Africa & Beyond���Building a retail footprint in Africa & Beyond

P R E S E N T A T I O N B Y

Maurice Mdlolo COO, Liberty Properties

W E A L T H S U M M I T

Offshore Aspirations

Maurice Mdlolo has a twenty-year track record in property management and development which makes him the ideal candidate to steer Liberty Properties current developments and aggressively seek third party mandates. He has in-depth knowledge of the property industry and proven negotiating skills which lend strategic insight to the company’s property management, leasing and property development units. Liberty Properties has a retail, commercial and hospitality portfolio of over 1.5 million m! valued at more than R24 billion. Maurice joined Liberty Properties in 2010 from the Broll Property Group where he was Group Executive Director responsible for retail operation as well as CEO of Akhona Broll Properties. He has also held senior positions at Motseng Marriot, Woolworths, Eskom and Caltex. He has a BA degree in Economics and Business Management from the University of South Africa. Maurice is also part of the executive team ensuring Liberty Properties retains its position of strength in South Africa and beyond its borders.

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Dr Michael Jordaan has more than 28 years of experience within the financial services sector having started his career as a Management Trainee and Corporate Banker with Deutsche Bank in Hamburg and then Frankfurt. His educational achievements include an MCom in Economics and a PhD in Banking Supervision. Dr Jordaan has a long standing track record with the FirstRand Group, having joined the Class-of programme with Rand Merchant Bank in Johannesburg in 1994. This was a project-based programme with experience gathered in the Credit and Corporate Finance divisions of Rand Merchant Bank, ending as personal assistant to the then Managing Director, Paul Harris. Dr Jordaan has held various CEO positions throughout the FirstRand Group. From 1996 to 1999 he was responsible for convening, establishing and then heading up Origin, the Merchant Bank for Individuals that has subsequently been rebranded as RMB Private Bank. From 1999 to 2000 he was instrumental in the repositioning and R400m profit turnaround of FNB HomeLoans, before then taking on the position of CEO of eBucks.com, FNB’s Internet banking and rewards business, that grew from inception to 500 000 customers. Jordaan moved to FNB in 2002 to head up FNB’s Customer Solutions Division.

He took over as CEO of FNB in 2004. The business comprises over 30000 staff in 6 African countries. Jordaan was selected in 2008 as a World Economic Forum Global Leader and is widely acknowledged as infusing innovation into every business he works with and leaving a path of profitability in his wake. The result is not just a wealth of knowledge accumulated over time, but happiness in a family life with a wife and 3 daughters.

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is proudly supported by:

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www.sa-la.org membership@sa-la.org +27 (0) 791787867

Africa has a future and the future is now

Maurice Mdlolo: Chief Operating Officer

Overview of SA Property

South Africa remains buoyant after the global downturn

•  Economic growth is forecast to slow from 3.1% to 2.7% in 2012, increasing to 4.2% by 2014

•  Consumer Price Inflation is expected to rise from an average of 5% in 2011 to 6.2% in 2012, declining to 5.1% in 2014

•  The Current account deficit is forecast to rise from 3.3% of GDP in 2011 to average 4.4% over the next three years

•  Employment is growing and unemployment fell to 23.9% this quarter •  A budget deficit of 4.6% is projected in 2012/13, 4% in 2013/14 and 3% in 2014/15 •  Debt and interest costs as a percentage of GDP are expected to stabilise over the

medium term Source SA Post Budget 2012

South Africa is part of the fastest growing regions in the world Source International Monetary Fund 2012

South Africa is still Africa’s largest African market

Property sector one of the best performing global property markets

•  Listed property in South Africa returned +9% in 2011 while many countries struggled to return to positive figures in 2011

•  Huge opportunities are being created in the South African property markets driven by:

- telecommunications - mineral extraction - energy sectors -  gateway to rest of Africa

•  To some degree, the property market in South Africa was shielded from the recessionary environment experienced in highly industrialised countries

     

An intelligent property investment destination

•  South Africa property is a defensive sector in a defensive emerging market •  Sufficient A-grade investable assets that continue to provide stable growth and

high yields •  Good diversifier to equity & global property portfolios •  Ability to leverage •  Track record in property management and development •  More comprehensive long term approach to planning and land use •  Non intervention by Government •  Market largely driven by fundamentals      

Property has beaten every other sector in South Africa over the past ten years Source: STANLIB

Pedigree

Fact - Our projects facilitate job creation, community upliftment and social development. Our company ethos is to create and invest in property ventures which make a statement and make a

difference in people’s lives

The Liberty Heritage Liberty Properties has been a vital part of the South African property experience for close on four decades, the business is about sustained value for shareholders, optimal investment returns for our investors, desirable and profitable environments for our tenants, and pleasing destinations for our shoppers. Liberty Properties is an independent strategic company operating within Liberty Holdings Ltd. As one of the country’s top commercial real estate businesses, our goal is to be the leading property brand on the continent.

Liberty Portfolio

15 Commercial Properties • 171 Katherine Street, Sandton •  Century City, Cape Town •  Eastgate Office Towers, Bedfordview •  Jorrison Place, Braamfontein •  Liberty Corner, Ferndale •  Liberty Gardens, Bruma •  Liberty Life Centre, Braamfontein •  Liberty Place, Hatfield •  Libridge, Braamfontein •  Rennies House, Braamfontein •  Sandton Office Towers, Sandton •  Sandton Twin Towers, Sandton •  Liberty Life Centre, Umhlanga •  Standard Bank – Super Block •  SA Breweries Head Office

13 Hotels •  Cullinan Hotel, Cape Town •  Garden Court, Bruma •  Garden Court, Hatfield •  Garden Court, Kings Beach, PE •  Garden Court, Morningside, Sandton •  Garden Court, Sandton City •  Garden Court, Umhlanga •  Sandton Towers Intercontinental, Sandton •  Southern Sun, Katherine Street •  Southern Sun Waterfront, Cape Town •  Stay Easy, Eastgate •  Stay Easy, Pietermaritzburg •  Stay Easy, LEVY, Lusaka

Other •  Sandton Convention Centre *3rd party projects in Africa •  Mbabane Office Park, Swaziland* •  LEVY Business Park, Zambia*

– a history of success Throughout the decades and its many acquisitions, Liberty Properties has continued to be a dominant force in the South African property industry. Liberty Properties remain at the forefront of the latest trends and are recognised as the pioneers behind the mixed use developments in this country.

7 Shopping Centres •  Sandton City •  Nelson Mandela Square •  Eastgate •  Liberty Midlands Mall • Greenacres • Liberty Promenade •  Alberton City

Our recent projects sets us apart as a serious player in the African property market •  US$ 219m rejuvenation of Sandton City, South Africa •  US$ 78m refurbishment and extension of Eastgate Shopping Centre, South Africa •  US$ 24m extension to Alberton City Shopping Centre , South Africa •  US$ 39m construction of Umhlanga Liberty Regional Office, South Africa •  US$ 58m extension and refurbishment project – Liberty Promenade Shopping Centre,

South Africa •  Construction of two new hotels – US$ 13m Liberty Midlands Stay Easy Hotel and US$

34m Umhlanga Garden Court hotel, South Africa •  US$ 200m mixed use development – Levy Business Park - in Lusaka, Zambia •  US$ 40m commercial development of Mbabane Office Park in Mbabane, Swaziland

Sandton City – Super Regional Flagship

•  Construction costs: US$ 219m •  New Area : 30 340m² •  Location: Sandton ( JHB) •  Owner: Liberty Holdings Ltd (75%) & Pareto (25%) •  Over 330 shops in total •  Highest monthly spend R70,000,000 •  Total project cost including the mall refurbishment R1,770,000,000 •  New retail space created 30,000m2 •  Total retail space at Sandton City after extension is complete 158,000m2

In the top five for ownership of high quality assets in South Africa

Rank by GLA Shopping centre name GLA (sqm) Owner

1 Gateway Theatre of Shopping 158,319 Old Mutual Was earmarked for listing

2 Sandton City 142,000 Liberty Group (Pareto 25%?) 3 Canal Walk 125,510 Hyprop, Ellerines Bros 4 Eastgate Shopping Centre 121,691 Liberty Group 5 The Pavillion 119,182 Pareto 6 Menlyn Park Shopping Centre 119,124 Old Mutual, Pareto Was earmarked for listing 7 Westgate Shopping Centre 106,270 Pareto, Fountainhead, Kaplan Family Trust 8 Centurion Retail node 95,647 Fountainhead, Attfund 9 Cresta 94,073 Pareto

10 Northgate Shopping Centre 90,572 Growthpoint, Sasol PF 11 Clearwater Mall 85,312 Attfund New listing 2011 12 Galleria Shopping Centre 84,536 Keystone and Resilient 13 Tygervalley Centre 82,513 Pareto and Metropolitan Life 14 Oriental Plaza 80,616 Body Corporate- Oriental Plaza 15 Hemingways Mall 80,475 Billion Group/Rebosis New listing 2011 16 Festival Mall 79,946 Acucap 17 Greenstone Shopping Centre 76,000 Sasol PF 18 Mall of the North 75,000 Resilient 19 The Glen 74,624 Hyprop, Ellerines Bros 20 Kolonnade Shopping Centre 71,146 Growthpoint, Sasol PF 21 Woodlands Boulevard 71,135 Attfund New listing 2011 22 Bedford 70,000 Win Twice 23 Southgate mall 69,750 Pareto, Fountainhead, Sycom 24 V&A Waterfront retail node 66,350 Growthpoint New listing 2011 25 Somerset Mall 65,848 Sycom, AECI PF 26 Boardwalk @ Inkwazi 65,394 Pangbourne 27 CapeGate Regional Centre 65,156 Attfund New listing 2011

Source: SASC Directory 2011, Company data *Regional malls that are listed highlighted in yellow

From Rural Beginnings

The original 1970’s decor gave Sandton City the feel of a covered street

Sandton City – Super Regional Flagship

Retail – Case Studies

•  Thomas Sabo : During December, Sandton City Thomas Sabo measured themselves against the

Cambridge store and by 24 December 2011, they were leading in sales for December by 5000 pounds.

•  Cotton On : Have 1000 stores in 10 countries and are represented in both the Northern and Southern hemisphere. The opening of the first Cotton On store in South Africa in Sandton City in November 2011 was hugely successful and has been well received by the Sandton shoppers.

Sandton City Exterior and Liberty Towers

 

Sandton  City