march 2019 - vic properties properties presentation.pdf · in the large cities (lisbon, porto and...

March 2019

VIC Properties

Disclaimer

2

THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM

THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL.

This presentation (“Presentation”) was prepared exclusively by VIC Properties S.A. (“VIC Properties”) solely for informational purposes and has not been independently verified and no representation or warranty, express or

implied, is made or given by or on behalf of VIC Properties. This presentation contains selected information about the activities of VIC Properties and its subsidiaries and affiliates (together the “Group”). It does not purpose

to be a comprehensive overview of the Group or contain all information necessary to evaluate an investment in the Group. As this presentation only contains] general, summary and selected information about the Group, it

may omit material information about the Group and is not a complete description of the Group’s business and the risks relating to it. Nothing in this Presentation is, or should be relied upon as, a promise or representation

as to the future. This Presentation is being communicated to selected persons who have professional experience in matters relating to investments for discussion purposes only and is incomplete without reference to, and

should be viewed solely in conjunction with, the oral briefing provided by VIC Properties. Neither this Presentation nor any of its contents may be used for any other purpose without the prior written consent of VIC

Properties.

This Presentation does not constitute or form part of, and should not be construed as, an offer or invitation or inducement to subscribe for, underwrite or otherwise acquire, any securities of VIC Properties, nor should it or

any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of VIC Properties, nor shall it or any part of it form the basis of, or be relied on in connection with,

any contract or commitment whatsoever. This Presentation is not an advertisement and not a prospectus for the purposes of the Prospectus Directive (as defined below).

Certain statements in this Presentation are forward-looking statements. These statements may be identified by words such as "expectation", "belief', "estimate", "plan", "target“ or "forecast" and similar expressions, or by

their context. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the

forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. Actual results may differ from those set

forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed market conditions affecting the industry, intense competition in the markets in

which VIC Properties operates, costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting VIC Properties’ markets, and other factors beyond the

control of VIC Properties). Neither VIC Properties nor any of its respective directors, officers, employees, advisors, or any other person is under any obligation to update or revise any forward-looking statements, whether as

a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak of the date of this Presentation. Statements contained in this Presentation regarding

past trends or events should not be taken as a representation that such trends or events will continue in the future. No obligation is assumed to update any forward-looking statements. The information contained in this

presentation is provided as at the date of this document and is subject to change without notice.

This presentation contains data sourced from and the views of independent third parties. In placing such data in this document, VIC Properties makes no representation, whether expressed or implied, as to the accuracy of

such data. The replication of third party views in this presentation should not necessarily be treated as an indication that VIC Properties agree or concurs with such views.

Neither VIC Properties nor any of its directors, officers, employees or advisors, nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance should be placed on, the

fairness, accuracy or completeness of the information contained in the Presentation or of the views given or implied. Neither VIC Properties nor any of its respective directors, officers, employees or advisors nor any other

person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of or reliance on any information contained in or omitted from or otherwise arising in

connection with this presentation. It should be noted that certain financial information relating to VIC Properties contained in this document has not been audited and in some cases is based on management information and

estimates.

This Presentation is intended to provide a general overview of VIC Properties’ business and does not purport to include all aspects and details regarding VIC Properties. This Presentation is furnished solely for your

information, should not be treated as giving investment advice and may not be printed or otherwise copied or distributed. Subject to limited exceptions described below, the information contained in this Presentation is not to

be viewed from nor for publication or distribution in nor taken or transmitted into the United States of America (“United States”), Australia, Canada or Japan and does not constitute an offer of securities for sale in any of

these jurisdictions.

Any securities offered by VIC Properties have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state or other jurisdiction of the

United States and such securities may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and

applicable state or local securities laws.

This Presentation does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person or in any jurisdiction to whom or in which such offer or solicitation is unlawful.

By receiving this Presentation, you agree to be bound by the foregoing limitations. This Presentation does not constitute investment, legal, accounting, regulatory, taxation or other advice and does not take into account

your individual investment objectives. No recommendation is made as to how investors should exercise any investment decision. Any investor that intends to deal in any existing or prospective securities of the Group is

required to make its own independent investigation and appraisal of the business and financial condition of the Group and the nature of the securities at the time of such dealing.

• Over 10 years of corporate finance and

financing experience

• Previously worked at HSBC in London in

the M&A team & High-Yield credit trading

desk, as well as at Meridien Capital

Management in London advising family

offices in their real estate investments

• Involved in the acquisition of two

of largest real estate developers

in Germany with a combined c.€10

billion GDV, over 60 real estate

development projects arranged and

structured over €2 billion of real estate

financings

João CabaçaChief Executive Officer

• Over 20 years of real estate development

experience in Portugal

• Developed over 10,000 residential units

across Portugal, targeting both local and

international segments

• Led the entire real estate entire value

chain, from planning, development

process and sales at the former leading

developer in Portugal

Luís GamboaChief Operating Officer

Telmo SilvaFinancial Director

• Over than 18 years of experience in

finance sector ranging from auditing,

financial controlling and financial

management

• c.7 years of financial audit experience as

senior auditor at Mazars

• Wide experience and knowledge in the

real estate sector in Portugal with direct

involvement in the financial

management and control of real estate

development projects

VIC Properties

VIC Properties: Company Snapshot & market positioning

4

Company overview Unique set of projects targeting the Portuguese market

Fully integrated development platform

Procurement &

Business

Development

Project &

Development

Management

Sales /

Marketing &

PR

Construction

Capabilities

Total FTEs: 12 full-time + 100 sub-contracted

Current

Landbank(incl signed

deals)1

Source: Company information

Note:

(1) Based on JLL valuation report as of February 2019; includes Promissory Purchase Agreement that has been

signed with a long stop date of June 2019

GDV = Gross Development Value, GAV = Gross Asset Value, GCA = Gross Construction Area

€1.7bn

GDV

€571m

GAV

c.370k sqm

GCA

Identified

pipeline

c.€1.4bn

GDV

c.440k sqm

GCA

c.€3.1bn

GDV

c.810k sqm

GCA

• Leading residential developer with a focus in Portugal notably

in the large cities (Lisbon, Porto and Algarve region)

• Focused on the undersupplied Portuguese residential real

estate market with focus on affordability to middle-class

segment

• Developer with unique in-house local development expertise,

capital market knowledge and wide experience in large

development schemes

• Fully integrated real estate platform covering the entire value

chain

• Headquartered in Lisbon, Portugal

✓ Large quarters / plots in city centre locations

✓ Construction of residential mid-sized units with:

✓ Avg. 100 sqm

✓ 2/3 bedrooms

✓ Focused on supplying new build residential units to

local and international buyers

✓ Offering new concepts often not available to middle

class:

✓ Technological offerings

✓ Modern kitchens in the living room

✓ Generous communal areas

Clearly

identified

market

positioning

VIC Properties

I. Portugal residential market – Why now

VIC Properties

Robust macroeconomic indicators supported by strong labourmarket recovery in Portugal

6

Strong economic recovery Strengthened labour market

Source: Economist Intelligence Unit, OECD, Hypostat, Bank of Portugal

GDP growth (%) Unemployment rate (%)

12.7%

15.6% 16.2%

13.9%12.4%

11.1%

8.9%

7.1% 6.6% 6.3% 5.9%

0%

5%

10%

15%

20%

2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E

39

31

3742 44

47 47 49 4954

32%

25%27%

33% 34%36% 36%

30% 29%31%

0%

25%

50%

0

20

40

60

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(%)

(€b

n)

Good exports (€bn) % of GDP

Improve from 2013

Peak by 7.3%

Expected

improvement

of 3.0% by 2021

(1.8)%

(4.0)%

(1.1)%

0.9%

1.8% 1.9%

2.8%2.1% 1.9% 1.8% 2.0%

(5)%

(3)%

0%

3%

5%

2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E

Continuous increase in export volumes

Good exports (€bn) and as % of GDP

Steady decline of state budget deficit

State budget deficit as % of GDP

(3.8)%

(9.8)%

(11.2)%

(7.4)%

(5.7)%(4.8)%

(7.2)%

(4.4)%

(2.0)%(3.0)%

(0.9)%

(14)%

(12)%

(10)%

(8)%

(6)%

(4)%

(2)%

0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E

VIC Properties

Improved household purchasing power with higher disposal income as well as lower household payments towards mortgages

7

Household purchasing power expected to continue its positive trend

Disposable income per capita

20

25

30

35

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E

(€k)

Source: Government of Portugal (INE), Euromonitor, OECD, Hypostat, Bank of Portugal

Current:

€33k

2021E:

€36k

Housing debt burden well below historical average

60%

70%

80%

90%

100%

0

5

10

15

20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(%)

(€b

n)

Volume of new mortgages granted Ratio of total outstanding residential loans to disposable income of households

2017: 71%

Average: 83.5%

Volume of new mortgages granted & housing debt

VIC Properties

Foreign investment driving employment and wage inflation

8

Favourable environment to be the new labour hub in Europe

Corporate Tax Rates in Europe

33%30% 29%

25% 24%21%

19%

0%

25%

50%

France Germany Greece Spain Italy Portugal UK

Recent corporate movements to Lisbon

Source: Tax rates from KPMG, Government of Portugal (INE), Euromonitor

Average base salary evolution since 2007 (€)

800

900

1,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(€)

Current:

€943

€806k

+17% growth since 2007

VIC Properties

Strong commitment to attract non-resident individuals to live and work in Portugal

9

Attractive incentives for non-resident individuals

Non-habitual tax resident scheme offers attractive tax benefits

to individuals:

Introduced in 2009, offers a flat income tax rate of 20%, no inheritance

tax, gift tax or wealth tax

Reduced or deferred tax rates on dividends or other income from

investments

No tax on pensions and other life insurance products and no

withholding tax from foreign companies

Golden Visa program grants residency in Portugal:

Operational since 2012, the scheme has successfully attracted a

number of applicants ranging from China, Russia, Turkey, South Africa,

among others

Granted to individuals who invest in properties worth at least €500k,

enabling free movement across the Schengen area

Portuguese citizenship can be granted after being enrolled 5 years in

this program

# of foreign population with legal status of residence # of residency permits granted

415398 390 384 393

417

200

300

400

500

2012 2013 2014 2015 2016 2017

(k)

2

494

1,526

766

1,414 1,351

1,632¹

0

500

1,000

1,500

2,000

2012 2013 2014 2015 2016 2017 2018E

Source: Government of Portugal (INE), “Portugal Insight 2018” Knight Frank report

(1) H2 2018 figures not yet available, assumed same number of permits granted as H1 2018

Non-habitual Tax Resident Scheme Golden Visa Program

VIC Properties

Cultural trends driving preference for property ownership with strong demand for mid-size units

Source: Company information, Confidential Imobiliário, SIR, EIU, Government of Portugal (INE)

Note:

(1) Data for Algarve only available for 2017 based on a sample; (3) Total Portugal includes: Lisbon. Porto, Braga, Coimbra, Évora and Algarve (2017)

21%

31%26%

22%

Mid-size units have registered the most demand in Portugal1

19%

32%26%

23%

< 80 sqm 80 -110 sqm 110 -170 sqm > 170sqm

12%

69%

19%

Lisbon Algarve1 Total Portugal3

10

77%75% 72%

69%65% 64% 62%

51%

0%

20%

40%

60%

80%

100%

SP PT IT NL UK FR DE GE

Portugal is among the EU countries with the highest proportion of property ownership

% of owned primary housing

120130

94

76 80 84

107

127

153

175

0

50

100

150

200

2009 2010 2011 2012 2013 2014 2015 2016 2017 Sep2018LTM

(k)

Total units sold (k)

Total residential units sold

30%

22%24%

24%

Porto

VIC Properties

Construction of new units remains close to 15-year low

11

Substantial room for new build construction to develop given normalised demand levels for residential units

Number new homes built, Portugal (#)

Source: Government of Portugal (INE)

92,508

74,26176,123

68,764 67,463

59,256

47,915

35,442

26,150

19,458

12,515

8,025 6,794 7,1228,931

11,633

0

25,000

50,000

75,000

100,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018LTM

15 year Avg.: 38k units

175k

2018

LTM

sold

units

Lack of new supply driven by:

local developers lack capital

international developers lack local platform / connectivity to unlock deals

VIC Properties

Demand for residential units continues to outstrip supply of new build units leading to a net stock absorption…

12

Continued absorption of new build units over the last 9 years

48

35

26

19

13

87 7

9

12

4447

30

21 2120

21 2224

26

0

20

40

60

2009 2010 2011 2012 2013 2014 2015 2016 2017 Sep 2018LTM

(k)

New units built (k) New units sold (k)

c.9 consecutive years

of new build stock absorption

Source: Government of Portugal (INE)

VIC Properties

...many reports confirming the structural housing demand-supply imbalance...

13

“The stock of housing has come under considerable pressure.

While tourism boom and government policies [tying non-resident

visas to dwelling investments] have boosted demand (especially

in Lisbon, Porto and the Algarve), growth in the stock of

housing supply has not kept pace”

OECD Economic Survey: Portugal 2019

“Middle class has to resort to social housing due to lack of

public investment in the segment”

“It is clear that using of dwellings for tourism is intensifying the

problem of lack of housing for Lisbon’s inhabitants”

Lisbon Housing City Counsellor, October 2018

“42% of potential home buyers in Portugal can’t find a

house […] middle class represents the biggest market

opportunity in the sector […] lack of housing supply is problem

that now extends beyond Lisbon and Porto and now effectively

affects many other regions in Portugal”

Ricardo Sousa, CEO of Century 21 Portugal, October 2018

“Lack of supply in the residential market has seen both

rents and house prices increase considerably in the first

two quarters of this year. This is especially true for Lisbon,

Porto and the Algarve…real estate agents predict house prices

to rise by at least 4.5% over the next 12 months, with a further

growth rate of an average 5.5% predicted for the five year period

ahead.”Royal Chartered Surveyors and Confidencial Imobiliário, July 2018

Publico, January 2019

“Of the units concluded in 2018, only 8% is still available for sale

and, of for 2019, those foreseen only 10% is still for sale,

which reinforces the imbalance between supply and

demand.”CBRE Portugal – Real Estate Market Outlook 2019

VIC Properties

…resulting in strong positive unit price appreciation

14

Continuous residential units price increase

Residential Unit Price evolution rebased to 2007 peak previous

economic crisis

50

60

70

80

90

100

110

120

130

140

150

2007 2009 2011 2013 2015 2017

(Resiunit p

rice r

ebased a

t 100)

Source: Government of Portugal (INE), Confidential Imobiliário, Company information

Note:(1) Calculated based on number of units sold in each category multiplied by €/sqm and based on a sample

14

Unit € / sqm evolution by number of rooms

Current: 17.5%

increase vs peak

on 2007

2 bedroom units at the top of €/sqm prices in Portugal1

2,328

3,116 3,264

2,778

3,451

3,993

2,166 2,166

2,743

2,212

3,231

2,782

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2016 2017 2018

(€/s

qm

)

1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms or more

VIC Properties

II. VIC Properties – A unique investment opportunity

VIC Properties

VIC Properties: A unique value creation proposition led by strong and highly complementary management team (1/2)

16

Prata: Project acquisition background Prata: project and location overview


(1) Parque das Nacoes, also known as the location where Expo 1998 took place, is considered to be the most modern area of Lisbon, with a number of offices, entertainment venues, casinos, etc.

• The project was purchased out of a complex bankruptcy

case, in an off-market transaction, which had a number of

creditors and appointed insolvency administrator

• It is the largest and most iconic residential project under

construction in Lisbon / Portugal, designed by world

famous architect Renzo Piano

• Under optimised from a real estate development point of

view whilst benefitting from a fabulous centre / river front

location, the overall economic potential of the project is

unparalleled

City

centre

Modern

part of

Lisbon1

P

PRATA: areas overview GCA sqm % GCA

Residential 102,588 79.8%

Office 7,025 5.5%

Retail 17,108 13.3%

Others 1,780 1.4%

Total 128,501 100.0%

# Resi Units (before VIC acquisition) 499

# Resi units (post VIC acquisition) 686

# floors above ground 6-7

# floors below ground 1-2

# plots 12

Planning status Under construction

Construction timeline FY 2022

6km

VIC Properties

VIC Properties: A unique value creation proposition led by strong and highly complementary management team (2/2)

17


✓ Special situation / strong deal sourcing: the complex nature of

transaction allowed access to unique land plot at very attractive conditions

✓ Project optimisation showing deep real estate development

expertise:• Increased the number of units from 499 to c.700 units, hence reducing

avg sqm per unit and increasing sqm price charged to clients

• Optimised units layout, often adding an extra bedroom to each unit,

increasing usable areas

✓ Access to municipality & deep understanding of local dynamics: very early in the process we were able to identify, confirm and discuss some

of the more structural changes to be done to the project and get support from

local municipality

✓ Enhanced construction quality: re-designed the construction process

by replacing the general contractor by carefully selected sub-contractors,

achieving better pricing and enhanced construction quality

✓ Optimised procurement process: competitive procurement conducted

directly with manufacturers rather than with local representatives; took

advantage of the economies of scale / standardisation of Prata

✓ Sales & Marketing experience: integrated marketing and sales

experience via better online / offline presence (outdoors, sales centre, etc)

✓ Lifestyle concept creation: creation of a strong vision / lifestyle concept

to the project drawing further local interest for its product

Tremendous value creation initiatives

1

2

7

6

3

5

4

Financial performance envisaged

Gross margin

Construction costs

Land costs

35-45%

30-40%

20-25% 1,200 €/sqm

1,700 €/sqm

1,600 €/sqm

4,500 €/sqm 5,500 €/sqm

2,600 €/sqm

Avg sales price ->

Underwriting Current case

VIC Properties

Pipeline projects: c.€1.4bn pipeline under control worth 10 years of annual development volume

18


(1) “Gross Construction Area”

Residential (80%)

Hotel (2%)

Social Housing (5%)

Retail (13%)

Algarve region

(South of Portugal)

Lisbon region

(Centre of Portugal

#1 project#3

projects

4 projects

EUR 1.4

Billion GDV

Pipeline

projects

Area split by useGross Development Value Location overview Investment criteria

c.70k sqm

GCA1

c.370k

sqm

GCA1

Investment criteria

Major cities in Portugal

Main residential

development projects

(including some mixed

use)

No more than 20% of

portfolio outside of

geographic and sector

target markets

Target EBITDA margin

upon stabilisation of

~25%

Funded via mix of

equity and debt

VIC Properties

Strategic focus on regions in Portugal with highest housing demand

19

Legend

€5bn - €12bn

€3bn - €5bn

€1bn - €3bn

€0bn - €1bn

Map: Housing transactions

per region (2017 FY)

1

Source: Statistics Portugal (INE), Company information2

€1.7bnc.370k

sqmCurrent

GDV GCA

€1.4bnc.440k

sqmPipeline

€3.1bnc.810k

sqmTotal

3

Focused on regions with greatest historical demand by number of units transacted

Lisbon

Porto

Algarve

VIC Properties 20

Sustainable c.25% EBIT margin on a run-rate basis

100%

~25-35%~20-30%

~25%

~15-20%

~50-55%

~5%~3%

0%

20%

40%

60%

80%

100%

120%

Gross sales Land Investment

Constructioncosts

Grossdevelopment

margin

Marketing & Sales

Net DevelopmentMargin

Overheads EBIT margin


Cost optimization:

Take advantage of the sheer scale of the project(s) notably by optimizing procurement potential

Purchase materials directly with manufacturers instead of using intermediaries / representatives

Planning of construction works arranged in order to maximize “knowledge base” of the teams involved

Thorough monitoring over costs incurred / budgets

Low competitive land acquisition process / unique off market deals:

Long-lasting network built over decades with strong access to municipalities and key decision makers

Strong identified targets of new projects and ability to continuously source land at highly competitive

prices

Strategic advantage through targeting large size projects where there is less competition

Superior and sustainable margin generation going forward

B

A

CC

B

Focus on the underserved middle class segment with a differentiated offering:

Large target customer base

Average size of 100sqm and 2/3 bedrooms

New and modern concepts often not available to middle class (technological improvements, modern

kitchen, large communal areas)

A

VIC Properties

Prudent financial targets with high visibility

Current landbank and a clearly identified pipeline provides for ~10 year visibility

Gross Development

Value €bn

(GDV)

€3,1bn

Gross Construction Area

sqm

(CGA)

810k sqm

Run-Rate EBIT Margin

(%)~ c.25%

Run-Rate EBIT (€m) ~ €250m

21

1.7

3.11.4

0

1

1

2

2

3

3

4

Existing GDV Pipeline GDV Total GDV

(€bn

)


VIC Properties

Highly experienced and complementary management team

Proven track record in real estate development and financing as well as strong local connectivity6

Strong macro tailwinds with key economic indicators recovering steadily post crisis

Unemployment expected to decrease from 16.2% in 2013 to 5.1% in 2021E2

High quality landbank in unique locations complemented by clearly identified pipeline

Total expected / identified GDV of €3.1bn providing 10 years visibility of annual development volume3

Tremendous shortage of new built construction; very outdated units stock in Portugal

9 consecutive years of new built housing stock absorption1

VIC Properties aims to fill the significant and structural gap in the Portuguese residential development sector

22

Fragmented market, with either lack of capital or poor local access, offers tremendous

opportunity

First mover advantage in an highly fragmented and financially constrained sector with high barriers to entry

4

Vertical integration and tight cost control supportive of superior margins

Strong sourcing, deep construction expertise and efficient cost control to support EBIT margins of c.25%5

VIC Properties

Back-up materials

VIC Properties

I.Acquisition

II.Planning &

Development

III.Construction

IV.Sale

V.Hand-over

Fully integrated real estate development platform covering the entire value chain

25

Covering the entire property value chain Risk-enhanced shareholder value creation mindset


Securing development projects during off-market transactions

at very value accretive price points

Initiating overall project plan and obtaining (enhanced)

building permits

Clearly identified targets of new projects and ability to

continuously source land at highly competitive prices

Long-lasting network built over decades with strong access

to municipalities and key decision makers

Construction of projects through hands-on and fully multi-

disciplinary experienced teams

Costs agreed prior to construction start

Direct construction management approach

In-house sales team and robust sales network ensures

timely delivery of residential and commercial units to end

buyers

Finalising transaction and completing capital re-cycling into

new projects

I.

II.

III.

IV.

V.

VIC Properties

VIC Properties: The leading player in the real estate development market in Portugal

27

Pure play residential real estate developer

insulated from past legacy issues and with a clear

focused strategy

Quality real estate portfolio diversified across the

value chain

Focus on large land plots where there is an

absence of real competition in the market

Strong financial position and unique experience in

accessing the capital markets to foster growth

Fragmented nature of the market, with local players

focusing on small development projects and

international players focusing on high-end projects,

provides unique opportunity

1

2

3

4


Local

PlayersInternational

Players

5

VIC Properties: clear positioning in untapped market segment

VIC Properties

Predictable cash flow generation allowing for capital recycling

Illustration of a development project cash flows

0%

20% 20%

60%

(20%)

(10%)

(40%)

(5%)

(60)%

(40)%

(20)%

0%

20%

40%

60%

80%

Land purchase Project desing Construction Delivery

Project Cash Collection Project Cash Costs

DeliveryConstruction Project designLand acquisition

~3 months ~6-12 months ~18-24 months ~3 months Land investment: Land is debt and

equity financed at acquisition

Project design: Along with project

design, VIC Properties begins marketing

the units and collecting reservations from

customers once the product definition is

launched (20% down payment when the

contract is signed)

Construction works start at the same

time sales start and marketing continues

in parallel (10% payment after 6 months

and another 10% after 12 months).

Payments are not-restricted cash

Delivery: Upon delivery, customers pay

the remaining ~60%


28

VIC Properties 29

Ongoing project: PRATA RIVERSIDE VILLAGE (1/4)

VIC Properties 30


VIC Properties 31


Exhibition at Royal Academy of Arts in London

Renzo Piano: The Art of Making Buildings

VIC Properties 32


Residential Office Retail Others Total GCA Above ground Below ground Public Private Total

Lote 1 7 255 13 798 - 1 741 - 15 539 101 7 2 193 119 312

Lote 2 7 555 14 372 - 1 783 - 16 155 105 7 2 217 122 339

Lote 2a 3 910 6 460 - 897 - 7 357 77 7 2 58 59 117

Lote 3 3 765 5 995 - 858 1 780 8 633 42 6 1 6 79 85

Lote 4 5 455 12 072 - 1 814 - 13 886 79 6 1 20 111 131

Lote 4a 6 035 8 074 7 025 2 499 - 17 598 46 7 1 12 161 173

Lote 5 4 980 9 739 - 1 602 - 11 341 56 6 1 11 79 90

Lote 6 4 675 10 028 - 1 725 - 11 753 56 6 1 11 80 91

Lote 7 3 160 6 829 - 845 - 7 674 40 6 1 6 55 61

Lote 8 3 160 6 829 - 830 - 7 659 28 6 1 15 52 67

Lote 9 4 085 8 392 - 1 114 - 9 506 56 6 1 6 65 71

Lote 10 1 000 - - 1 400 - 1 400 - 1 - 21 21

Total 55 035 102 588 7 025 17 108 1 780 128 501 686 576 982 1 558

Building

reference

Apartments

units

FloorsGross construction area ab/g (sqm) Parking unitsLandscape

area (sqm)

Lote 8 fully constructed

VIC Properties

Location overview: Current projects

33


(1) Subject to Promissory Purchase Agreement that has been signed with a long stop date of June 2019

Prata Project and New Project1 location

P

N

“The location of the subject property with its good accesses, river views and

proximity to Parque das Nações and the city centre is very well suited for

the subject uses (residential, retail, office), being a natural extension of Parque

das Nações.

The neighbouring district, namely Parque das Nações are highly-priced

residential property markets comprising condominium apartments and

residential properties. Within the district of Parque das Nações, average sale

prices of around €5,500 are achieved for condominium apartments.

Given the location, very close to the river and the fact that the city hall and

other players are looking with increased enthusiasm at this location, the area is

additionally significant from a planning viewpoint.”

JLL Valuation Report – Project Development Prata Riverside Village as of February 2019

VIC Properties

VIC Properties: Experienced Management Team with a long-lasting track-record (1/2)

Ómnia I and II Real Forte I and II Pratagi Building Varandas da Lezíria

Solar das Marinhas Bela Lisboa Casas do Almirante Solar do Morgado

Location: Alverca, Lisbon

Year: 1998 / 2002

Apartments: 163

Housing area: 22,620 sqm

Commercial area: 1,539 sqm

Location: Sacavém, Lisbon

Year: 1999 / 2003

Apartments: 370




Year: 2000

Apartments: 50



Location: Vila Franca de Xira, Lisbon

Year: 2001

Apartments: 87



Location: Póvoa de Santa Iria, Lisbon

Year: 2004

Apartments: 135


Commercial area: 501 sqm

Location: Lisbon

Year: 2004

Apartments: 576



Location: Loures, Lisbon

Year: 2004

Apartments: 1,077



Location: Póvoa de Sta. Iria, Lisbon

Year: 2004

Apartments: 58

Housing Area: 17,597 sqm

34

VIC Properties

VIC Properties: Experienced Management Team with a long-lasting track-record (2/2)

35

Ómnia III Sesimbra Hotel & SPA Alcântara – Rio I Amorosa Place

Alcântara – Rio III Colinas do Cruzeiro Jardim Parque Terraços da Ponte


Year: 2004

Apartments: 28


Location: Sesimbra

Year: 2006

Apartments: 92


Location: Lisbon

Year: 2001

Apartments: 168



Location: Odivelas, Lisbon

Year: 2005

Apartments: 123


Commercial area: 507 sqm

Location: Lisbon

Year: 2007

Apartments: 67



Location: Odivelas, Lisbon

Year: 2007

Apartments: 4,327




Year: 2007

Apartments: 19



Location: Sacavém, Lisbon

Year: 2008

Apartments: 1,151

Housing area : 146,664 sqm


35

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