87 Bay Street, Glebe

Information Memorandum September 2013

As the exclusive selling agent, Savills are proud to offer this landmark mixed use development opportunity located at 87 Bay Street, Glebe. Expressions of Interest closing at 4pm, Tuesday15 October, 2013. Access to Due Diligence room available upon request. Simon Fenn

Managing Director, NSW Savills Australia

+61 438 573 431 +61 2 8215 8830

sfenn@savills.com.au

Stuart Cox

Divisional Director Savills Residential Site Sales NSW

+61 438 770 867 +61 2 8215 8810

scox@savills.com.au

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Index

EXECUTIVE SUMMARY 3 PLANNING SUMMARY 7 LOCATION 9 EXISTING IMPROVEMENTS 11 FINANCIAL SUMMARY 12 DEVELOPMENT HIGHLIGHTS 13 SALES PROCESS 20 DISCLAIMER 21

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Executive Summary Situated within the inner City suburb of Glebe this site represents an outstanding opportunity to acquire an island site situated on the doorstep of the Sydney CBD. Development Highlights Site Area: 5,427sq m

Title Details: Lot 1/DP874988

Zoned: B4 Mixed Use

FSR: 3.85:1 ( inclusive of Design excellence )

Master Plan Approved Mixed-Use Development

Maximum Height Limit: 33 metres

Target Total GFA: 20,894sq m, apportioned as:

• 1,262sq m of Affordable Housing GFA

• 4,070sq m of Commercial / Retail GFA, and

• 15,562sq m of Residential GFA

Existing Holding Income

Situated within close proximity to Sydney University, University of Technology, Pyrmont and Broadway.

Uninterrupted panoramic park, Sydney CBD, district and harbour views.

4 street frontages: • Wentworth St – Approx. 130.6m • Cowper St – Approx. 54.85m • Wentworth Park Rd – Approx. 114.24m • Bay St – Approx. 56.33m

Sales Process Expressions of Interest should be submitted to one of the

exclusive agents by 4pm, Tuesday 15 October, 2013.

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Wentworth Park Rd looking West

*Indicative scheme only

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Aerial view of subject site looking South East

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Wentworth Park Rd looking South East

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Wentworth St looking West

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Urban Planning and VPA Overview 87 Bay Street, Glebe – Urban Planning and VPA Overview This memorandum provides an urban planning overview of the key outcomes, urban planning controls and next steps associated with the completion of a Planning Proposal for the site located at 87 Bay Street, Glebe (the site). Background In November 2011, Chase Property Pty Ltd, owner of the site located at 87

Bay Street, Glebe, made a request to the City of Sydney Council to amend the planning controls for the site.

In October 2012, Council and the Central Sydney Planning Committee resolved to seek a Gateway Determination from the Department of Planning and Infrastructure to allow exhibition of the Planning Proposal, alongside the accompanying development control plan and Planning Agreement.

In November 2012, the Planning Proposal was publicly exhibited for a period of 60 days.

The Planning Proposal sought to:

• Amend the floor space ratio control from 1.5:1 to 3.85:1 (including a potential design excellence bonus);

• Amend the height control to allow for buildings up to 33 metres (approximately 9 storeys); and

• The amended controls can only be accessed where 0.75:1 floor space

ratio is retained for non-residential purposes, where a rate of 7.5% of all residential floor space is provided on-site as affordable housing, nominated public domain improvements are provided, and where BASIX requirements are exceeded by 25%.

Following the exhibition and assessment of the Planning Proposal by

Council, on 25 July 2013 the City of Sydney Central Sydney Planning Committee (CSPC) resolved to approve the Planning Proposal, note to the Draft Development Control Plan and note the Planning Agreement.

Please refer to the Due Diligence Room for a copy of the Urban Planning and VPA Overview document, prepared by MECONE dated 26 August 2013.

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Location

The subject property represents a unique opportunity to acquire a prime city fringe mixed-use development site, suitable for luxury residential, retail and commercial accommodation, situated within the exclusive inner city suburb of Glebe offering outstanding uninterrupted panoramic Wentworth Park, Sydney Harbour and Sydney CBD views.

The property is situated within close proximity to:

1. Sydney University ( 600m )

2. University of Technology ( 700m )

3. Broadway Shopping Centre ( 400m )

4. Central Railway Station ( 900m )

5. Sydney Fish Markets ( 650m )

6. Darling Harbour ( 800m )

7. Sydney CBD ( 2km )

8. Chinatown ( 1.2km )

9. The STAR Casino ( 1.1km )

10. Subject Site ( 87 Bay St, Glebe )

Please refer to the map on the following page for location proximity.

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Existing Improvements

87 Bay Street currently comprises a combination of commercial office, showroom/retail and tertiary education uses extending over part one/part two levels spanning 7 separate buildings.

The property in its current form comprises a total area of approx. 6,555sq m of commercial and showroom lettable space and has a current gross rental income of approximately $2,834,000.

The existing property includes an office warehouse style building occupying an entire block with four street frontages and one basement level of parking.

The building is currently tenanted to Parkview Group, MHM Australia Beauty College and Maxton Fox.

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Financial Summary

Please review the detailed Rental Analysis and Outgoings summary pertaining to the 7 buildings within the aforementioned property.

Tenancy Information

The Australasian College

The Australasian College has a lease that expires on the 3 February 2015 with 2 option periods, however there are options available to the potential purchaser to be able to redevelop the site earlier. These options include:

1. Exercise the relocation clause in the existing lease. ( please refer to the current lease in the Due Diligence Room )

2. Stage the development and move the tenant into the commercial element of the development.

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Tenancy Schedule

The detailed Tenancy Schedule can be accessed via the Due Diligence room.

87 Bay Street, Glebe

Outgoings Schedule 2013 (approx.)

Building Tenant NLA (Sq m) % of Total Area 1 MHM 1,300 18.44%

2 + 5 MHM 2,750 39.02%

3 + 4B + 4C Parkview 785 11.14%

4A Energised Allowance 277 3.93%

6 MHM 398 5.65%

7A Maxton Fox 617 8.75%

7B MHM 921 13.07%

Total 7,048 100.00%

Outgoings Payment 2013 Description City of Sydney $78,714.90 Council Rates

Sydney Water $5,200.00 Water Rates & Usage

Ausure Insurance $40,542.65 Insurance

OSR $116,076.00 Land Tax

Fire Protection $6,750.00 Fire Inspections/Tagging

Coolwire $30,000.00 A/C Mech Vent - Repairs etc

Total Outgoings $277,283.55

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Development Highlights

87 Bay Street represents a unique existing commercial/industrial asset with significant residential development upside.

Project Characteristics

Glebe is regarded as one of Sydney’s Inner City premium apartment destinations and trades off the demand for luxury apartments on Sydney Harbour foreshore.

The Mixed-Use zoning carries with it a potential FSR of 3.85:1.00 (inclusive of Design excellence) along with a height limit of 33 metres (9 storeys).

Master Plan Approved Mixed-Use development

The project benefits from being an island site with four street frontages providing immense natural light and aspect to all elevations.

The site will offer uninterrupted panoramic northerly views over Wentworth Park complete with Sydney Harbour, Sydney CBD and district views.

Existing holding income.

Summary of potential GFA Sq m*

Site Area 5,427

Target Total GFA 20,894

Commercial / Retail GFA 4,070

Affordable Housing GFA (20 Units) 1,262

Private Residential GFA (200 Units) 15,562

Target Net Int. Area – Affordable Housing 1,043

Target Net Int. Area – Private Residential 13,038

*Approx.

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Anzac Bridge

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Actual view from site looking North-East

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Sydney CBD

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Broadway

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SALE PROCESS Savills is seeking Expressions of Interest to acquire a 100% freehold interest in 87 Bay Street, Glebe. To assist the assessment of this opportunity, an online data room is being established by the Vendor for the provision of due diligence including: 1. City of Sydney Planning Information and Approvals 2. Contamination and Geotechnical Reports 3. Infrastructure Investigation Report 4. Indicative Plans and Area Schedule 5. Leases 6. Tenancy Schedule 7. MHM Relocation Design 8. Survey Detail 9. Aerial Images Please contact one of the agents to arrange access to the data room. Prospective purchasers are invited to submit “Expressions of Interest” by 4pm (AEDST) on Tuesday 15th October 2013, addressed to one of the exclusive agents, using the contact details provided on the following page. Expressions of Interest must clearly address the following matters: º Acquisition Price: The amount of consideration in Australian

dollars. º Purchasing Entity: The identity and nature of the legal entity which

will acquire the property, including its place of incorporation and ownership structure.

º Transaction Timetable: Confirmation of the prospective purchaser’s

due diligence and transaction timetable and details of its due diligence team and consultants.

º Capacity to Complete: Prospective purchasers should provide details

of their capacity to complete by the settlement date, including in particular the source of funds and evidence of the prospective purchaser’s financial status.

º Conditions and Approvals: Prospective purchasers must set out in full the

details of any conditions which will need to be satisfied prior to the prospective purchaser either signing or settling the contract for sale eg. deposit amount, settlement terms, due diligence period etc.

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Disclaimer

Although every care has been taken in preparing this proposal, Savills does not verify its accuracy. Information, opinions and forecasts in this proposal depend on the accuracy of any information and assumptions on which they are based, and on prevailing market conditions, for which Savills does not accept responsibility.

No representations or warranties of any nature whatsoever are given, intended or implied about this proposal, any information, opinions and forecasts contained within this proposal or the accuracy or enforceability of any documents referred to in this proposal. Savills will not be liable for any omissions or errors. Savills will not be liable, including for negligence, for any direct, indirect, special, incidental or consequential losses or damages arising out of or in any way connected with use of or reliance on anything in this proposal.

This proposal does not form part of or constitute an offer or contract. Recipients of this proposal should rely on their own enquiries about its accuracy. All images are only for illustrative purposes.

GST

Unless otherwise expressly stated, all amounts, prices, values or other sums stated in this proposal are exclusive of GST.

Confidential information

This proposal is the confidential information of Savills; is strictly for the intended recipient and must not be disclosed to any other party without the prior written consent of Savills.

Copyright

This proposal is copyright material owned by Savills (Aust) Pty Ltd and related entities. Permission to use any part of this proposal must be sought directly from Savills (Aust) Pty Ltd or its related entities. If permission is given, it will be subject to a requirement that the copyright owners name and interest is acknowledged when reproducing the whole or part of any copyright material.

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savills.com.au

Savills Australia

Level 7 50 Bridge Street

Sydney NSW 2000

+61 (0) 2 8215 8888

Simon Fenn

Managing Director, NSW Savills Australia

+61 438 573 431 +61 2 8215 8830

sfenn@savills.com.au

Stuart Cox

Divisional Director Savills Residential Site Sales NSW

+61 438 770 867 +61 2 8215 8810

scox@savills.com.au