100 Bennelong Parkway Sydney Olympic Park, NSW€¦ · investors and developers strongly consider this unique offering. ... Section 1. Section 2 Centuria Property Funds V5 Executive

An asset of Centuria Property Funds

Centuria Property Funds

Information Memorandum

100 Bennelong ParkwaySydney Olympic Park, NSW

• Outstanding residential development potential* • 100% leased to Jemena Limited until 30/11/17 with Lessor Early Termination Right

• Excellent location opposite Bicentennial Park • 5,267 sqm office/warehouse facility situated on a large 1.5 ha site

• Ability to construct approximately 30,080 sqm of residential GFA (over 300 apartments)*

• Sale or Joint Venture opportunity with Vendor

* Subject to SOPA approval

II2 Information Memorandum for 100 Bennelong Parkway, Sydney Olympic Park

100 Bennelong Parkway Sydney Olympic Park, NSW

Centuria Property Funds III

Contents1: Introduction 42: Executive Summary 53: Key Investment Highlights 64: Location 85: Development 136: Asset Overview 197: Financial Information 228: Conclusion 259: Sales Process 26

Section Page

Introduction

IIICenturia Property Funds

Prominently positioned directly opposite Bi-Centennial Park within the thriving and emerging Sydney Olympic Park, 100 Bennelong Parkway comprises a fully leased, modern office/warehouse facility with significant residential development upside.

The current zoning incorporates an FSR of 2:1, which allows the potential to construct approximately 30,080 sqm of residential GFA on the site (over 300 apartments).*

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100 Bennelong Parkway is being offered for Sale by Expressions of Interest closing Thursday 14 March 2013 at 4pm AEDST, if not sold beforehand.

*Subject to SOPA approval

IV Information Memorandum for 100 Bennelong Parkway, Sydney Olympic Park

Introduction

On behalf of Centuria Property Funds, GJS Property and Savills are pleased to offer for sale a truly exceptional investment property - 100 Bennelong Parkway, Sydney Olympic Park.

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100 Bennelong Parkway provides a rare opportunity to acquire a securely leased office/warehouse facility with outstanding potential for residential development.

The property features a prime location within the dynamic precinct of Sydney Olympic Park directly opposite Bicentennial Park. This combined with its ease of access via Sydney’s road network and public transportation; as well as proximity to world class entertainment, recreational and sporting facilities, makes 100 Bennelong Parkway an excellent commercial and residential location.

The entire office/warehouse is leased to Jemena Limited until 30 November 2017, with a break clause in the Lessor’s favour allowing early access to the site for development upon giving two years prior written notice (penalty payments apply). With an estimated fully leased net

income of $2,220,885 p.a. as at 30 June 2013 (includes $883,910 p.a. associated with the funding of Base Building Alterations expiring 30/11/14) underpinned by fixed annual rental increases of 3.75%, 100 Bennelong Parkway is an outstanding commercial asset offering the chance to capitalise on an undersupply of development sites around metropolitan Sydney.

Its desirable location, existing income stream and flexibility, ensures 100 Bennelong Parkway represents an extremely attractive investment opportunity with the potential to achieve increased returns. It is recommended that both investors and developers strongly consider this unique offering.

The property is being offered for Sale by Expressions of Interest closing Thursday 14 March 2013 at 4pm AEDST if not sold beforehand.

Section 1

Section 2

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Executive Summary

Property 100 Bennelong Parkway, Sydney Olympic Park NSW 2127

Location The property is well located within the urban centre of Sydney Olympic Park on the western side of Bennelong Parkway directly opposite Bicentennial Park, providing the potential for spectacular views. Excellent access to Sydney’s road network and public transportation, combined with an abundance of sporting, recreational and dining amenities nearby, make this a highly sought after location.

Building Description Functional office/warehouse complex comprising two levels of office accommodation, a ground floor warehouse, hardstand and parking for approximately 237 vehicles.

Leasing Profile 100% leased to leading Australian infrastructure company Jemena Limited until 30 November 2017 with no further option.

Estimated (Fully Leased) Net Income

Base Net Rent: $1,336,975 p.a. (as at 30 June 2013) Additional Rent: $883,910 p.a. - Associated with the funding of Base Building Alterations, which expires 30/11/2014. See section 7.1 - Lease Summary for further information.

Gross Lettable Area (GLA)

Car Parking Deck Parking: 53 spacesUndercover: 55 spacesOn-Grade: 129 spaces

Total: 237 spaces

Site Area 15,040 sqm

Zoning B4 Mixed Use under the provisions of the State Environmental Planning Policy - SEPP (Major Projects) 2009

Residential Development Potential*

The SEPP states an FSR of 2:1 allowing the potential to construct approximately 30,080 sqm of residential GFA (over 300 residential apartments).

Lessor Early Termination Right The Lessor has an Early Termination Right upon issuing two years prior written notice, however, penalty rates apply as stipulated on page 34 of the sublease.

Ground Lease The property is subject to a ground lease granted by the Sydney Olympic Park Authority (SOPA) for a term expiring 28 March 2095. A copy of the ground lease is provided within the online data room.

Interest 100% Leasehold

Method of Sale For Sale by Expressions of Interest closing Thursday 14 March 2013 at 4pm AEDST, if not sold beforehand.

Office: 3,734.7 sqmWarehouse: 1,532.7 sqm

Total: 5,267.4 sqm


Investment Overview

VI Information Memorandum for 100 Bennelong Parkway, Sydney Olympic Park

Key Investment Highlights

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Outstanding Residential Development Opportunity*

The property presents an exceptional opportunity for development of residential apartments in one of Sydney’s most burgeoning precincts. Given its position, prospective outlook and surrounding amenity, there is the potential to add a significant amount of value through residential development.

Under the current SEPP provisions the site has an FSR of 2:1 (current improvements 0.35:1); therefore there is the ability to construct approximately 30,080 sqm of residential GFA on the property, equating to over 300 apartments (See Section 5 - Development for further information).

Premium Location

100 Bennelong Parkway is well located within the continually growing Sydney Olympic Park, which has become a major commercial and economic centre incorporating sporting, entertainment and cultural activities. Over the past 10 years the precinct has experienced over $1.1 billion worth of projects and is home to a number of high profile users including the The Commonwealth Bank, Fujitsu, the New South Wales Government, Samsung, BSA, SP Jain, New South Wales Institute of Sport, QBE and Alstom.

The property presents an exceptional opportunity for development of residential apartments in one of Sydney’s most burgeoning precincts.

New retail, restaurants and cafes are now trading in the Park with further retail and convenience shopping proposed. The property is close to regional and sub-regional centres.

Substantial growth of the precinct is also anticipated to continue under the Sydney Olympic Park Master Plan 2030. The scheme has been designed to facilitate a daily population of over 50,500 people, including more than 31,500 workers, up to 5,000 students and approximately 14,000 residents by 2030 through the development of new residential, educational, retail and commercial facilities.

Furthermore, due to its proximity to parks, shopping and transportation facilities, 100 Bennelong Parkway is considered an excellent residential location.

Existing Secure Income Stream

The property is 100% leased to Jemena Limited until 30 November 2017 (subject to a Lessor Early Termination Right), providing a stable and secure cash flow. Developers and investors alike can benefit from this holding income while securing planning approvals. Fixed annual increases of 3.75% also delivers strong, built-in rental growth.

Furthermore, upon expiry of the sublease, if the property continues to be held as a commercial asset, there is the potential to generate additional income by leasing the car spaces. Based on indicative market rates, if fully leased, approximately $190,000 p.a. of further rent may be achieved.

100 Bennelong Parkway is considered an excellent residential location.


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Section 3

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Ability to Realise Development Potential

The lease to Jemena Limited incorporates an Early Termination clause in favour of the Lessor upon giving two years prior written notice, providing the successful purchaser with excellent flexibility. This will enable development in the short to medium term if so desired.

Strong Residential Apartment Demand

Sydney’s population continues to grow at a healthy rate, particularly in the metropolitan area. According to the Australian Bureau of Statistics, as of June 2011, 64% of the New South Wales population resided in greater Sydney with the central-west region recording one of the top 10 largest increases in the State from 2001 to 2011.

The long anticipated housing recovery has arrived, with dwelling approvals up, and continuing shortage of dwellings and improving affordability (now back to 2001 levels). The median house price in Sydney is forecast to lift by a cumulative 17% or 5.3% p.a., to $750,000 over the next 3 years. This combined with its central location, proximity to amenities and transport, should drive strong demand for residential property in Sydney Olympic Park. Sales in the nearby Australian Towers development have demonstrated this in particular. Consequently, 100 Bennelong Parkway is well positioned to capitalise on the resulting potential increases in median apartment prices.

Strong Sydney Olympic Park Commercial Market

Due to its geographical location within a densely populated area, high level of amenity and quality of accommodation including green credentials under SOPA guidelines, Sydney Olympic Park has one of the lowest vacancy rates of any Australian commercial office market. The two most recent speculative projects 5 Murray Rose Avenue and 7 Murray Rose Avenue were leased prior to completion.

Furthermore, rents for A and B grade office accomodation within Sydney Olympic Park lead all suburban metropolitan markets.

Ability to Freehold Title to the Site

In order to maximise the value of the property there is the ability to Freehold the site. Subject to formal documentation, which includes a Project Delivery Agreement, the principle terms have been agreed between Centuria Property Funds and SOPA to create Freehold Title. Further information is available to prospective purchasers upon request.

100 Bennelong Parkway is very well positioned to capitalise on the forecast increases in median apartment prices.

Sydney Olympic Park has one of the lowest vacancy rates of any Australian commercial office market.

The Property

VIII Information Memorandum for 100 Bennelong Parkway, Sydney Olympic Park

Sydney Olympic Park is a thriving and emerging location centrally positioned approximately 14 kilometres from the Sydney CBD and seven kilometres from Parramatta.

Location

Situated on the western side of Bennelong Parkway, the property occupies a prime position opposite Bicentennial Park, providing wonderful views over the parklands and waterways. It is a location perfectly suited to both residential and commercial uses.

The area is well serviced by major arterial roads such as the M4 Motorway, Parramatta Road and Homebush Bay Drive, as well as having excellent public transport infrastructure including rail via the Olympic Park Railway and Bus Interchange, plus bus and ferry transport.

Over the past 10 years following the Sydney Olympics in 2000, the precinct has been developed into an extremely successful sporting, recreational, entertainment, business and more recently residential centre.

Governed by the Sydney Olympic Park Authority (SOPA), a Master Plan 2030 is in place providing a comprehensive approach to the long term development of the precinct to drive and facilitate substantial growth over the next 17 years.

Surrounding world class sporting and entertainment facilities include the Sydney International Aquatic Centre, ANZ Stadium, Skoda Stadium, the Tennis Centre and All Phones Arena. In addition to the numerous sporting and entertainment events held annually at these venues, Sydney Olympic Park also hosts major events including the Sydney Royal Easter Show, V8 Supercars and the Apia Tennis Open.

One of Sydney Olympic Park’s greatest assets in Bicentennial Park is located directly across from 100 Bennelong Parkway and has 40

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hectares of parklands including 35 kilometres of cycle paths. Tourist accommodation is also well serviced with the Pullman Hotel, Novotel, Ibis, Ibis Budget and the soon to be completed Quest Serviced Apartments. Various retail amenities such as Rhodes Shopping Centre and Homebush Direct Factory Outlet are nearby as well.

From a residential perspective the development in and around Sydney Olympic Park commenced initially with Wentworth Point. More recently the first project in the centre of Sydney Olympic Park has been Australia Towers. Stage I comprising 216 apartments was completed in 2011 and Australia Towers II, including 267 apartments is currently under construction with an anticipated completion date of 2014, with strong presales from both investors and owner occupiers.

Furthermore, the already successful commercial precinct continues to grow with the two most recent completed developments being 7 Murray Rose Avenue (6,000 sqm) and 5 Murray Rose Avenue (12,200 sqm), which were 100% leased before practical completion by Thales and Lion respectively. Three new commercial projects in Murray Rose Avenue, Australia Avenue and Dawn Fraser Avenue with a total commercial space of over 36,000 sqm are at various stages of planning and proposed to commence construction through 2013 and 2014.

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Section 4

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Bicentennial Park Site Outline Indicative Only

M4 Motorway

Bennelong Parkway

Australia Avenue

Olympic Park Train and Bus Interchange

The Property

X Information Memorandum for 100 Bennelong Parkway, Sydney Olympic Park

Location

4.1 Master Plan 2030 - Sydney Olympic Park

Master Plan 2030 is a vision for the future sustainable development of Sydney Olympic Park, which will facilitate its evolution into an economic centre and urban parkland by:

• Building on Sydney Olympic Park’s uniqueness as an outstanding sports, entertainment and recreation precinct;

• Expanding the rapidly growing business, education and hospitality activities; and

• Introducing new urban activities including residential uses that activate the area on a 24 hour, seven days a week basis.

The Master Plan has been designed to guide and stimulate continued growth while also incorporating internationally recognised initiatives in energy and water management, green building design, and sound economic and ecological management.

By 2030, Sydney Olympic Park is anticipated to accommodate:

• A daily population of over 50,500 people including more than 31,500 workers, up to 5,000 students and approximately14,000 residents;

• 1.4 million sqm of new construction;

• Around 10 million visitors a year and 250,000 patrons for major events at any one time.

Under the Master Plan, Sydney Olympic Park has been divided into nine precincts intended to make the area not only a premium destination for major events, recreational and entertainment activities, but also a world class urban centre where people work, live, learn and play. The nine precincts are illustrated in Figure 4.2.

Figure 4.1 - Artist’s Impression of Sydney Olympic Park and Surrounds in 2030

10 Information Memorandum for 100 Bennelong Parkway, Sydney Olympic Park

Section 3

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Section 4

Haslams Will be transformed into a leafy residential community for over 3,200 people.

Sydney Showground New opportunities for the Sydney Showground will help develop event improvements adding to the already impressive business and cultural events facilities at the precinct.

Parkview Incorporating community uses to the north, Parkview will become a park-edged residential precinct. Home to around 5,000 new residents.

Boundary Creek New commercial and residential buildings will help complete the civic gesture of Olympic Boulevard and include new sports fields.

Tennis Expansion within the Tennis precinct will complement tennis uses and allow additional sporting infrastructure.

Southern Sports New opportunities for enlivening the daily use of these premium sporting facilities.

Stadia Sydney Olympic Park is Australia’s premier place for major events. Master Plan 2030 provides for the addition of new ancillary uses while maintaining its outstanding operational capabilities.

Figure 4.2 - Nine Precincts

Sarah Durack Avenue

Shirley Strickland Avenue

Homebush Bay Drive

Herb Elliot Avenue

Dawn Fraser Avenue

Murray Rose Avenue

Olym

pic Boulevard

Kevin Coombs Avenue

Pondage Link

Old Hill Link

Marjorte Jackson Parkway

Bennelong Parkway

Australia A

venue

511

Sports & Education A unique campus incorporated into the area around the existing Aquatic Centres will be home to over 5,000 students.

Central The vibrant hub of Sydney Olympic Park, Central will house over 260,000 sqm of commercial space, around 16,900 sqm of retail and home to around 3,400 residents.

The Property

XII Information Memorandum for 100 Bennelong Parkway, Sydney Olympic Park

Location

Olympic Park Train StationCentral Precinct

100 Bennelong Parkway

Figure 4.4 - Aerial of the Parkview Precinct

4.3 Parkview Precinct

100 Bennelong Parkway is located within the Parkview Precinct, which is defined by Australia Avenue, Bennelong Parkway, parklands to the east and the Brickpit to the north.

Its existing industrial, residential and commercial uses will progressively give way to a higher density, mixed use precinct incorporating community, educational, commercial and residential uses to create a compact urban neighbourhood with a vibrant and leafy street character.

A network of new streets will transform this area into a pedestrian orientated precinct with good connections to parklands and the town centre.

Figure 4.3 - Artist’s Impression of the Parkview Precinct from Bennelong Parkway (extract from SOPA 2030 Masterplan)

Parkview Precinct


Section 3

XIIICenturia Property Funds

100 Bennelong Parkway is one of the best residential addresses within Sydney Olympic Park and the surrounding Homebush area. The property offers the benefit of being close to Sydney Olympic Park town centre, with connectivity to the train and bus network, whilst overlooking Bicentennial Parklands and waterviews over the Bay.

5.1 Artist’s Impression of Sydney Olympic Park including Australia Towers and proposed residential scheme for 100 Bennelong Parkway

Development Section 5

Centuria Property Funds 13

The Property

XIV Information Memorandum for 100 Bennelong Parkway, Sydney Olympic ParkXIV

Development


Sites 67A and 67B (100 Bennelong Parkway) are situated within the Parkview Precinct to the east of Australia Towers and directly opposite Bicentennial Park. The site has a natural typography and orientation eastward over the Park, and to the north.

This Precinct is envisaged in the 2030 Masterplan as predominantly a residential and mixed use neighborhood.Australia Towers is located to the west and across the rail corridor. Stage 1 has successfully been completed with stage 2 now under construction and pre-sale. 100 Bennelong Parkway is the next residential development site to be redeveloped at Sydney Olympic Park, and within the Parkview Precinct.

Adjacent the property, to the north, is a large parcel of land currently controlled by GPT and known as The Quad. It is a low rise office park environment that, in the long term, is likely to be transformed into residential and mixed use and will be a progression to 100 Bennelong Parkway, with the extension of the road & pedestrian network and building typology. To the south is Site 68, currently controlled by SOPA and earmarked for long term redevelopment as residential. We understand this to be a long term objective of SOPA, and will not be developed in direct competition with 100 Bennelong Parkway (assuming 100 Bennelong Parkway will be redeveloped in the next few years).

Centuria engaged a team of consultants to assist it in preparing concept schemes for the residential redevelopment of the property.

These principally included the following consultants:

• Bates Smart - Architects

• Architectus - Architects and Planners

• Urbis - Town Planning

• Hill and Blume - Land Surveyors

• Colsten Budd Hunt & Kafas - Traffic Engineers

Several options were developed and discussed with SOPA, culminating in a preferred option (as outlined in this IM) and presented to SOPA and its Planners.

Bates Smart were engaged as architects and lead consultants for several reasons, not least their recent experience as architects on Australia Towers (stage 2) and their longstanding working relationship both for and with SOPA.

The plans have been prepared and refined with regard to the Masterplan and its key objectives. The Masterplan was prepared by SOPA several years ago and site specific designs were not undertaken in detail. Several areas have been identified as requiring further design, review and consultation to maximize the development potential and achieve the best result for all parties, including SOPA. These include the road and pedestrian network, road alignment, public domain, building form/ types, height controls & the final application & distribution of floor space.

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Section 5


5.1 Indicative Apartment Mix

Residential Mix % Area (sqm) No. Cars/Unit Car Spaces

1 Bed 22 57 69 1 69

2 Bed 53 83 165 1 165

3 Bed 15 108 47 1.5 70

3 Bed Townhouse 10 125 31 2 62

Visitors 0.25 78

Total 100% 312 443

*Based on 30,080m GFA

With regard to town and statutory planning Urbis have provided a compliance table and letter confirming the scheme’s compliance with the SEPP (Major Development) 2005, Master Plan 2030, SEPP 65 and SOPA’s planning controls. Notwithstanding, further design and consultation is required prior to submission of a development application.

A detailed analysis of the views both from the property & Australia Towers has been undertaken to understand the impact on & by the proposed development, and to guide the buildings at 100 Bennelong Parkway. A physical link from the property across the railway corridor has also been investigated and can be picked up and investigated further by the purchaser.

With regard to the apartment mix and numbers, the details provided in the IM are indicative and subject to further

review and refinement, in particular more detailed market demand. The scheme outlined in the IM demonstrates 312 apartments and complies with the mix outlined in the Masterplan, and shows a greater proportion of 2 and 3 bedroom apartments in response to a forecast demand by more owner occupiers than other surrounding developments.

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The Property

XVI Information Memorandum for 100 Bennelong Parkway, Sydney Olympic Park

Development

XVI16 Information Memorandum for 100 Bennelong Parkway, Sydney Olympic Park

Section 3

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Section 5


The Property

XVIII Information Memorandum for 100 Bennelong Parkway, Sydney Olympic Park

Development Section 5

XVIII18 Information Memorandum for 100 Bennelong Parkway, Sydney Olympic Park

“A recovery in residential property and construction will largely drive the next leg of the growth story – particularly so for Sydney – providing stimulus to related service and manufacturing industries, with a strong multiplier to the domestic economy.”

“Signs that the long-awaited housing recovery is finally here are evident; dwelling approvals to both the residential apartment and greenfield housing markets improving. Steady population growth and the estimated shortage of around 46,800 dwellings at June 2013 will underpin this process, with the improved affordability from lower interest rates flushing out demand. Should this continue, then it will underpin growth in the rest of the state.”

“Limited house price growth since 2004, and more recently the cuts to interest rates over the last 12 months, has bought affordability in Sydney back to 2001 levels. This should be a catalyst for stronger growth to emerge in the Sydney market, with the median house price forecast to rise by 17% over the three years to June 2015.”

“With sustained price growth finally coming through in the Sydney market, rising owner occupier demand will be joined by speculative purchases by investors. This is anticipated to drive a further 7% rise in the median house price over 2014/15. However, with solid economic growth continuing in 2014/15 as improvement in other

sectors of the economy help to offset some of the anticipated decline in resource investment, wages and inflationary pressures are anticipated to become more acute. Overall, median house prices in Sydney are forecast to lift by a cumulative total of 17% or 5.3% per annum, to $750,000 over the three years to June 2015. This reflects a total rise of 6.1% in real terms.”

“In our opinion, the market fundamentals – which hold true for a Middle Ring location such as Homebush (SOP) – are in place for the continued strength of the sector through the forecast period; robust underlying demand, a favourable economic climate, and moderate price growth – forecast at a compound annual 5.3% (Chart below).”

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0

97 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 1898

Sydney Other Dwellings Median Prices

Source: ABS, BIS Shrapnel

Inner Ring Middle Ring Outer Ring Sydney SD

Forecast

Centuria engaged BIS Shrapnel to prepare a market commentary on the outlook for Sydney Residential. A letter is contained in the due diligence material for prospective purchasers to read. Some extracts from their commentary, and other recent BIS Shrapnel Reports, are outlined below:

Section 3

XIXCenturia Property Funds

6.1 Overview

Title Particulars The property is described as Lot 84 in Deposited Plan 855929

Site Dimensions

Site Area 15,040 sqm

Gross Lettable Area 5,267.4 sqm

Zoning The property is zoned ‘B4 Mixed Use’ under the State Environmental Planning Policy (Major Projects) 2009. The purpose of this zone is to:

• Protect and promote the major events capability of the Sydney Olympic Park site and to ensure it becomes a premium destination for major events;

• Integrate suitable business, office, residential, retail and other development in accessible locations so as to maximise public transport patronage and encourage walking and cycling;

• Ensure that the Sydney Olympic Park site becomes an active and vibrant town centre within metropolitan Sydney;

• Provide a mixture of compatible land uses;

• Encourage diverse employment opportunities;

• Promote ecologically sustainable development and minimise any adverse effect of land uses on the environment; and

• Encourage the provision and maintenance of affordable housing. Purchasers should consult a suitably qualified Town Planner for more detailed information or clarification.

Master Plan 2030 The property is also subject to the provisions of Sydney Olympic Park Master Plan 2030 adopted September 2009. Under the plan, 100 Bennelong Parkway is designated for residential use. Key controls include, but are not limited to the following:

• The property is referred to as ‘Site 67A/67B’; • 67A (rear of site) allowable building height varies from 8-10 storeys to 10 storeys; and • 67B (front and middle portion of site) allowable building height varies from 4-8 storeys to 3-7 storeys.

Bennelong Parkway frontageNorthern boundaryEastern boundarySouthern boundary

106.85 metres134.92 metres120.86 metres111.86 metres

Asset Overview Section 6

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The Property


6.2 Building Description

100 Bennelong Parkway is a modern office/warehouse facility comprising high quality ground and first floor office accommodation together with warehouse space and parking for approximately 237 vehicles.

Originally built in 1996, the property was significantly extended and refurbished during 2007 and 2009, which included the construction of new two storey offices within the warehouse and the addition of a decked car park and hardstand areas on surplus land surrounding the building.

The office accommodation is generally of an open plan design with offices around the perimeter. Two staircases provide easy access between the floors and large profile windows supply a good level of natural light and also offer pleasant views.

The warehouse is situated to the rear of the building and features a single row of structural columns with an internal clearance of between 8 and 10 metres.

Access to the warehouse is via two on-grade roller shutter doors and a single tailboard loading dock with leveller. A concrete sealed yard adjoining the northern elevation provides for adequate manoeuvring and a fenced section adjacent to the southern elevation allows for additional secure parking and hardstand areas for commercial vehicles.

The site is well landscaped with grassed areas, ornamental shrubs and mature trees.

Asset Overview

Section 3


Section 6

6.3 Building Services

Air Conditioning

The office areas, reception, lunch rooms and toilet/shower amenities are air conditioned by air cooled, ducted reverse cycle split systems and air cooled, ducted Variable Refrigerant Volume (VAV) units. Equipment is of Diamond and Daikin manufacture.

Roof mounted mechanical exhaust ventilation is provided to toilet and kitchenette/lunchroom areas through egg crate type grilles and some door relief grilles.

The warehouse contains supply and exhaust ventilation systems, which incorporate roof mounted fans, cyclonic roof ventilation and vertical exhaust discharge ducts from the mezzanine mechanical plant condensers.

The original air conditioning units are provided with a dedicated electronic controls system with zoned thermostats to facilitate staged operation scheduling. The new VAV systems installed within the additional office space include a dedicated Daikin central controller to allow programming to accommodate the operational hours of the property. After hours air conditioning can also be achieved via independent system controllers.

Electrical Services

A site energy pad mount substation supplies the main switchboard, which is located in a dedicated plant room at the north western corner of the ground floor.

The main switchboard supplies distribution and mechanical services switchboards throughout the property, which in turn reticulate power to general outlets, lighting and infrastructure.

Lighting in office areas is generally by recessed T5 fluorescent fittings with dichroic down lights in the reception area. High bay type discharge fittings are mostly used throughout the warehouse.

The tenant has installed two F.G. Wilsons back up power generators for its communication equipment.

Fire Services

Fire services installed at the property comprise of fire hydrants and fire hose reels, automatic fire sprinklers, smoke detection and alarm system, a Fire Indicator Panel (FIP), Occupant Warning System (OWS) and fire extinguishers.

Hydrants are located internally around the building with booster facilities at the main driveway entry off Bennelong Parkway.

The automatic fire sprinklers have dual diesel pump sets fed from above ground storage tanks with early suppression fast response protection to the warehouse areas.

Both the FIP and OWS are found at the entrance lobby of the property and monitor all detection and fire pump activations.

Hose reels and fire extinguishers are strategically positioned throughout the property.

Hydraulic Services

Hydraulic services within the building include domestic cold and hot water, non-portable water (grey water), sewer and storm water.

The main cold water supply originates from Bennelong Parkway and hot water is generated by self-contained electric hot water cylinders.

Sewerage runs via a pump out pit connecting to the authorities’ street system.

Stormwater flows from the roof and hard paved areas and gravitates to area pits on all sides of the building.

The Property


Tenant Jemena Limited

Premises The whole of the land described as Lot 84 in Deposited Plan 855929

Tenancy Area (GLA) 5,267.4 sqm

Commencement Date 30 June 2007

Expiry Date 30 November 2017

Term 10 years 5 months

Option Nil

Rent $1,336,975 p.a. (as at 30 June 2013)

Additional Rent (BBA) $883,910 p.a. expiring 30 November 2014 – Refer to Clause 5 and Schedule 1 of the sublease. As part of the original sublease the Lessor entered into an agreement to be party to a building contract to fund Base Building Alterations (BBA) for the construction of new offices, a deck car park and hardstand areas. Consequently, an additional tranche of debt was drawn under the Lessor’s facility, which is serviced by the Additional Rent from the tenant (i.e. the Additional rent is used to amortise the debt that funded the works).

Annual Rent Reviews Fixed at 3.75% each year on the anniversary of the commencement date.

Recoverable Outgoings The tenant is responsible for 100% of the outgoings.

Bank Guarantee $2,509,921.26 – Refer to Schedule 2 of the sublease for calculation.

Early Termination Clause The Lessor has an Early Termination Right upon giving two year’s prior written notice. Penalty payments apply as defined on page 34 of the sublease.

Right of First Refusal The tenant must be given 18 months notice prior to the sublease expiry and has 45 days to exercise its right. Please refer to Clause 24 of the sublease for further information.

Ground Lease The property is subject to a ground lease granted by the Sydney Olympic Park Authority (SOPA) for a term expiring 28 March 2095. A copy of the ground lease is provided within the online data room.

7.1 Tenancy Summary

Financial Information

Section 3


Section 7

7.2 Income Summary Income Summary as at 30 June 2013 $ p.a.

Rental Income

Office/Warehouse Rent $1,336,975

Additional Rent* $883,910

Subtotal $2,220,885

Add: Outgoings Recoverables $252,850

Gross Passing Income $2,473,735

Less: Total Budgeted Outgoings

Statutory and Operating Expenses $252,850

Estimated Fully Leased Net Income $2,220,885

7.3 Outgoings ScheduleBudgeted FY 2012/2013 $ p.a.

Statutory Expenses

Council Rates $48,261 $9.16

Water Rates $11,412 $2.17

Land Tax $130,669 $24.81

Subtotal $190,342 $36.14

Operating Expenses

Insurance $10,797 $2.05

Management Fees $19,798 $3.76

Sydney Olympic Park Estate Levy $31,914 $6.06

Subtotal $62,509 $11.87

Total $252,851 $48.01

*See Section 7.1 - Tenancy Summary under Additional Rent (BBA) for further information

Note: Other outgoings including airconditioning, gardening etc are arranged and paid directly by the tenant.

The Property


Financial Information Section 7

7.4 Tenancy Profile

Tenant Jemena Limited

Jemena Limited is a unique Australian infrastructure company that builds, owns and maintains a combination of major electricity, gas and water assets.

Employing over 1,300 people across Australia, Jemena was formed out of the Alinta Limited business, which was sold to one of Asia Pacific’s leading utility companies, Singapore Power in August 2007. Singapore Power owns 100% of Jemena and has a combined asset base in Singapore and Australia of $24 billion with a workforce of over 6,800 staff.

Jemena specialises in both the transmission and distribution of electricity and gas and is considered a key outsourcing partner of utility companies.

Assets 100% owned and managed by Jemena include the Eastern Gas Pipeline, Rosehill Recycled Water Scheme, VicHub, Jemena Gas and Electricity Networks, Colongra Gas Transmission and Storage Facility and the Queensland Gas Pipeline. Furthermore, Jemena partially owns interests in ActewAGL Gas and Electricity Networks and United Energy.

For further information please visit www.jemena.com.au

Section 5


Conclusion

100 Bennelong Parkway provides a rare opportunity to acquire a securely leased office/warehouse facility with outstanding potential for residential development.

Section 8

In summary the asset offers the following characteristics to prospective purchasers:

• Significant residential development potential due to the site containing an FSR of 2:1. Based on these parameters approximately 30,080 sqm of GFA may be constructed, providing the ability to develop over 300 apartments.*

• Fully leased to major infrastructure company Jemena Limited until 30 November 2017 providing a stable and secure cash flow.

• Excellent location situated opposite the picturesque Bicentennial Park and in close proximity to world class entertainment, recreational and sporting facilities.

• The property is easily accessed by major arterial roads, such as the M4 Motorway and public transportation through the nearby Olympic Park Railway Station and Bus Interchange.

• Functional 5,267 sqm office/warehouse facility on a large site of approximately 1.5 ha.

• Lessor Early Termination clause providing flexibility to develop the site in the short to medium term.

• Capability to Freehold the property, in order to maximise value of the asset.*

• Opportunity to enter into a development Joint Venture with the Vendor (potential stamp duty savings may apply).

• These outstanding property investment attributes make100 Bennelong Parkway one of the most exceptional investment opportunities available.


The Property


ConclusionSales Process

100 Bennelong Parkway is being offered for sale by Expressions of Interest closing Thursday 14 March 2013 at 4pm AEDST, if not sold beforehand.

For further information or to arrange an inspection of the property, please contact the exclusive selling agents, GJS Property and Savills. Inspections of the property are by appointment only and all parties must be accompanied by a member of the sales team.

The property is available for purchase through Expressions of Interest to be submitted no later than Thursday 14 March 2013 at 4pm AEDST, if not sold beforehand.

Expressions of Interest are to be lodged at the following office locations:

GJS Property Suite 2.03, Quad 3102 Bennelong RoadSydney Olympic Park NSW 2127 Savills Level 7, 50 Bridge StreetSydney NSW 2000

To assist in the assessment of this offering, due diligence information is available via an online data room.

9.1 Registration and Lodgement

If not sold beforehand, an assessment period will follow the close of the Expressions of Interest, after which the Vendor may choose to deal with one or more parties. Please note that the Vendor reserves the right in its absolute sole discretion, to accept or reject any bid or withdraw from the sale process or amend the terms and conditions of the proposed sale prior to the execution of the formal Contract of Sale.

9.3 Close of Expressions of Interest

Expressions of Interest are not required to be lodged in any prescribed form, however as a minimum, must include the following information:

9.2 Information to be Provided

Parties wishing to submit proposals for a Joint Venture with Centuria Property Funds Limited are invited do so. The Joint Venture proposal should be clearly identified, and outline the roles and responsibilities of the parties.

In broad terms Centuria (Centuria’s investors) could retain part ownership in the existing property (Trust), whilst selling down part of its interests to a Joint Venture partner. This may be of interest to parties that would otherwise seek a partner or investor/s. The role of the investors who remain in the Trust (as a Joint Venture partner) would be in effect passive. Centuria would manage the investors interests and could also share or lead the development management role (on terms to be agreed). Having experience with the relevant Authorities, and in development, Centuria could be a credible partner in a Joint Venture.

Subject to legal and tax advice there may be a significant financial benefit to the parties in retaining the existing trust structure.

There are several ways in which the Joint Venture could be structured and we welcome proposals.

9.4 Development Joint Venture Opportunity

The name of the interested party, together with the principals supporting the interested party and any detail of the holding company or entity if the interested party is a subsidiary of part of that group of companies.

The purchase price of 100 Bennelong Parkway together with proposed deposit, settlement and any conditions of purchase including internal and external approval processes.

A list of consultants including the purchaser’s solicitors.

Full details of the interested party’s capacity to complete the transaction in a timely manner, including their ability to fund the purchase and proposed financing structure.

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Section 9


Disclaimer: This report has been prepared by Centuria Property Funds Limited (ABN 11 086 553 639) (Centuria) for distribution by GJS Property (ABN 71 076 411 812) (GJS) and Savills (98 088 260 673). This document does not constitute an offer or contract of sale. It is intended only as a guide and an aid to further investigation by potential purchasers.

Potential investors accept this document on the condition that they will make their own enquiries and obtain their own independent advice in order to verify the accuracy of the information presented in this document. The content of this document has been derived, in part, from sources other than GJS, Savills and Centuria and may be based on assumptions. In passing this information on, GJS, Savills and Centuria do not warrant that such information or assumptions are accurate or correct. Parties should seek their own independent verifications and advice on such information.To the extent that this document includes any statement as to a future matter, that statement is provided as an estimate and/or opinion based upon the information known to GJS, Savills and Centuria at the date of preparing this document and assumptions which may be correct. GJS, Savills and Centuria do not warrant that such statements are or will be accurate or correct.

GJS, Savills and Centuria provide this document on the condition that, subject to any statutory limitation on their ability to do so, GJS, Savills and Centuria disclaim liability under any cause of action including negligence for any loss arising from reliance upon this document.This confidential document is for the sole use of persons directly provided by GJS, Savills and Centuria and is not to be supplied to any other person without the prior written consent of GJS, Savills and Centuria. Use by, or reliance upon this document by any other person is not authorised by GJS, Savills and Centuria and without limitation to the above disclaimers, GJS, Savills and Centuria are not liable for any loss arising from such unauthorised use or reliance.

While Centuria has taken reasonable care in providing the information, Centuria or its directors, officers or employees do not provide any representation or warranty of any kind in relation to the accuracy, reliability or completeness of the information now or in the future. Centuria accepts no responsibility for any errors or omissions from the information memorandum or for any action taken in relying on it. GST Disclaimer:GJS, Savills and Centuria advise that the financial information provided 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.

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GJS PropertySuite 2.03, Quad 3 102 Bennelong Road Sydney Olympic Park NSW 2127

Jason Wright T: +61 2 9764 0001M: +61 418 759 156E: [email protected]

Gordon Fallance T: +61 2 9764 0002M: +61 412 999 091E: [email protected]

Savills Australia Level 7, 50 Bridge Street Sydney NSW 2000

Greg Cohen T: +61 2 8215 8836 M: +61 418 609 408 E: [email protected]

Stuart Cox T: +61 2 8215 8810 M: +61 438 770 867 E: [email protected]

We look forward to confirming your interest. All inspections are to be scheduled via the exclusive selling agents:

Documents

100 Bennelong Parkway Sydney Olympic Park, NSW€¦ · investors and developers strongly consider this unique offering. ... Section 1. Section 2 Centuria Property Funds V5 Executive