Tai Tran
                  Victoria Sze
                   Giang Tran
                 Hong Nguyen
                  Susie...
One Opportunity
                Two Alternatives



                                     Private
Public Equity
           ...
Investment            Industry           Opportunities           Risks
• $100m               • Real Estate in   • Expected...
Public     Private
Equity   Placement




                     Strategic
                      Partner
• Real estate requires
              high level of expertise
Expertise   • Timing is everything      PRIVATE PLACEMENT

  ...
Australian Real Estate Index
 A 72% fall from
  peak
 Projection: hit
  bottom on
  January 2010
 Take advantage
  of c...
• Falling short behind in
                                              PRIVATE PLACEMENT
  Financial       Current Ratio,...
CBA            WBC           ANZ           NAB
ROE              18.33%         19.52         12.3%         13.8%
CURRENT
R...
• Bounce back in
 Recovery       2010
 Forecast
                                    PRIVATE PLACEMENT

                   ...
Category    •Investment
                                                       Financial
                                 ...
National Australia Bank Real Estate Investment Prospects
National Australia Bank Real Estate Investment Prospects
National Australia Bank Real Estate Investment Prospects
National Australia Bank Real Estate Investment Prospects
National Australia Bank Real Estate Investment Prospects
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National Australia Bank Real Estate Investment Prospects

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A presentation on an investment opportunity for National Australia Bank in 2009

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National Australia Bank Real Estate Investment Prospects

  1. 1. Tai Tran Victoria Sze Giang Tran Hong Nguyen Susie Huang Huy Truong Dylan Taylor Fay Eric 24/8/2009 Public Version
  2. 2. One Opportunity Two Alternatives Private Public Equity Placement
  3. 3. Investment Industry Opportunities Risks • $100m • Real Estate in • Expected return: • Global crisis • Make a decision: Eastern Coast 12% (base case) • Low to medium Public Equity or • Agricultural • Diversify portfolio liquidity Private Placement purpose: Farms and risks • Interest risk • Extend influence over the industry • Penetrate unsaturated market • Cheap labour
  4. 4. Public Private Equity Placement Strategic Partner
  5. 5. • Real estate requires high level of expertise Expertise • Timing is everything PRIVATE PLACEMENT Advantages 1. Macquarie is • Avoid information experienced in real New leakage estate investment • Need to expand Market networks 2. Private placement is time-saving 3. Confidentiality is ensured • Base scenario: within 4 4. Enter complex Time months contracts Frame
  6. 6. Australian Real Estate Index  A 72% fall from peak  Projection: hit bottom on January 2010  Take advantage of cheap price  Tale advantage of cheap labour
  7. 7. • Falling short behind in PRIVATE PLACEMENT Financial Current Ratio, EBIT position Advantages 1. Less risky 2. Would not affect current share price • Dilution to total equity 3. Risk separation Concentration capital = 0.68% 4. Negotiable discount of 5. Less requirement of Shareholding regulatory compliance 6. Cost-saving & time- saving • Corporate governance Regulatory • Corporate Act Disadvantages 1. Dilution of Compliance • Regulation on financial shareholding is limited institution
  8. 8. CBA WBC ANZ NAB ROE 18.33% 19.52 12.3% 13.8% CURRENT RATIO 1.48 1.48 1.27 1.27 EBIT INTEREST COVERAGE 0.29 0.24 0.18 0.11 D/E 0.44 0.44 0.54 0.47 EPS 3.48 2.06 1.7 2.62 P/E 13.68 13.66 11.62 10.21
  9. 9. • Bounce back in Recovery 2010 Forecast PRIVATE PLACEMENT Advantages • Individual 1. Institutional partner Global Crisis investors refrain with strong financial from investing background 2. Stimulus package given to large company • For large Government companies Stimulus
  10. 10. Category •Investment Financial Returns Value •$100m Long- Utilize •Real Estate Diversi- Macquarie Industry •Agricultural purpose fication term expertise Values & network •Private Placement Finance •Partner: Macquarie Group Take •Base 4 months advantage Time •Backup plans: 2 of the Plan months & 6 months downturn

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