Qld Affordable Housing Consortium Ltd and the DNA Partnerships CALL FOR 15,000 DWELLINGS

Qld Affordable Housing Consortium Qld Affordable Housing Consortium Ltd and the Ltd and the

DNA PartnershipsDNA Partnerships

CALL FOR 15,000 DWELLINGSCALL FOR 15,000 DWELLINGS

www.dnapartnerships.com.au

www.qahc.asn.auwww.qahc.asn.au

Call For 15,000 Dwellings

NRAS Round 3 is Open and the Consortium has already submitted over 3,000 dwellings

Our priority States are NSW, Victoria and South Australia [But we welcome proposals from across Australia]

The Consortium will lodge a minimum submission of 1,000 Dwellings per month, every month until September. We package small and medium sized sites as well as large sites to meet the minimum 1,000 dwellings per submission

All dwellings must be ready to let by June 2012 Call Mike on 0438 112 553 or Robin on 07 3844 9947

Examples Of Approved StockExamples Of Approved Stock

14 x 3 Bedroom Townhouses


Est. Market RentEst. Market Rent $385$385

Discounted RentDiscounted Rent $289$289

• 5 schools within 2 km, closest 300 m

• Bus service located 300 m to property

• 11 km from Brisbane CBD

NRAS – A Supply-Side intervention

Supply shortfall of 200,000 dwellings by 2013 [NHSC -2009]

NRAS is an industry policy response to drive supply of at least 50,000 new rental homes

Tax Free Incentives of $8,672 [indexed] per dwelling / per year for 10 years stimulates new investment

NRAS improves affordability for working families by providing a minimum 20% discount to market rents for the 10 year NRAS period. [25.1% in our Model]

Quality in design and Quality in design and productionproduction

39 x 1-3 Bedroom Apartments

39 x 1-3 Bedroom Apartments

Est Market RentEst Market Rent $280-$280-$350$350

Discounted RentDiscounted Rent $210-$210-$263$263


• Train service located 1.1 km from property

• 1.5 km from Caboolture CBD

NRAS is a market product

NRAS

Market designs and type Market built Normal Market valuation Privately owned 10 years in NRAS Market based rent – discounted and indexed Private rental tenants with improved tenant choice Diversified portfolio and integrated delivery within

mainstream developments and infill sites

Traditional stock within a larger developmentsTraditional stock within a larger developments

28 x 4 BedroomHouses




• 12 schools within 6 km, closest 2 km

• Bus service located 3.3 km to property

• 3.4 km from Caboolture CBD

NRAS – Who are the tenants 1.5 million eligible households underpins strong demand

Key workers: Childcare workers, firefighters, nurses and hospital support workers, teachers, public transport workers, local council workers, community workers.

Many workers on award wages. Part time and casual workers

Over 55’s on low to moderate incomes

NRAS can assist economic outcomes eg hospitality and retail workers in tourist areasSingle Adult $41,5142 Adults $57,391Couple + I child $71,159Single + 1 Child $57,432Couple + 2 Children $84,927Single + 2 Children $71,200Couple + 3 Children $96,695

Households that are NRAS tenants can earn 25% more than these limits andstill retain eligibility, promoting neighbourhood stability and orderly re-letting

New Growth Corridors close to jobsNew Growth Corridors close to jobs





• 8 schools within 10 km, closest 2.3 km

• Train service located 2.5 m walking distance

• 29.4 km from Gold Coast CBD

What rents are considered affordable

Under the Consortium Model Investors receive the full $8,672 per year tax free income and provide a 25% discount in rents under ATO Charitable requirements

By mapping rents and income levels, we can demonstrates the Scheme’s is clearly targeted to working families. Discounted rents are simply not affordable to those on social incomes.

These are some examples of market and affordable rents under NRAS $35,000 Single person Income = $250 market rent is $187 discount rent $45,000 Household Income = $300 market rent is $225 discount rent $55,000 Income = $400 market rent is $300 discount rent $75,000 Income = $530 market rent is $397 discount rent $85,000 Income = $600 market rent is $450 discount rent $95,000 Income = $685 market rent is $515 discount rent

Universal Design Standards Universal Design Standards Apartments for retirees and also Apartments for retirees and also

workersworkers [particularly retail and [particularly retail and hospitality]hospitality]

241 Apartments in Total

150 Available to NRAS Studio 1 Bedroom 2 Bedroom


150 Available to NRAS Studio 1 Bedroom 2 Bedroom

1.8km from School

0.1km from Transport

0.1km from the water

Prospective Image

Google Map 20k

How we Facilitate Your Participation

We provide information about NRAS and affordable housing to assist your decision making

Assess your proposed development projects to see if they:-• Meet Government Requirements• Can attract a pool of eligible tenants• Provides good investment values and returns

Make a Submission to Government for the Project Provide any special assistance required for packaging and

delivering the project Undertaking marketing and sales through our Institutional Strength

Investment Platform Take a 10 Year Headlease over the dwelling Allocate and supervise property management for 10 years Facilitate access to the Tax Incentives and net income streams

Regional Centre’s with good job prospectsRegional Centre’s with good job prospects

9 x 3 & 4 Bedroom Houses

9 x 3 & 4 Bedroom Houses

Est. Market RentEst. Market Rent $330-$330-$370$370


• 8 schools within 15 km, closest 1.2 km

• Train service located 1.4 km from property

• 17 km from Gladstone CBD



Stock Selection: Type, Location and Proportions

Locations are characterised by Strong demand and rental stress Good existing infrastructure, transport, services and jobs [Capital

Cities / Growth Corridors / strong regional cities]

NRAS stock is market stock. It can be in master-planned communities, green-field or infill sites Typically around 15 – 25% in house and land integrated in master-planned or

green-field sites 50% in infill, or in some cases a full apartment block or townhouse development if

integrated in the wider area

Housing types reflects household, demographic and market supply factors:

Around 50% target for 1 and 2 bed dwellings and around 50% target for 3 and 4 bed dwellings

Affordable housing where Affordable housing where people want to livepeople want to live

31 x 1 & 2 Bedroom Over 55’s Apartments

31 x 1 & 2 Bedroom Over 55’s Apartments

Est Market RentEst Market Rent $280$280


• Services and recreation on site

• Bus service located 125 m walking distance

• 12 km from Maroochydore CBD

DNA PartnershipsDNA Partnerships

An institutional strength aggregation product An institutional strength aggregation product platform for supporting a legislated platform for supporting a legislated

Commonwealth initiative – The National Rental Commonwealth initiative – The National Rental Affordability Scheme (NRAS) Affordability Scheme (NRAS)

Governed by Governed by

DNA Mutual Ltd and administered by Integration Management and Communication Services Pty LtdDNA Mutual Ltd and administered by Integration Management and Communication Services Pty Ltd

AFSLSelf

Regulated

Property sold to market

NRAS ASSET TRANSACTION PROCESSNRAS ASSET TRANSACTION PROCESS

DEVELOPERS

NRAS

Valuation

Research

Eligibility

Wholesale Distribution

ACCEPTED

NRX listing

For sale

Investment Investment CommitteeCommittee

Regulator

Institutional

Real-estate Performance

Transaction

Research

DNA NRASINSTO

INSTO

INSTO

AFSL

AFSL

Satisfies Approval CriteriaSet by

Investment Committee

Unitised Trust

Direct $400k

Sales to open

market

Sales to open

market

Smaller dwellings to meet Smaller dwellings to meet diverse needs- right in the diverse needs- right in the

heart of the townheart of the town

36 x 2 Bedroom Apartments

36 x 2 Bedroom Apartments

Est. Market RentEst. Market Rent $280-$280-$320$320



• Bus service located 700 m from property

• 700 m from Caboolture CBD

Managing the NRAS investment A fully managed investment

Legislation, Regulation and Compliance Investment through financial instrument or real property Owners Pack with 10 year Headlease and Property Management Agreement

Secure income stream [NRAS does not facilitate guaranteed income] Tailor-made Group Insurance based on risk profiling – provides cash-flow payment

in certain circumstances ATO private ruling on the flow through of the Tax Incentive to Investors Performance based management with 2 weeks vacancy cover in any lease period

Buying and selling Creating a strong diverse market of buyers and sellers Normal Bank repossession provisions Owner Right to sell out of NRAS

• Option to sell to another investor with NRAS intact Potential to provide ‘rent to buy’ option for NRAS tenants

Getting the basics right Good locations and associated infrastructure & diverse portfolio Strong and diverse tenant pool & tenants financially incentivised Standardised performance based property and tenancy management, with a focus

on creating strong, mixed income and stable neighbourhoods

On Transport CorridorsOn Transport Corridors








Frequently Asked Questions

Normal market valuations Normal lending criteria on asset class

Bank powers & repossession rights as normal LMI – Genworth will insure ‘Mom and Dad’ investors and take NRAS

income into account

A National approach and institutional strength product design by way of the Head Lease & Secure Income Stream Delivery

Access to NRAS market through DNA aggregation

Owners can enter and leave the Scheme as a ‘market’

ATO has a clear position on QAHC Model and investor Tax-Free entitlements

Flinders StFlinders StMelbourneMelbourne


70 Available to NRAS 1 Bedroom 2 Bedroom


70 Available to NRAS 1 Bedroom 2 Bedroom

Prospective Image

Google Map 20k

1.1km from School

0.3km from Transport

1.1km from Flagstaff Gardens

Current Status

911 Approvals in 2009

3,082 dwellings already submitted in 2010.

15,000 dwellings across Australia to go through our assessment process [ January to August 2010]

3 sites sold and tenanted

300+ dwellings now under contracts for sale

Bank retail investment funding expected $3BN. Institution investment expected $3 BN

Pilot large scale ownership program with financial institutions

Financial products to deliver liquidity- PDS

What are the Consortiums costs and who pays

Developers / Builders To prepare and lodge your project to the Government is

$125+gst per dwelling payable to QAHC upon agreement Once NRAS approved, you provide progress reports and an

Environmental Report using our checklist You will need to hand over dwellings in a ‘Ready To Let’ State –

you can use our checklist

Owner-Investor Purchase fees & Legal Fees including Registration of the

HeadLease on Title The Required Group Insurance Normal Owner Costs 10% Property Management Fee $12+gst Compliance Fee per dwelling per week

Popular Town Popular Town HousesHouses








Applying For NRAS Whatever your proposed portfolio for NRAS it will need to be part of

a minimum 1,000 dwellings-. We package up smaller projects to meet the 1000 minimum threshold

Review NRAS Documentation at www.qahc.asn.au and complete the Round 3 EOI on our website

Decide your sales or holding strategy including any agreement to access DNA national NRAS distribution platform

Review Stock Profile checklist and identify the numbers and locations and types you are offering. [Must have D.A or close to D.A decision to submit to NRAS]

QAHC reviews your Expression of Interest and negotiates a mutually agreeable number and type

QAHC issues Submission Checklist and invoices lodgement fee QAHC Submissions will be made monthly and Government turn

around times expected to be 8-10 weeks If NRAS Approved, sign the Heads of Agreement to provide

contractual certainty to deliver

Documents

Qld Affordable Housing Consortium Ltd and the DNA Partnerships CALL FOR 15,000 DWELLINGS