Rose Gums Wilderness Retreat Book

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Restaurant exterior at night

Preserving and interpreting Australia’s tropical environments A sustainable lifestyle business ready for new opportunities.


Enjoying the wildlife at the creek


The Backdrop The Global economic outlook is continuing to improve underpinning Australia’s tourism demand. The United States’ economic recovery is becoming more broadly based and positive signs that the Eurozone economies are rebounding ensures that the world’s affluent “experience driven” traveller numbers are growing.

Room stock and tariffs tipped to rise Deloitte Access Economics’ Tourism and Hotel Market Outlook is very positive about returns for the accommodation sector in the next few years. It expects demand to grow nationally at nearly twice the pace of supply over the next three years to December 2016. Room nights sold are expected to grow by 2.2 per cent per annum, and room nights available are expected to increase at a much slower rate of 1.2 per cent per annum. Occupancies are expected to continue their record rates as a result of faster demand growth, to reach 68.8 per cent by December 2016. This is in turn expected to further buoy room rates and RevPAR to grow at above trend rates to 3.4 per cent per annum and 4.5 per cent per annum respectively, to December 2016. On the back of strong growth in revenues, accommodation stock is forecast to also slowly increase. According to Tourism Research Australia’s Tourism Investment Monitor 2014, investment in the accommodation sector in 2013 amounted to $7.4 billion, with a number of accommodation investment announcements in both metropolitan and regional areas. If both ‘pre-planning’ and ‘planning’ phases translate to ‘actual’ investment, an additional 12,020 rooms may be added to supply over coming years. As these economic fundamentals line up the conditions are ripe for an astute investor looking to capitalise on a significant tourism and environmentally sustainable business with a positive upside of strong returns through continued product development and investment.

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The Rose Gums Experience

Rose Gums Wilderness Retreat is an award winning and advanced eco tourism resort in the Cairns Highlands surrounded by Australia’s ancient highland rainforest habitat, home to eleven endemic bird species, cassowary, musky ratkangaroo, rare frogs, possums, and other abundant wildlife. Rose Gums has stunning views that vary from rainforest only to rainforest and mountain views of Mt Bartle Frere and Mt Bellenden Ker. Ideally located on 78 hectares (193 acres) Rose Gums is a unique property, bordering the World Heritage listed Wooroonooran National Park on two boundaries. Situated at the end of a no through road Rose Gums is only 15 minutes to the small rural villages of Malanda and Yungaburra and an easy 80 minutes’ drive from the Cairns International Airport with over 2 million passenger arrivals per year. The 9 handcrafted pole and timber treehouses are fully self-contained including studio layout treehouses to 2 bedroom treehouses which cater for up to 4 guests. Another two treehouses that can sleep up to 6 guests.

Trek through 9 kilometres of bush walking tracks

Fernwren Treehouse

For visitors the experience is unique allowing for up close encounters with Australia’s Flora and Fauna in their natural environment, whilst sleeping and dining in high quality accommodation and services.

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Jon Birdwatching with guests

Boatbill Treehouse


Queensland’s tallest peak, Mt Bartle Frere

Rose Gums Waterfall

World-Heritage listed Wooroonooran National Park Chowchilla Treehouse

Pristine rainforest creeks Kookaburra Treehouse Fairywren Treehouse

Bowerbird Treehouse

Whipbird Treehouse

LEAF Restaurant

Cockatoo Treehouse

Reception

Kingfisher Treehouse

Entrance

The beginning

Peta & Kids planting

Cassowary

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Bountiful Australian Natural History

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Rainbow Lorikeets

Lumholtz’s tree kangaroo

9 kilometres of walking tracks


‘Rose Gums’ is named after the most prominent tree on the property – the Rose Gum or Eucalyptus grandis.

Endangered Green-eyed Tree Frog

The Rose Gums are easily seen from the main house due to its towering height and brilliant white trunks and branches. The Gums can grow to 45m tall and 1.8 m in diameter typifying the “Wet Sclerophyll Forest” (WSF) in the highlands of North Queensland. Rose Gums are important to a whole range of wildlife, as the trees mature the termites eat out some of the centre creating vital nesting hollows for various bird species and dens for possums, gliders and other marsupials. The flower blossom also provides an abundant food source for honey-eaters and gliders. Rose Gums Wilderness Retreat is uniquely situated beside the World Heritage listed Wooroonooran National Park connecting 193 acres of private tropical forests and offering guests an unforgettable Australia bush experience. Carefully planned kilometres of walking tracks introduce guests to a pristine rainforest creek, a charming waterfall and many giant trees. The tracks vary in grade from easy to average and in duration from 40 minutes to 90 minutes. Extensive analysis of the fauna includes 160 individual species of birds each having been identified and recorded.

Ancient Quarzite boulders

The Endemic Victoria’s Riflebird

Platypus inhabit the large rainforest creeks and are often seen by guests. This unique Australian animal lays eggs in burrows beside the creek and also feeds the babies milk. This very unusual animal is part of the family of monotremes, like the echidna.  At certain times of the year cassowaries saunter through Rose Gums in search of fruit fallen from the walnut and quondong trees. The Southern Cassowary is endemic to the tropical forests of Far North Queensland and is currently listed as Endangered under Federal and Queensland State legislation.

Ulysses Butterfly

Platypus

There is also other abundant wildlife species such as butterflies and other unique insects, musky rat-kangaroos (Australia’s smallest kangaroo), large pythons and other snakes, turtles in the creek and even the occasional dingo howls in the distance.

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Global Access

Europe UK Japan

China

Hong Kong

Tapei

Africa Malaysia

Guam PNG

Singapore

Cairns

Darwin

Johannesburg

Brisbane

Perth

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Adelaide Sydney Melbourne Hobart


Situated on the coastal mountain ranges on the Atherton Tablelands adjoining World Heritage Wooroonooran National Park. How far to... • 1.5 hours drive to Cairns • 15 minutes drive to Malanda • 20 minutes drive to Yungaburra • 10 minutes drive to Lake Eacham • 15 minutes drive to Lake Barrine • 2.0 hours drive to Port Douglas

Canada

GPS (Geographical Position System) reading:

USA

17° 18.923 minutes South, 145° 42.12 minutes East

About Cairns Airport Connecting the world with the Great Barrier Reef and Tropical Rainforest. Cairns Airport is one of Australia’s leading regional airports, providing air links to a range of domestic and international locations.

South America

s Buenos Aires

Cairns Airport is the gateway to World Heritage Great Barrier Reef and Tropical Rainforests of North Queensland and is just 7 kilometres from the Cairns CBD. Over 3.5 million passengers pass through Cairns Airport’s T2 (Domestic Terminal) each year. There are direct domestic flights to Brisbane, Gold Coast, Sydney, Melbourne, Adelaide, Perth, Darwin and Townsville as well as to Alice Springs, Ayers Rock (Uluru) and regional centres across North Queensland. Cairns Airport is Australia’s seventh busiest for international passengers with direct flights from Tokyo, Osaka, Hong Kong, Guam and Port Moresby. There are also seasonal flights from Shanghai, Guangzhou and Auckland.

Cairns Airport Annual Passenger Totals FY2014

New Zealand

Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 TOTAL

International (T1 only) Domestic (T1 & T2) Transit & Transfer Depa rtures Arri va l s Depa rtures T1 & T2 Total Total 24,133 21,605 183,210 187,738 441,696 45,738 370,948 25,010 29,721 54,492 174,808 176,621 351,429 21,167 427,088 24,771 23,980 44,529 173,429 161,813 335,242 23,976 403,747 20,549 23,288 47,037 172,406 179,393 351,799 24,244 423,080 23,749 20,827 39,187 150,917 152,348 303,265 22,756 365,208 18,360 24,080 45,203 165,081 154,513 319,594 24,963 389,760 21,123 23,834 48,665 160,541 168,577 329,118 24,467 402,250 24,831 22,244 43,446 127,431 132,180 259,611 19,107 322,164 21,202 21,142 40,882 135,971 134,549 270,520 20,308 331,710 19,740 17,147 32,513 154,667 153,573 308,240 20,799 361,552 15,366 15,962 30,301 139,588 139,285 278,873 21,224 330,398 14,339 17,287 32,961 157,318 144,874 302,192 22,465 357,618 15,674 270,486 4,556,271 243,837 261,117 504,954 1,895,367 1,885,464 3,780,831 Total

Arri va l s

T1 is the dedicated internationals terminal. Domestic passengers use both terminals (T1 and T2) as domestic passengers can be carried on the domestic legs of international flights.

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Infrastructure Rose Gums is a fully operating Retreat that includes the appropriate infrastructure to deliver a significant natural history experience with a high standard of service and fulfilment. John and Peta Nott owners of Rose Gums are the masterminds behind the design and the build of the structure. The couple are also long established and widely respected builders in the Atherton Tablelands region.

Cockatoo treehouse

About the Builder Jon Nott has over forty years experience in constructing quality buildings on the Atherton Tablelands and in the Cairns area. In consultation with potential visitors and through applying his unique skills of design and planning, Jon and Peta delivered a clever design taking best advantage of the surroundings and environment enhancing the visitor’s experience. All the buildings are master-crafted energy efficient designs of beautiful pole and timber with impressive sails ‘moored’ on the side of a hill giving one the feeling that they are about to set sail over the magnificent rainforest.

Tennis court gazebo

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Vision statement from Jon & Peta Nott

Chowchilla treehouse

Kingfisher treehouse

Whipbird treehouse,

The environment inspired the design, the treehouses had to be wildlife hides, where you could see the abundant birds and animals from all aspects. The turpentine poles are the dominant feature, not just for the main support of the building but they tie the interior to the rainforest exterior. As a carpenter I love quality Australian timbers, like the stunning rose gums flooring and the spotted gum beams. They are the best timbers in the world. You have a sense of really experiencing the rainforest when you are surrounded by organic timber building materials. Pole homes are a unique building style by many cultures on the Pacific Ocean rim, cool buildings for the tropics, high off the ground for ventilation and to cope with the heavy rainfalls. Besides who does not like the feeling of being in a treehouse, a childhood dream!

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Treehouses Pole and timber construction with self-contained kitchen, fully furnished, spa bathroom with separate shower, laundry, private balcony, TV/DVD player, covered carport (1 car).

Kingfisher treehouse

House exterior

All except Bowerbird treehouse accessible with only 1 step from carport at front door. Balcony heights range from 3 meters to 8 metres from ground. All treehouses set 100 metres apart for total privacy

Kingfisher treehouse

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Whipbird treehouse


All accommodation features: • • • • •

Cockatoo treehouse

Cockatoo treehouse

Treehouses Cockatoo treehouse Two bedroom with internal staircase to loft bedroom with spectacular views of Queensland’s highest mountain, Mt Bartle Frere — sleeps 6. Chowchilla treehouse Studio with mountain/rainforest views — ideal honeymoon suite — sleeps 2 Bowerbird treehouse Two bedroom with external staircase to second bedroom and second bathroom, rainforest views, ideal for family with teenagers or 2 couples travelling together — sleeps 6 Kookaburra treehouse Studio with day bed for small child — rainforest views — best for bird watchers — sleeps 2 Kingfisher treehouse Studio with spectacular views to Mt Bellenden Ker (Queensland’s highest mountain) — sleeps 2

Large spa bath Separate shower cubicle Wood burning fireplace Self-contained kitchen Private balcony

• Convection microwave oven • 4 pot gas cook top • Refrigerator • King (zip) size beds • Stereo/television/ DVD/clock radio • Games/magazines/ bird book • Covered carport • Washing machine/dryer • All linen • Complimentary breakfast hamper (1st morning only) • BBQ (gas) • Fans • Bathrobes and footwear • Enviro-friendly shampoo, conditioner & soap

Whipbird treehouse Two bedroom with spiral staircase to loft bedroom— sleeps 4 Fairywren treehouse Two bedroom with spiral staircase to loft bedroom— sleeps 4 Boatbill treehouse Two bedroom with spiral staircase to loft bedroom— sleeps 4 Fernwren treehouse Two bedroom with spiral staircase to loft bedroom— sleeps 4

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House exterior

Staff cottage

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Main House Complex All Pole & Timber Construction House Generous free flowing layout, full timber kitchen, 8 metre high cathedral ceiling, large double opening glass sliding doors on all sides, 2 bathrooms, 3 bedrooms (one downstairs and others in loft), large decks, spectacular mountain/ rainforest views, parrot feeding deck, 2 car carport Office Convenient room in house adjoining reception / 2 computers/printer Reception Welcoming timber reception area 6 metres from guest carpark with free wifi, dvd/book library, guest computer, wildlife slide show, brochure display

House interior

Staff Cottage Private 1 bedroom unit attached to main house with walkway, full kitchen, private balcony, bathroom/laundry, 1 car carport under— ideal for relief staff/ conference organisers/guides/ bus drivers /personal guests quarters

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Restaurant Conference Centre

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Conference room

Restaurant

Restaurant

The Rose Gums Conference Centre provides an efficient space for small meetings to be conducted in an exceptional environment.

Light and airy space of pole and timber construction with magnificent surroundings of landscaping and rainforest. Designed and constructed to accommodate up to thirty diners inside and another twenty on the spacious deck under a huge sail. The unique nautical feeling of the complex is compelling and a highly recommended dining experience for the guests. Other components include the well appointed and functional commercial kitchen, five toilets including disabled and storage facilities.

Consistent with the other environments is a well designed, high-quality build and allows for ample meeting space for up to 30 delegates, equipped with whiteboard, flipboard and projector screen. The conference centre is an important asset in the generation of the visitor mix to the product. The conference and the restaurant provide the opportunity for private events, small weddings, business meetings and holistic retreats allowing for an improved business mix and the prospect to drive a greater return for the asset investment.


Other Facilities Exterior of restaurant

Jon walking

Tennis Court Full size concrete fenced, flood lit with Gazebo Pole & timber construction

Walking Tracks 9 km of well signposted tracks to large rainforest creek with swimming deck, 5 metre waterfall, giant rose gums tree, new forest with indigenous bush medicine trail, bird hide, and kangaroo hide

Roads 1.5 kilometres of internal gravel roads

Caretakers house 3 bedroom cathedral ceilingslarge deck- 20 metres from restaurant, furniture/appliances

Laundry Storeroom 39 sqm with 3 gas commercial dryers, 2 washing

Caretaker’s house

machines, roller press, linen, 2 refrigerators, toilet, shower, cupboards for stores and linen, cleaning wagon carpark

Full-size tennis court

Caretakers house interior

Staff accommodation 39 sq.m with beds, kitchenette, TV/DVD player

Machinery shed with 5 bays

Skillion bay with 10 sq.m covered area

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Rose Gums


Room Nights Sold Growth Room Nights Sold Growth

2000 1800 1600 1400

Demand Over the last 15 years Rose Gums has demonstrated a growth trend that is consistent with room stock, room rates and overall revenues. Rose Gums through its staged developments has opened new markets with destination alignment and product presentation through significant distribution globally. Rose Gums is a world leader in the provision of the EcoTourism experience and is satisfying the needs and travel aspirations of this burgeoning global market.

1200 1000 800 600 400 200 0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Nights Sold

A powerful testimony to the product and the experiences and services delivered is the growth of room nights sold during the last 15 years. From the evolution of the product in the first 5 years with 100% growth annually to the doubling of room nights sold every 4 years, the scene is set for further growth. In 2012 the Solar Eclipse special event drove room nights even higher demonstrating the effect of special events on turnover.

Revenues and Average Rate Growth Revenues and Average Rate Growth

$500,000.00

$300.00

$450,000.00 $250.00

$400,000.00

Ecotourism is ecologically sustainable tourism with a primary focus on experiencing natural areas that fosters environmental and cultural understanding, appreciation and conservation. The results demonstrate growth of income and set the foundations for exceptional return on investment for years to come.

Total Seclusion at Kingfisher treehouse

$350,000.00

$200.00

$300,000.00 $250,000.00

$150.00

$200,000.00 $100.00

$150,000.00 $100,000.00

Pristine rainforest creek

$50.00

$50,000.00 $-

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Revenue

2012

2014

$-

Average Rate

Coupled with increasing room nights is the products capacity to demand a higher prices annually resulting in compounding revenues. Room Rates have increased 83% allowing revenues to grow by 191% from 2000 - 2005, 94% from 2005 - 2010 and 45% from 2010 - 2014.

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Birdwatching at Rose Gums

Endemic Pied Monarch


Average Nights Per Stay

Seasonality 2013 Seasonality 2013 $70,000

$300

$60,000

$250

$50,000

$200

$40,000

$150

$30,000

$100

$20,000

$50

$10,000 $-

Jan

Feb

Mar

Apr

May

Revenues

The positive trends of length of stay is that visitors are staying longer, with over 35% of rooms sold are for bookings 3 nights or longer. The two night trend is the base requirement for the international holidaymaker and one night stays is usually the local market, booking direct at a higher rate.

Average Guests Per Stay

The variety of room types offers great flexibility for the diverse travelling party sizes, from families to solo travellers. The core product stock of the double size room allows for maximum suitability for the market needs.

Jun

Jul

Sold

Aug

Sep

Oct

Nov

Dec

Positive Foundations for Growth

$0

Rates

Seasonality is representative of the mix of markets with the local markets consistently providing the most room nights per month, however the international market has demonstrated the opportunity to build growth and surpass the limits of the local market. The second half of the year offers a mix of favourable weather with the southern hemisphere weather appealing to the north hemisphere travellers who are experiencing winter conditions.

Average Guests Per Stay

The product has appeal to the variety of traveller types. When matched with solid sales and marketing activities then positioned favourably in the distribution the core clients becomes the preplanned traveller who makes reservations well in advance, allowing for the operator to be well planned for their arrival. Other niche markets such as birders are attracted to the natural history of Rose Gums and will often stay longer to encompass the whole experience.

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Australia’s Domestic Growth Total domestic tourism expenditure is expected to increase 0.5 % in 2014-15 to $72 billion in real terms, making up about 69 % of the total visitor expenditure of $105 billion forecast for the year. Total tourism expenditure is forecast to grow on average 1.6 % per annum to $119 billion in 2022–23. Tourism Research Australia

Markets Revenues Revenues Markets $300,000.00 $250,000.00 $200,000.00 $150,000.00 $100,000.00 $50,000.00 $0.00

1998

1999

2000

2001

2002

2003

2004

Domestic

2005

2006

2007

International

2008

2009

2010

2011

2012

2013

2014

Local

The initial investment in the international market began in 2008, with a noticed uptake by the Dutch and German markets. Further investment opened the UK and French markets which by 2010 set the growth foundations for the international market for years to come. The Domestic market continues its steady growth and will carry on offering a stable source of revenue without a huge investment.

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View from Cockatoo treehouse of Mt Bartle Frere, Queensland’s highest mountain


Domestic Markets

Local Growth

Musky Rat-Kangaroo

The domestic market represents a fair spread across Australia’s population with Queensland representing the “rest of Queensland” thus not including the North who are regarded as local market.

The local market recognises Rose Gums as a long established boutique Rainforest Getaway experience. Consequently it is a favourite spot for couples to retreat, which drives the strong word of month endorsement for other locals and visiting friends and relatives from the domestic and international markets.

Local Markets Share 2010 - 2014

The stability of a growing local market that recognises Rose Gums as a signature experience within the region, means that this market will continue to provide consistent revenues.

Milllaa Millaa Falls

Being within an easy drive of Townsville with the its Government Administration Centres, huge Army barracks and dry landscapes provides a population yearning for the rainforest experience.

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UK 15.6%

International Growth International visitor spend is expected to increase 6% to $33 billion in 2014-15, the strongest increase in recent years, according to Tourism Research Australia (TRA). Spending by international visitors in Australia will make up 31% of Australia’s total visitor expenditure in 2014-15, up from 29% in 2005-06. An improved global economic outlook, especially the continuing economic recovery in Australia’s traditional inbound source markets such as the United Kingdom and the United States, has also contributed to an upward revision of growth for international visitor arrivals for 2014-15.

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Sweden 0.3%

Switzerland 5.3%

Spain/Portugal 0.3%

Netherlands 19.2%

other 1.4%

Norway 0.0%

New Zealand 2.9%

Other 28.3%

USA 9.2%

Japan 1.0% Italy 0.2%

Germany 23.2%

Hong Kong 0.1% Denmark 1.2% Finland 0.2%

China 0.1% Canada 1.0%

Belgium 3.2%

Asia 1.7%

Austria 0.3%

France 13.6%

The core markets in Europe will continue to expand through organic growth however it is the other markets that represent opportunity. The USA and Asia are set to bound ahead in the next 20 years.

Welcoming reception for guests


Markets Total Markets%%of of Total 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Domestic

International

Local

The investment into the international markets demonstrates that the demand for the experience has the scope for long term returns. However a balance of meeting the requirements of all markets allows for optional success

Walking track in forest

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Distribution Optimising Channel Marketing & Brand Alignment

Bookings and Distribution

By making the investment in aligning with specialist tour operators globally Rose Gums distribution has expanded through recognising the following: Travel is a business of dreams; by targetting traveller’s aspirations the revenues and profits have grown. • By delivering authentic memorable experiences, Rose Gums has fostered an enormous brand loyalty • By connecting the strategy, objectives, values and resources RoseGums has gained a significant competitive advantage. • By working closely with tour operators who influence inspires people to go places, driving up conversion and yield.

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Direct Booking Analysis


Direct Bookings International Mix

Distribution International

International Distribution 2009 - 2014

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The Future Rose Gums meets all statutory requirements and has no Council outstanding requisitions in place. A Development Approval is in place from the Tablelands Council for further expansion of accommodation units on the property. This includes: • Seven Treehouses • Two Lodge Blocks

Future Treehouse Future Luxury Lodge 8 High quality rooms

each including Eight high quality resort rooms • A Rainforest Research Centre

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Future Treehouse

Future Luxury Lodge 8 High quality rooms Future Treehouse

Panorama with future


Preserving for Future Generations The Rainforest Research Centre is a research and education partnership for the future, bringing together a range of experts in an exciting portfolio covering the following key areas of research: Future Treehouse

Future Treehouse Future Research Centre

Future Treehouse

• Evaluating ecosystem goods and services in a dynamic landscape; • Rehabilitation and restoration, including riparian; • Conservation principles and management; • Visitors to RoseGums will be able to support and engage in the research work being conducted.

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Investment Analysis

Main House Complex

Treehouse Overview

All Pole & Timber Construction

All pole and timber construction with self—contained kitchen, fully furnished,spa bathroom with separate shower, laundry, private balcony, TV/DVD player, covered carport (1 car). All except T3 accessible with only 1 step from carport at front door. Balcony heights range from 3 meters to 8 metres from ground. All treehouses set 100 metres apart for total privacy

House Generous free flowing layout, full timber kitchen, 8 metre high cathedral ceiling, large double opening glass sliding doors on all sides, 2 bathrooms, 3 bedrooms ( one downstairs and others in loft), large decks, spectacular mountain/rainforest views, parrot feeding deck, 2 car carport Office Convenient room in house adjoining reception/2 computers/printer Reception Welcoming timber reception area 6 metres from guest carpark with free wifi, dvd/book library, guest computer, wildlife slide show, brochure display Unit Private 1 bedroom unit attached to main house with walkway, full kitchen, private balcony, bathroom/laundry, 1 car carport under— ideal for relief staff/ conference organisers/guides/ bus drivers/personal guests quarters

Current value $949,000.00

Treehouse 1 Two bedroom treehouse with internal staircase to loft bedroom — sleeps 6— with spectacular views of Queensland’s highest mountain, Mt Bartle Frere.

Current value $160,000.00 Treehouse 2 Studio treehouse — sleeps 2— with mountain/rainforest views — ideal honeymoon suite.

Current value $120,000.00

Restaurant/Conference Complex

Treehouse 3 Two bedroom treehouse with external staircase to second bedroom and second bathroom — sleeps 6 — rainforest views — ideal for family with teenagers or 2 couples travelling together .

All Pole & Timber Construction

Current value $210,000.00

Restuarant Wheel-chair accessible with rainforest canopy views. Generous free flowing layout and large well designed commercial kitchen

Treehouse 4 Studio treehouse — sleeps 2 — with day bed for small child — rainforest views — best for bird watchers.

Conference Room Adjacent to restaurant seating up to 30 people with large breakout areas.

Current value $496,000.00

Current value $130,000.00 Treehouse 5 Studio treehouse — sleeps 2— Spectacular views to Mt Bellenden Ker (Queensland’s highest mountain).

Current value $130,000.00 Treehouse 6 2x bedroom treehouse with spiral staircase to loft bedroom— sleeps 4.

Current value $140,000.00 Treehouse 7 2x bedroom treehouse with spiral staircase to loft bedroom— sleeps 4.

Current value $140,000.00 Treehouse 8 2x bedroom treehouse with spiral staircase to loft bedroom— sleeps 4.

Current value $140,000.00 Treehouse 9 2x bedroom treehouse with spiral staircase to loft bedroom— sleeps 4.

Current value $140,000.00

Caretaker’s House All Pole & Timber Construction

28 Rose Gums

Private 3 x bedroom home, platform construction on steel posts with 1 car carport under, galley kitchen, bathroom, lounge, large balcony, separate storage shed. Restaurant exterior tables

Current value $310,000.00


Shed Complex

Property

Pole construction with colourbond roofing and cladding

78 hectare (193 acres) highland rainforest habitat for 11 endemic bird species, cassowary, musky rat—kangaroo, rare frogs, possums, and other abundant wildlife; treehouse views vary from rainforest only to rainforest and mountain views (Mt Bartle Frere/Mt Bellenden Ker)

Laundry/Storeroom 39 sqm with 3 gas commercial dryers/2 washing machines/ roller press/linen/2 refrigerators/toilet/shower/ cupboards for stores/linen/ cleaning wagon carpark Staff accommodation 39 sq.m with beds/kitchenette/TV/DVD player Machinery Bays 5 bays Skillion Bay 110 sq.m covered area

Current value $225,000.00

Water Bore 94 metre deep pumping to 2x 27000 litre concrete tanks Gas Reticulated underground gas (1.02 km) for HWS & stoves Electricity SWER line mains power underground (1.02 km)to all buildings Fences none RG sign Pole & timber entry sign

Infrastructure Current value $28,000.00

Boundaries Borders Wet Tropics World Heritage listed Wooroonoonran NP on north and east boundaries; 2.2 km frontage with Butchers Creek ( all year large flowing pristine rainforest water), end of Land Road, Malanda via 3 km well maintained local council gravel no through road.

Gazebo Pole & timber construction.

Current value $530,000.00

Tennis Court Full size concrete fenced, flood lit.

Current value $9,500.00 Walking Tracks 9 km of well signposted tracks to large rainforest creek with swimming deck, 5 metre waterfall, giant rose gums tree, new forest with indigenouse bush medicine trail, bird hide, and kangaroo hide Roads 1.5 kilometres of internal gravel roads.

Current value $20,000.00 Furniture/appliances. Current value.

$90,000.00

Carparks All unsealed gravel

Development Approvals 7 x treehouses 117 sq m each.

Current value $980,000.00 2 x 8 room lodges 448 sq m each.

Current value $1,433,600.00 1 x research centre 300 sq m.

Current value $480,000.00 Water Bore . Gas . Electricity . Fences . Rose Gums sign . Boundaries

Restaurant 4 carparks Conference 15 carparks Reception 4 carparks Staff 4 carparks

Vehicles 2 unregistered cleaning wagons 1 registered RAV 4

Current value $10,000.00

Rose Gums tree

29 Rose Gums


Rose Gums key growth markets represent any USA United Kingdom France opportunities rket for Profile Market Profile Market Profile Market Profile growth Germany France USA

ce overview

Performance overview

Rose Gums tree

UK

$1.9-2.3bn

$0.7bn

$4.5-5.5bn

$5.5-6.7bn

$1bn

110,100

$2.6bn

$3.4bn

501,300

656,300

11.8m

25.9m

Performance overview

Performance overview total spend

many was Australia’s tenth largest market visitor 14th the United of America In was 2013, the United fourth Kingdom largest (UK) was Australia’s largesttoinbound Ininbound 2013, France wasfor Australia’s largest inbound market for visitor Potential for In the2013, German market toStates be Total(USA) spend fromAustralia’s France in 2013 Potential for thethird USA market be 3 per cent onfor 2012) worth byexpenditure 2020 (Tourismand 2020) worth largest by 2020 market (Tourism for 2020) ighth largest market for total expenditure and13th ninth for visitor inbound market forvisitor visitor arrivals,(up the21 third market largest market visitor for arrivals, total and the second total arrivals, the largest market for total 10th nights. 1 1 during the fifth largest market for total dispersed expenditure and fourth for visitor nights. Itexpenditure was the fourth and largest visitor nights. marketIt was the largest market for total dispersed during 2013. It was thenights seventh largest2013. market for total dispersed nights 1 1 during 2013. during 2013. for total dispersed nights nights 13 issue of Tourism Research Australia’sThe bi-annual Forecasts OctoberTourism 2013 issue of Tourism Research Australia’s bi-annual Tourism Forecasts

arrivals totalinspend visitor arrivals from Germany will increase 4 per cent 2013/14 andfrom France will increase total spend estimates thatinvisitor arrivals per cent2013 2013/14 The4October issue ofand Tourism Research Australia’s The October bi-annual 2013 Tourism issue of Forecasts Tourism Research Australia’s bi-annual Tourism Forecasts 14/15, with an annual compound growth rate of in 4 per cent expected French visitor arrivals in 2013 Total spendgrowth from Germany in 2013 5 per cent 2014/15, with an annual compound rate of 5 per cent expected estimates that visitor arrivals from the USA will increase estimates 5 per that cent visitor in 2013/14 arrivalsand from the UK will increase 6 per USA cent in in 2013/14 and Total spend from 2013 4 3 (up 6.2 per cent onin 2012) (up 7 per cent on 2012) until 2017/18. 3 6 per cent in 2014/15, with an annual compound growth 4 per cent rate of 2014/15, 4 per cent with expected an annual compound growth rate2012) of 4 per cent expected (up 9 per cent on until 2017/18. until 2017/18.

169,800

7.3m

arrivals arrivals 2 2 2 total nights 2 outes from Germany to Australia Aviation routes from USA to Australia Aviation routes from the United Kingdom to Australia Aviation routes from France to Australia German visitor arrivals in 2013 French visitor nights spent in Australia in 2013 (up 18 per cent on 2012)3

(up 6.3 per cent on 2012)4 Hamburg

usseldorf

London Frankfurt

8.3m

Paris Lyon Nice Toulouse

Munich

San Francisco

Doha Abu Dhabi

Dubai

Doha Abu Dhabi

Hong Kong Bangkok

German visitor nights spent in Australia in 2013 (up 6 per cent onHong Kong 2012)3

Singapore

Brisbane

dispersed nights1

Percentage of total German visitor nights spent outside gateway cities in 2013 Sydney (up 2 per cent on 2012)3

30

Australia ranks Visitor profile in 2013

40% repeat visitors 76% of total arrivals are for leisure3 Rose Gums 15-29 years largest demographic3 $5,870 average spend3 3

New York Atlanta

14

th

among all out of region outbound5 destinations for German travellers6

Australia ranks

total nights

Dallas‐Fort Worth

Kuala Lumpur

Kuala Lumpur Singapore

file in 2013

Chicago London

Percentage of total French visitor nights spent outside gateway cities in 2013 Honolulu (up 1 per cent on 2012)3

Dubai

49%

London Gatwick, Glasgow, Newcastle and Los AngelesBirmingham

dispersed nights1

Seoul

19

th

among all out of region outbound5 destinations Auckland for French travellers6

Doha

39%

dispersed nights1

dispersed nights1

Percentage of total USA visitor nights spent outside gateway cities in 2013 (down 2 per cent on 2012)3

Australia ranks

motivates them to visit the country,

38%

Kuala Lumpur

Singapore

24 Perth

Visitor profile in 2013

UK visitor nights spent in Australia in 2013 (up 9 per cent on 2012)3

Bangkok

th

among all out of region outbound5 destinations for USA travellers6

47% repeat visitors3 62% repeat visitors3 38% repeat visitors3 Consumer research research 69% of total arrivals are for leisure3 64% of totalConsumer arrivals areresearch for leisure3 arrivals are for leisure3 82% of total Consumer 3 20-34 years largestresearch demographic For detailed into how German For detailed research into 3how USA 55+ years largest demographic detailed demographic research into how3French 45-59 yearsForlargest 3 consumers view Australia and what consumers view Australia and what consumers view Australia and what $6,761 average spend $5,470 average spend3 $5,406 average spend3 motivates them to visit the country,

arrivals

UK visitor arrivals in 2013 (up 7.9 per cent on 2012)4

total nights

USA visitor nights spent in Australia 3 Hong Kong inDubai 2013 (up 12 per cent on 2012) Abu Dhabi

Melbourne

Visitor profile in 2013

total spend

Total spend from UK in 2013 (up 12 per cent on 2012)3

Manchester

40%

total nights

USA visitor arrivals in 2013 (up 6.5 per cent on 2012)4

Potential for the UK market to be worth by 2020 (Tourism 2020)

motivates them to visit the country,

Percentage of total UK visitor nights spent outside gateway cities in 2013 (same as 2012)3 Sydney Melbourne

Australia ranks

4th

among all out of region outbound5 destinations for UK travellers6

Consumer research For detailed research into how UK consumers view Australia and what motivates them to visit the country,


International Growth 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22

20

03

02

20

01

20

20

00

99

20

19

19

98

Other Markets

Domestic

International

Local

The international market will become the largest percentage of business through to 2022. All indications reflect the capacity to meeting the market growth needs which has the opportunity for driving higher than market returns.

International Markets Growth 2015 - 2023 $350,000.00 Germany Netherlands

$300,000.00

UK France $250,000.00

USA Switzerland Belgium

$200,000.00

New Zealand Asia

$150,000.00

other Denmark

$100,000.00

Japan Canada Austria

$50,000.00

Sweden $-

Spain/Portugal 2015

2016

2017

2018

2019

2020

2021

2022

2023

Some international markets are ripe for expansion including USA and intrepid Chinese travellers. Both represent massive travellers demand and include the tropical rainforest experience as high on their aspiration bucket list.

31 Rose Gums


Revenue vs Available Treehouses

An indicative Investment Analysis

$2,500,000.00

35 30

$2,000,000.00

25

$1,500,000.00

20

$1,000,000.00

15 10

$500,000.00

5

$-

04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22

03

20

02

20

01

20

00

20

99

20

19

19

98

0

Revenue

No of Treehouses

The magnifying effect of considerable room stock growth equals climbing revenue. If the process of adding further room stock is gradual, the market can respond and will begin by filling peak months then drawing into the overall year. This ensures gradual revenue increases annually.

Average Rate VS Average Occupancies $350.00

70.00%

$300.00

60.00%

$250.00

50.00%

$200.00

40.00%

$150.00

30.00%

$100.00

20.00%

$50.00

10.00%

04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22

20

03

20

02

20

01

20

00

20

19

19

99

0.00%

98

$-

Average Rate

32 Rose Gums

Occupancies

By projecting the core fundamental of Average Room Rate Verses Occupancies to 2022 based on the historical growth trends, the outcome result is a compounding revenue position.


Investment Analysis Stream

2015-2022 YEAR

2015

2016

2017

2018

2019

2020

2021

2022

Rooms

9

16

16

24

24

32

32

32

No of Rooms Available

9

16

16

24

24

32

32

32

No of Days

365

365

365

365

365

365

365

365

Occupancy per year

62%

55%

60%

55%

60%

55%

60%

65%

Available Room Nights

3285

5840

5840

8760

8760

11680

11680

11680

Room Nights Actually Sold

2037

3212

3504

4818

5256

6424

7008

7592

$252.00

$255.00

$262.00

$268.00

$275.00

$281.00

$286.00

$292.00

$513,248

$819,060

$918,048

$1,291,224

$1,445,400

$1,805,144

$2,004,288

$2,216,864

$51,325

$81,906

$91,805

$129,122

$144,540

$180,514

$200,429

$221,686

$102,650

$163,812

$183,610

$258,245

$289,080

$361,029

$400,858

$443,373

Occupancy Analysis

Actual Average Rate per month Actual Revenue Expenses Sales and Marketing Investment Room Operation Costs External Operation Costs

$51,325

$65,000

$65,000

$75,000

$75,000

$120,000

$120,000

$120,000

Adminstration Costs

$102,650

$135,000

$165,000

$200,000

$240,000

$27,500

$325,000

$32,500

Total Expense

$307,949.04

$445,718.00

$505,414.40

$662,367.20

$748,620.00

$689,043.20

$1,046,286.40

$817,559.20

Operating Profit

$205,299.36

$373,342.00

$412,633.60

$628,856.80

$696,780.00

$1,116,100.80

$958,001.60

$1,399,304.80

$4,500,000.00

$5,480,000.00

$5,480,000.00

$6,196,800.00

$6,196,800.00

$7,393,600.00

$7,393,600.00

$7,393,600.00

5%

7%

8%

10%

11%

15%

13%

19%

Capital Outlay for existing and new room stock Return

33 Rose Gums


Summary With the Global economic outlook continuing to improve underpinning Australia’s tourism demand, and with national and international growth at nearly twice the pace of supply over the next three years to December 2017, an investment in a well market place positioned tourism product with the scope for future infrastructure development makes great financial sense. As an award winning and advanced eco accredited Resort in the Cairns Highlands Rose Gums is surrounded by Australia’s ancient highland rainforest, habitat for 11 endemic bird species, cassowary, musky rat-kangaroo, rare frogs, possums, and other abundant wildlife, representing a significant experience demanded by the world’s aspirational traveller. Set on 78 hectares (193 acres) bordering the World Heritage listed Wooroonooran National Park it’s an easy 80 minutes’ drive from the Cairns International Airport with over 2 million arrivals per year. Over the last 15 years Rose Gums has demonstrated growth trend that is consistent with room stock, room rates and overall revenues. Rose Gums through its staged developments has opened new markets with destination alignment and presenting the product through significant distribution globally. The opportunity to capitalise on a successful business plus the added metrics of more revenue through a pipeline in further investment demonstrates a growing return above the capital market rates.

34 Rose Gums



Contact: Peter MacPherson Ph: 0447 942 110 Email: pmacpherson@qldrural.com.au View on www.qldrural.com.au property

Contact: Shane Mullins Ph: 0447 185 001 Email: shanemullins@resortbrokers.com.au


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