Landis+Gyr Headquarters

Transcription

1 The Kase Group Landis+Gyr Headquarters 2800 Duncan Road Lafayette, IN $14,375, Built-to-Suit Class A Corporate Headquarters Lease Guarantor SIEMENS (S&P Rated: AA- Credit) Priced Well Below Replacement Cost Four (5) Year Renewal Options at FMV Presented By: Kase Abusharkh Bob Hudson 252 Abigail Circle Danville, CA (925)

2 Table of Contents 1 Financial Analysis Executive Summary Investment Information Financial Summary Rent Roll Summary 2 Tenant Profile 3 Site Information Pictures

3 1. Financial Analysis

4 Landis+Gyr Headquarters Executive Summary 2800 Duncan Road Lafayette, IN List Price $14,375,000 Price per S.F. $97.13 CAP % Building S.F. 148,000 Rentable S.F. 147,000 No. of Parking Spaces 300 Land Acres Cross Street Sagamore Pkwy N (Hwy 52) Tax Parcel Number Market Indianapolis/Chicago Sub Market Tippecanoe County Year Built 2000 Building Class A Location Class A No. of Stories 2 Number of Tenants 1 Property Descriptions Major Tenants Landis+Gyr, founded in 1896, is the global leader in the design, manufacture & distribution of electricity meters and related equipment. Purchased in 2004 by Bayard Energy, a subsidiary of Bayard Capital, Landis+Gyr's worldwide sales are in excess of $500 million. Landis+Gyr is currently under a 10 year NNN lease which commenced at building completion in July Lease guarantor is the Siemens Corporation, the US arm of German based Siemens AG and former owner of Landis+Gyr. Siemens AG has net worth above $32 billion and S&P credit of "AA-". Annual rent for this asset is $1,473,703 throughout the remainder of the original lease term expiring June With the ever-increasing need for energy conservation today, Landis+Gyr remains at the forefront of the industry with their "smart metering" products. This new technology will help to ensure Landis+Gyr's continuing dominance in the field of electricity metering. Construction Structural construction consists of steel framing with Reynolds aluminum and reflective glass ribbon on the exterior. Roofing is rubber membrane. The landscaping surrounding the property is professionally maintained. The land topography is level. Overall, the space consists of 61% office and 39% warehouse space. There are three 9x10 dock doors and one drive-in door. Clear heights are 25 warehouse and 16 production. Additional amenities include an automatic control system roof-top HVAC system by Trane/Liebert (100% A/C). Power is supplied by 3,000 KVA 480V, 3-phase service with two twin 2,000 amp systems. The building is fully sprinkled for fire safety. Utility companies include: natural gas Vectren, electricity Cinergy, water & sewer City of Lafayette and telecommunications Verizon. Security is enforced with a card checkpoint system. The facility also features CAT 5E cable fiber optics, compressed air in the production area, and a conference/training room.

5 Parking There is an asphalt covered exterior parking surface with 300 spaces. Area Lafayette, Indiana, is located along Interstate 65, 60 miles northeast of Indianapolis and 108 miles southeast of Chicago and is home to Purdue University. Private industry and commerce are very healthy in the Lafayette area with notable companies such as Alcoa, Caterpillar, Wabash National, Eli Lilly, and Subaru, the new recipient of a contract with Toyota to begin manufacturing their top-selling Camry sedan in Lafayette. Indiana remains at the forefront for corporate investment as the state continues to attract national companies through various tax and business incentives. Indianapolis ranks third lowest in business costs for large cities, offers strong economic stability, and provides a superior interstate-highway network with over 75 percent of the US and Canadian population within a one-day's truck drive. Approximately 100 manufacturing and industrial firms operate in Tippecanoe County employing about a third of Tippecanoe County's workforce. Property This offering allows the incoming investor an opportunity to purchase the Class-A facility below replacement cost at only $105 psf, leased to a prominent company in the high-growth energy sector. Landlord's only responsibilities include roof and structure replacement. Tenant is solely responsible for all maintenance, taxes, & insurance. There are four five-year renewal options at fair market value.

6 Landis+Gyr Headquarters 2800 Duncan Road Lafayette, IN Investment Information Listing Price $14,375,000 Actual CAP % CAP Price Per S.F. $97.13 Expenses Per S.F. $0.00 Building S.F. 148,000 Rentable S.F. 147,000 No. of Parking Spaces 300 Land Acres Loan Amount $9,480,293 Down Payment $4,894,707 Loan Description Assumable financing from KeyBank National with 38.8% down, 8.29% interest amortized over 30 years with principal due 10/2011. There is no penalty within 12 months of maturity date and can be defeased at any time. Estimated Annualized Operating Data Actual Scheduled Income $1,473,703 Less Vacancy $0 Gross Operating Income $1,473,703 Less Expenses $0 Net Operating Income $1,473,703 Less Loan Payment $909,421 Pre-Tax Cash Flow $564,282 Cash on Cash Return % Estimated Annualized Expenses Highlights Actual Total Expenses $ Built-to-Suit Class A Corporate Headquarters Lease Guarantor SIEMENS (S&P Rated: AA- Credit) Priced Well Below Replacement Cost Four (5) Year Renewal Options at FMV

7 Financial Summary Estimated Annualized Operating Data Actual Scheduled Income $1,473,703 Less Vacancy $0 Gross Operating Income $1,473,703 Less Expenses $0 Net Operating Income $1,473,703 Less Loan Payment $909,421 Pre-Tax Cash Flow $564,282 Cash on Cash Return % Existing Financial Summary Existing Debt Loan Amount $9,480,293 Interest Rate 8.29% Annual Payment $909,421 Annual Principal Reduction $79,242 Loan Type Fixed Terms and Description Assumable financing from KeyBank National with 38.8% down, 8.29% interest amortized over 30 years with principal due 10/2011. There is no penalty within 12 months of maturity date and can be defeased at any time.

8 Rent Roll Summary Tenant Name Start Date End Date Occupied S.F. Annual Rent S.F. Occupied Rent % of Total Escalations / Options / Comments Landis+Gyr 7/1/2000 6/30/ ,000 $9.96 $1,473, % Rent is flat for the initial term. Beyond the initial term, there are four (5) year options at FMV Total 148,000 $1,473, %

9 2. Property Analysis

10 Tenant Profile LANDIS+GYR Landis+Gyr is a leading global provider of precision, commercial and industrial, and residential electric meters, as well as innovative metering systems, including the company s open architecture, communication-neutral, Advanced Data Infrastructure (ADI). Globally, the company employs approximately 4,500 people, with the North American headquarters and manufacturing center in Lafayette, Indiana responsible for marketing throughout the worldwide ANSI markets. The U.S. company also oversees operations at the company s Reynosa, Mexico manufacturing facility. Landis+Gyr Inc. is committed to maintaining its leadership position by manufacturing, marketing and delivering state-of-the-art, innovative, high-quality solutions to its customers on time, with value added, and at competitive prices. SIEMENS (NYSE: SI) Siemens AG operates as an electronics and electrical engineering company worldwide. Its Information and Communications segment offers analogue and digital telephones, enterprise solutions, carrier networks, wireless modules, and information technology (IT) environment integration, and IT consulting services. The company s Automation and Control segment provides products and services in low voltage control and installation technology; automation, motion control, and drive system; and process automation areas. It develops plants for industry and infrastructure facilities, water and wastewater treatment, and intelligent traffic systems; offers equipment for factory and logistics automation, airport logistics, postal automation, electronics assembly, and materials handling; and provides products and services for monitoring and regulating temperature, fire safety, ventilation, electricity, and lighting, as well as for security of commercial and industrial property, tunnels, ships, and aircraft. Siemens Power segment offers equipment for converting energy into electricity and heat; and supplies various power-related equipment, systems, and services. The company s Transportation segment provides products and services for railway transportation. Its Medical segment offers diagnostic and therapeutic systems and devices, and information technology systems for clinical and administrative purposes. Siemens Lighting segment offers lighting products for various applications. Its Financing and Real Estate segment offers various services, including equipment and sales financing, project and export financing, investment management, and insurance services, as well as provides real estate development, disposal, lease, and management services. Siemens AG was founded by Werner von Siemens and Johann Georg Halske in It was formerly known as Siemens & Halske and changed its name to Siemens AG in The company is headquartered in Munich, Germany.

11 JULY 2004 PRESS RELEASE BAYARD ENERGY BUYS WORLD S LARGEST ELECTRICITY METER MANUFACTURER 12 July 2004 Bayard Energy, the energy management and conservation division of Bayard Capital, today announced it had agreed to acquire the world s largest electricity meter manufacturer, the Swissbased company Landis+Gyr. Landis+Gyr is the global leader in the design, manufacture and distribution of electricity meters and related equipment. Bayard is purchasing the company from Demag Holding, a company owned 81 per cent by Kohlberg Kravis Roberts and 19 per cent by Siemens. The Landis+Gyr acquisition follows Bayard s purchase last year of Ampy , the market-leading electricity and gas metering company based in Australia and the United Kingdom. The combined group will have more than 3,500 employees located in 27 countries and annual sales of more than A$750 million. The managing director of Bayard Capital, Cameron O Reilly, said: Every house and every business needs an electricity meter. This deal thus establishes us as the global leader in an essential industry. Moreover, it is further progress towards our goal of building the pre-eminent energy management and conservation group over the long term. Founded in 1896, Landis+Gyr has an unsurpassed reputation for technical excellence and the largest research and development commitment in the industry. Combining it with Ampy , our existing electricity and gas metering business, creates a force with critical mass and global reach in the rapidly growing market for smart metering. Smart meters allow utilities to receive timely data from consumers about demand and return information about pricing to them, which allows for more efficient management of capacity. The utility collects the data remotely, rather than physically reading the meter. Mr O Reilly added: In a world in which energy conservation is of ever-increasing importance, the ability to monitor usage in an efficient, accurate and technically sophisticated manner is vital. He said the international trend towards smart meters was being driven by several factors, such as the electricity capacity restrictions and shortages experienced in the United States and Europe in recent years. Another factor was the need to address environmental concerns, where smart metering offered a cost-effective complement to renewable energy. Smart metering systems help utilities get more out of their existing capacity, lessening the need for more power plants, with consequent environmental benefits, he added. He said Landis+Gyr and Ampy had strong international brands and excellent management teams, providing a sound platform for future investment and development over the long term. As part of the transaction, DB Capital Partners, part of Deutsche Bank in Australia, is investing in Bayard Capital and becoming a substantial shareholder in Bayard Capital. Deutsche Bank advised Bayard Capital. National Australia Bank and CSFB jointly arranged debt financing.

12 BAYARD GROUP Since its establishment in 2002, Bayard has committed over $500m ( 295m) to the energy measurement and efficiency sector. Bayard s combined investments have an annualized revenue base already in excess of A$1.1billion ( 650ml) with operations in 30 countries. Bayard is dedicated to investing in areas such as smart metering that can contribute to better environmental outcomes. A substantial private firm that will ultimately become a listed public company, the current principal shareholders of Bayard Group are interests associated with: DB Capital Partners (the private equity arm of Deutsche Asset Management in Australia), Allianz Capital Partners, Douglas Myers, John B. Fairfax, Sofina S.A., Dubai International Capital, Sir Anthony O'Reilly, Kerry Stokes, Carla Zampatti, the Jack and Robert Smorgon Families, Cameron O'Reilly, and Sears Wiederkehr. In turn, these shareholders are represented by a highly experienced board of directors. Bayard's first acquisition was the global electricity and gas meter business Metering (now named Ampy Metering) in August Ampy, the UK arm of the company, designed the meters for the world's largest smart metering roll-out by Enel, the major national utility of Italy. Installation of the approximately 27 million customer systems is nearing completion. Bayard s second major acquisition, in October 2004, was the purchase of Landis+Gyr, the global metering company headquartered in Switzerland. L+G is the vendor for the City of Rome s 1.5 million customer smart metering roll-out. At the end of ,000 premises in Rome had been upgraded with L+G s advanced systems. In May 2006 Bayard purchased Hunt Technologies Inc. Hunt is one of the leading developers of advanced metering infrastructure (AMI) technologies in the United States. Based in Minnesota, Hunt Technologies has been serving the American utility industry since 1987 and has deployed its systems at more than 480 utilities. During the same month Bayard agreed to acquire Enermet Group Oy. Based in Finland, Enermet is one of the world's leading suppliers of Advanced Metering (AM) solutions to the electricity industry. The company has been a pioneer in load management for more than 60 years and in automatic meter reading for more than 20 years. It has a large number of installed systems throughout the world, particularly in the Nordic region where it is the established market leader in AM. Bayard is committed to the future of demand management and sustainable energy more broadly. Bayard management is currently focusing on growth opportunities for Bayard Metering as well as investigating additional investments in the energy and broader environmental sectors.

13 3. Additional Information

14 Location Map

15 Aerial Photo from 2,500' Aerial Photo from 12,600'

16 Elevated Site Photo Site Plan

17 Floor Plan 1 Floor Plan 2

18 Lobby Area Reception Area

19 Parking Lot Dock Door

20 Additional Photo Additional Photo