670 likes | 829 Views
HARWORTH ESTATES THE UK COAL PROPERTY BUSINESS. UK COAL PLC PROPERTY PORTFOLIO PRESENTATION 7 NOVEMBER 2006. Welcome. HARWORTH ESTATES THE UK COAL PROPERTY BUSINESS. Gerry Spindler Chief Executive Officer. Focus on the UK Coal Property Business Introduce Jon Lloyd, Group Property Director
E N D
HARWORTH ESTATESTHE UK COAL PROPERTY BUSINESS UK COAL PLC PROPERTY PORTFOLIO PRESENTATION 7 NOVEMBER 2006 Welcome
HARWORTH ESTATESTHE UK COAL PROPERTY BUSINESS Gerry Spindler Chief Executive Officer
Focus on the UK Coal Property Business • Introduce Jon Lloyd, Group Property Director • Demonstrate scale and nature of the property portfolio and its key role in the strategy of the Group • Demonstrate very significant upside beyond current valuations for accounting purposes • Opportunity for questions and discussion
Jon Lloyd • Head of Property, HBOS Plc240 staff£450 million p.a. rev. budget£150 million p.a. capital budgetCorporate Real Estate, security, health & safety • Regional Managing Director, DTZ • Property Director, Yorkshire Water
HARWORTH ESTATESTHE UK COAL PROPERTY BUSINESS Jon Lloyd BSc FRICS Group Property Director Chief Executive Harworth Estates
The size of the prize • Value vs. Valuation – What’s it really worth? • Objectives and the approach to value creation • Timeline to worth
The size of the prize • One of the largest brownfield value opportunitiesin the UK today • Opportunity to create portfolio worth £800m+ in 6 years • Land for over 25m sq ft of employment development • Land for over 14,000 homes • The first 60 priority sites only – 2,650 acres net, 12,000 acres gross, from 49,500 acres • Substantial value from development phase in addition • Significant further long term value from balance of estate
Value vs. ValuationWhat’s it really worth? • Valuation for accounting purposes – RICS Red Book • Methodology designed to capture current cash flow / inherently conservative and not forward looking • Valuation dependent on milestones actually achieved and comparable market data • Accounting valuation does not measure scope for value creation as further planning milestones achieved
Methodology for Worth Risk Adjustment Estimated cost of Infrastructure etc. Development Phase Project Land Value with Consent Worth Current RICS Valuation
Newcastle Upon Tyne Leeds M62 Manchester A1 M1 Birmingham
Newcastle Upon Tyne Leeds M62 Manchester A1 M1 Birmingham
Objectives • Identify a long term supply of development sites • Promote those sites through the planning process • Secure optimum value accretion • Aggressively grow the asset base of the Company • Maximize net capital receipts on any disposals • Selectively develop out sites to optimize shareholder returns • To become one of the largest brownfield regeneration specialists in UK
Business Approach • Harness and exploit the skills, knowledge and experience of some of the best companies and people in the industry • Develop a significant number of key relationships across a wide range of disciplines– employ and partner with the best in class • Respect and support the communities within which we work and encourage economic regeneration within them • Be an exemplar for the principles of sustainable development, leaving our sites improved for future generations • Display a will to win – “think we can, we can”
HARWORTH ESTATESTHE UK COAL PROPERTY BUSINESS WORKING WITH THEBEST IN CLASS SOME KEY RELATIONSHIPS
Development Advisors . Planning Advisors . Agency
HARWORTH ESTATESTHE UK COAL PROPERTY BUSINESS Valuers . Planning Advisors . Agency
HARWORTH ESTATESTHE UK COAL PROPERTY BUSINESS Master Planners
Planning Advisors . Master Planners . Urban Designers
HARWORTH ESTATESTHE UK COAL PROPERTY BUSINESS Engineering Consultancy
HARWORTH ESTATESTHE UK COAL PROPERTY BUSINESS A key development partner
HARWORTH ESTATESTHE UK COAL PROPERTY BUSINESS Target Value Creation The First 60 Priority Sites
Timeline to Worth 2009consent for Phase 2 Prince of Wales 2011consent for Cutacre Business Park, Bolton £274m Valuation £800m+ Worth 2012 2005 2007consent for Phase 1 Prince of Wales Phase 1 Waverley/Orgreave 2010consent for Phase 2 Waverley/Orgreave Regularly hitting milestones, regularly achieving consents
HARWORTH ESTATESTHE UK COAL PROPERTY COMPANY Key Assumptions • 2006 values • no allowance for inflation or time value of money • Planning risk adjusted for timing and likelihood • Modeled to show asset growth • Serviced land values with planning consent after allowing for site promotion, remediation and servicing costs – residual value typically between 66/75% of serviced land value • Assumptions independently stress tested • Portfolio approach • Management estimates of worth
HARWORTH ESTATESTHE UK COAL PROPERTY BUSINESS Case Studies
Prince of Wales – Target Outputs • 80 acres of housing and associated uses • 20 acres of employment land • 70 acres of Country Park £17m £55m+ 2005 2010
HARWORTH ESTATESTHE UK COAL PROPERTY BUSINESS Waverley / Orgreave A New Community Adjoining Rotherham and Sheffield
HARWORTH ESTATESTHE UK COAL PROPERTY COMPANY Waverley / Orgreave- Target Outputs • 100 acres Advanced Manufacturing Park • 70 acres Highfield Commercial B1/B2/B8 mixed employment development • 210 acres residential as sustainable community • 20 acres other associated uses – local retail, food, drink, health, education, community etc. • 300 acre Country Park and lakes £60m £195m 2005 2010
HARWORTH ESTATESTHE UK COAL PROPERTY COMPANY Cutacre – Target Outputs • 200 acre strategic mixed use Business Park £6m £45m+ 2005 2011