MOOREBANK BRICK QUARRY REDEVELOPMENT
PROJECT TEAM
ESP
FINANCIAL
ADVISORY
SOPHIE MCLEAN
CFO
PAUL MCNAMARA
Managing Director
EMMA COSGROVE
Market Analyst
ESP
FINANCIAL
ADVISORY
FINANCING STRATEGIES
Presentation delivered to Boral by ESP
31 May, 2014
PROJECT GOALS
AND OBJECTIVES
BORAL VALUES
AND PHILOSOPHY
PROJECT
CONSTRAINTS
DEVELOPMENT OPTIONS
CUSTOMERS
SHARE-
HOLDERS
BORAL
STAFF
COMMUNITIES
EXCELLENCE
INTEGRITY
COLLABORATE
ENDURANCE
SALE AS IS
Quarry no longer a useful resource
Convert to liquid asset
- meet debts
- new ventures
Sale now does not reflect land's potential
In line with sustainability and community values
costly
sale does not reflect potential
REMEDIATE
AND SELL
REMEDIATE
AND DEVELOP
Redevelop to achieve highest and best use
- Boral already owns asset
- Use of other business arms
- Good market conditions
Enter a 3-way Joint Venture
Boral to contribute land, remediation, rezone, management costs
Capital contribution = rezoned land value + remediation/fill costs
LendLease and Stockland as parties to JV
CAPITAL
STRUCTURE
Expand core business
Environmental/Social responsibility
Minimise company risk
Maximise shareholder wealth
RATIONALE
DISTRIBUTION OF
CASH PROCEEDS
1. Boral receive preferred return of equity stake
2. Partners receive proportional cash proceeds until capital returned
3. Boral receive 15% return on invested capital
4. Remaining cash proceeds split between JV partners (refer to report)
100% debt financed
50% financial intermediary lending
50% unsecured bond
Minimised risk
Maximised shareholder wealth
Cash Neutral Funding
FINANCING
RISK MITIGATION
AND EXIT STRATEGY
FINANCING
Financial liabilities - shared risk
Balance between leverage and risk/rate of return
interest rate risk
Skill capacity
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MOOREBANK REDEVELOPMENT FINANCING OPTIONS
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