Member Presentation 1

PREFERRED DEVELOPER

Information Session for members held at City Tattersalls Club on Tuesday 4 December 2012

The PotentialTo take maximum advantage of:

• Our Club’s unique and valuable position in Sydney CDB

• Our unutilised airspace

• Our under utilised and/or unutilised areas in current Club space

City Tattersalls ClubProposed Indicative Development Option

PREFERRED DEVELOPER

Member Presentation 1

Concept Drawing

Agenda of tonight’s meeting History - Airspace Development Why Now?

194 Pitt StreetPre-DA Advice

• Confirm Committee’s proposed decision to progress to obtain a Pre-DA Advice from the Sydney City Council (SCC) at a cost not to exceed $100,000

• Provide information to members

• Receive feedback from member

NB: No commitment to development

The “seed”

• Was sown in the late 1960’s, early 1970’s

• Germinated in 2003 when made a part of Club’s Controlled Development Plan (CDP)

• Has remained a part of the CDP since 2003

Change is necessary at our Club• Change is happening around us

• Our highly competitive environment

• Ongoing challenges facing gaming (especially CBD gaming)

• 194 Pitt Street - convert from under utilised and unsustainable drain on Club to an essential part of the airspace development

• Purchased (pursuant to member’s vote) in 2007 for $9.750 in line with CTC Controlled Development Plan

• A key component in any airspace development plan

• Increased value as a key component of a development site, as compared to stand alone value

Benefits:

• Increased site area/Increased airspace potential

• Market Street prominence

• View corridors

• Higher value and dollar return to the project

It is not a development approval

• “Comfort document” from Sydney City Council (SCC) advising that a proposed development has reasonable/good prospects to be approved and on what major conditions

• Allows our Club to go to the market with higher confidence to seek an interested development partner

• Improves the quantity, quality and interest levels of prospective development partners in that it reduces risk and increases certainty

• Addssubstantialvaluetothesiteasa development proposition

PREFERRED DEVELOPER

Member Presentation 1

PREFERRED DEVELOPER

Member Presentation 1Expert Team Guiding Principles

Peter Georgeson

• Director, Georgeson Associates since 1995: 35 years experience as professional architect

• 25 years of experience in Club Industry

• 10 years involvement with City Tattersalls Club, its buildings, services and operations

• Involved in preparation of CDP in 2003 and all developments in the Club from 2004 to 2010

Jennifer Hill

• Director, Architectural Projects Pty Ltd (heritage architecture and urban design)

• 35 years of experience as professional architect

• Involved with Club on heritage issues since 2002

• Prepared a Conservation Management Plan for Club (2004) to guide future development

• From July 2010 to date, has been primary architect on Club projects

Robert McCuaig

• Director and Co-Founder of Colliers International (480 offices globally)

• Very experienced in CBD development projects (over 40 years)

• Has the necessary contacts, team, support and knowledge for such a project

• Property adviser to Federal & NSW State Governments, SCC, Westpac and Qantas etc.

• Involvement in many industry related bodies

• Prior experience working for the Club

• Retain City Tattersalls Club (CTC) as a registered Club recognising and ensuring compliance with the CTC Act and Rules

• Retain ownership of all assets by our Club

• Primary focus on Club, subsidiary clubs and members both now and in the future

• Maximise value of Club assets in short, medium and long term

• Minimise cost and maximise benefit to Club

• Minimise risk to the Club

• Achieve a long term reduction in financial dependence on gaming and secure the long term financial future of the Club

• Create a long term new business model for Club

PREFERRED DEVELOPER

Member Presentation 1Work Done To Date Concept Drawing 1 Concept Drawing 2

• Reviewed current controls for site

• Identified “highest and best” use

• Identified constraints (eg. structural, fire, traffic)

• Prepared schematic diagrams

• Met with senior Council representatives

• Submitted formal letter of enquiry to SCC (and considered verbal and written responses)

• Prepared preliminary financial modelling

• Prepared concept plan and modelling

• Research preferred development partners

• Strategic planning in relation to Club uses

PREFERRED DEVELOPER

Member Presentation 1

The ‘Proposed’ Development for the Purposes of the Pre-DA Advice

Club & Development Partner (DP) (Conceptual only - Subject to Agreement)

Concept Drawing 3

• A 40 storey tower over 3 of the existing Club buildings

• The demolition and remodelling of 196 Pitt Street to provide access, services etc to the tower

• The tower to be a mixture of serviced apartment floors and private apartment floors

• The two uses to each be a separate leasehold stratum, owned by the Club

• All title to be long term leasehold only, which ultimately passes back to the Club at lease end

• Separation of services and functionalities between the Club and the tower

• Tower built to capture view corridors in all directions

CLUB TO PROVIDE •the site•the research and IP•the Pre-DA Advice

DP TO PROVIDE •up front funds to the Club•the development consent•the construction of the tower

CLUB TO RECEIVE •up front funds from DP•renovated/re-modelled upgraded facilities to the Club•new income stream from sale of leasehold apartments and investment of proceeds•ownership of all assets

DP TO RECEIVE •long term lease of hotel apartments stratum•a superior hotel location in the CBD•access to Club amenities (restaurants, Fitness Centres etc.)

Impact• Noise

• Access

• Limited facilities

Benefits• Guarantees Club’s long term endurance and prosperity

• Eliminates dependence on gaming, leaving gaming a profit centre for Club

• Retains gaming on the ground floor

• Immediately reduces debt levels

• Secures long term financial future

• Substantially increases the asset base of the Club

• Upgrades facilities and services to members:

- a variety of restaurant offerings to the upper levels

- a state of art fitness centre and day spa.

- entertainment facilities

• Creates an efficiently organised and attractive Club

• Lifts our competitiveness in the CBD

• Attracts new members (eg. the tower population)

• Raises the Club profile to the premier (non-exclusive) CBD club in Australia

PREFERRED DEVELOPER

Member Presentation 1

Project Flowchart - Stage 1 Project Team Club Colliers

2 May 2012 INITIAL MEETING TO DISCUSS FEASIBILITY OF AIRSPACE DEVELOPMENT

MEETINGS WITH SUB CONSULTANTS

WORKING PARTY MEETINGS

DEVELOPMENT OF BEST AND HIGHEST USE

12 November 2012 REVIEW COUNCIL RESPONSE

29 November 2012 WORKING PARTY MEETINGS

4 December 2012 MEMBERS BRIEFING MEETING 1

7 November 2012 COUNCIL WRITTEN RESPONSE

CHAIRMAN’S MESSAGE TO MEMBERS

22 July 2012 BOARD MEETING

WORKING PARTY MEETINGS

12 September 2012 PRELIMINARY MEETING WITH SENIOR COUNCIL OFFICERS

2 October 2012 LETTER OF INQUIRY TO COUNCIL

PREPARATION OF SCHEMATIC DIAGRAMS

WORKING PARTY MEETINGS

BEST AND HIGHEST USE REPORT

15 October 2012 RATIONALE FOR PRE-DA APPLICATION PROCESS

29 October 2012 BOARD MEETING

PREFERRED DEVELOPER

Member Presentation 1

Project Flowchart - Stage 2

PREFERRED DEVELOPER

Member Presentation 1Project Team Club Colliers

January 2013 BOARD APPROVAL TO PROCEED

June 2013 MEMBERS BRIEFING MEETING 2

MEMBERS BRIEFING MEETING 1

FINALISE CLUB REQUIREMENTSPRE DA-SUMBISSION

COMMENCE PRE-DA DOCUMENTATION

FORMULATE LAND TITLE & HEADS OF AGREEMENT PROGRAM

IDENTIFY POTENTIAL CONTRACTING PARTIES

MEETINGS WITH CITY CLUB STAKEHOLDERS

PREPARE BRIEF FOR DEVELOPMENT AGREEMENT

Including option agreement and penalty clause

COUNCIL PRE-DA RESPONSE

REVIEW COUNCIL RESPONSE

AGM MEMBERS UPDATE

BOARD MEETING

May 2013

ONGOING INFORMATION TO MEMBERS

Where to From Here: January - June 2013

Break up of Consultants for Pre-DA Submission

Agenda

• Develop Pre-DA Submission proposal and submit proposal

• Meet with sample members including all subsidiary clubs to confirm the key elements of the Club into the future

• Receive and consider the Pre-DA Advice

• Identify potential Development Partners

• Preliminary legal advice concerning the proposal and land titles

• Issue periodic updates via quarterly Chairman’s Message and update messages on the web

• Report to members at second information session

1. Concept Drawing

2. Tonight

3. What is the Potential?

4. Pre-DA Advice

5. History - Airspace Development

6. Why Now?

7. 194 Pitt Street

8. Expert Team

Jennifer Hill Architectural Projects Pty Ltd

Peter Georgeson Georgeson Associates

Adrian Villella, Tim Blythe Urbis Planners

Peter Webber Urban Design

Bruce Davis BDA Consultants, Quantity Surveyor

Robert Weiss Engineer Partners, AC Electrical

Norman Gilmore Building Services Engineers, Lift Escalator

Graham Pindar Traffix

Paul Sloman ARUP, Environment

Aldis Birzulis Birzulis Associates

Stuart Boyce BCA Logic Pty LtdPREFERRED DEVELOPER

Member Presentation 1

Concept Drawing 1

PREFERRED DEVELOPER

Member Presentation 1

Concept Drawing 2

PREFERRED DEVELOPER

Member Presentation 1

Concept Drawing 3

PREFERRED DEVELOPER

Member Presentation 1

Concept Drawing 4

PREFERRED DEVELOPER

Member Presentation 1