PDS_Driftwood_part2

4.

DETAILS OF THE DEVELOPMENT 4.1

Overview

The Development consists of the development and construction

designed and built apartment in an area with high capital growth potential given the positive property fundamentals in Mackay.

Driftwood is the ideal location for home ownership, long-term Investors not only the security of long-term rental tenure but also the potential for higher rental income from short-term serviced apartment leasing.

The site is located in the Northern Beaches region of Mackay, North QLD. Mackay is located approximately 1,000 kilometres North of Brisbane and 400 kilometres South of Townsville.

Mackay LGA has a population of approximately 120,000, with a population of around 170,000 in the Mackay region. Mackay is considered to be a market exhibiting positive demographic, economic and residential property market fundamentals with a diverse, growing and robust economy and a population that is growing substantially faster than the national average.

PRODUCT DISCLOSURE STATEMENT – DRIFTWOOD OFFER

39

4 4.2

Development Approval

The development approval required for the Development Approval).

The Development Approval was endorsed by court order in the Planning and Environment Court of Queensland on 10 October 2012.

Importantly, this materially reduces the risk associated with town planning, meaning that the expected time to completion of the Development following acquisition of months).

In summary, the Development Approval can be described as follows: Site Area: 5,936 sqm 3 distinct buildings

apartments and 51 x 2 bedroom apartments)

4.3

Location

Driftwood is located in the suburb of Blacks Beach, which is one of the nicest northern beaches of Mackay.

Te a

nn

ke St

Beth St

Blacks Bea

Bon d

Blacks Bea

ch Rd

i Rd U lladu

l l a St

Whitehaven Dr

Cc t

Black Beach Reserve

Tce

wp

o r t Pd e

d

40

FUTURE ESTATE AUSTRALIAN RESIDENTIAL PROPERTY FUND

Wy

ir arb Fri Dr fic P

ac i

a rell Co

Ne

e

Mi am i Tc e

m Bo bo C t Co og ee

Newpo rt Pd

Whitehave n Dr

Scarborough Cct

Montgom ery St

Duranb ah

Pitt St

St

Dr

Coffe La

Trinity Pde

GREAT BARRIER REEF Pl

Coral

Elgans Pde

le Turt

ch Rd

Capri St

Blue Pacific Resort

Dr Pacific

Cordia St

Esplanade

Bour

r gh D ana Cav

Slater Av

r Barb er D

Florence St

Su

e Slat r Av

pink s Ct

Dr McLaughlin

Danastas Av

Dr

B u s u ttin

Mul

Poole St

Eimeo Rd

a Rd casi y-Bu Macka

J asmine

Dr

Barber Park

St rke Bou

or

Ma cka y-B uc a sia Rd

ade

St

Blacks Bea

ch Rd

Blacks Beach Park

ise Pl nr

Narrabee n

Mo nt go m er y St Son a n St

largest centre apart from Townsville. Due to the strong

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McAlar yD

Rd

l Eu

Old

Bo

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Ct

r ti e Av

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rd

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eo

r in D B u s utt

Rd

St

Laughlin D r Mc

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Camilleri

Esplan

chay Cr

Salmon Av

fo

r ds D

government, light and heavy industrial sector, resurgence in agribusiness, mining services, growth in business tourism and an emerging marine sector.

Mackay hosts much of the engineering, manufacturing and mining services industries supporting the regional economy in Central North Queensland. Mackay is

St

Ian Woo

Woodlan

Admiral Dr

Camilleri

s Co

Looking to the future, robust growth is forecast for Mackay, with a projected regional population forecast to grow to between 200,000 and 300,000 people within 20 years (Australian Bureau of Statistics). This regional growth is driven by a diverse range of economic drivers such as

aC t

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The Development is located in close proximity to Mackay. Mackay is one of the fastest growing regions in Australia, with a population at June 2010 of 118,842 and

Av

Unique location Absolute beachfront location adjoining Blacks Beach and views over Barrier Reef islands Site orientation, allowing many of the apartments to enjoy Northern or beach front aspects Development Approval is in very scarce supply (limited apartment competition in Mackay or Blacks Beach) Shortage of residential accommodation in Mackay region Dual residential and tourism zoning, which enables both permanent occupancy and short-term serviced accommodation The Development Approval is considered ideal for current market conditions (i.e. well designed and appointed 1 and 2 bedroom apartments investor market)

PRODUCT DISCLOSURE STATEMENT – DRIFTWOOD OFFER

41

4 4.4

Funding the Development

It is the intention of the Investment Manager that the costs and expenses associated with the acquisition of the Property and

3.

The balance of the costs of funding the Development sourced from a Senior Lender to the Development.

1.

Please refer to Section 6 regarding the anticipated construction costs for the Development, the sources of funding and the forecast costs and expenses associated with the Development.

and if required, partial debt funding; 2.

Partial funding of the Development from funds raised

Development Timeframe

4.5

Development Timeframe 30 months 3 months Investment Offer

9 months

Pre-sales (pre-construction) Pre-sales (during construction) Design to D&C Stage Procurement of D&C Contractor

12 months 3 months 2 months 4 months

Obtain Finance Construction Period Strata Titling and Settlement Overall Project

42

FUTURE ESTATE AUSTRALIAN RESIDENTIAL PROPERTY FUND

18 months 3 months

4 4.6

Development Consultants

The Development Manager and/or its related entity have appointed several consultants to provide services for the Development.

The consultants have provided the Development Manager with the following advice in connection with the Development: AG Architects have advised that the design depicted in the drawings produced to date have, to the best of their belief and knowledge, been carried out in order to satisfy the requirements of NCC 2011, Queensland Development Code and other relevant design standards. AG Architects are of the opinion that the design accords with good industry practice and demonstrates a high level of architectural merit.

RPS Australia East Pty Ltd have been appointed by the Development Manager to provide town planning services in

their advice provided complies with the provisions of the Mackay City Planning Scheme and relevant State Planning Policies and legislation, and is in accordance with current good practice.

RPS have also been appointed as consulting surveyors and been engaged to prepare draft survey plans for inclusion in sales contracts. RPS have advised that they are a competent consulting surveyor and are accredited with the Department of Natural Resources to endorse survey plans prior to

BRW Enterprises (QLD) Pty Ltd has been appointed by the Development Manager to complete hydraulic services design and documentation for the Development. BRW Enterprises hydraulic services complies with Australian Standards AS/ J1-8), Queensland Development Code section 4.1 and 4.3, Australian Standard AS/NZS 2419 and AS/NZS 2118.

Building Services Integration Pty Ltd has been appointed as mechanical and electrical engineering consultant for electrical and mechanical services is in accordance with the BCA/NCC 2011, Australian Standards and Queensland Development Code. BSI have advised that the designs are coordinated to a preliminary level as appropriate for a design and construct level, and that the design is in line with current good practice guides and industry standards.

Bornhorst + Ward Pty Ltd have been appointed to provide structural and civil engineering concept design, DA reports and tender documentation for a D&C tender. They have complies with the BCA and relevant Australian Standards and codes of practice, and that their design complies with current good practice.

with current good practice and the title requirements of the Department of Natural Resources and associated surveying and mapping legislation.

site photo.43 PRODUCT DISCLOSURE STATEMENT – DRIFTWOODActual OFFER

4 4.7

Apartment Dimensions

The Apartment dimension details for the Apartments comprised in the Development are summarised below:

Apt No.

44

Lot No.

Aspect

Internal Floor Area

External Floor Area

Total Private Area

No. of Beds

No. of Baths

Spaces

1.1.1

1

NW

70

11

81

2

2

1

1.1.2

2

NW

52

16

68

1

1

1

1.1.3

3

NE

74

14

88

2

2

1

1.1.4

4

NE

69

23

92

2

2

1

1.1.5

5

NE

74

14

88

2

2

1

1.1.6

6

SE

58

18

76

1.5

1

1

1.1.7

7

SE

70

11

81

2

2

1

1.2.1

8

NW

70

11

81

2

2

1

1.2.2

9

NW

52

16

68

1

1

1

1.2.3

10

NE

74

14

88

2

2

1

1.2.4

11

NE

69

23

92

2

2

1

1.2.5

12

NE

74

14

88

2

2

1

1.2.6

13

SE

58

18

76

1.5

1

1

1.2.7

14

SE

70

11

81

2

2

1

1.3.1

15

NW

70

11

81

2

2

1

1.3.2

16

NW

52

16

68

1

1

1

1.3.3

17

NE

74

14

88

2

2

1

1.3.4

18

NE

69

23

92

2

2

1

1.3.5

19

NE

74

14

88

2

2

1

1.3.6

20

SE

58

18

76

1.5

1

1

1.3.7

21

SE

70

11

81

2

2

1

FUTURE ESTATE AUSTRALIAN RESIDENTIAL PROPERTY FUND

4 Apt No.

Lot No.

Aspect

Internal Floor Area

External Floor Area

Total Private Area

No. of Beds

No. of Baths

Spaces

2.1.1

22

NW

70

11

81

2

2

1

2.1.2

23

NW

52

16

68

1

1

1

2.1.3

24

NE

74

14

88

2

2

1

2.1.4

25

NE

69

23

92

2

2

1

2.1.5

26

NE

74

14

88

2

2

1

2.1.6

27

SE

58

18

76

1.5

1

1

2.1.7

28

SE

70

11

81

2

2

1

2.2.1

29

NW

70

11

81

2

2

1

2.2.2

30

NW

52

16

68

1

1

1

2.2.3

31

NE

74

14

88

2

2

1

2.2.4

32

NE

69

23

92

2

2

1

2.2.5

33

NE

74

14

88

2

2

1

2.2.6

34

SE

58

18

76

1.5

1

1

2.2.7

35

SE

70

11

81

2

2

1

2.3.1

36

NW

70

11

81

2

2

1

2.3.2

37

NW

52

16

68

1

1

1

2.3.3

38

NE

74

14

88

2

2

1

2.3.4

39

NE

69

23

92

2

2

1

2.3.5

40

NE

74

14

88

2

2

1

2.3.6

41

SE

58

18

76

1.5

1

1

2.3.7

42

SE

70

11

81

2

2

1

2.4.1

43

NE

74

14

88

2

2

1

2.4.2

44

NE

69

23

92

2

2

1

2.4.3

45

NE

74

14

88

2

2

1

PRODUCT DISCLOSURE STATEMENT – DRIFTWOOD OFFER

45

4 Apt No.

46

Lot No.

Aspect

Internal Floor Area

External Floor Area

Total Private Area

No. of Beds

No. of Baths

Spaces

3.1.1

46

NW

70

11

81

2

2

1

3.1.2

47

NW

52

16

68

1

1

1

3.1.3

48

NE

74

14

88

2

2

1

3.1.4

49

NE

69

23

92

2

2

1

3.1.5

50

NE

74

14

88

2

2

1

3.1.6

51

SE

58

18

76

1.5

1

1

3.1.7

52

SE

70

11

81

2

2

1

3.2.1

53

NW

70

11

81

2

2

1

3.2.2

54

NW

52

16

68

1

1

1

3.2.3

55

NE

74

14

88

2

2

1

3.2.4

56

NE

69

23

92

2

2

1

3.2.5

57

NE

74

14

88

2

2

1

3.2.6

58

SE

58

18

76

1.5

1

1

3.2.7

59

SE

70

11

81

2

2

1

3.3.1

60

NW

70

11

81

2

2

1

3.3.2

61

NW

52

16

68

1

1

1

3.3.3

62

NE

74

14

88

2

2

1

3.3.4

63

NE

69

23

92

2

2

1

3.3.5

64

NE

74

14

88

2

2

1

3.3.6

65

SE

58

18

76

1.5

1

1

3.3.7

66

SE

70

11

81

2

2

1

3.4.1

67

NE

74

14

88

2

2

1

3.4.2

68

NE

69

23

92

2

2

1

3.4.3

69

NE

74

14

88

2

2

1

FUTURE ESTATE AUSTRALIAN RESIDENTIAL PROPERTY FUND

4 4.8

Typical Floor Plans

Acacia Apartments

Eucalypt Apartments

Melaleuca Apartments

2 x Bedroom type A Internal = 70 sqm Balcony = 11 sqm

1 x Bedroom type D Internal = 52 sqm Balcony = 16 sqm

2 x Bedroom type B Internal = 74 sqm Balcony = 14 sqm

A

D

B C

A

E

B

Acacia Apartments

Gardenia Apartments

Melaleuca Apartments

Banksia Apartments

2 x Bedroom type A Internal = 70 sqm Balcony = 11 sqm

1 x Bedroom type E Internal = 58 sqm Balcony = 18 sqm

2 x Bedroom type B Internal = 74 sqm Balcony = 14 sqm

2 x Bedroom type C Internal = 69 sqm Balcony = 23 sqm

PRODUCT DISCLOSURE STATEMENT – DRIFTWOOD OFFER

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