VALUE CREATION September 2019 - Merlin Properties
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VALUE CREATION September 2019
DISCLAIMER
This presentation has been prepared by Certain statements in this document presentation in other jurisdictions may RELIED ON IN CONNECTION WITH ANY
MERLÍN Properties, SOCIMI, S.A. (the regarding the market and competitive also be restricted by law and persons CONTRACT OR COMMITMENT TO SELL
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ı2ı
Portfolio composition
Value creation plans
Offices
Contents
Retail
Logistics
Summary: effects
on MERLIN topline
Technology
Portfolio composition
Portfolio composition | By asset category
MERLIN is now approaching its initial target at IPO: Offices (40%), SC, HSR and Logistics 20% each
5% 5% 12 % 2% 2% 3% 3%
12 %
14% 14 %
16% 16% 10%
Hoteles
10%
Hoteles
20%
Hoteles
Residencial en alquiler Residencial en alquiler Residencial en alquiler
Otros Otros Otros
2014% Logístico 2018 Logístico Logístico
69% 16 69% 16% 45% 18High%Street Retail 45%
18High%Street Retail
46% 20 %
High Street Retail
4
Offices Centros comerciales Centros comerciales Centros comerciales
Oficinas Oficinas Oficinas
High Street Retail
21 % 21 %
23 %
(1) 23 %
(1)
Shopping centers 2
Logistics
5% 12% 2% 2% 3% 3%
16%Other 16% 10 10% 20 20%
(2)
Hoteles % Hoteles Hoteles % Hoteles
Residencial en alquiler Residencial en alquiler Residencial en alquiler Residencial en alquiler
Otros Otros Otros Otros
6M19
16% 69% % Logístico
16% 45pro-forma
18% (1) 45%
Logístico
18High%Street46 %
20 % Logístico Target
46% 20
Logístico
%
40 %
4
High Street Retail Retail High Street Retail High Street Retail
Centros comerciales Centros comerciales Centros comerciales Centros comerciales
Oficinas Oficinas Oficinas Oficinas
21 %
21 %
23 %
(1) 23 %
(1)
20% 20%
(1)
Pro-forma to include logistics WIP and offices WIP
(2)
Other includes hotels, non core land and miscellaneous
ı5ı
Portfolio composition | By geography
MERLIN has increased exposure to Portugal, a market showing strong performance
Geographical breakdown
9% Dual listing to gain visibility
Portugal
1 in the local market
91% 47
Spain
%
53%
Spain
Portugal By GRI(1) By GRI(1)
Continue exploring
2 the possibility of adopting
the SIGI regime
sqm Offices Shopping centers Logistics
Operating 95,677 60,098 -
Landmark I 16,892 5,495 - Selective acquisitions to
Best III - -
224,864 3 further consolidate MERLIN’s
prime positioning
Almada, dominant mall in the
#2 Player
south bank of river Tagus
(1)
2018 figures
ı6ı
Value creation plans
Value creation plans Offices
Value creation plans | Offices | Strategy
INTRODUCTION
OF HOSPITALITY
ROLL OUT
1 LANDMARK I
2 SERVICES ACROSS
THE ENTIRE
3 OF LOOM
PORTFOLIO
• Full refurbishment of • Fully developed cluster of • Flex space brand recently fully
assets with high and quick common services to tenants integrated to accelerate the
reversionary potential due located within a specific zone rapid expansion plan
to its prime location
• MERLIN Hub Castellana Norte • 9 spaces within 18 months,
• Enhacements of common will be the inaugural hub, comprising 12,790 sqm
areas and latest technical covering the A-1 corridor and 1,645 desks
especifications in working (> 330k sqm). Launch in 3Q19
areas, including sensorisation • Commercial synergies:
• Common services organized
around 5 items: mobility, - Capturing new clients
sustainability, technology (start-ups)
and connectivity, community
- Broadening our offer
and branding
to traditional corporates
• Next Hubs will be Azca and
Campo de las Naciones
ı9ı
Value creation plans | Offices | Landmark I
Upcoming refurbishments
Torre Torre Marqués de Castellana Diagonal Adequa Adequa Plaza Ruiz Alfonso
Monumental
Charmartín Glòries Pombal 3 85 605 7 4 Picasso XI
GLA (sqm) 18,295 37,614 12,460 22,387 15,254 14,795 32,109 15,793 31,576 9,945
Acquisition
(€m) 31.2 142.0 - - - - 64.5 28.2 - -
Capex (€m) 38.0 27.2 1.6 28.9 25.1 8.6 43.8 16.8 49.7 13.0
Rent (€m) 4.6 11.8 0.2 2.5 2.4 1.8 8.4 3.6 3.2 1.4
Yield on Cost 6.7% 7.0% 9.4% 8.7% 9.7% 20.9% 7.8% 7.9% 6.5% 11.1%
2019 2019
Delivery 2019 2020 2020 2020 2021 2022 2022 2022
(Phase II) (Phase II)
Total Acquisition Total Capex Total investment Pending Capex Additional Rents Yield on Cost
€ 266.0m € 252.6m € 518.6m € 200.6m € 40.0m 7.7%
ı 10 ıValue creation plans | Offices | Landmark I: Monumental
The project
ı 11 ıValue creation plans | Offices | Landmark I: Monumental
Lisbon’s prime office area is located within the surroundings of Marquês de Pombal & Duque de
Saldanha squares and the main avenues linking them (Av. Libertade & Fontes Pereira de Melo)
Prime rent
€ 22.0
Total stock
552,918 sqm
Availability
16,809 sqm
Vacancy rate
3.0%
Future offer
25,819 (1)
Source: Prime Watch 2019: Relatório do mercado inmobiliário de Portugal
(1)
Expected offer to come to the market until 2021
ı 12 ıValue creation plans | Offices | Landmark I: Monumental
Monumental is located in Duque de Saldanha, one of the most emblematic squares
in the city and the core of Lisbon’s Prime CBD area
Av.
Fo
nte
sP
ere
ira
de
Me
lo Monumental
Av
.R
ep
úb
lica
ı 13 ıValue creation plans | Offices | Landmark I: Monumental
•F
ull refurbishment •O
ffice floors will
that will include become more
an active façade, efficient by moving
improving the the corridor and
building’s energy optimizing the
efficiency distribution
•A
ll installations will • The shopping center
be replaced, adding will be transformed
a VRV HVAC(1) into 1-3 high-end
retail units
€ 2.5 m
INCREMENTAL
€ 28.9 m 4Q 2020 NET RENTS
CAPEX EXPECTED DELIVERY
8.7%
ROI(2)
(1)
Variable Refrigerant Volume Heating, Ventilating and Air Conditioning
ı 14 ı
(2)
Incremental rent divided by CapexValue creation plans | Offices | Landmark I: Castellana 85
The project
ı 15 ıValue creation plans | Offices | Landmark I: Castellana 85
Castellana 85 is located in the heart of Azca, the best business area in Madrid Prime CBD
Azca comprises: Over Extraordinary
• Office: 450,000 sqm 35,000 employees infrastructure
• Retail: 100,000 sqm daily traffic and communications
• Residential: 1,200 houses to be the best connected
Over
hub of Madrid
100,000 visitors
per day
Main office landlords Top tier tenants MERLIN is leading, together
in the area with other landlords,
98k sqm the creation
of a BID for AZCA
to further enhance the area,
59k sqm common services
and branding
50k sqm
43k sqm
27k sqm
ı 16 ıValue creation plans | Offices | Landmark I: Castellana 85
Azca achieves the highest rents in the Madrid office market
Castellana 93
Castellana 85
Plaza Ruiz Picasso
ı 17 ı
ı 17 ıValue creation plans | Offices | Landmark I: Castellana 85
732.85 TOB
728.70 ROO
Level 11
Current GLA
3.30 m
1,842 sqm 725.40 LEVE
Level 10
1,842 sqm
15,254 sqm 3.30 m
722.10 LEVE
Level 09 3.30 m
1,842 sqm 718.80 LEVE
Post-refurbishment
Level 08SPACE
OFFICE 3.30 m
1,842 sqm
(9 FLOORS) GLA 715.50 LEVE
Level 07
1,842 sqm 16,474 sqm 3.30 m
712.20 LEVE
Level 06 AEO (1)
3.30 m
1,842 sqm 708.90 LEVE
Level 05 3.30 m
1,842 sqm 705.60 LEVE
Level 04 3.30 m
1,816 sqm 702.30 LEVE
LevelTERRACE
03 3.30 m
1,761 sqm 699.00 LEVE
Level 03
Terrace 995 sqm 4.00 m
695.00 LEVE
Entrance lobby 4.40 m
690.60 LEVE
LOBBY
4.10 m
686.50 GRO
(1)
AEO (Asociación Española de Oficinas - Spanish Offices Association) standard for offices measure
ı 18 ıValue creation plans | Offices | Landmark I: Castellana 85
The business plan
•V
ery efficient floor •T
otal refurbishment
plants (≈80%) with of the building
rectangular shape systems and
built around a central improvement of the
core (elevators and exterior image by
common areas), changing façade and
boasting 1,842 sqm removing the current
per floor exterior stairs
•N
ew common
areas (lobby,
restrooms, parking
enhancements)
€ 2.4 m
INCREMENTAL
€ 25.1 m 4Q 2020 NET RENTS
CAPEX EXPECTED DELIVERY
9.7%
ROI(1)
(1)
Incremental rent divided by Capex
ı 19 ıValue creation plans | Offices | Landmark I: Diagonal 605
The project
ı 20 ıValue creation plans | Offices | Landmark I: Diagonal 605
Diagonal 605 is located in the best tranche of the upper diagonal
Diagonal 605
ı 21 ıValue creation plans | Offices | Landmark I: Diagonal 605
Offices
Restaurant Hall Retail
Parking
• All office floors will be • The retail unit will be • A new park including a
updated extended. This flagship, restaurant unit will be created
• The office lobby will be already signed with Benetton, above the parking structure,
moved to Diagonal, enlarged, will enjoy outstanding visibility offering a high-end exterior
improved and raised to a from Diagonal terrace for dining
double height ceiling
ı 22 ıValue creation plans | Offices | Landmark I: Diagonal 605
The business plan
Value will be created
by upgrading the
office floors and
increasing the retail
area (Benetton
flagship)
€ 1.8 m
INCREMENTAL
€ 8.6 m 4Q 2020 NET RENTS
CAPEX EXPECTED DELIVERY
20.9%
ROI(1)
(1)
Incremental rent divided by Capex
ı 23 ıValue creation plans Offices Hospitality services
Value creation plans | Offices | Hospitality services
MERLIN is developing a cluster of common services to tenants on its key submarkets
SUSTAINABILITY
AND WELLNESS MOBILITY
Certifications Public and private
transport improvement
• Cluster of common
services to tenants to be
launched in 3Q19
LED lighting • MERLIN Hub App will be
Self-comsumption released in October 2019
• The program will be later New mobility solutions
extended to Azca, Campo
de las Naciones, Barcelona
or Lisbon
COMMUNITY AND
BRAND AWARENESS INNOVATION
Community services Smart Buildings
Branding MERLIN App
MERLIN Hub 3D rendering
Individual assets branding
ı 25 ıValue creation plans Offices Roll out of LOOM
Value creation plans | Offices | Roll out of LOOM: Madrid
1 2
•L
OOM’s footprint in Madrid currently stands at TAPICES HUERTAS
4 spaces with a combined GLA of 4,578 sqm 1,102 sqm ı 179 desks 1,188 sqm ı 165 desks
In operation In operation
and a total of 627 dedicated desks
•A
fter the opening of Salamanca, Eucalipto and
Torre Chamartin, LOOM’s footprint in Madrid
will grow to 7,500 sqm and 1,019 dedicated desks
3 4
PRINCESA EUCALIPTO
1,122 sqm ı 123 desks 1,166 sqm ı 160 desks
In operation In operation
5 6
SALAMANCA TORRE CHAMARTÍN
1,931 sqm ı 270 desks 1,049 sqm ı 122 desks
To open in Sep-19 To open in Feb-20
ı 27 ıValue creation plans | Office | Roll out of LOOM: Barcelona
1
TORRE GLÒRIES
1,562 sqm ı 160 desks
•O
nce all 3 pipeline projects are delivered, LOOM’s To open in Oct-19
footprint in Barcelona will be over 5,000 sqm
and 620 dedicated desks
2
WTC ALMEDA
1,544 sqm ı 200 desks
To open in Sept-19
3
22@ FERRETERIA
2,018 sqm ı 260 desks
To open in Jun-20
ı 28 ıValue creation plans Retail
Value creation plans | Retail | Strategy
CREATING
EXPERIENCE CALLAO 5
1 FLAGSHIP 2 AND EMBRACING 3 HIGH-STREET
TECHNOLOGY
• Refurbishing 5 shopping • Digitalization project for • Callao 5 refurbishment, will
centers and developing the entire portfolio convert the building into a
X-Madrid flagship asset:
• Development of apps for each
• Retenanting by expansion of mall + geotracking - FNAC flagship
selling areas, upscaling food
and beverage including exterior • Smart WI-FI -2
retail shops with street
dining and refresh of common access
areas
-F
ine dining in the top floors
with exterior terraces
• Callao 5, located in one of
the highest footfall areas in
Europe, will become a tourist
destination in its own right
ı 30 ıValue creation plans | Retail | Flagship
Upcoming refurbishments
Arturo Soria
Larios X-Madrid Tres Aguas(1) El Saler Porto Pi Callao 5
Plaza
GLA (sqm) 41,460 6,985 47,424 67,690 47,013 58,779 11,629
GLA MERLIN (sqm) 37,822 6,069 47,424 33,845 28,978 32,568 11,629
Works: 28.1 Works: 35.2 Works: 25.1 Works: 21.1
Capex (€m) 5.4 10.1 19.4
Ad. GLA: 19.9 Investment: 10.5 Ad. GLA: 12.0 Ad. GLA: 15.2
Rent (€m) 3.1 0.6 5.4 1.5 2.0 1.7 3.9
Yield on Cost 6.4% 11.1% 11.8% 15.1% 5.5% 4.6% 20.2%
Delivery 2019 2019 2019 2019 2020 2021 2021
∆ GLA + X-Mad inv. Total Capex Total investment Pending Capex Additional Rents Yield on Cost
€ 57.5m € 144.4m € 201.9m € 109.0m € 18.2m 9.0%
(1)
Only including MRL 50% ı 31 ıValue creation plans | Retail | Flagship: Larios
A full Buying 95% pre-let € 19.9m Additional space
refurbishment additional space additional space € 28.1m Capex
nearing to expand + 8.9% release € 48.0m Total investment
completion anchors and spread in recent 6.4% Yield on cost
retenant to grow renewals
F&B experience
ı 32 ıValue creation plans | Retail | Flagship: Arturo Soria
Full refresh Capex 100% Occupancy Yield on Capex
of common € 5.4m + 3.4% Tenant sales 11.1%
areas and
acceses
Make over of
Terrace & Parking
ı 33 ıValue creation plans | Retail | Flagship: X-Madrid
Experience
Ground breaking Diving
mall focused on
Surfing citywave®
Madrid
experience and Climbing
cutting edge Escape room
Gourmet dining
retailers Gourmet dining
VIP cinemas
Cutting edge retailers
92% Pre-let € 5.4m ERV
Main anchors 11.8%
secured Yield on cost
ı 34 ıValue creation plans | Retail | Flagship: Tres Aguas
A full Anchor tenants The entertainment € 10.1m
refurbishment are upsizing offer has been CAPEX(1)
to consolidate and upscaling reinforced, adding a € 1.5m(1)
its dominant their units new leisure area and Additional
position in the expanding the play Rents
south of Madrid park 15.1%
Yield on cost
ı 35 ı
(1)
MERLIN’s share (50%). Total investment in the asset amounts to € 20.2m, and additional rents are € 3.0mValue creation plans | Retail | Digitalization project
Current online channels Online channels under Big data analytics Digital displays
development
Web | Social Networks APP | Social WIFI Vodafone | Geoblink Screens | Directories
Blog | CRM Data Base Maps
• New communication • Targeted • Off-line • Experience
channels with clients communications customer and wow effect
• Better customer • Interaction, catchment, • Customer • Off-line
knowledge promotion and emotion segmentation communication
• Generic analytics • More specific analytics • Big data
ı 36 ıValue creation plans | Retail | Digitalization project: Online channels
Within its digitalization project, MERLIN has developed a native app for each mall
Unique architecture to A new point of contact to Targeted communications
achieve economies of scale interact with our customers based on the different
and unify the corporate profiles and preferences
image
New channel offered Marketing tool (employees Feeds the market research
to our tenants intranet, brand ambassadors, and business development
exclusive promotions…)
ı 37 ıValue creation plans | Retail | Digitalization project: Big data analytics
Smart WI-FI will allow for better knowledge of our customers
Key parameters Data segmentation
Outdoors
Provenance • Penetration rate • By time band
analysis: • Visit frequency • Socio-
monitoring of • Average time demographic
the main KPIs by per visit • Visit frequency
origin, creating
• Demographics
different profiles
• Market share
by postal code
Indoors
Heatmaps: •# customers by • By time band
representing the area and floor • Spatial (floors
concentration • Time and areas)
of customers expenditure • Socio-
within any given by area demographic
time frame • Real time flows
data
ı 38 ıValue creation plans | Retail | Digitalization project: Digital displays
State-of-the-art Interactive directories
State-of-the-art screens conceived that allow the users to Directories
screens to improve the personalize the search of
customer experience, the different retailers
optimizing the off-line
communications
ı 39 ıValue creation plans | Retail | Callao 5 refurbishment
Callao, 5 is located at the heart of callao plaza, the epicentre of Madrid’s most popular
shopping areas, the “Times Square” of the city. Mainstream brands are located all around
Puerta del Sol
Fuencarral
Average rent
€ 180 sqm/m
Gran Vía
Average rent Preciados
€ 250 sqm/m Average rent
Footfall € 280 sqm/m
16,741 pax/day Callao 5 Footfall
11,997 pax/day
11,629 sqm
Source: Ascana, Gesvalt, TC Group ı 40 ıValue creation plans | Retail | Callao 5 refurbishment
Originally built as a department store, the asset was refurbished in 1994 to host FNAC
flagship and 2,000 sqm of office space
Fine Dining F&B Storage Terraces Food Court
The plan is the conversion
of the asset into a flagship
resort around 3 areas:
Floor
• FNAC flagship
11
(reduced to 5 floors)
10
•2
retail shops 9
with façade to the street 8
•F
ine dining in the top 7
floors with exterior 6
terraces 5
4
€ 19.4 m 3
CAPEX 2
1
2Q 2021 0
EXPECTED DELIVERY
-1
€ 3.9 m -2
INCREMENTAL NET RENTS -3
20.2
ROI
% (1)
Unit 2 Unit 1
High Street Retail Technical facilities High Street Retail
(1)
Incremental rent divided by Capex ı 41 ıValue creation plans Logistics
Value creation plans | Logistics | Strategy
EXPAND PORTFOLIO STATE-OF-THE-ART
EXPAND LAST
1 THROUGH DEVELOPMENTS
AND BTS(1)
2 FACILITIES SUITABLE FOR
3 PL’S AND E-COMMERCE
3 MILE SOLUTIONS
• Reinforce leadership position • Unique footprint to serve 100% • MERLIN has the largest
in Spain of client needs footprint in Spain, being the
best suited partner to explore
• Consolidate position in Madrid • 81% of the portfolio is modern
and develop last mile solutions
and Barcelona (Best II) and suitable for e-commerce
players • Launch of an internal pilot
• Expand national footprint
program in partnership with
(Best III) • 600kW pilot program to install
leading logistics operators
photovoltaic panels on Meco’s
(FM Logistic, GLS). If successful,
roof. Energy produced to be
the initiative will be deployed
sold to the tenant and to the
to the entire portfolio
grid company
(1)
Build-to-suit ı 43 ıValue creation plans | Logistics | Best II
Best II focused on the 2 main logistics corridors of Madrid
+566K sqm € 25m
GLA ERV
Madrid
€ 326.6m 7.7%
Investment Yield on Cost
ı 44 ıValue creation plans | Logistics | Best II
ED
ER
IV
EL
D
Guadalajara Guadalajara
Madrid Guadalajara Guadalajara Toledo Madrid Guadalajara Guadalajara
Cabanillas Cabanillas
Pinto II B(1) Cabanillas F Cabanillas III Seseña San Fernando II Azuqueca III Azuqueca II
Park I extension Park II
GLA (sqm) 29,473 20,723 21,879 28,541 34,224 51,000 92,994 98,757 210,678
Capex (€m) 13.7 10.7 11.8 15.5 21.7 30.1 56.0 54.7 112.4
Rent (€m) 1.2 0.8 0.9 1.2 1.9 2.3 3.9 4.4 8.5
Yield on Cost 8.5% 7.6% 7.4% 7.5% 8.9% 7.5% 6.9% 8.1% 7.5%
Delivery 2019 2019 2019 2019 2020 2020 2020 2021 2021
Total investment Pending Capex Additional Rents Yield on Cost
€ 326.6m € 228.1m € 25.0m 7.7%
(1)
2nd phase of Pinto II only ı 45 ıValue creation plans | Logistics | Best III
Launch of Best III to expand footprint to other areas of the Iberian Peninsula
+509K sqm € 24m
GLA Basque Country ERV
Zaragoza
Madrid
Valencia
Lisbon
€ 308m 7.9%
Investment Yield on Cost
Seville
ı 46 ıValue creation plans | Logistics | Best III
Launch of Best III to expand footprint to other areas of the Iberian Peninsula
Valencia Zaragoza Madrid Sevilla Lisbon
Valencia
Ribarroja Plaza II San Fernando III ZAL WIP Park
GLA (sqm) 34,992 11,421 98,942 42,632 224,864 96,572
ERV (€m) 1.9 0.5 5.0 2.0 10.7 4.1
Investment (€m) 25.5 7.1 52.3 24.0 147.6 51.6
ERV YoC 7.4% 7.2% 9.7% 8.5% 7.2% 7.9%
Delivery 2019 2020 2021 2019/2020 2020/2021 2021/2022
Total investment GLA Additional Rents Yield on Cost
€ 308.2m 509k sqm € 24.2m 7.9%
ı 47 ıValue creation plans | Logistics | State of the art facilities
MERLIN enjoys the most modern portfolio in the market
14 m
30 m
< 20 m
1st generation Logistics State-of-the-art Logistics
• Clear height: < 8m • Clear height: > 11 m •E
nvironmentally certified or
• Loading Docks: 1/3,000 sqm • Loading Docks: 1/800 sqm awarded buildings
• Truck yard depth: < 20 m • Truck yard depth: > 30 m •P
recast concrete walls on façade
• Slab without joints •S
mart sensors for light switching
• Skylights for natural daylight • BMS
• LED lighting •T
hermoplastic waterproofing
membrane on deck
ı 48 ıValue creation plans | Logistics | Photovoltaic project
Solar installations will improve the logistics portfolio while reducing pollution
Tenant loyalty Energy transition Improvement of assets
MERLIN gains a unique competitive Unique opportunity to lead the Logistics assets with solar
advantage to retain and attract energy transition installations will be more
tenants: The possibility of signing PPA demanded by the market,
• Improving electricity supply within a 35km range is positively producing lower vacancy rates
conditions through PPAs(1) scored in the certification program and, consequently, higher values
• Attaining green credentials Great opportunity to improve
and environmental footprint the profitability, increasing the
improvement effective rent per square meter
while reducing financial costs
thanks to the criteria settled in
the ESG Indexed financing
Note: the implementation of the project is subject to administrative approvals and asset by asset economic viability studies ı 49 ı
(1)
Power Purchase AgreementValue creation plans | Logistics | Photovoltaic project
Assuming full implementation, solar installations could bring up to € 4.5M in annual income(1)
Total CAPEX € 45M
Ready to install Capacity Income
EXISTING
~80% ~35 MW
(1.2-1.3m sqm)
+€ 4.5M
annual
100% ~ 40 MW income
WIP
(1.4-1.5m sqm)
Note: including Zal Port
(1)
The pace of implementation is subject to the pilot program success, administrative approvals and asset by asset economic viability studies
ı 50 ıValue creation plans | Logistics | Last mile solutions
The exponential e-commerce growth is magnifying freight traffic within cities
Saturation and city pollution
Access restraints
Long waiting times Last mile centers
Higher distribution costs
Final consumer discomfort
ı 51 ıValue creation plans | Logistics | Last mile solutions
Last mile center operation
DAYTIME HOURS NIGHT-TIME HOURS DAYTIME HOURS
-
LOGISTICS ELECTRIC DELIVERY VEHICLE
OPERATION IN
THE PARKING
ZERO-EMISSIONS VEHICLE
ELECTRIC CARGO BICYCLE
23:00 7:30
Truck arrival start time Commencement of the distribution, Area reserved for the reclassification and load
movement of vehicles or bicycles of the merchandise to be delivered during the
time scheduled. This space might be fed through
small vehicles during predefined timetables
ı 52 ıValue creation plans Summary: effects on MERLIN topline
Value creation plans | Summary: effects on MERLIN topline | CAPEX per asset class
Offices Shopping Centers
LANDMARK I PLAN FLAGSHIP PLAN
Upscaling refurbishments Converting our shopping centers
to create “prime within the prime” Organic in the flagship store of online retail
growth
SELECTED € 519m € 202m DEVELOPMENT OF “X”
DEVELOPMENTS A BRAND NEW CONCEPT
Designed Internally
by signature funded
architects
Logistics Logistics include
forward purchase, High Street Retail(2)
BEST II PLAN € 327m spec development TREE
and built to suit Lever on inflation growth
BEST III PLAN € 284m(1) OTHER
Development of the best footprint Capturing reversion
in the Iberian market Total pending CAPEX Fully funded internally
2019-2022
€ 803m
(1)
284m until 2022. Total investment for the Best III plan amounts to € 308m
€
(2)
Callao 5 refurbishment is included within the flagship plan
ı 54 ıValue creation plans | Summary: effects on MERLIN topline | Potential rental growth
(€m) +32%
22.4(1) 661.5
25.0
18.2
40.0 617.3
56.2
499.7
469.4
Not considering rental
growth nor inflation
GRI GRI Reversionary Landmark Flagship Best II Best III Potential Previous
FY17 FY18 potential GRI FY22 GRI forecast
ERV considered for Best III in the period
(1)
ı 55 ıTechnology
Technology | Dynamic BMS and sensorisation
Technological investments will improve the service level and user experience
INFRASTRUCTURE SENSORISATION ELEMENTS BIG DATA ANALYSIS
• Communication network • Dynamic BMS • Reading and interpretation software
• Data centers • IoT • Online management tools
• Cloud storage • Standard protocol
• Hardware connecting lines
Better utilisation of the Predictive maintenance of the
space and density building to reduce the cost
Better comfort for Energy efficiency increase
becoming more productive
COMFORT PROFITABILITY ECOLOGY
ı 57 ıTechnology | Proptech
Sponsoring proptech startups to enhance MERLIN’s competitive advantage
Acceleration Implementation in
program for MERLIN portfolio
startups
Gateway between
the startup
VC funds
ecosystem
specialized in Real
and real estate
Estate proptechs
long-established
companies
ı 58 ıPaseo de la Castellana, 257 28046 Madrid +34 91 769 19 00 info@merlinprop.com www.merlinproperties.com
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