Ancass Investment Brochure

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P R O J E C T

S U M M A R Y

PROJECT ADDRESS

LOCATION HIGHLIGHTS

- 22-34 Andrews Street, Cannon Hill

- W alking distance to lifestyle, local shops and banks including, Coles, Woolworths, Kmart, Aldi and Bunnings

PROJECT DESCRIPTION

- 9km to Brisbane CBD

- 60 Apartments

- L ess than 30m walk to Cannon Hill train station

- 11 x 3 bedroom, 2 cars

- L ess than 100m walk to 4.1 hectare Bill Cash Memorial Park and sporting grounds

- 49 x 2 bedroom, 1 car

- L ess than 10 minute walk to the $600M East Village precinct by the creators of Emporium

PROJECT HIGHLIGHTS

- E xcellent education offerings with 8 public and private schools in the direct area

- Majority of north facing units - L evel 1 units with large terraces and direct street access - F ull designer kitchens with islands and breakfast bars - A mple bike storage - Secure car basement

- 5 minute dive to major employment hub, Southgate (2,000 jobs), Port of Brisbane and Trade Coast (60,000 jobs growing to 110,000 by 2031*) - D irect access to Gateway Motorway with connections to Brisbane Airport (6km) and the Gold & Sunshine Coasts

RENTAL ESTIMATES - 2 bedrooms $440 - $460 per week - 3 bedrooms $540 - $560 per week

* S O U R C E :

U R B I S

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OUTLOOK

MAY 2015

A LOCATION

CANNON HILL

Easy commute to major employment nodes / Pg 2

B DEMOGRAPHIC

High percentage of young professionals and growing families taking advantage of employment and lifestyle opportunities in Cannon Hill / Pg 3

A CONTEXT ON BUSINESS, CULTURE, LIFESTYLE AND RESIDENTIAL

An evolving but established Inner East suburb of Brisbane, Cannon Hill offers lifestyle, a wealth of retail, education and recreation amenity as well as proximity to strong transport infrastructure and employment nodes.

C EMPLOYMENT

Projected job growth of 83.3 per cent at nearby Australia Trade Coast / Pg 3

E

DWELLING STRUCTURE

F

RESIDENTIAL

72 per cent of Cannon Hill Catchment is housing, creating demand for new apartment living by the increasing Generation Y demographic / Pg 4 Cannon Hill Catchment median unit price recording a premium of $35,000 over Brisbane LGA / Pg 4

G RENTAL

New and near-new apartments are achieving strong rental premiums over existing stock / Pg 4

LARGE PROPORTION OF GEN Y LIVING IN CANNON HILL

EASY CONNECTIVITY TO BRISBANE CBD AND BEYOND

CANNON HILL TRAIN STATION

GEN Y

CLOSE PROXIMITY TO MAJOR EMPLOYMENT NODES

1

POP

2

INF

3

EMP

Cannon Hill accommodates all three of the Urbis economics and research fundamentals that make a sustainable suburb – Population, Infrastructure and Employment.

SOUTHGATE CORPORATE PARK

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BRISBANE CBD 9.5KMS

WALKABILITY & ACCESSIBILITY Cannon Hill 18

COLES WOOLWORTHS

9 10 MINS 3

2 17

1 CLEVELAND LINE TO BRISBANE CBD

10

WYNNUM ROAD

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16

2MINS 4 HOMEMAKER CITY

CANNON HILL 2MINS KMART PLAZA

ALDI

KMART

BUNNINGS WAREHOUSE

COLES

8 SPECIALTY STORES

45 SPECIALTY STORES

Cannon Hills’ strong connectivity to major employment nodes as well as leisure, recreation and retail facilities has led to a changing demographic.

A younger demographic is emerging across the Cannon Hill Catchment as jobs and lifestyle increase the desirability of the area.

Ease of access to major arterial roads and rail network along with prominent educational institutions and numerous parkland areas bode well for future development in Cannon Hill.

2

5

6

CANNON CENTRAL

2MINS

WOOLWORTHS

Entertainment, Shopping & Dining

32 SPECIALTY STORES

Train Station

Morningside Shopping Centre The Colmslie Hotel Colmslie Plaza - Coles Supermarket Homemaker City Cannon Hill Cannon Hill Kmart Plaza Cannon Central Shopping Centre Westfield Carindale Shopping Centre

Infrastructure 12 Southgate Corporate Park 13 Cannon Hill Train Station 14 Gateway Motorway 15 Belmont Private Hospital

Education 8 Cannon Hill Anglican College 9 Anglican Church Grammar School (Churchie) 10 Cannon Hill State Primary School 11 St Oliver Plunkett Catholic Primary School

Recreation & Green Space 16 Bill Cash Memorial Park 17 Regents Park 18 Balmoral Park 19 Morningside Tennis Centre

1 2 3 4 5 6 7

Bus Station

Key Legend

URBIS CANON HILL OUTLOOK © URBIS.COM.AU

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DEMOGRAPHICS The Cannon Hill catchment has a higher proportion of Generation Y (aged 20 to 34 years) than the wider Brisbane LGA. Generation Y have a preference for residing in areas that offer a work / life balance. They make up 28.5 per cent of the catchment, compared to the wider Brisbane LGA which has 27 per cent.

Generation X (aged 35 to 44 years) are also in higher proportion within the Cannon Hill Catchment, making up 17.3 per cent.

CANNON HILL CATCHMENT

28.5%

19

17.3%

GEN Y 4 MINS

GEN X

8 Prepared by Urbis, Source: ABS

5 MINS

14

EMPLOYMENT

13

12 2 MINS

7 13 MINS

15 13 MINS

Cannon Hill is well-located for residents to take advantage of strong employment nodes within easy commute. Brisbane CBD is projected to record job growth of more than 101,000 while Australia Trade Coast will create 50,000 new jobs through to 2031.

The immediate catchment of Cannon Hill, Camp Hill, Carina, Morningside and Murarrie is projected to increase by almost 5,000 jobs over the same period.

JOBS GROWTH

83.3%

MAJOR INFRASTRUCTURE

FORECAST GROWTH IN JOBS FOR NEARBY

AUSTRALIA TRADE COAST AUSTRALIA TRADE COAST $6 billion

TRICARE INTERGRATED AGED CARE FACILITY $65 million

GATEWAY MOTORWAY UPGRADE $2.12 billion

CANNON HILLS COMMUNITY LINKS GOLF COURSE $40 million

EAST VILLAGE MASTER PLANNED URBAN VILLAGE $600 million

BELMONT PRIVATE HOSPITAL EXTENSION $4 million

SOUTHGATE CORPORATE PARK $90 million

CARINA LEAGUES CLUB ALTERATIONS $4 million

50.6% FORECAST GROWTH IN JOBS FOR NEARBY

BRISBANE INNER CITY

19% FORECAST GROWTH IN JOBS FOR

CANNON HILL CATCHMENT Prepared by Urbis, Source: NEIER

Prepared by Urbis, Source: Cordells

URBIS CANON HILL OUTLOOK Š URBIS.COM.AU

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RESIDENTIAL MARKET REVIEW

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CANNON HILL CATCHMENT – 10-YEAR UNIT SALES CYCLE CANNON HILL CATCHMENT NUMBER OF SALES CANNON HILL CATCHMENT MEDIAN SALE PRICE BRISBANE LGA MEDIAN SALE PRICE

160

$600,000

NUMBER OF SALES

140

CANNON HILL CATCHMENT UNITS During the March 2014 quarter, the Cannon Hill Catchment median unit price reached a peak of $488,750 and also recorded a peak selling period for the year, with 84 unit transactions occurring. While sales volumes have been stable, the median price of units has been somewhat volatile with several small peaks and troughs as the graph on the right illustrates. The December quarter 2014 ended with a median unit price of $455,000 which is well above the Brisbane LGA median unit figure of $420,000.

$500,000

120 $400,000

100 80

$300,000

60

$200,000

40 $100,000

20 0

MEDIAN SALES PRICE ($)

N

Q1-2004 Q2-2004 Q3-2004 Q4-2004 Q1-2005 Q2-2005 Q3-2005 Q4-2005 Q1-2006 Q2-2006 Q3-2006 Q4-2006 Q1-2007 Q2-2007 Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012 Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Q4-2014

A

$0

PERIOD (QUARTER) Prepared by Urbis, Source: RP Data Catchment includes suburbs of Cannon Hill, Camp Hill, Carina, Morningside & Murarrie

After a significant spike in unit sales towards the end of 2009, when The Barracks at Murarrie was completed, the Cannon Hill Catchment has stabilised. From the beginning of 2012 to the end of 2014, there has been an average of 78 unit sales per quarter, well above the average recorded two years earlier of 46 sales per quarter.

MEDIAN UNIT PRICE PREMIUM

Long-term capital growth for units across the Cannon Hill Catchment is solid, recording a figure of 5.9 per cent per annum over ten years. Future rejuvenation in the form of new residential development in the area is expected to lift residential demand.

$455,000

$420,000

CANNON HILL CATCHMENT

BRISBANE LGA

Prepared by Urbis, Source: RP Data

CANNON HILL CATCHMENT RENTAL MARKET

10-YEAR MEDIAN WEEKLY RENTAL GROWTH PA DEC-04 – DEC-14 Cannon Hill Postcode 4170

Dwelling structure in the Cannon Hill Catchment is dominated by separate houses with 72 per cent of the area at the 2011 Census consisting of houses. The suburb of Cannon Hill alone has an even higher percentage of housing, at 88.6 per cent. The high level of housing is creating demand for new apartments fuelled by the increasing numbers of Generation Y who traditionally prefer low maintenance living in close proximity to transport connections and lifestyle amenity.

5.6%

TWO BED

5.5%

THREE BED

Prepared by Urbis, Source: RTA Postcode 4170 includes suburbs of Cannon Hill, Morningside, Norman Park

New and near-new units currently being advertised for rent in the Cannon Hill Catchment are attracting significantly higher median weekly rents when compared to established units in the area. New and near-new three-bedroom units are attracting a median weekly rent of $550, which is $90 higher than existing three-bedroom units. New and near-new two-bedroom units are achieving a median weekly rent of $450 and one-bedroom units are achieving a median weekly rent of $360 which equates to a premium of $70 and $60 per week respectively.

RENTAL PREMIUM New And Near-New Units V Existing Product TWO BED

EXISTING PRODUCT MEDIAN WEEKLY RENT NEW AND NEAR-NEW MEDIAN WEEKLY RENTAL

Further highlighting the strength of the unit rental market in the Cannon Hill Catchment is the strong long-term growth rates achieved on one, two and three-bedroom units. Over the past ten years the Residential Tenancy Authority (RTA) has recorded median weekly rental growth per annum for one, two and threebedroom units at 7.9 per cent, 5.6 per cent and 5.5 per cent respectively.

THREE BED

EXISTING PRODUCT MEDIAN WEEKLY RENT NEW AND NEAR-NEW MEDIAN WEEKLY RENTAL

$70

$380

PREMIUM

$450

$460

$90

PREMIUM

$550

Prepared by Urbis, Source: RTA & realestate.com.au

This publication is prepared on the instruction of Azure and is not suitable for use other than by the party to whom it is addressed. As the publication involves projections and assumptions it can be affected by a number of unforeseen variables. The forecasts and assumptions are a prediction and whilst Urbis has made every effort to ensure that the forecasts and assumptions are based on reasonable information, they may be affected by assumptions that do not necessarily eventuate or by know or unknown risks and uncertainties. It should be noted that past performance is not necessarily a reliable indication of future performance. The information in the publication does not represent financial advice and should not be regarded as such. It has been prepared without taking into account your financial situation or investment objectives. You should consider the appropriateness of the information in regards to your current financial situation or needs. Urbis accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice and Urbis is under no obligation to update the information or correct any assumptions which may change over time. This study has been prepared for the sole use of Azure and is not to be relied upon by any third party without specific approval from Urbis. This publication is subject to copyright. Except as permitted under the Copyright Act 1968, no part of it may, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) be reproduced, stored in a retrievals system or transmitted without prior written permission. Enquires should be addressed to the publishers. / BPE0891

URBIS CANNON HILL OUTLOOK © URBIS.COM.AU

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F I N I S H E S

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G eneral External and Internal Construction Fixtures and Fittings

S

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F I X T U R E S

¤ ¤ Fe n c i n g : A m i x t u r e o f m e t a l , t i m b e r and masonry

¤¤ Flo or: Reinforced concrete slab

¤¤ H ot water service: Electric hot water unit, with individual metering

¤¤ E x t e r n a l w a l l s : C o n c r e t e p a n e l a n d /o r b l o c k w o r k / F C w i t h t ex t u r e d f i n i s h ex t e r n a l l y and Colorbond panels

¤¤ External glass: Clear with required e n e r g y e ff i c i e n c y ¤¤ Floor ceiling height: G enerally 2550mm ( exc l u d i n g b u l k h e a d s a n d w e t a r e a s ) o r a s noted in plan

¤¤ W alls between units: Fire and sound rated walls lined both sides with painted plasterboard

¤¤ Visitor car parking: On-site visitor car parking

¤ ¤ I n t e r n a l w a l l s : S t u d w a l l s l i n e d w i t h plasterboard and paint finish

C ar Park

¤¤ Roof: Colorbond metal deck roof with insulation

¤ ¤ S e c u r e d r e s i d e n t p a r k i n g ¤¤ F loor: Reinforced concrete. Car parks are n u m b e r e d a n d l i n e s m a r ke d

¤¤ B alcony do ors and windows: Powder coated aluminium frames with glazing ¤¤ Internal doors: Satin painted flush panel doors

¤¤ W alls: Reinforced concrete panels/blockwork t o ex t e r n a l w a l l s o f l i f t a n d s t a i r s o n l y

¤¤ U nit entry door: Gloss painted solid core fire rated door

¤ ¤ C e i l i n g : O ff - f o r m c o n c r e t e s l a b s o ff i t s

Ac c ess and Egress Stairs

¤¤ Door hardware – front door: Designer lever handle lock set

¤¤ Floor: Concrete stairs

¤¤ D oor hardware – internal door: Chrome levers with privacy set to bathroom and ensuite

¤ ¤ W a l l s : Fa c e b l o c k w o r k

¤¤ C abinet hardware: Custom designer series

¤¤ B alustrade: Powder coated aluminium framed a n d /o r g a l v a n i s e d s t e e l

¤¤ L i g h t i n g : S e l e c t e d s u r f a c e a n d /o r r e c e s s e d mounted fittings

¤ ¤ S t a i r s o ff i t s /c e i l i n g s : O ff - f o r m c o n c r e t e

Security

¤¤ B alustrades: Powder coated aluminium framed g l a s s a n d /o r t ex t u r e c o a t e d m a s o n r y

¤¤ Lighting to foyers, car park areas and grounds

¤¤ S u n /p r i v a c y s c r e e n s : P o w d e r c o a t e d o r c l e a r ano dised aluminium framed screens (refer unit plans if applicable)

¤¤ Audio intercom system to all apartments

¤¤ B alconies: C eramic floor tiles – SW Ash ( 3 0 0 x 6 0 0 m m ) t ex t u r e p a i n t e d c o n c r e t e s o ff i t or painted lining ¤¤ D riveways and paths: Select features as per landscape plan

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Electrical

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F I X T U R E S

Kitchen

¤ ¤ Pa y T V / b r o a d b a n d p o i n t s t o l i v i n g

¤ ¤ F l o o r : Ta r ke t t f l o o r i n g s y s t e m

¤ ¤ Te l e p h o n e p o i n t s t o b e d r o o m 1 a n d k i t c h e n

¤¤ Walls: Washable low sheen acrylic paint

¤¤ 1 phone line to each apartment

¤ ¤ C e i l i n g & c o r n i c e : Tex t u r e d p a i n t f i n i s h o r painted plasterboard lining. Selected cornice

Air-Conditioning

or trim to ceiling

¤ ¤ S p l i t s y s t e m a i r - c o n d i t i o n i n g t o l i v i n g a n d

¤¤ Bench tops: 20mm reconstituted stone top

bedroom 1 and 2 or equivalent ¤¤ Splashback: Glass splashback

C o m mu n i c at i o n s

¤ ¤ C u p b o a r d s : E E g g e r A n t h r a c i t e H i g h l a n d / solid premium white laminate to doors and

¤¤ NBN to each unit

drawers

E n t r y, L o u n g e , L i v i n g a n d D i n i n g

¤¤ Kickboards: Stainless steel laminate finish

¤ ¤ F l o o r : Ta r ke t t t i m b e r f l o o r i n g

¤¤ Pantry: Selec ted laminate finish with

¤¤ Walls: Washable low sheen acrylic paint

f i xe d s h e l v e s

Kitchen Fittings

¤ ¤ C e i l i n g s a n d c o r n i c e : P a i n t e d p l a s t e r i n g lining. Selected cornice or trim to ceiling

¤¤ Sink: 1 stainless steel under slung sink ¤ ¤ S k i r t i n g : Pa i n t g r a d e s p l a y e d t i m b e r s k i r t i n g ¤ ¤ Ta p w a r e : S i n k m i xe r o r e q u i v a l e n t ¤¤ Ar chitraves: Paint grade splayed

¤¤ Under bench oven: 60cm

timb er architrave

¤¤ Cooktop: 60cm (electric)

B e d r o o m s a n d Ro b e s

¤¤ Range hood: 60cm slide out recirculating

¤¤ Floor: Carpet on underlay

¤¤ Walls: Washable low sheen acrylic paint

¤¤ Dishwasher: standard

¤ ¤ C e i l i n g s a n d c o r n i c e : P a i n t e d p l a s t e r b o a r d lining. Selected cornice or trim to ceiling ¤ ¤ S k i r t i n g : Pa i n t g r a d e s p l a y e d t i m b e r s k i r t i n g ¤¤ Ar chitraves: Paint grade splayed

timb er architrave

¤ ¤ W a l k i n r o b e s : 1 s h e l f, h a n g i n g r a i l ¤ ¤ B u i l t i n r o b e s : S l i d i n g d o o r s o n e s h e l f,

range hoo d

hanging rail

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F I N I S H E S

+

B at h r o o m a n d E n s u i t e

S

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F I X T U R E S

Laundry

¤ ¤ F l o o r : M u r c i a Ta u p e

¤¤ Floor: C eramic tiles

¤ ¤ W a l l s : M u r c i a Ta u p e

¤¤ W a l l : M u r c i a Ta u p e c e r a m i c t i l e s p l a s h b a c k a n d skir ting with low sheen acrylic paint elsewhere

¤¤ C eiling and bulkheads: Painted plasterb oard ceiling with bulkheads as required for services

¤¤ C eiling: Painted plasterb oard ceilings with bulkheads as required for services

¤¤ V anity bench top: Roger Seller vitreous wall mounted basin and cabinet

¤ ¤ Ta p w a r e : C h r o m e l a u n d r y s e t

¤ ¤ M i r r o r : Fr a m e d m i r r o r t o f u l l w i d t h o f vanity unit

¤¤ Laundry sink: Stainless steel mini tub with cabinet under

B at h r o o m a n d E n s u i t e F i t t i n g s

Notes

¤¤ S hower screen: Powder coated aluminium with clear glass semi-frameless and pivot door as determined by builder

¤ ¤ G e n e r a l : W e m a y s u b s t i t u t e i t e m s c o n t a i n e d i n

this schedule as long as the substituted item i s a t l e a s t t h e s a m e q u a l i t y. T h e l o c a t i o n o f fixtures and fittings may be changed (but the n e w l o c a t i o n m u s t n o t a d v e r s e l y a ff e c t t h e u s e or functionality of the unit).

¤¤ Vanity basin: Semi-recessed vitreous china or equivalent ¤ ¤ To i l e t s u i t e : W h i t e v i t r e o u s c h i n a d u a l f l u s h

¤¤ S t o n e : T he fa c t t hat s t o n e i s a n at u ra lly o ccurri ng mat e r ia l, v a r i at io n i n co lo u r, co n s i s t e n cy a n d fa u lt li n e s ca n n o t b e co n t ro lle d. T he b u i lde r wi l l e n de avo u r t o mat ch t he s t o n e dis p laye d o n th e F i n is he s B o a r ds , b u t ca n n o t g u a ra n t e e t he s t one s u r fa ce p at t e r n a n d co lo u r w i ll n o t v a r y.

¤ ¤ Ta p w a r e : C h r o m e m i xe r s ¤¤ A c c e s s o r i e s : To w e l r a i l , h a n d t o w e l h o o k , t o i l e t roll holder in a chrome finish

12

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N

N

O

N

13

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L

A

N

C A

S

S A

TYPICAL UNIT TYPE 2A, 22-34 ANDREWS STREET, CANNON HILL Please contact our Asset Services Team on 1800 808 289 for any further information.

Indicative Tax Depreciation Schedule By obtaining a Tax Depreciation Schedule you will have the opportunity to reduce your tax assessable income, and therefore reduce the amount of tax you pay.

This in turn can significantly enhance your hard earned after tax dollars and maximise your cash flow.

Other services our Asset Services team offers:  Replacement Cost Estimates/Fire Insurance Reports  Sinking Fund Analysis  Personal Investment Analyses  Asset Registers  Capital Replacement & Maintenance Reserve Fund Reports  Due Diligence Reports

Contact:

Zac Gleeson

Phone: Email: Date:

07 3327 5000 zgleeson@mitbrand.com 30 April 2015

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0 1

30 April 2015

INDICATIVE DEPRECIATION SCHEDULE

Typical Unit Type 2A, 22-34 Andrews Street, Cannon Hill The table below provides an indicative 10-year Forecast of the Depreciation using the Diminishing Value Method for Calculating the Decline in Value of the Depreciating Assets and uses the Prime Cost Method to calculate the Capital Works Deductions as required by the ATO.

TEN YEAR FORECAST Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Depreciation Allowances

$5,330

$4,030

$3,097

$2,414

$1,916

$1,541

$1,254

$1,028

$852

$716

Capital Allowances

$5,209

$5,209

$5,209

$5,209

$5,209

$5,209

$5,209

$5,209

$5,209

$5,209

TOTAL

$10,539

$9,239

$8,306

$7,623

$7,125

$6,750

$6,463

$6,237

$6,061

$5,925

$ 12,000.00 $ 10,000.00 $ 8,000.00 $ 6,000.00 $ 4,000.00 $ 2,000.00 $ 0.00

YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR10

The First Year is based on a full year, ie:- 365 days.

This is an Indicative Report, to be used as a guide only and as such cannot be used or relied upon as a Depreciation Report for Taxation Purposes.

After Settlement, please contact our Asset Services Team at Mitchell Brandtman on 1800 808 289 or email bne@mitbrand.com to finalise your Tax Depreciation Report for inclusion in your Tax Return.

Mitchell Brandtman is a firm of Quantity Surveyors and as such is not qualified to give professional advice on matters relating to taxation claims and returns. We are however qualified to advise on costs of plant equipment and building works.

The report is produced on the terms and understanding that Mitchell Brandtman is not : 1) Responsible for the results of any actions taken on the basis of information in this document or any error in, omission from this document; 2) Engaged in rendering legal, accounting or taxation advice.

Mitchell Brandtman provides independent professional advice and assistance to the construction and property industry.

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0 2

30 April 2015

INDICATIVE DEPRECIATION SCHEDULE

Typical Unit Type 2B, 22-34 Andrews Street, Cannon Hill The table below provides an indicative 10-year Forecast of the Depreciation using the Diminishing Value Method for Calculating the Decline in Value of the Depreciating Assets and uses the Prime Cost Method to calculate the Capital Works Deductions as required by the ATO.

TEN YEAR FORECAST Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Depreciation Allowances

$5,516

$4,182

$3,219

$2,514

$1,997

$1,606

$1,307

$1,072

$888

$745

Capital Allowances

$5,749

$5,749

$5,749

$5,749

$5,749

$5,749

$5,749

$5,749

$5,749

$5,749

TOTAL

$11,265

$9,931

$8,968

$8,263

$7,746

$7,355

$7,056

$6,821

$6,637

$6,494

$ 12,000.00 $ 10,000.00 $ 8,000.00 $ 6,000.00 $ 4,000.00 $ 2,000.00 $ 0.00

YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR10

The First Year is based on a full year, ie:- 365 days.

This is an Indicative Report, to be used as a guide only and as such cannot be used or relied upon as a Depreciation Report for Taxation Purposes.

After Settlement, please contact our Asset Services Team at Mitchell Brandtman on 1800 808 289 or email bne@mitbrand.com to finalise your Tax Depreciation Report for inclusion in your Tax Return.

Mitchell Brandtman is a firm of Quantity Surveyors and as such is not qualified to give professional advice on matters relating to taxation claims and returns. We are however qualified to advise on costs of plant equipment and building works.

The report is produced on the terms and understanding that Mitchell Brandtman is not : 1) Responsible for the results of any actions taken on the basis of information in this document or any error in, omission from this document; 2) Engaged in rendering legal, accounting or taxation advice.

Mitchell Brandtman provides independent professional advice and assistance to the construction and property industry.

16

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0 3

30 April 2015

INDICATIVE DEPRECIATION SCHEDULE

Typical Unit Type 2C, 22-34 Andrews Street, Cannon Hill The table below provides an indicative 10-year Forecast of the Depreciation using the Diminishing Value Method for Calculating the Decline in Value of the Depreciating Assets and uses the Prime Cost Method to calculate the Capital Works Deductions as required by the ATO.

TEN YEAR FORECAST Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Depreciation Allowances

$5,507

$4,174

$3,212

$2,507

$1,991

$1,601

$1,303

$1,068

$884

$742

Capital Allowances

$5,267

$5,267

$5,267

$5,267

$5,267

$5,267

$5,267

$5,267

$5,267

$5,267

TOTAL

$10,774

$9,441

$8,479

$7,774

$7,258

$6,868

$6,570

$6,335

$6,151

$6,009

$ 12,000.00 $ 10,000.00 $ 8,000.00 $ 6,000.00 $ 4,000.00 $ 2,000.00 $ 0.00

YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR10

The First Year is based on a full year, ie:- 365 days.

This is an Indicative Report, to be used as a guide only and as such cannot be used or relied upon as a Depreciation Report for Taxation Purposes.

After Settlement, please contact our Asset Services Team at Mitchell Brandtman on 1800 808 289 or email bne@mitbrand.com to finalise your Tax Depreciation Report for inclusion in your Tax Return.

Mitchell Brandtman is a firm of Quantity Surveyors and as such is not qualified to give professional advice on matters relating to taxation claims and returns. We are however qualified to advise on costs of plant equipment and building works.

The report is produced on the terms and understanding that Mitchell Brandtman is not : 1) Responsible for the results of any actions taken on the basis of information in this document or any error in, omission from this document; 2) Engaged in rendering legal, accounting or taxation advice.

Mitchell Brandtman provides independent professional advice and assistance to the construction and property industry.

17

S P A C E

0 4

30 April 2015

INDICATIVE DEPRECIATION SCHEDULE

Typical Unit Type 3A, 22-34 Andrews Street, Cannon Hill The table below provides an indicative 10-year Forecast of the Depreciation using the Diminishing Value Method for Calculating the Decline in Value of the Depreciating Assets and uses the Prime Cost Method to calculate the Capital Works Deductions as required by the ATO.

TEN YEAR FORECAST Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Depreciation Allowances

$5,634

$4,790

$3,672

$2,858

$2,265

$1,817

$1,474

$1,210

$1,002

$840

Capital Allowances

$6,717

$6,717

$6,717

$6,717

$6,717

$6,717

$6,717

$6,717

$6,717

$6,717

TOTAL

$12,351

$11,507

$10,389

$9,575

$8,982

$8,534

$8,191

$7,927

$7,719

$7,557

YR 1

YR 2

YR 3

$ 14,000.00 $ 12,000.00 $ 10,000.00 $ 8,000.00 $ 6,000.00 $ 4,000.00 $ 2,000.00 $ 0.00

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR10

The First Year is based on a full year, ie:- 365 days.

This is an Indicative Report, to be used as a guide only and as such cannot be used or relied upon as a Depreciation Report for Taxation Purposes.

After Settlement, please contact our Asset Services Team at Mitchell Brandtman on 1800 808 289 or email bne@mitbrand.com to finalise your Tax Depreciation Report for inclusion in your Tax Return.

Mitchell Brandtman is a firm of Quantity Surveyors and as such is not qualified to give professional advice on matters relating to taxation claims and returns. We are however qualified to advise on costs of plant equipment and building works.

The report is produced on the terms and understanding that Mitchell Brandtman is not : 1) Responsible for the results of any actions taken on the basis of information in this document or any error in, omission from this document; 2) Engaged in rendering legal, accounting or taxation advice.

Mitchell Brandtman provides independent professional advice and assistance to the construction and property industry.

18

S P A C E

0 5

30 April 2015

INDICATIVE DEPRECIATION SCHEDULE

Typical Unit Type 3B, 22-34 Andrews Street, Cannon Hill The table below provides an indicative 10-year Forecast of the Depreciation using the Diminishing Value Method for Calculating the Decline in Value of the Depreciating Assets and uses the Prime Cost Method to calculate the Capital Works Deductions as required by the ATO.

TEN YEAR FORECAST Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Depreciation Allowances

$5,627

$4,786

$3,669

$2,854

$2,261

$1,816

$1,475

$1,211

$1,002

$840

Capital Allowances

$7,282

$7,282

$7,282

$7,282

$7,282

$7,282

$7,282

$7,282

$7,282

$7,282

TOTAL

$12,909

$12,068

$10,951

$10,136

$9,543

$9,098

$8,757

$8,493

$8,284

$8,122

YR 1

YR 2

YR 3

YR 4

$ 14,000.00 $ 12,000.00 $ 10,000.00 $ 8,000.00 $ 6,000.00 $ 4,000.00 $ 2,000.00 $ 0.00

YR 5

YR 6

YR 7

YR 8

YR 9

YR10

The First Year is based on a full year, ie:- 365 days.

This is an Indicative Report, to be used as a guide only and as such cannot be used or relied upon as a Depreciation Report for Taxation Purposes.

After Settlement, please contact our Asset Services Team at Mitchell Brandtman on 1800 808 289 or email bne@mitbrand.com to finalise your Tax Depreciation Report for inclusion in your Tax Return.

Mitchell Brandtman is a firm of Quantity Surveyors and as such is not qualified to give professional advice on matters relating to taxation claims and returns. We are however qualified to advise on costs of plant equipment and building works.

The report is produced on the terms and understanding that Mitchell Brandtman is not : 1) Responsible for the results of any actions taken on the basis of information in this document or any error in, omission from this document; 2) Engaged in rendering legal, accounting or taxation advice.

Mitchell Brandtman provides independent professional advice and assistance to the construction and property industry.

19

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Proposed Lot Entitlements & Contributions for The Body Corporate for ANCASSA Community Titles Scheme Unit No.

Contribution Entitlement

Interest Entitlement

101 102 103 104 201 202 203 204 205 206 207 208 209 210 211 212 213 214 301 302 303 304 305 306 307 308 309 310 311 312 313 314 401 402 403 404 405 406 407 408 409 410 411 412 413 414 501 502 503 504 505 506 507 508 509 510 511 512 513 514 Total

40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 2400

890 890 806 890 772 772 772 772 772 772 772 898 780 772 764 780 780 873 780 780 780 780 780 780 780 906 789 780 772 789 789 881 789 789 789 789 789 789 789 915 797 789 780 797 797 890 797 797 797 797 797 797 797 923 806 797 789 806 806 898 48385

# Annual Insurance Annual Admin Fund Levy Levy $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

160.03 160.03 144.93 160.03 138.81 138.81 138.81 138.81 138.81 138.81 138.81 161.47 140.25 138.81 137.37 140.25 140.25 156.97 140.25 140.25 140.25 140.25 140.25 140.25 140.25 162.91 141.87 140.25 138.81 141.87 141.87 158.41 141.87 141.87 141.87 141.87 141.87 141.87 141.87 164.52 143.31 141.87 140.25 143.31 143.31 160.03 143.31 143.31 143.31 143.31 143.31 143.31 143.31 165.96 144.93 143.31 141.87 144.93 144.93 161.47 8,700.00

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 2,093.00 125,580.00

^ Annual Sinking Fund Levy $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 35,000.00

Total Annual Levies Quarterly Levies (incl Insurance) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

2,836.36 2,836.36 2,821.26 2,836.36 2,815.14 2,815.14 2,815.14 2,815.14 2,815.14 2,815.14 2,815.14 2,837.80 2,816.58 2,815.14 2,813.70 2,816.58 2,816.58 2,833.30 2,816.58 2,816.58 2,816.58 2,816.58 2,816.58 2,816.58 2,816.58 2,839.24 2,818.20 2,816.58 2,815.14 2,818.20 2,818.20 2,834.74 2,818.20 2,818.20 2,818.20 2,818.20 2,818.20 2,818.20 2,818.20 2,840.85 2,819.64 2,818.20 2,816.58 2,819.64 2,819.64 2,836.36 2,819.64 2,819.64 2,819.64 2,819.64 2,819.64 2,819.64 2,819.64 2,842.29 2,821.26 2,819.64 2,818.20 2,821.26 2,821.26 2,837.80

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

709.09 709.09 705.32 709.09 703.79 703.79 703.79 703.79 703.79 703.79 703.79 709.45 704.15 703.79 703.43 704.15 704.15 708.33 704.15 704.15 704.15 704.15 704.15 704.15 704.15 709.81 704.55 704.15 703.79 704.55 704.55 708.69 704.55 704.55 704.55 704.55 704.55 704.55 704.55 710.21 704.91 704.55 704.15 704.91 704.91 709.09 704.91 704.91 704.91 704.91 704.91 704.91 704.91 710.57 705.32 704.91 704.55 705.32 705.32 709.45

Weekly Levies $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

54.55 54.55 54.26 54.55 54.14 54.14 54.14 54.14 54.14 54.14 54.14 54.57 54.17 54.14 54.11 54.17 54.17 54.49 54.17 54.17 54.17 54.17 54.17 54.17 54.17 54.60 54.20 54.17 54.14 54.20 54.20 54.51 54.20 54.20 54.20 54.20 54.20 54.20 54.20 54.63 54.22 54.20 54.17 54.22 54.22 54.55 54.22 54.22 54.22 54.22 54.22 54.22 54.22 54.66 54.26 54.22 54.20 54.26 54.26 54.57

# This levy is based on an annual building premium that has been calculated at building costs and insurance rates estimated at the completion of building. This levy may vary if building costs or insurance rates vary from the estimated rates. The Insurance Premium will be paid by the Original Owner in the first year & recoverd from owners in accordance with the ISLE. ^ This levy is an estimate only. A Quantity Surveyor is recommended to complete a formal Sinking Fund Forecast Report to give exact figures for each annual Sinking Fund levy. * Please note, these fees are estimated as the total for all lots for the first 12 months for the respective agreements.

Unit 8, 156 Boundary Street, WEST END Q 4101 2 0F: 3361 9990 P: 3361 9960 E: admin@bcalliance.com.au

C A

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PROPOSED ANNUAL BUDGET – ADMINISTRATIVE FUND Body Corporate for Ancassa Community Title Scheme Number of Lots Total Contribution Lot Entitlements Total Contribution Interest Entitlements

First Financial Year: TBC 60 2400 48391

ADMINISTRATION FUND

Using Equality Principle Using Market Value Principle

2015-2016 BUDGET

REMARKS

INCOME Levies - Administration Fund Total Admin Fund Income

$

134,280.09

$

134,280.09

EXPENDITURE Auditor Fees

$

GST Compliance (BAS)

$

Tax Return Preparation & Co-ordination

$

Bank Charges

$

Body Corporate Administration Management

$

Insurance Premiums – Body Corporate

$

Caretaking Agreement

$

69,000.00 $1150.00 per unit per annum

Caretaker Consumables & Sundries

$

1,000.00 No equipment. Products only

MyStrata/License Fees

$

900.00

Detention Tank

$

500.00 Pump maintenance

Repairs & Maintenance - Lifts

$

7,500.00 Lift Curtain, lift plant registration

Repairs & Maintenance - Gardens & Lawns

$

2,000.00 Fertilizers, weed killler, mower fuel

Repairs & Maintenance - Building

$

1,500.00 If not under warranty and/or defect liability period

Repairs & Maintenance- Plumbing

$

750.00 If not under warranty and/or defect liability period

Repairs & Maintenance - Electrical

$

750.00 If not under warranty and/or defect liability period

Repairs & Maintenance - Security Doors, Intercom

$

500.00 If not under warranty and/or defect liability period

Electricity

$

Water Rates

$

1,500.00 Communal

Fire Safety Maintenance and Compliance

$

3,000.00

Lift Phone

$

400.00

Gas / Fuel

$

350.00

Pest Control & Termite Inspection

$

Subtotal

$

122,072.81

GST

$ $

12,207.28 134,280.09

TOTAL PROPOSED ADMINISTRATIVE FUND EXPENDITURE

-

1,000.00 $250.00 per quarter 750.00 11,700.00 $195.00 per lot per annum x 60 units 7,972.81

10,000.00 Common Property

1,000.00 External Only after first 12 months

First Financial Year BUDGET

SINKING FUND

For the first year

Estimated Sinking Fund

$

35,000.00

Subtotal GST

$ $

31,818.18 3,181.82

TOTAL PROPOSED ADMINISTRATIVE FUND EXPENDITURE

$

35,000.00

P: 07 3361 9960 F: 07 3361 9900 E: admin@bcalliance.com.au

21

REMARKS Calculated Estimate - QS required to complete formal Sinking Fund Forecast Report

T H E ‘A’ T E A M

THE CORSO HOUSE, BESPOKE RESIDENCE

D E D I C A T E D T O

C R E A T I N G

R E M A R K A B L E

P L A C E S

In the crucible of the city, lifestyle and location combine with people and their dreams to create something far greater than the sum of the parts. At Azure, the process of refining the ingredients of site, design and materials into spaces in which people can achieve their best lives is one we take great delight in.

It is also one we approach with a persistent dedication to quality. Our repertoire of core expertise across construction, design, planning and development gives the company a multi-faceted skill-set that ensures our properties are an impeccable fusion of value and luxury.

A testament to the noteworthy talents of our company’s directors is their previous legacy of more than two dozen award-winning residential projects, including multiple times being named HIA Home of the Year in both Queensland and National categories.

Full attention is paid to aesthetics, engineering and considering the actual lived experience of being in one of our developments, so those who invest in our properties can for many years to come, enjoy the experience of living in places that say, “welcome home”.

Our pursuit of multi-faceted excellence ultimately has one simple aim - to say to you, “welcome home.”

Azure Developments

ANCASSA 22 And re ws Stree t , C an non Hi l l , QL D 4170 PHONE THE AZURE SALES CONCIERGE ON +61 7 3227 1575

ANCASSA.COM.AU