Information Memorandum Peachester IM

Information Memorandum ‘Nallaview’ and ‘Pipis’

452 Commissioners Flat Road and 1609 Peachester Road Peachester

Prepared by Unit 4, 9 Capital Place, Birtinya QLD 4575 T (07) 5438 3444 F (07) 5438 3445

Proudly presented by Ben Wilson Ray White Kawana Sunshine Coast, Queensland

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1.0 Introduction Ben Wilson, Principal of Ray White Kawana is proud to present “Nallaview” and “Pipis” - a 550 acre dairy farm on three titles fronting both Peachester and Commissioners Flat Road, Peachester being taken to Public Auction at Ray White Corporate Centre In-Room Auctions on June 26 2015 from 10:00am.

The offering is a parcel of fertile land that is currently operating a viable dairy farm with proven potential to expand production to increase income and profitability; owner’s circumstances mean it is currently not working to full capacity.

Infrastructure on the property includes: three separate residences including a manager’s residence/office, full working dairy, extensive efficient irrigation system ensuring the land is drought-proof, machinery sheds, paddocks, fencing, pumps and a variety of other machinery and equipment that can be purchased with the property (see inventory in Appendix).

Long-term owners have downsized and retired; this is an opportunity to purchase a large parcel of land in the Sunshine Coast hinterland that offers some versatility in the long term. There may be potential (subject to council approval) to further develop into an eco-tourism venture, farm-stay or just an idyllic lifestyle property for those that value privacy and natural beauty, without being isolated from major amenities.

Ray White Kawana presents this opportunity for your consideration.

For further enquiries, please contact: Ben Wilson M 0407 584 378 E ben.wilson@raywhite.com

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2.0 Disclaimer This property report has been prepared by Nedgus Pty Ltd and Barra Holdings Pty Ltd trading as Ray White Kawana. This report is based on historical records of the property. This report does not constitute an offer or contract of sale or any part of an offer of contract of sale. It is intended only as a guide and an aid to further investigation by potential purchasers. Potential purchasers accept this report on the condition that they will make their own enquiries and obtain their own independent advice in order to verify the accuracy of information presented in this report.

Interested parties acknowledge that: ff they do not rely on any statement, representation, warranty, condition or other conduct which may have been made by Ray White Kawana, any agents or consultants of Ray White Kawana, any of their respective employees or any person purporting to act on behalf of them; and

ff if an offer to buy the property is made, that person will be taken to have made their own enquiries about the property and not to have relied on any information in this report or any other representations made by Ray White Kawana, any of their respective employees and any person purporting to act on behalf of them; and

ff no representation is given by Ray White Kawana, any of their respective employees and any person purporting to act on behalf of them, about the accuracy of any information in this report or the property and they do not express an opinion on the financial data relating to the properties (whether in this report or not) and no warranty or representation of accuracy or reliability is given; and

ff Ray White Kawana, any of their respective employees and any person purporting to act on behalf of them, accept no personal liability to any interested party whatsoever in relation to any aspects of the operation and sale of the property; and

ff the property is sold in an “as is/where is� condition (that is, in its present condition and subject to all legal and physical defects). Interested parties must satisfy themselves about the property by doing their own inspections, surveys, verifications, tests and searches; and

ff no claim or demand will be made against Ray White Kawana, any of their respective employees or any person purporting to act on behalf of them, for any liability whatsoever for or in relation to any aspect of this report and the sale of the property.

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ff subject to any law to the contrary, all terms, conditions, warranties and statements, whether express, implied, written, oral, collateral, statutory or otherwise, relating to this report and the sale of the property are excluded and Ray White Kawana, any of their respective employees and any person purporting to act on behalf of them, disclaim all liability in relation to the maximum extent permitted by law. ff This report is for the sole use of persons directly provided with it by Ray White Kawana and is not to be re supplied to any other person without the prior written consent of Ray White Kawan.

Use by, or reliance upon this report by any other person is not authorised and Ray White Kawana, any of their respective employees or any person purporting to act on behalf of them, are not liable for any loss or damage of any kind whatsoever arising from such unauthorised use or reliance.

Important Prospective purchasers conduct due diligence investigations of the property strictly at their own expense and risk, and the vendor will have no liability in relation to such expenses. Consent by the vendor to conduct, by any potential purchaser, due diligence activities or investigation will not in any circumstance be construed as a representation that the vendor will be exercising or refraining from exercising its rights to deal with the property or any representations that the vendor intends to contract with that buyer, or at all.

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Table of Contents 1.0

Introduction

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2.0

Disclaimer

3.0

Executive Summary 01

4.0

Location Details 02

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4.1 Location Map 03 5.0

Property Details 04

5.1 Site Information 04

5.2 Milk Production & Stock 05

5.3 Dairy Shed - Nallaview 07

5.4 Irrigation System 07

5.5 Residences 09 6.0

Method of Sale 11

Appendix 1

Photographs 12

Appendix 2

Plans 22

2.1 Nallaview Property Plans 22 2.2 Pipi Property Plans 23 2.3 Aerial Map of Property 24 2.4 Paddock & Pasture Plans 26 2.5 Irrigation Map & Hydration Layout 28 2.6 Nallaview Illawarras Paddocks Plans & Wet Areas 30

Appendix 3

Title Search 32

Appendix 4

Rates and Power 35

appendix 5

Inventory 42

Appendix 6

Sample Job Description 43

Appendix 7

Sample Milking Procedures 45

Appendix 8

Historical Production Figures 46

appendix 9

Going Concern Dairy - Income Cost Breakdown 49

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3.0 Executive Summary

Brief Description 550 acres (approx.) —3 titles, working dairy farm with three residences and a variety of infrastructure. The property currently has an on-site Manager.

Property Address 1609 Peachester Road and 452 Commissioners Flat Road, Peachester Property Description Lot 194 CG56 County of Canning Parish of Durundur Lot 1 RP82694 County of Canning Parish of Durundur Lot 3 RP53036 Counry of Canning Parish of Durundur Land Area 550 acres (approx.)

Features Award winning dairy. Lush fertile land with sophisticated irrigation system, gentle undulating slopes, in excess of 3 miles Stanley River frontage, commercially viable contract with Parmalat milk, every acre is improved pasture, dairy has capacity to increase and production and profitability.

Zoning Rural Current Use Dairy Farm Local Authority Sunshine Coast Regional Council.

Method of Sale Public Auction on June 26 2015 Contact Details Ray White Kawana Principal Ben Wilson - 0407 584 378 ben.wilson@raywhite.com 4.0 Location Details

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4.0 Location Details

Peachester is a small town located on the eastern slopes of the Conondale Range in the spectacularly picturesque Sunshine Coast hinterland. Named when the town was surveyed in 1888 and it is thought that the name refers to peach trees which were growing at the river crossing. A public hall was built at the town in 1889, and was home to the Peachester School when it started in 1892. Early industries included dairying, timber felling for Grigor’s sawmill and a case factory for fruit growers in the 1920s and post World War II years.

This property is located just 4.52 kilometres to the local convenience store; Peachester has a local school, and the townships of Beerwah and Woodford with their amenities are less than a 10 minute drive. With Brisbane only an hour away, this could also make a delightful weekend country retreat for an urban professional, with the on-site Manager running the day to day needs of the farm.

easy care small acreage parcels away from suburbia, yet still within reasonable proximity of larger towns. As work/life balance is the ‘buzz phrase’ of the new millennium there is a trend towards ‘lifestyle’ properties that provide their owners with privacy, peace and tranquillity, framed by natural beauty... somewhere to sit back and smell the roses.

Peachester offers this good old-fashioned idyllic country lifestyle; whilst the pace is slower, it is still very much part of the bigger Sunshine Coast region. One could say, it provides the ‘best of both worlds’. Welcome to Peachester!

Peachester’s popularity continues to grow as increased numbers of people are seeking

Satellite View of the parcel of land

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Location Map

A truly unique property located in the perfect position with the Stanley River running through it and fronting two roads; it’s lush fertile soil and gentle undulating hills combined with flatter pastures create an ideal environment to farm cattle suitable for dairy.

The owner’s residence is perched on the highest point of the property showcasing amazing views over the acreage and beyond.

Beerwah and Woodford are the closest townships and can be reached within 10 minutes. Beerwah has rail to Brisbane.

Brisbane CBD and International Airport is 1 hours drive South and major Sunshine Coast Centres and beaches are only 30 minutes drive away.

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5.0 Property Details 5.1 Site Information

The site covers three titles comprising of a total of 225.57 hectares (approx.) - “Nallaview” fronts Commissioners Flat Road, and “Pipi” fronts Peachester Road.

The following features are present: ff 3 houses - including Manager’s residence/site office; ff 2 dairy sheds - fully working shed at “Nallaview” with capacity to milk 18 cows at a time, and a disused 10 cow walkthrough shed at “Pipi”; ff 3 quarries - “Nallaview” has one and “Pipi” has two within their boundaries.

These provide road base material for maintenance of existing laneways an provision of new ones;

ff 2 Irrigation Licences - “Nallaview” covers 100 acres, “Pipi” covers 20 acres; ff Drought proof irrigation system (details page 7) ff Approx 350-400 head of cattle - mixture of breeds including the quality Illawarra Cattle; ff Machinery & equipment (inventory: Appendix 4 page 42)

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5.2 Milk Production & Stock (Cattle)

With good management by all concerned; the combined Bell-Pipi Farm prospered from 1st December 1996, winning a Production Award in 1999/2000 reaching one million litres for the first time (actual production was 1,079,013 litres). Production continued at a similar rate for several years.

Analysis reveals that a gross annual pasture based production is capable of reaching 1.5 million litres. This requires well-managed nutritious pastures, well chosen supplements and access to 250 milking cows (wet and dry) with 215 to 220 in the bails daily.

Replacement reared ie: free-loaders would be 90 to 100 per year. Allowing for deaths and culls, the total herd under these conditions would likely be 400 plus. The Owners studies reveal this analysis to be feasible and commercially viable; however, would require a greater through-put in the dairy - the answer here is to square-up the herringbone.

Additional staff to manage this adequately would be a junior manager.

Recent and current production levels are: 2013 — 843.5k litres with average of 70.3k litres per month 2014 — 940k litres with average of 78.4k litres per month 2015 — total YTD (April) 259.5k with average of 64.9k per month * approx figures only, appendix 47 In summary there is capacity to produce more milk on the property to increase efficiency and margins, with some further investment in capital and some fresh energy and vision, it is estimated that it could produce circa 1.8 million litres per annum, which would generate a very attractive income. *NB Current dairy stock levels are to be finalised as a number of the current stock are owned by the on Site farm Manager.

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5.0 Property Details 5.3 Dairy Shed - Nallaview

The 9 aside swing over herringbone (pit) dairy was built in 1985 and subsequently improved to a 9 aside double-up. Grain augers provide crushed pelleted cereal grain to the 18 stainless steel feed troughs. The milk travels through a plate cooler to a 9,200 litre upright vat. The current milking equipment is “Westfalia” brand, and the hot water system is a “Wilson” brand.

By squaring up the cow positions there is capacity to increase the number of milking positions to 14 aside; thereby decreasing milking time.

Washing the dairy is by a high volume low pressure flow of water from 2 outlets at the far end of the herringbone dairy. The water flows through and ends up initially at the reverse end of the concrete yard and ultimately through an outlet into a pipe to the 2.25 mega litre storage dam. From this storage dam the effluent can be irrigated onto the adjoining pastures.

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5.4 Irrigation System

The irrigation licence at “Nallaview” covers 100 acres (licence # 32591C). The “Pipi Holdings” irrigation licence is # 08682C and covers 20 acres.

2.7 to 2.7 thousand gallons of water per hour, whilst travelling 20 chains across the improved pastures. Currently 12 runs and 2 circles are used.

Nallaview In 1978-79 a system was devised in conjunction with SEQEB Rural Services.

This provided 1,300 metres of underground 10” fibro-main together with 10 hydrants servicing 35 paddocks with a 7 metre wide E-W laneway up the centre of the irrigated area.

It is calculated that a 10 hour run (preferable at night to minimise electricity costs) can deliver 250,000 gallons over 10 acres. This is the equivalent of one inch of rain on 10 acres of pasture.

The water is extracted from the Stanley River by an electrically driven 10HP pump situated close to the lower bank of the river; this pump supplies to an elevated shed on the top bank where it is driven by a 100 HP electric pump through the 1,300 metres of underground mains.

Pipi This was set up for “easy shift” irrigation and has been very effective. A new river pump is needed.

The hydrants service a travelling irrigator through a 10 chain house from 3.5 to 4.5 inch diameter . The traveller can deliver

This system effectively drought-proofs the property.

* Note See Appendix 2 showing irrigation maps and plans

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5.0 Property Details 5.5 Residences

Nallaview

Pipi

Managers Residence

Residence

ff Three bedroom

ff Four bedrooms

ff One bathroom

ff Two bathrooms

ff Kitchen

ff Two kitchens

ff Dining room with fireplace

ff Two living areas

ff Office

ff Two car accommodation

ff Two car accommodation

ff Large shed

Homestead Two storey home located on highest point of property with 360 degree views. Five bedrooms ff Three bathrooms ff Large games room ff Office/workshop ff Two car accommodation ff 3 metre wide verandah

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6.0 Method of Sale Public Auction

In Rooms Friday June 26 at 10.30am Ray White Corporate Brisbane Level 26 “One One One” 111 Eagle Street, Brisbane Qld

Mr Ben Wilson Ray White Kawana P.O Box 1124 Buddina QLD 4575 M 0407 584 378 E ben.wilson@raywhite.com

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Appendix 1

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Property Photographs

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Appendix 1

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Property Photographs

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Appendix

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Property Photographs

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Appendix

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Property Photographs

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Appendix

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Property Photographs

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Appendix 2 2.1 “Nallaview” Property Plans

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2.2 “Pipis” Property Plans

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Appendix 2 2.3 Aerial Map of “Nallaview” & “Pipis”

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Appendix 2

2.4 Approx Paddock and Pasture Plan (Indicative only)

Appendix 2

2.5 Irrigation Map and Plans Hyrdant Layout (Indicative only)

Appendix 2

2.6 Nallaview Illawarras Paddock Layout Plan (Wet areas, Indicitive only)

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Appendix 3 CURRENT TITLE SEARCH DEPT OF NATURAL RESOURCES AND MINES, QUEENSLAND Request No: 21032017 Search Date: 25/05/2015 12:58 Title Reference: 14428115 Date Created: 26/03/1970 Previous Title: 14039090 14039091 REGISTERED OWNER ROBERT GERALD BELL ELIZABETH JOY BELL

JOINT TENANTS

ESTATE AND LAND Estate in Fee Simple LOT 194

CROWN PLAN CG56 County of CANNING Parish of DURUNDUR Local Government: SUNSHINE COAST

EASEMENTS, ENCUMBRANCES AND INTERESTS 1. Rights and interests reserved to the Crown by Deed of Grant No. 11579041 (POR 194) 2. EASEMENT IN GROSS No 601437967 (D965731) BURDENING THE LAND TO QUEENSLAND ELECTRICITY COMMISSION OVER EASEMENT A ON RP125522

07/12/1970

3. TRANSFER No 703439345 07/07/1999 at 14:43 EASEMENT IN GROSS: 601437967 (D965731 ) QUEENSLAND ELECTRICITY TRANSMISSION CORPORATION LIMITED A.C.N. 078 849 233 ADMINISTRATIVE ADVICES - NIL UNREGISTERED DEALINGS - NIL CERTIFICATE OF TITLE ISSUED - Yes

Certificate No. 1

Caution - Charges do not necessarily appear in order of priority ** End of Current Title Search ** COPYRIGHT THE STATE OF QUEENSLAND (DEPT OF NATURAL RESOURCES AND MINES) [2015] Requested By: D APPLICATIONS ABR

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CURRENT TITLE SEARCH DEPT OF NATURAL RESOURCES AND MINES, QUEENSLAND Request No: 21051706 Search Date: 27/05/2015 12:36 Title Reference: 14428116 Date Created: 26/03/1970 Previous Title: 14039092 14039093 REGISTERED OWNER ROBERT GERALD BELL ELIZABETH JOY BELL

JOINT TENANTS

ESTATE AND LAND Estate in Fee Simple LOT 1

REGISTERED PLAN 82694 County of CANNING Parish of DURUNDUR Local Government: SUNSHINE COAST

EASEMENTS, ENCUMBRANCES AND INTERESTS 1. Rights and interests reserved to the Crown by Deed of Grant No. 11622191 (POR 193) ADMINISTRATIVE ADVICES - NIL UNREGISTERED DEALINGS - NIL CERTIFICATE OF TITLE ISSUED - Yes

Certificate No. 1

** End of Current Title Search ** COPYRIGHT THE STATE OF QUEENSLAND (DEPT OF NATURAL RESOURCES AND MINES) [2015] Requested By: D APPLICATIONS ABR

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Appendix 3 CURRENT TITLE SEARCH DEPT OF NATURAL RESOURCES AND MINES, QUEENSLAND Request No: 21032047 Search Date: 25/05/2015 12:59 Title Reference: 12145231 Date Created: 19/05/1941 Previous Title: 11637138 REGISTERED OWNER PIPI HOLDINGS PTY LTD ESTATE AND LAND Estate in Fee Simple LOT 3

REGISTERED PLAN 53036 County of CANNING Parish of DURUNDUR Local Government: SUNSHINE COAST

EASEMENTS, ENCUMBRANCES AND INTERESTS 1. Rights and interests reserved to the Crown by Deed of Grant No. 11637138 (POR 237) 2. EASEMENT No 602057519 (A479815) 07/05/1941 BENEFITING THE LAND OVER RESUB A OF SUB 2 OF POR 237 3. MORTGAGE No 710786123 05/07/2007 at 14:06 BANK OF QUEENSLAND LIMITED A.B.N. 32 009 656 740 ADMINISTRATIVE ADVICES - NIL UNREGISTERED DEALINGS - NIL CERTIFICATE OF TITLE ISSUED - No Caution - Charges do not necessarily appear in order of priority ** End of Current Title Search ** COPYRIGHT THE STATE OF QUEENSLAND (DEPT OF NATURAL RESOURCES AND MINES) [2015] Requested By: D APPLICATIONS ABR

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Appendix 4 Rates and Power

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Appendix 4

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Rates and Power

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Appendix 4

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Rates and Power

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Appendix 4

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Rates and Power

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Appendix 5 Inventory Unencumbered Plant & Equipment ff New Holland TDF90 4WD ROPS Tractor with F.E.L ff Mulcher ff Post Hole Borer without PTS shaft ff 15 Tyne Scarifier ff Pendulum Spreader ff Kubota M5030 4WD ROPS Tractor ff King Hitter Post Driver ff Hardl 200L Boom Spray ff Hopper 7’ HD Blade ff Single Tyne ripper with Pipe Layer ff Leyly Power Harrow with Fiona seed box ff 18 Plate Offset Disc ff Irrigation and Hose ff Miscellaneous tools in shed ff Dyna 2 ton tip truck

ff Errors and Omissions to be excepted ff Inventory can be added to upon agreement by both parties.

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Appendix 6 Sample Job Specification - Dairy Farm Assistant Typical Job Specification

Dairy Farm Assistant Nallaview Illawarra Stud

Responsibilities

Reports to

ff In conjunction with Managers, assist with the efficient running of the property.

Property Mangers and ultimately to Owners Overall Purpose To assist Management with the efficient running of both Nallaview and Pipi.

Specific Duties ff Milking and associated tasks ff Rearing of calves to weaning ff Keeping accurate records ff Animal Health including artificial insemination ff Tractor work ff Stock handling ff Fencing and fence repairs

ff Have a thorough understanding of dairy farming concepts and the reasons for various operational procedures. ff At all times remain focused on producing quality Milk while maintaining healthy stock in a clean environment. Stock are to be handled quietly and with care. ff Contribute constructively in all aspects relating to maintaining /improving a cost effective operation. ff Ensure all work is carried out in a responsible and efficient manner with a full understanding of the task at hand. ff Equipment and tools are to be handled with care at all times.

ff Maintenance of plant and equipment

ff Demonstrate initiative and forward thinking.

ff Irrigation

ff Communicate effectively on a daily basis.

ff Making/feeding supplements

ff At all times work within Health & Safety Guidelines and Quality Assurance Standards and Procedures.

ff Any other job which could be reasonably expected of someone in this position

ff Advise management in all cases of accidents, mistakes or potentially dangerous situations. ff All expenditure is to have prior authorisation by Management/Owners.

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Appendix 7 Sample Milking Procedures—Morning Routine Milking Procedures Morning Routine

Cups on: 5.00am ff Milk (observe and detect heats, mastitis detection and observation of overall animal health)

ff Feed calves and associated routine procedures

ff Draft cows on heat for A1

ff Refill footbath, if necessary

ff Treat any necessary herd problems and note on whiteboard

ff Feed supplements to stock, if necessary

ff Ensure cows are clearly marked using appropriate aids

ff Lock cows in paddock

ff Wash plant, hose yard, clean isolator buckets ff A1 to nominated sires and record ff Apply heat detection aids to cows mated

ff Set up dairy for next milking

ff Move irrigation, if necessary ff Move dry cows and heifers, if necessary ff Set up paddocks for afternoon ff Check springers

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Sample Milking Procedure—Afternoon Routine Milking Procedures Afternoon Routine Cups on: 3.30pm ff Clean vats ff Check springers

ff Wash plant, hose yard, clean isolator buckets, refill teat spray

ff Bring new calves (24>hrs old) and cows in and record

ff A1 to nominated sires and record

ff Identify heifer calves (herd tag, brass tag) and record

ff Set up dairy for next milking

ff Feed calves and associated routine procedures

ff Set up paddock for morning

ff Milk (observe and detect heats, mastitis detection and observation of overall animal health) ff Draft cows on heat for A1 ff Note colostrum cows on whiteboard and mark clearly ff Treat any necessary herd problems and note on whiteboard ff Ensure cows are clearly marked using appropriate aids

ff Apply heat detection aids to cows mated ff Lock cows in paddock ff Check springers Milking involves using ALL recommended procedures in maintaining and producing quality milk, while at all times adhering to Health and Safety and Quality Assurance Standards and Procedures. Dairy buildings, equipment and surrounds are to be left in a clean and tidy state. Upon leaving property, ensure all stock are content with access to feed, water and shelter.

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Appendix 8 Historical Production Figures

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Historical Production Figures

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Appendix 8 Historical Production Figures

March April

59,522 62,640

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Appendix 9 Going Concern Dairy - Income Cost Breakdown Income figures, stock numbers and cost breakdown are available on request.

Thank You

We thank you for your time and consideration of this property.

We look forward to being of further assistance.

Ray White Kawana raywhitekawana.com.au