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SalesLeasingValuationsManagement

Petit Early Learning Journey Port Douglas QLD 507-511 Davidson Street

Information Memorandum

Auction 11am AEST Wednesday 28 June 2017

River Room, Crown Casino, Melbourne

Table of Contents

Investment Features 4

Introduction 6

Key Childcare Sector Attributes 8

Property Details 10

Lease Details 11

Tenant Profile 12

Location 14

Location Maps 15

Market Evidence 16

Sale Process 17

Contact 17

Property Management 18

Disclaimer 19

Appendices

Title

Floor Plans

Lease Schedule

Amendment of Lease

Burgess Rawson 32 Port Douglas QLD, Childcare Centre, Information Memorandum

Site Area • 2,663 sqm

Zoning • Residential 1

Title Details • Lot 2 on Crown Plan C2256

Lease • Term: Fifteen (15) years from 26 November 2014 to

25 November 2029 • Options: Two (2) x five (5) years from 26 November

2029 to 25 November 2039

Net Income • $188,342 p.a. + GST and Outgoings

Method of SaleFor sale by Auction on Wednesday 28 June 2017 at 11am River Room, Crown Casino, Melbourne

Investment Features

• Secure 15 year lease to Petit Early Learning to November 2029

• Two further 5 year options through to November 2039

• Petit Early Learning: highly experienced and successful childcare provider with 15 centres nationally

• Minimum 2.5% annual rent increases plus ‘ratchet’ provisions at market review, ensuring guaranteed rental growth

• Triple net lease terms with the tenant responsible for all outgoings including capital / structural works and multiple holding land tax

• Impressive 576 sqm state-of-the-art facility, licensed for 88 places

• High profile 2,663 sqm main road corner site, with 20 car spaces

• Port Douglas: tourist mecca of far North Queensland and gateway to the Great Barrier Reef and the Daintree National Park

• Substantial taxation saving depreciation

Adam Thomas 0418 998 971 [email protected]

Natalie Couper 0413 856 983 [email protected]

Jamie Dewe 0410 350 273 [email protected]


Introduction

Burgess Rawson is delighted to offer the freehold interest in the childcare investment located at the corner of 507-511 Davidson Street, Port Douglas QLD. This property will be offered for sale by way of auction on Wednesday 28 June, 11am AEST at the River Room, Crown Casino in Melbourne.

Since being established in 1975, our Sales, Leasing, Property Management, Valuation and Advisory services fulfil the complete and ongoing needs of our clients. Burgess Rawson has a network of offices throughout Australia and extensive regional partnerships with local property specialists, giving unmatched depth and reach in all commercial property market sectors.

At every stage of ownership, our clients benefit from our specialist knowledge, experience, market insights and advice. Our strong market position, plus our targeted and effective marketing

campaigns through a highly qualified database, generates maximum exposure for properties.

Burgess Rawson’s iconic Portfolio Auctions are held in Melbourne and Sydney bringing together a diverse range of national commercial and investment grade properties.

Based on our knowledge and experience, Burgess Rawson are confident in recommending the property as an outstanding investment opportunity.


Key Childcare Sector Attributes

According to the Department of Education and Training report for the September 2015 quarter, the future looks bright for childcare investments with over 1.2 million children attending some form of approved childcare service in Australia. This has been steadily growing and has increased by 5.7% on the previous year.

According to IBIS World, a baby boom is coming – with the rate of births expected to increase by 6.4% over the next few years as the workforce ages.

The demand for childcare is being driven by a number of industry factors including:

• The high cost of living driving parents back to work

• The desire of more women to maintain careers than in the past

• The government’s position that female workforce participation is good for the economy.

• The Australian Government subsidies the cost of child care for eligible families through the Child Care Benefit and the Child Care Rebate to help parents with the cost of approved child care.

During the September 2015 quarter, the total estimated expenditure on Child Care Benefit and Child Care Rebate was over $1.8 billion, 64% of which was paid in relation to families using Long Day Care services.

Under the proposed federal Budget the new Child Care Subsidy will replace both existing government subsidies where families earning up to $65,000 will be able to receive up to 85% off the cost of their childcare back in subsidies. This rate reduces with higher incomes, with families earning over $170,000 potentially receiving 50% back.

Nationally, total government recurrent and capital expenditure on childcare services was $8.6 billion in 2014-15 (an increase of 9.6% from 2013-14). Over the last five years, the average annual growth rate of real expenditure was 10.6% which may push up demand for childcare even further.

Source: ABS and Department of Education and Training

n NSW

n VIC

n QLD

n SA

n WA

n TAS

n NT

n ACT

34.1%

22.6%

24.4% 6.2%

8.2%

1.7%0.8%2.2%

Children using Long Day Care by State and TerritorySeptember Quarter, 2015


LocationThe property is prominently positioned on a large corner site with street frontage and exposure to the Captain Cook Highway, and located 1.5km south of the commercial precinct.

Building Description Modern purpose-built (2014) single storey childcare facility, licensed for 88 places.

Site Description The subject site is of triangular shape. In accordance with the Title Plan, the property has the following boundary dimensions: • Northern boundary 73m

• Eastern boundary 50m (Davidson Street frontage)

• Southern boundary 22m

• Western boundary 75m (Captain Cook Hwy)

• Total 2,663sqm

Accommodation includes: • Reception/foyer

• Manager’s office

• Staff room

• Five (5) education rooms with direct access to external play areas

• One (1) cot room

• Four (4) children’s bathrooms

• Kitchen

• Laundry/storage rooms/prep rooms

• Unisex toilet/bathroom

Building Construction • Floors: Reinforced concrete slab

• Floor Coverings: Vinyl

• External walls: Painted concrete masonry

• Internal lining: Painted plasterboard

• Lighting: Florescent tube

• Windows: Aluminium framed

• Doors: Aluminium framed

• Ceilings: Painted plasterboard

• Roof: Iron sheeting

Address: 507-511 Davidson Street, Port Douglas QLD

Title Details: Lot 2 on Crown Plan C2256

Site Area: 2,663 sqm

Zoning: Residential (1) under the Douglas Shire Planning Scheme

Property Details Lease Details

Lessee Petit Early Learning Journey Pty Ltd

Lease Term Fifteen (15) years

Lease Commenced 26 November 2014

Lease Expiry 25 November 2029

Options Two (2) further terms of five (5) years to 25 November 2039

Outgoings Triple net lease terms with all outgoings including maintenance, capital/structural works and multiple holding land tax recoverable

Rent Reviews Annually to the greater of 2.5% or CPI plus ‘ratchet’ provisions at market review ensuring rent cannot reduce

Security Bank guarantee equal to six (6) months’ rent plus GST

Net Income $188,342 pa + GST and outgoings


Tenant Profile

Petit Early Learning Journey is a premium early education provider that is renowned for creating safe, respectful and compassionate environments.

Petit Early Learning Journey follow a holistic approach that encompasses a connection of mind, body and spirit, and a view that all learning is integrated and interconnected. Petit also embrace sustainable practices and utilise a paperless digital sign in/sign out system (QK Kiosk) as well as an online child portfolio tool (Storypark). To assist our families with busy mornings, all nappies and wipes along with meals are inclusive within the daily fee and are prepared on site by our very own Chef. Petit’s seasonal menus have been developed in association with a child nutritionist and aim to meet a significant amount of a child’s daily nutritional requirements.

Petit works to or above the educator-to-child ratios, meaning children are being supervised to the highest standard and educators are able to give more individual care and attention. As a result, more meaningful relationships are formed.

Petit Early Learning is owned by interests associated with Morgan Stanley and their existing facilities include:

• Barton ACT

• Burdell QLD

• Caloundra QLD

• Clifton Hill VIC

• Coffs Harbour QLD

• Forest Hill VIC

• Hamilton, QLD

• Kew VIC (opening July 2017)

• Marian QLD

• Murwillumbah NSW

• Northshore Hamilton QLD

• Pimpama QLD (opening July 2017)

• Port Douglas QLD

• Richmond VIC

• Wooloowin QLD

For further information on Petit Early Leaning Journey, please visit: http://petitjourney.com.au/


Location

Port Douglas is located 70km north of Cairns, known as the tourist centre in far North Queensland. It has grown into a sophisticated and upmarket resort town and is a far North base for tourists, being surrounded by unspoilt resorts, the Great Barrier Reef, Daintree Rainforest and beautiful scenery.

Douglas Shire is located in Far North Queensland, about 1,800 kilometres north of the Brisbane CBD, and 400 kilometres north of the Townsville CBD. Douglas Shire is bounded by Cook Shire and the Wujal Wujal Aboriginal Shire in the north, the Coral Sea in the east, the Cairns Regional Council area in the south, and Mareeba Shire in the west.

The Douglas region is a world-renowned tourist destination enveloped by several of Australia’s World Heritage listed, magnificent natural boundaries: Wet

Tropics rainforest-covered mountain range to the west and north, and 95km of Coral Sea coastline and Great Barrier Reef Marine Park to the east.

Douglas is home to over 11,000 permanent residents along substantial seasonal workforce. Approximately 70% of Douglas residents live in the two main population centres of Port Douglas, the main tourist focus and Mossman, the service, agricultural and industrial hub of the region.

The Shire covers a total area of approximately 2 400 square kilometres and comprises rural, and growing urban areas. Agricultural lands are primarily utilised for sugar cane production, with some cattle grazing and tropical fruit growing.

The Shire is in the unique position of having two World Heritage areas at its doorstep; a favourite international and domestic adventure and eco tourist destination where the tropical rainforest meets the Coral Sea. Approximately 85% of the Douglas region is included in the Wet Tropics World Heritage Area (WTWHA), National Park and the Great Barrier Reef World Heritage Area (GBRWHA). 80% of the economy for the Shire is predominantly tourism, with 1.2 million visitors annually exploring the many natural wonders.

For further information, please visit: http://douglas.qld.gov.au Port Douglas

The gateway to the Great Barrier Reef and Daintree Rainforest making Port Douglas the favoured Far North tourist base.

IGA SUPA

Coles


Market EvidenceComparable sales of Queensland childcare investments transacted by Burgess Rawson include:

Date Address Sale Price Yield

Apr 2017 Allenstown, 25 Ross Street $1,885,000 6.75%

Feb 2017 Frenchville, 337 Dean Street $1,885,000 6.75%

Feb 2017 Pimpama, 51 Dixon Drive $4,500,000 5.74%

Dec 2017 Parkwood, 190 Napier Road $3,200,000 5.86%

Oct 2016 Beenleigh, 14 Crest Street $3,300,000 6.55%

Oct 2016 Southport, 2-8 Nesbit Street $2,600,000 5.99%

Oct 2016 Banyo, 17 Approach Road $2,340,000 5.14%

May 2016 Everton Hills, 3 Camelia Avenue $3,500,000 5.46%

May 2016 Bowen, 65 Leichardt Street $1,220,000 6.98%

May 2016 Townsville, 239 Lakeside Drive $4,101,000 6.97%

Sale Process

InspectionsInspections can be arranged by prior appointment.

Interstate BiddingInterstate bidding is available strictly by prior arrangement at one of Burgess Rawson’s interstate offices.

Terms of SaleDeposit of 10% payable upon exchange and the balance upon settlement. It is proposed the property will be offered as a ‘going concern’ and if the purchaser meets the provisions of the GST legislation the sale will not incur GST.

Burgess Rawson & Associates Level 7, 140 Bourke Street Melbourne

Adam Thomas 0418 998 971 [email protected]

Natalie Couper 0413 856 983 [email protected]

P

P

P

N

Power St

CrownPromenade

Que

ensb

ridge

St

Crown Towers

Escalators

Main Complex EntryAtrium

Casino

Casino

Food Court

Yarra River

Yarra Promenade

Kings St

RailwayFlinders St

Palladium

MelbourneExhibition

Centre

Clarendon St

Whiteman St

Whiteman

St

Kings Way

Crown Conference

Centre

River Room

Multi-level Car Park

City Rd

Crown Metropol

Haig Ln

Clarke St

Normanby Rd

Method of Sale

For sale by auction on Wednesday 28 June 2017 at 11.00am

River Room, Crown Casino, Melbourne, VIC

Burgess Rawson & Associates Level 20, 307 Queen Street Brisbane QLD 4000

Jamie Dewe 0410 350 273 [email protected]


Property Management

Burgess Rawson is not only a market leader in investment sales; we are also regarded as highly professional property managers. With an Australia-wide management portfolio of well in excess of $2billion, we are able to equally manage property whether it is CBD, metropolitan or regionally located.

• More than Rental Collection - care for your property and investment. Professional property management enhances and secures your tenant relationship, provides property accounting (including tax invoicing/GST/BAS) reports and maximises rental. We take the weight off your shoulders.

• Achieve $ savings - through our buying power and access to the best providers: insurance brokers, maintenance contractors etc. We have the contacts and long standing relationships to be at your disposal.

• Improve your cash flow - Apart from ensuring regular rental increases are enacted to maximum sustainable levels, a professional property manager reviews council rating values, as well as accessing the best taxation depreciation assessment to improve your after income tax bottom line. We aim to add more to your overall capital value.

• Not missing a beat - With our daily contact in the market, we hear about new developments, tenants on the move etc. Whether this information helps protect your investment or leads to further opportunities, we have our ears to the ground.

• Problem solvers Owning property has never been more complicated, and highly regulated. We are fully conversant with the Retail Tenancies Act, Town Planning and Occupational Health and Safety Regulations. We can anticipate and prevent problems.

• Experience and involvement - Our professional property managers offer a wide range of expertise. Time in the profession, and continuous improvement and involvement in the property sector is an intellectual pursuit. We can provide a pool of such experience to individual clients in a way we believe self-managed property owners cannot.

• Value for money - free yourself up to concentrate on the returns of your investments, rather than the daily issues which can arise from your property. The small cost involved in professional management is money well spent. We have the resources to service your needs.

To discuss your particular property management’s needs, please contact either your Burgess Rawson selling agent or Ingrid Filmer today.

Ingrid FilmerDirector Principal Property Management Department 0413 860 312 [email protected]

Disclaimer

The information contained in the report/information memorandum has been prepared in good faith and due care by the Vendor, Burgess Rawson. Any projections contained in the report therefore, represent best estimates only and may be based on assumptions.

The information contained herein is supplied without any representation as to its truth or accuracy. All interested parties should make their own enquiries to satisfy themselves in all aspects and obtain their own independent advice in order to verify any of the information. All stated dimensions and areas are approximate.

The vendor does not represent or warrant the accuracy of any information contained in this document. Subject to any statutory limitation on its ability to do so, the vendor disclaims all liability under any cause of action, including negligence, for any loss arising from reliance on this document.

Specifically, we make the following disclosures:

• All areas, measurements, boundaries, car space numbers, rents are approximate only and subject to final confirmation;

• The indicative depreciation schedule has been provided by Napier & Blakeley and is an estimate only and cannot be used for tax purposes.

The information contained in this document is provided as a guide and an aid to further investigation by potential purchasers. Prospective purchasers should seek legal, financial and other appropriate expert advice in order t he verify the accuracy of the information presented in this document

GST Disclaimer

Burgess Rawson advises that the financial information in this report relating to income, outgoings and the like is provided without reference to the possible impact of GST, if any. Purchasers should make their own assessment of the impact of GST on the investments and the returns derived there from after obtaining expert professional advice.


Title Floor PlansCURRENT TITLE SEARCH

DEPT OF NATURAL RESOURCES AND MINES, QUEENSLANDRequest No: 16854768

Search Date: 29/08/2013 10:39 Title Reference: 20670028Date Created: 06/10/1964

REGISTERED OWNER Interest

Dealing No: 707634297 13/04/2004

GD DICKSON PTY LTD A.C.N. 100 910 192TENANT IN COMMON 1/3

JAMES UNDERWOOD & ASSOCIATES PTY LTDA.C.N. 055 879 028 TENANT IN COMMON 1/3HENRY NORWOOD WILLIAMSKERRY ANN WILLIAMS JOINT TENANTS INTER SE 1/3

AS TENANTS IN COMMON

ESTATE AND LAND

Estate in Fee Simple

LOT 2 CROWN PLAN C2256County of SOLANDER Parish of SALISBURYLocal Government: CAIRNS

EASEMENTS, ENCUMBRANCES AND INTERESTS

1. Rights and interests reserved to the Crown byDeed of Grant No. 10422175 (ALLOT 2 SEC 3)

2. MORTGAGE No 706895920 18/08/2003 at 08:44COMMONWEALTH BANK OF AUSTRALIA A.B.N. 48 123 123 124

ADMINISTRATIVE ADVICES - NILUNREGISTERED 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) [2013]Requested By: D APPLICATIONS GLOBAL X

Page 1/1

Based on the Property Location Index provided with the permission of the State of Queensland (Department of Natural Resources and Mines) 2009

While every care is taken to ensure the accuracy of this data The State of Queensland (Department of Natural Resources and Mines) makes no representations orwarranties about its accuracy, reliablity, completeness or suitability for any particular purpose and disclaims all responsibility and all liability (including without limitation,liability in negligence) for all expenses, losses, damages (including indirect or consequential damage) and costs which you might incur as a result of the data beinginaccurate or incomplete in any way and for any reason.

Burgess RawsonPort Douglas QLD, Childcare Centre, Information Memorandum

Floor Plans Floor Plans


Lease Schedule Lease Schedule


Amendment of Lease Amendment of Lease


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