2. 3
CAPABILITIESSTATEMENTBALANCINGINTERESTS&OBJECTIVES
BALANCING INTERESTS & OBJECTIVES
EG SERVING POWERFUL PARTNERSHIPS
FINDING
ABSOLUTE
ALIGNMENT®
The pendulum symbol
represents our commitment
to being in alignment
with our partners.
EG IS A REAL ESTATE
FUND MANAGER WITH
MARKET LEADING
PERFORMANCE OVER
THE 15 YEARS SINCE
ESTABLISHMENT.
Our team is nimble and innovative when
identifying investment opportunities. This
approach is balanced by a disciplined and
systematic rigour in managing risk, accordingly
realising consistently strong returns for
our investors.
We are focused on creating alignment in our
relationships with capital partners because we
believe that this is fundamental to long term
success. We value lasting relationships and
the authenticity of these connections.
Our systematic, data-driven approach is
underpinned by our unique risk management
system, PRISMS®. This web enabled software
ensures a methodical approach to identifying,
evaluating and pricing market and asset risk.
This proprietary technology has allowed
EG to be a leader in the industry.
3. 5
CAPABILITIESSTATEMENTCONTENTS
ADAM GEHA
CHIEF EXECUTIVE OFFICER
FOUNDING DIRECTOR
“DOING THE RIGHT THING
BY INVESTORS MEANS
EVERYONE WINS.
”
CONTENTS
OUR MARKET 7
INVEST WITH EG 9
Active Investment Mandates
Consistently High Returns
THE EG DIFFERENCE 14
ABSOLUTE ALIGNMENT® 17
PRISMS® 19
EG DIVISIONS 22
EG Developments
EG Urban Planning
EG Property USA
WE ARE EG 34
4. 7
CAPABILITIESSTATEMENTOURMARKET
ACTIVELY INVESTING TO
OUTPERFORM MARKET RETURNS
EQUITYRETURNS(%)P.A.
7
10
14
20
25
RISK
CORE
CORE
PLUS
VALUE
ADDED
OPPORT-
UNISTIC
CORE
Properties in prime locations
often with blue chip tenants.
Stable, counter-cyclical
investment offering.
CORE PLUS
Core properties showing
potential for enhanced
returns, typically by way of
refurbishment and or re-letting.
VALUE ADDED
Non-core properties
with the potential for
greater returns if correctly
rezoned or repurposed.
OPPORTUNISTIC
These include residential and
commercial developments and
special situations portfolios.
THERE ARE ALWAYS OPPORTUNITIES
TO EXCEL FOR THOSE WILLING TO
WORK HARD AND SMART ENOUGH. WE
EMBRACE A RANGE OF ACTIVE ASSET
MANAGEMENT STRATEGIES TO ACHIEVE
STRONG RETURNS.
5. 9
CAPABILITIESSTATEMENTACTIVEINVESTMENTMANDATES
ACTIVE INVESTMENT
MANDATES
COMMERCIAL
ASSETS
BY SECTOR
THE EG TEAM’S CAPITAL TRANSACTION EXPERTISE AND
EXPERIENCE COVERS ALL COMMERCIAL ASSET CLASSES,
INCLUDING: OFFICE, RETAIL, INDUSTRIAL, HOSPITALITY AND
DEVELOPMENT SITES.
CORE PLUS
INVESTMENT MANDATE
EG is currently fulfilling an
investment mandate to acquire
a further AU$400 million in
Core Plus assets. The focus of
this mandate is to acquire office,
retail and industrial properties
in Sydney, Melbourne and
Brisbane.
YIELD PLUS INFRASTRUCTURE
INVESTMENT MANDATE
The Yield Plus Infrastructure
(YPI) investment mandate
invests in yield-producing
assets likely to benefit
from urban renewal arising
from new transport or
community infrastructure.
The upside is realised through
rezoning, repositioning
and redevelopment. The
geographical focus of this
mandate is on Australian
capital cities.
OPPORTUNISTIC
FUNDS
We’re participating in several
joint-ventures with international
and domestic investors to
redevelop eight major urban
renewal sites in Australian
capital cities.
“WE CHOOSE
TO BE DEFINED
BY THE WAY WE
DO BUSINESS,
AS MUCH AS THE
BUSINESS WE DO.
MICHAEL EASSON AM
EXECUTIVE CHAIRMAN
FOUNDING DIRECTOR ”
ASSETS
BY SECTOR26%
RETAIL
16%
INDUSTRIAL
26%
MIXED USE
DEVELOPMENT
27%
OFFICE
2%HOSPITALITY
3%
VACANT
LAND
7. 13
CAPABILITIESSTATEMENTACHIEVINGCONSISTENTLYHIGHRETURNS
PROPERTY
ACQUISITION
DATE
PURCHASE
PRICE (AU$)
SALE
DATE
SALE
PRICE (AU$)
REALISED
EQUITY IRR PA
Brunswick East, Vic April 2009 8.7m Nov 2010 14.9m 32.0%*
East Perth, WA June 2008 11.6m Jan 2013 15.3m 14.7%
Allengrove, Ryde, NSW 2003-2006 10.8m July 2013 19.3m 9.0%
Harrington St, Sydney, NSW Sep 2011 7.1m Nov 2013 12.9m 46.0%
Whiteside, Ryde, NSW 2004-2008 7.9m Dec 2013 25.2m 18.0%
Burwood, NSW Sep 2010 25.4m Feb 2014 35.6m 25.3%
Surry Hills, NSW Mar 2011 36.7m Dec 2014 50.3m 24.0%
Fremantle, WA Oct 2005 38.0m Dec 2014 40.0m 1.6%
Summer Hill, NSW Sep 2007 21.9m Mar 2015 50.0m 12.0%**
Five Dock, NSW Oct 2007 9.8m Dec 2014 25.0m 14.6%**
AVERAGE EQUITY IRR: 19.7%
* Ungeared
** Ungeared, 75% JV Sale
ACHIEVING CONSISTENTLY
HIGH RETURNS
Our realised returns over the past five years have
delivered an average equity IRR above 18% p.a.
We’ve recorded positive returns on every single asset acquisition
we’ve made thus far. We are unaware of any other Australian fund
manager that can make the same claim in the wake of the global
financial crisis.
EG RETURNS ON ASSETS OVER AU$10 MILLION
“WE’VE CONSISTENTLY
OUTPERFORMED OUR PEERS
IN THE AUSTRALIAN VALUE-ADD
PROPERTY SECTOR.
ROGER PARKER
EXECUTIVE
DIRECTOR ”
8. BALANCING
OPPORTUNITY
& INTEGRITY
EG WHEN WE DO
THE RIGHT THING
EVERYBODY WINS
THE EG
DIFFERENCE
PRISMS®
FILTER THE DEALS
Risk management is a priority
at EG. We’ve developed
our own proprietary risk
assessment model to clearly
measure and price real estate
risks, providing specific
guidance to the team.
PROPRIETARY
INVESTMENT MODEL
Our success is due to a
focused, strategic approach
to investment in real estate.
We view real estate as a
‘network asset’, so we map and
analyse infrastructure to assess
its impact on values,
and highest and best use.
TEAM
CULTURE
EG Grow is a unique, personal
and professional development
program created by EG,
to cultivate high levels of
engagement and trust among
team members. This allows
vital decisions to be debated
without personal agendas.
TEAM
CULTURE
ABSOLUTE
ALIGNMENT™
DEAL
FLOW
PROPRIETARY
INVESTMENT
MODEL
PRISTEAM
CULTURE
ABSOLUTE
ALIGNMENT™
DEAL
FLOW
PROPRIETARY
INVESTMENT
MODEL
PRISMS
TEAM
CULTURE
ABSOLUTE
ALIGNMENT™
DEAL
FLOW
PROPRIETARY
INVESTMENT
MODEL
PRISMS
ABSOLUTE
ALIGNMENT®
Our proprietary
alignment model:
1. Base fees as a fixed dollar
amount based on resourcing
and costs, never as a
percentage of FUM.
2. First loss co-investment
by EG.
3. Success fees are back-ended,
with Investors receiving
realised returns first.
TEAM
CULTURE
ABSOLUTE
ALIGNMENT™
DEAL
FLOW
PROPRIETARY
INVESTMENT
MODEL
PRISMSTEAM
CULTURE
ABSOLUTE
ALIGNMENT™
DEAL
FLOW
PROPRIETARY
INVESTMENT
MODEL
PRISMS
DEAL FLOW
FIND THE DEALS
Our extensive network of
contacts gives us access to
a constant stream of off-
market and pre-market deal
opportunities. We contact
over 240 real estate agents
monthly through a rigorous,
structured program which
is actively monitored,
scored and rewarded.
15
CAPABILITIESSTATEMENTTHEEGDIFFERENCE
9. 17
CAPABILITIESSTATEMENTPAGEHEADING
17
CAPABILITIESSTATEMENTABSOLUTEALIGNMENT®
WE BELIEVE THAT ALIGNMENT IS
VITAL TO LONG-TERM INVESTMENT
OUT-PERFORMANCE. WE’VE DEVELOPED
A PROPRIETARY ALIGNMENT MODEL
CALLED ABSOLUTE ALIGNMENT®
TO SUPPORT THIS BELIEF WITH
A SET OF CORE PROMISES:
01We will always quote our base
fees in dollar terms, not as a
percentage of Funds Under
Management (FUM). This is
because we believe that base
fees should be tightly linked to
resourcing and cost recovery. It
should not deliver a substantial
profit to the fund manager.
02We will always co-invest
alongside our investment
partners and we will do so in a
“first loss” position. This is to
ensure that we will remain
supremely focused on
downside risk potential.
03We will always receive our
success fees only after all
the assets have been sold
(i.e. realised, rather than
on valuation).
ABSOLUTE
ALIGNMENT®
TEAM
CULTURE
ABSOLUTE
ALIGNMENT™
DEAL
FLOW
PROPRIETARY
INVESTMENT
MODEL
PRISMS
10. 19
CAPABILITIESSTATEMENTPRISMS®
A LARGE PART OF EG’S SUCCESS CAN BE
ATTRIBUTED TO SUPERIOR RISK MANAGEMENT.
EG HAS DEVELOPED A PROPRIETARY RISK
MANAGEMENT SYSTEM, PRISMS®, TO IDENTIFY
RELEVANT RISKS AND QUANTIFY APPROPRIATE
PRICING PRIOR TO ACQUISITION.
PRISMS® is a proprietary,
web-enabled software that
calculates scores for systematic
risk (property cycle risk), asset
betas (susceptibility to property
cycle risk) and asset-specific
risks based on the risk profile
of the particular asset.
These risk scores are combined
by a weighting system to
calculate an overall risk
score for each investment
prior to acquisition. This
allows us to compare all
investment opportunities
on a risk-return basis.
SYSTEMATIC
RISK SCORE
(MACRO)
SYSTEMATIC
RISK SCORE
(SECTOR SPECIFIC)
DEAL SPECIFIC
SYSTEMATIC
RISK SCORE
CYCLE-ADJUSTED
SYSTEMATIC RISK
WEIGHTING
ASSET
BETA RISK
WEIGHTING
FINAL WEIGHTING
TO SYSTEMATIC RISK
DEBT
ACTIVE CAPITAL
GROWTH
PASSIVE CAPITAL
GROWTH
NET YIELD
WEIGHTED
ASSET RISK
RISK LOADING
FOR DD /
VENDOR RISK
APPLY BALANCE
TO ASSET RISK
DECONSTRUCT
BASE CASE IRR
RISK DEAL
SCORE
RISK–RETURN
RATIO
WEIGHTED
SYSTEMATIC RISK
®
12. EG DEVELOPMENTS
RESIDENTIAL
REZONING
EG RESONATING
WITH LOCAL
COMMUNITIES
EG develops high-quality residential
projects with a focus on urban
planning and architectural design.
Our developments across Australia
have a pipeline value of more than
AU$2.0 billion. The portfolio includes
several high profile sites in Drummoyne
and Summer Hill, NSW.
We work hard to create lasting
relationships with our joint-venture
partners, architects and construction
experts. This mutually beneficial
approach extends to the communities
we build within.
(Professional render of Tempo, Drummoyne)
23
CAPABILITIESSTATEMENTEGDEVELOPMENTS
13. The Flour Mill at Summer Hill is located in a unique, village-like
suburb in Sydney’s inner west. The community is tight knit with
a strong sense of local history, and it was essential to EG to
engage in a consultative approach with local residents from the
project’s inception.
The location capitalises on the new light rail that runs adjacent
to the Flour Mill, representative of the urban renewal within the
surrounding area. EG recognised the potential to revitalise the site
through retaining the existing heritage of the iconic Allied Mills
silos, while complementing them with contemporary design.
Hassell, a leading international design firm, created an integration
between the old and the new by weaving the industrial history of
the site into modern apartments. The architecture has seamlessly
retained the well-known silhouette of the Flour Mill through
incorporating 45 of the new homes within the silo structure.
The development has been undertaken as a joint venture with
Japan’s largest home builder, Daiwa House.
BALANCING
PRESENT & PAST
EG SUMMER HILL
FLOUR MILL
REDEVELOPMENT
25
CAPABILITIESSTATEMENTBALANCINGPRESENT&PAST
14. 27
CAPABILITIESSTATEMENTEGURBANPLANNING
EG Urban Planning always works to add
value through its proven property experience,
financial management skills and technical
expertise in obtaining land use changes and
upzonings through consent authorities.
Each property’s land use potential is assessed
on a case-by-case basis having regard to
its existing zoning, location, size, shape
and relationship to nearby properties and
infrastructure, rental potential and state
of repair.
We work with clients from a project’s
inception to completion, commission specialist
consultants and project manage the rezoning
and/or development approval process.
We’re proud to have worked with clients
including The University of NSW, Goodman,
McDonalds, ING, Australand, GPT and Multiplex.
EG’S URBAN PLANNING
SERVICES PROVIDE STRATEGIC
ADVICE AND PROJECT
MANAGEMENT EXPERTISE TO
ACHIEVE HIGHEST AND BEST
USE OF PROPERTY PORTFOLIOS.
EG URBAN PLANNING
15. 29
CAPABILITIESSTATEMENTPAGEHEADING
EG offers investors a tailored approach to
investing in real estate in the United States.
The United States office opened in 2012,
created through the opportunity to diversify
our high-net worth investors’ portfolios offshore.
The higher prospective yields, coupled with the
long term prospects of job-hungry millennials,
have made Austin a prime investment location
for high net worth Australian investors.
We offer a range of opportunities from property
funds to purpose-built real estate portfolios.
EG’s portfolio comprises single and multi-family
homes, which are renovated and sold, or held
for rental yield. EG has developed a strong track
record with returns in excess of 20% p.a.
EG PROPERTY USA
BALANCING
RISK & RETURN
EG RESIDENTIAL
INVESTMENT
OPPORTUNITY
EGPROPERTYUSA
16. 31
CAPABILITIESSTATEMENTENVIRONMENTAL,SOCIALANDGOVERNANCE
EG incorporates Environmental, Social and
Governance (ESG) standards throughout the
investment management process.
EG ensures our urban renewal and redevelopment
projects remain sympathetic to the environment
in which we invest and develop, including heritage
responsibility, environmental management
and engagement with the community through
consultative processes.
EG is also a signatory to the UN Principles
of Responsible Investment (UNPRI)
and records and reports annually on its
adherence to the six principles of responsible
investment across the business.
Giving is a large part of EG’s culture.
Through various programs, the team has
many opportunities to support those in need.
EG currently sponsors two charities: Half the Sky
Foundation, which cares for orphaned children
in China, and a local child care facility in Manila,
which supports underprivileged families. EG
assists these charities through financial support
and the team members participate by donating
time, clothing, toys and through personal giving.
IT’S PART OF OUR FIDUCIARY
DUTY TO CONSIDER ALL
FACTORS WHICH MAY
IMPACT STAKEHOLDERS,
THE COMMUNITY AND THE
ENVIRONMENT.
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
18. 35
CAPABILITIESSTATEMENTWEAREEG
MARK TURNER
EXECUTIVE DIRECTOR
ROGER PARKER
EXECUTIVE DIRECTOR
ADAM GEHA
CEO
FOUNDING DIRECTOR
MICHAEL EASSON AM
CHAIRMAN
FOUNDING DIRECTOR
BSc Urban Land, GAICD, MRICS
Mark sits on EG’s investment committee and oversees
the asset management of EG’s retail, and office assets. In
addition, Mark is integrally involved in capital raising for
EG’s funds and mandates.
Mark has over 25 years’ experience in real estate funds
management, formerly Head of Funds Management at
DEXUS.
Mark has extensive experience investing in real estate in
Australia, UK, Europe and Asia and was responsible for
over AU$4.0 billion of transactions in the last 12 years and
growing a funds management business from AU$4.5 billion
to over AU$6.0 billion, raising equity from investors in
Australia, Europe, Middle East and North America.
BSc (Hons), FAPI, MRICS
Roger leads the delivery of key strategic and operational
objectives, including finding new ventures and identifying
capital partners in Asia, Europe and North America.
He has over 25 years’ experience in property funds
management, based both in the UK and Australia. Prior
to joining EG, Roger held senior positions at Investa
Property Group, Colonial First State and Lend Lease. He
ran property funds and mandates ranging from AU$400
million to over AU$2.0 billion, achieving index leading
performance in these roles.
Roger has been directly responsible for equity capital
raisings exceeding AU$1.0 billion and capital transactions
of assets across domestic and offshore investment sectors
totalling over AU$2.0 billion.
BEcon (Hons) Law (Hons)
Adam is a founding director of EG and is the driving force
behind the vision and strategic direction of the company.
With a passion for team culture, Adam maintains an overall
focus on recruiting, leading and training the team.
As a member of the Investment Committee across all of
EG’s funds, Adam is responsible for key decision-making
on all major acquisitions and divestments. Adam oversees
EG’s proprietary risk management software, PRISMS®,
which is pivotal in determining and measuring risk across all
transactions at EG.
Adam has over seven years’ experience in the investment
banking industry. He advised on a number of high profile
transactions for Macquarie Bank’s corporate advisory and
project finance divisions including Macquarie Infrastructure
Group’s acquisition of a portfolio of European infrastructure
assets, later valued at over AU$1.5 billion.
BA (First Class Hons),
MSc, PhD (History), PhD (Urban Planning & Transport) FAICD, FRICS
Michael sustains EG’s vision and strategic direction,
maintaining a strong engagement with our projects.
He has extensive experience in infrastructure, funds
management and development, and is currently Chair of
ASFA, ActewAGL and Icon Water and an independent
director of ANZ (2000 Olympic) Stadium. He was a
founding director of both Macquarie Infrastructure
Group and Macquarie Goodman. His past directorships
include ING RE, State Super, NRMA Insurance, State
Rail Authority of NSW and Sydney Metro Transport.
Michael was an Adjunct Professor at the Australian
Graduate School of Management’s Centre for
Corporate Change and previously Vice President
of the Australian Council of Trade Unions and
Secretary of the NSW Labor Council.
WE ARE EG
TRANSACTION AND
COMMERCIAL EXPERIENCE
WE ARE EG
TRANSACTION AND
COMMERCIAL EXPERIENCE
19. 37
CAPABILITIESSTATEMENTWEAREEG
WE ARE EG WE ARE EG
RAJA JAMAL
SENIOR DEVELOPMENT MANAGER
KARL HOWARD
ASSET MANAGER
RODNEY WALT
ASSOCIATE DIRECTOR
JUSTIN FOONG
ASST DEVELOPMENT MANAGER
PETER FANOUS
HEAD OF RETAIL INVESTMENTS
MIA KWOK
COMMUNICATIONS CO-ORDINATOR
CHANEL MCARTHUR
OFFICE MANAGER
SALLY BURNS
ASSOCIATE DIRECTOR
GEORGE CHAAYA
CONSTRUCTION DIRECTOR
JANE DALY
RETAIL ASSET MANAGER
GEORGE CHAAYA
CONSTRUCTION DIRECTOR
CLAUD CHAAYA
SENIOR MANAGER / ANALYST
GEORGIA MACINTOSH
ASST DEVELOPMENT MANAGER
AURELIO DI NAPOLI
ASSOCIATE DIRECTOR
SHIELA NUNEZ
EXECUTIVE ASSISTANT
CATHERINE HARDING
GENERAL COUNSEL
SEAN FLEMING
ASSOCIATE DIRECTOR
SPIRO DIMITRIOU
VICE PRESIDENT OPERATIONS (US)
ADRIAN LEE
CHIEF FINANCIAL OFFICER
TESS HATTINGH
HEAD OF MARKETING AND HR
GRANT FLANNIGAN
DEVELOPMENT DIRECTOR
MARK SYKE
PLANNING AND DESIGN DIRECTOR
JOSEPH KALK
SENIOR ACCOUNTANT
DAN FARLEY
DIVISIONAL DIRECTOR
AAKRITI CHONA
PROPERTY ANALYST
21. BALANCING INTERESTS & OBJECTIVES
EG SERVING POWERFUL PARTNERSHIPS
SYDNEY
Governor Phillip Tower
Level 21, 1 Farrer Place
Sydney NSW 2000
Australia
MELBOURNE
Kurrajong House
Suite 2, Level 7
175 Collins Street
Melbourne VIC 3000
Australia
AUSTIN, TEXAS
114 W 7th Street
Suite 1230
Austin TX 78701
USA
T. +61 2 9220 7000
E. contact@eg.com.au
www.eg.com.au
