolio (including acquired properties and Committed to be Acquired properties) can be summarised as follows: Country Market Value of acquired properties (A) % of Property Portfolio by Market Value Market value of Committed to be Acquired properties (A) % of Property Portfolio by Market Value Total Market Value of the Property Portfolio (A) % of Total Market Value of the Property Portfolio Germany 104,700,000 21% 127,080,000 26% 231,780,000 47% France 131,240,000 27% 22,100,000 5% 153,340,000 31% Spain 26,750,000 5% 11,250,000 2% 38,000,000 8% Netherlands — 0% 25,050,000 5% 25,050,000 5% Belgium 18,500,000 4% — 0% 18,500,000 4% Czech Republic — 0% 12,900,000 3% 12,900,000 3% Poland — 0% 8,750,000 2% 8,750,000 2% Total 281,190,000 58% 207,130,000 42% 488,320,000 100% Sector Spread The office portfolio contains multi-tenanted office buildings and office complexes, the logistics portfolio contains warehouses and distribution facilities and the retail portfolio (which consists of Committed to be Acquired properties) contains shopping centres and out-of-town retail properties. The sectoral weightings of the Property Portfolio (including acquired properties and Committed to be Acquired properties) are as follows: Sector Market Value of acquired properties (A) % of Property Portfolios by Market Value Market value of Committed to be Acquired properties (A) % of Property Portfolio by Market Value Total Market Value of Property Portfolio (A) % of Total Market Value of the Property Portfoilo Office 210,100,000 43% 22,100,000 5% 232,200,000 48% Logistics 71,090,000 15% 93,450,000 19% 164,540,000 34% Retail — 0% 91,580,000 19% 91,580,000 19% Total 281,190,000 58% 207,130,000 42% 488,320,000 100% Office sector The office portfolio consists of 7 properties (6 acquired; 1 Committed to be Acquired) and represents 48% of the Market Value of the Property Portfolio. As at the date of this Prospectus, the acquired and Committed to be Acquired office properties were 95 per cent. leased by area to 25 tenants. Approximately 47 per cent. of the Net Annual Rent for the Property Portfolio valued as at 30 September 2006 can be attributed to acquired and Committed to be Acquired office properties. The Group has acquired a large office property in Heusenstamm, (near Frankfurt), Germany which is fully leased to a subsidiary of Deutsche Telekom (the obligations of which Deutsche Telekom has assured) expiring in December 2020. This office property represents the largest asset by Market Value in the Property Portfolio. The property contributes approximately 17 per cent. of the Group’s Net Annual Rent. The Group has also acquired office properties in Lyon and Grenoble, France which contribute approximately 14 per cent. of the Group’s Net Annual Rent and are leased to 7 tenants. In addition the Group has acquired an office property located in Leuven, Belgium leased to 13 tenants. The Group has Committed to Acquire one office property located in Villeurbanne in France which is expected to contribute 4 per cent. of the Company’s Net Annual Rent, and is currently leased to 1 tenant. Logistics sector The logistics portfolio consists of 10 properties (4 acquired; 6 Committed to be Acquired), 9 of which have been, or are expected to be, acquired from Eurinpro International SA. As at the date of this Prospectus, the acquired and Committed to be Acquired logistics properties were 98 per cent. leased 58
Page 1 and 2:
Invista European Real Estate Trust
Page 3 and 4:
JPMorgan Cazenove and Citigroup, ea
Page 5 and 6:
Summary This summary should be read
Page 7 and 8: The Group currently owns, and inten
Page 9 and 10: Risk Factors Investing in the Share
Page 11 and 12: If actual financial data differ fro
Page 13 and 14: assumptions or flawed assessments u
Page 15 and 16: loss of revenue, which could materi
Page 17 and 18: The Group’s performance is depend
Page 19 and 20: less than the costs of the leverage
Page 21 and 22: Future Share issues could dilute th
Page 23 and 24: The holding company structure for t
Page 25 and 26: Important Information Investment in
Page 27 and 28: investors in Germany are urged to c
Page 29 and 30: made by broker-dealers who are regi
Page 31 and 32: * the tax treatment of the Group an
Page 33 and 34: Directors and Advisers Directors To
Page 35 and 36: Part I Information on the Company I
Page 37 and 38: and expanding analysis of property
Page 39 and 40: Where properties have achieved thei
Page 41 and 42: payable. To the extent that the Net
Page 43 and 44: The Company will also publish semi-
Page 45 and 46: Part II Directors, Management & Adm
Page 47 and 48: Mark Long* - Director, Strategy, Re
Page 49 and 50: The Custodian may entrust the safek
Page 51 and 52: Part III The Offer The Offer A tota
Page 53 and 54: period of 180 days from Admission,
Page 55 and 56: Part IV Background to the Continent
Page 57: Continental European Listed Propert
Page 61 and 62: 10 Largest Tenants Tenant Net Annua
Page 63 and 64: 4 Purpose of the valuation report W
Page 65 and 66: 7.3 Environmental matters We have r
Page 67 and 68: German Properties C104,700,000: Pro
Page 69 and 70: Property Sector Description, Age &
Page 73 and 74: Belgian Properties C18,500,00: Prop
Page 77 and 78: French Properties C22,100,000: Prop
Page 79 and 80: Czech Republic Properties C12,900,0
Page 81 and 82: Polish Properties A8,750,000: Prope
Page 83 and 84: INVISTA EUROPEAN REAL ESTATE TRUST
Page 93 and 94: ecognised in the financial statemen
Page 97 and 98: 16. Finance expenses 2006 B Amortis
Page 101 and 102: We planned and performed our work s
Page 103 and 104: (2) No account has been taken of th
Page 105 and 106: * a logistics property in Nanteuil,
Page 107 and 108: important to an understanding of th
Page 109 and 110:
Availability of financing During th
Page 111 and 112:
The Group’s diversification by ma
Page 113 and 114:
higher immediately following Admiss
Page 115 and 116:
At 30 September 2006 the Group had
Page 117 and 118:
temporary difference is controlled
Page 119 and 120:
currency swaps and foreign exchange
Page 121 and 122:
(q) where voids currently exist or
Page 123 and 124:
in the Group carries on a trade in
Page 125 and 126:
taxable as a corporation) organised
Page 127 and 128:
PFIC - Default Excess Distribution
Page 129 and 130:
these proposed Treasury Regulations
Page 131 and 132:
Part XII General Information 1. Inc
Page 133 and 134:
2.11 All of the Shares will be in r
Page 135 and 136:
Name Current Directorships and Part
Page 137 and 138:
Name Current Directorships and Part
Page 139 and 140:
The general meeting of Shareholders
Page 141 and 142:
(a) Shares of the Company to be red
Page 143 and 144:
The Company will be bound towards t
Page 145 and 146:
Every Shareholder may take part in
Page 147 and 148:
which fall within the scope of the
Page 149 and 150:
The Bank Facility also provides for
Page 151 and 152:
performance by the Depositary of it
Page 153 and 154:
The primary tasks of the Company’
Page 155 and 156:
In relation to the investment restr
Page 157 and 158:
doubt as to whether courts outside
Page 159 and 160:
Part XIII Definitions The following
Page 161 and 162:
‘‘Invista Group’’ Invista a
Page 163 and 164:
‘‘uncertificated’’ or ‘
Page 165 and 166:
1.6 1.5.2 pending investigation of
Page 167 and 168:
transfer or other taxes due in conn
Page 169 and 170:
contravention of any registration o
Page 171 and 172:
Notes On How To Complete The Applic
Page 174 and 175:
I I I I I I I I I I I I I I I I I I
Page 176 and 177:
I I I I I I I I I I I I I I I I I I
show all

KPMG - IERE

Create successful ePaper yourself

Delete template?

Save as template?