1ALCHEMY IP

FREEHOLD CHILDCARE • BRAND NEW • 15 YEAR LEASE F IXED INCOME GROWTH • SECURE YOUR FAMILY ’S FUTURE FREEHOLD CHILDCARE • BRAND NEW • 15 YEAR LEASE

F IXED INCOME GROWTH • SECURE YOUR FAMILY ’S FUTURE

MAUDSLAND QLD182 Maudsland Road

INFORMATION MEMORANDUM

ALCHEMY IPPRE-COMMITTED PRIME PROPERTY

2ALCHEMY IP •

CONTENTS

03 INTRODUCTION

04 EXECUTIVE SUMMARY

05 KEY CHILDCARE SECTOR ATTRIBUTES

07 LOCATION

08 SITE PARTICULARS

08 TENANCY DETAILS

09 COMPARABLE SALES

10 TENANT PROFILES

14 DISCLAIMER

AnnexuresDEVELOPMENT PLANSAGREEMENT FOR LEASELEASECHILDCARE WHITE PAPER

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Riverstone Pass Pty Ltd has acquired 182 Maudsland Road, Maudsland. The subject site is a vacant 23,670m2 parcel of land located at the intersection of Maudsland Road and Gaven Arterial Road, with convenient access from the M1, shops, schools and master plan estates.

Along with an 18 lot residential subdivision named Riverstone Pass, the remaining 3,042m2 super lot located at the north of the site is to be developed into a 112 place Childcare Centre to service the areas growing population.

The brand new Freehold Childcare Centre is already pre leased to leading childcare provider, Sanctuary Early Learning Adventure, on an attractive 15 year term, offering a secure investment in the Childcare industry. The timeline for the opening of the Childcare Centre is scheduled for Q4 of 2019.

INTRODUCTION

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Investment Features• Trophy Childcare Centre investment

licensed for 112 places

• New 15 year lease expiring 2034 plus 5 + 5 + 5 year options

• Lease to leading childcare provider, Sanctuary Early Learning Adventure

• Large 3,042 sqm block

• Outstanding location providing high demand

• 38 onsite car spaces with convenient drop off and pick up areas

• Net lease with tenant paying all usual outgoings

• Attractive 3.5% annual rent increases

Site Area• 3,042 sqm

Lease Details• 15 year lease to 2034

• 5 plus 5 plus 5 year options extending to 2049

• Attractive 3.5% annual rent increases

• The lease requires the tenants to pay usual outgoings

Net Income• $336,000 pa + GST

EXECUTIVE SUMMARY

50 Minutes to Brisbane

25 Minutes to

Surfers Paradise

Filling in the gaps in a popular growing community

At the entrance of Stockland’s successful Riverstone

Crossing Estate

10.6% of Community Aged 0-4 years

FACTS:KEY GROWTH AREA

8 Minutes to

the M1

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@ A1PERSPECTIVESRIVERSTONE PASS CHILDCARE

12/01/17 DA4.01

ENTRY PERSPECTIVE1

ENTRY PERSPECTIVE2

KEY CHILDCARE SECTOR ATTRIBUTES

According to the Department of Education and Training report for the September 2015 quarter, the future looks bright for the childcare centre investments with over 1.2 million children attending some form of approved childcare service in Australia. This has been steadily increasing, up by 5.7% from 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 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 subsidises the cost of childcare for eligible families through the Child Care Benefit (CCB) and the Child

Care Rebate (CCR) to help parents with the cost of approved child care.

• During the September 2015 quarter, the total estimated expenditure on CCB and CCR was over $1.8 billion, 64% of which was paid in relation to families using Long Day Care (LDC) services.

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%. This may push up demand for childcare even further.

Under the proposed federal Budget the new Child Care Subsidy (CCS) 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 expenses back in subsidies. This rate reduces with higher incomes, with families earning over $170,000 potentially receiving 50% back in subsidies.

Source: ABS and Department of Education and Training

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LOCATION

Maudsland is a high growth area located on the north western end of the Gold Coast. It is made up of acreage estates such as Huntington Downs and Tuxedo Junction and neighbourhood estates such as Riverstone Crossing, Hungtington Rise, Parklake and Riverstone Pass. Surfers Paradise is a short 25 minute drive south and Brisbane less than an hour away to the north, making the area perfect for the commuting worker. The neighbourhood is surrounded by the pristine Gold Coast hinterland, giving that rural feel whilst still being surrounded by all the facilities anyone would need.

The Childcare site sits at the intersection of Maudsland Road, one of the main roads through the locality, and Gaven Arterial Road with convenient access from the M1. It sits directly adjacent to the entrance of the Stockland Riverstone Crossing Estate, the highly successful residential development of 761 homes with community amenities.

The Childcare Centre is set to accommodate around 112 places and service the areas ever growing population. The need for additional Childcare facilities in the area is apparent due to the local demographics being dominated by dual income households with a higher than average total household income and a very young age profile, with 10.6% of the local community aged between 0-4 years.

9.2% 6.9%

child

ren

unde

r 5

fam

ilies

w/ c

hild

ren

hom

e ow

ener

s

avg.

fam

ily in

com

e

born

ove

rsea

s

Demographics

66.9% 58.9% 68.5% 63.5% 32.4% 26.3%$1,477 $1,235

Under an hour to brisbane

182,Maudsland Road, Maudsland

UPPER COOMERA

OXENFORD

Maudsland Average

Queensland Average

* Estimate only subject to approval

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SITE PARTICULARS

Title DetailsPart of Lot 3 WD2321: PAR BARROW

Site Area3,042 sqm

ZoneZoned as Emerging Community, the purpose of the Emerging community zone code is to:

• Identify land that is suitable for urban purposes and protect land that may be suitable for urban development in the future.

• Manage the timely conversion of non-urban land to urban purposes.

• Prevent or discourage development that is likely to compromise appropriate longer term land use.

• The purpose of the code will be achieved through the following overall outcomes:

Land uses• Comprise of new communities after detailed

land use and infrastructure planning has been completed; and

• Comprise of low intensity interim activities such as Dwelling houses, Community residences, Home based businesses and Caretakers accommodation which do not compromise the future urban development potential of the land for new communities.

The property will be a single story 803m2 building consisting of 7 playrooms, a kitchen, laundry, toilets, offices, a staffroom and an external 784m2 play area. It will also include 38 car parks.

1DA2.02

3DA2.01

3DA2.02

1DA2.01

1

DA3.01

2

DA3.01

3

DA3.01

4

DA3.01

2DA2.02

2DA2.01

MAUDSLAND ROAD

38 CARSV9

14 STAFF PARKING

S14

V1

V9TURNINGBAY

RETAINING WALL

LOADING

1:20

1:20

3 STAFF PARKINGS3

1:30

REFUSE

6200

RETAINING WALL

45 DEGREE BATTER

EXTERNAL PAVEDAREA

CHILDCARE CENTREGFA: 803 m²

SAFE

TY Z

ONE

5 MINDROP OFF

SHARED

+RL 22000

+RL 21567 +RL 20500 +RL 20811

+RL 20800

+RL 21000

EXTERNAL AREA784 m²

1000

+RL 20950

240010

400

5400

PST

5400

3400

2000 2500 6600

.

+RL 22500

+RL 20600

5

DA3.01

3000

1200

REVERSEIN ONLY

SBP

SBP

VBP

VBP

2 STAF

F

PARK

ING

S2

900600

2209

671

2106

637

600 .1480

300

2600

4800

150

450

3800

1600

18001800

LEGENDPST PEDESTRIAN SITE TRIANGLES STAFF PARKINGSBP STAFF BICYCLE PARKINGV VISITOR PARKINGVBP VISITOR BICYCLE PARKING

0 5 10 20

As indicated @ A1SITE PLANRIVERSTONE PASS CHILDCARE

12/01/17 DA0.03

1:400 @ A3 .

MAUDSLAND ROAD

PLAYROOM 165 m² (CLEAR)

3 YEARS TO 5 YEARS(20 x 3.25m² =65m²)

PLAYROOM 265 m² (CLEAR)

3 YEARS TO 5 YEARS(20 x 3.25m² =65m²)

PLAYROOM 349 m² (CLEAR)

2 YEARS TO 3 YEARS(15 x 3.25m² =48.75m²)

PLAYROOM 449 m² (CLEAR)

2 YEARS TO 3 YEARS(15 x 3.25m² =48.75m²)

PLAYROOM 549 m² (CLEAR)

1 YEARS TO 2 YEARS(15 x 3.25m² =48.75m²)

PLAYROOM 649 m² (CLEAR)

1 YEARS TO 2 YEARS(15 x 3.25m² =48.75m²)

PLAYROOM 745 m² (CLEAR)BIRTH TO 2 YEARSMAX 12 PER GROUP

(12 x 3.25m² =39m²)

DIRECTOR

16 m²AMENITIES

11 m²PREP

2 m²STORE

STAFF ROOM

11 m²PREP

17 m²AMENITIES

8 m²PREP

16 m²AMENITIES

EXTERNAL AREA784 m²

PANTRY

V1

V9

LOADING

30 m²SLEEP

LAUNDRY

INVERVIEWROOM

11 m²PREP

KITCHEN

5 m²STORE

WC

RETAINING WALL

RETAINING WALL

45 DEGREE BATTER

PWD

5 m²

EX.STORE

17 m²AMENITIES

STORE

8 m²MILK

2 m²STORE

2 m²STORE

2 m²STORE

SLIDING SLIDING

SLID

ING

SLID

ING

SLID

ING

SLID

ING

SLID

ING

RECEPTION

FOYER

ENTRY

CORRIDOR

275 m²VERANDAH

ROOF OVER

TRANSLUCENTSHADESAILS

VBP

VBP

SBP

SBP

LEGENDPST PEDESTRIAN SITE TRIANGLES STAFF PARKINGSBP STAFF BICYCLE PARKINGV VISITOR PARKINGVBP VISITOR BICYCLE PARKING

0 1 2 5 10

As indicated @ A1FLOOR PLANRIVERSTONE PASS CHILDCARE

19/09/16 DA1.01

1:200 @ A3 . Completion Q1 2019

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TENANCY DETAILS

LEASE

Lessee Vesta Maudsland Pty Ltd as Trustee for Vest Maudsland Pty Ltd

Trading As Sanctuary Early Learning Adventure

Lease Term Fifteen (15) years

Lease Commencement Estimated September 2019

Lease Expiry Approximately September 2034

Option Periods 5 + 5 + 5 years

Rent Reviews 3.5% per annum

Net Rent $336,000 pa plus GST

Outgoings100% of outgoings paid by lessee, including land tax on a single holding basis as noted previously.

Bank Guarantee 6 Months (Except where the Lessee is a Public Company)

Please note that the above information is intended as a summary of the lease agreement supplied and has been represented as accurately as possible. We recommend prospective purchasers make their own enquiries to gain a thorough understanding of the provisions of the lease contained within the Sale Contract.

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COMPARABLE SALES

Listed below is a sample of other childcare centres which have transacted that are of a comparable nature to 182 Maudsland Road, Maudsland:

ADDRESS TENANT PLACES NET RENTAL SALE PRICE SALE YIELD

227 Edgar Street Condell Park NSW

Montessori Academy 38 $105,175 $2,330,000 4.51%

24-26 Walter Street Cranbourne VIC

G8 Education 65 $89,187 $1,820,000 4.90%

466-468 Sayers Road Tarneit VIC

G8 Education 127 $183,633 $3,700,000 4.96%

25 Anderson Street Casey ACT

Foundation EL 126 $348,100 $6,450,000 5.40%

3 Camelia Avenue Everton Hills QLD

Camelia Avenue Childcare 91 $191,067 $3,500,000 5.46%

461-463 Bluff Road Hampton VIC

Only About Children 56 $224,985 $3,950,000 5.70%

20S Paxford Drive Cranbourne VIC

Eclipse Early Education 106 $210,075 $3,590,000 5.85%

5/31-33 Gibbes Street Chatswood NSW

Little Learning School 65 $308,395 $5,200,000 5.93%

Lot 10, 4-8 Waine Street Freshwater NSW

Blueys Treehouse 80 $296,129 $4,855,000 6.10%

89 Aphrasia Street Newtown VIC

Bambini ELC 92 $339,554 $5,500,000 6.17%

18 Shirley Street Clayfield QLD

Banyo ELC NA $120,276 $2,340,000 5.14%

2-8 Nesbit St, Southport QLD

Southport ELC 75 $155,740 $2,600,000 5.99%

22 Crest St, Beenleigh QLD

Cubby care 90 $216,150 $3,300,000 6.55%

855 Ruthven Street, Toowoomba

Affinity Education Group 130 $230,797 $3,920,000 5.9%

51 Dixon Drive, Pimpama

Affinity Education Group 123 $256,500 $4,500,000 5.7%

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TENANT PROFILE

At Sanctuary Early Learning Journey we believe the early years in a child’s life are fundamental in creating the path for their future. Our foundation is built on ensuring every child receives the best care and education possible in a safe, calm, fun and friendly learning setting.

Each child’s cultural and nutritional needs are catered for at Sanctuary Early Learning Journey and we endeavour to present a learning environment which is captivating and engaging for each child and their family. Our responsibility to ensure creative thought is cultivated, inspired and fortified in the early developmental years is supported by our centres enthralling class environment, interactive play-scape and first class education.

The evolution of Sanctuary Early Learning Journey came through not only the realisation of the unmet demand for child care in these areas, also the unmet demand for quality child care for children. We believe that the early childhood years are the most important for children to grow and learn, preparing them for school and for their future years ahead.

We are a family owned business who operate our centres and create such a culture that will extend out to our families and children. Through our experiences and knowledge in the child care industry, our goal is to meet the demand by providing a nurturing environment for all children.

Our team drive a unique marketing strategy to deliver the brand into the local community, engaging in such a way that families can truly gain an understanding of our philosophy and the journey their children will embark on.

We hand select our Centre Director and each of our staff, as each team member is key to delivering the quality care we promise. We provide training and support to our staff and have a 100% open door policy.

Over the coming 3 years the Sanctuary Early Learning Journey team’s goal is to grow the brand and the businesses to five successful centres, catering quality child care and bringing our Philosophy into communities.

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TENANT PROFILE CV’S

Lauren HallLauren has spent the past 5 years immersed in the child care sector, which included 3 years developing the growth of Affinity Education Group in Operational and Acquisitions Management roles. Lauren has extensive knowledge in the operational side of the business, as well as the management of acquiring child care centres. Lauren provided fundamental marketing and operational direction in her time with the group.

Using this child care knowledge Lauren then created and co-founded Harmony Early Learning Journey which has since been sold. Lauren’s passion is providing benchmark quality care and safe environments to children. This is something that Lauren strives for in every aspect of her professional dealings, and prides herself on achieving consistently.

Affinity Education Group (ASX:AFJ) is a premium provider of early childhood education, owning and operating over 150 child care centres throughout Australia, with a presence in Queensland, New South Wales, Victoria, Western Australia and the Northern Territory, and provides care for over 15,000 children. www.affinityeducation.com.au      

Laurens role for 3yrs as National Acquisitions & Integrations Manager saw her assist and oversee growth of the company from 57 centres to over 130 nationally.

This growth included growing the number of daily places nationally from 4270per day to over 11,800 places of full time children’s care per day.

With this growth approximately 2,000 more full time and casual staff were employed by the growth and integrated into the companies systems and procedures.

Lauren was responsible for full integration including local government food licences, Education Department licence approvals and ACEQA licence upgrades.

Lauren then went on to spend 2 years founding her boutique family company Harmony Early Learning Journey with partners and this brand holds an enviable national rating and high regards in its communities. www.harmonylearning.com.au

Sanctuary Early Learning Adventure will draw on Laurens extensive experience and passion for high quality educational care for children in their formative years. This coupled with her strategic marketing mind and ability to inspire a team to deliver results are what drives the success of our centres.

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TENANT PROFILE CV’S

Damian HallExecutive Summary

• Damian Hall most recently held the role of National Acquisitions Director for Australian Childcare Projects and was responsible for the acquisition of new greenfield and master planned sites nationwide, feasibility assessments, design assistance and coordination and marketing recommendations to the Board. www.australianchildcareprojects.com.au

• As a founder and continuing shareholder, Damian worked with his founding team to create the ACP group, which successfully capitalised the company via private equity firm and international investment bank, Morgan Stanley to provide $60 million in equity capital.

• ACP has ambitious targets of 100 new Childcare projects and businesses between 2012-2020, and is well progressed on this target. www.petitjourney.com.au

• The company currently holds 16 operational centres, mostly freehold going concern assets, with more than 10 yet to deliver in 2017. The operational and upcoming centres will provide over 2860 daily full time care spaces, employ over 730 centre staff plus national head office and marketing team and the Board.

• Damian’s work included transacting with many national developers and retailers including Peet, Stockland, Mirvac, Lend Lease, Woolworths, Coles, Aldi and many more developers and land investors, to secure suitable childcare opportunities in enviable locations nationally.

• Damian has seven years’ prior experience with Colliers International and Ray White as an employee and business owner. Here he was heavily focused on the sale and development of parcels for retail, childcare and other ‘town centre’ style amenities, including high density living, commercial and convenience shopping projects.

• Damian has had personal project management and project delivery experience across over $100 million worth of commercial and retail property projects and continues to actively seek out new opportunities.

National Acquisitions DirectorAustralian Childcare Projects | 2012 to 2016

• Australian Childcare Projects (ACP) was incorporated in 2012 (formerly SQM Projects and Petit ELJ) to identify, establish and operate premium childcare centres. Since incorporation, ACP has secured a portfolio of premium sites and continues to identify and evaluate additional opportunities which fulfil ACP’s mandate. With in excess of $60M of debt and equity ACP is well positioned to deliver a high quality portfolio of centres delivering benchmark service per the company vision and plans.

• ACP aims to deliver high quality, progressive centres providing educational care that is focused on the holistic learning and development of children. We endeavour to provide safe, enchanting and inspiring environments that are supportive towards social, emotional and cognitive development and will advance each child’s learning journey.

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TENANT PROFILE CV’S

Recent major transactions include:

- Securing 17 freehold development sites across NSW, VIC and QLD metro markets and key regional locations for ACP to deliver owner/operated freehold childcare with half of these centres in operation.

- Securing 9 leasehold assets across NSW, VIC, ACT and QLD which ACP have opened in the past 24 months and now offer benchmark level of long day care in key markets including Melbourne and Brisbane.

• Responsible for Securing all assets for the company as National Acquisitions Director reporting to the Board and Morgan Stanley directly on current and future opportunities.

• Involved from inception of ACP to capitalisation via Private equity raising of $50,000,000 from Morgan Stanley NYC.

• The company founders have attainable goals of capitalisation over $700M by 2020.

Previous ExperienceColliers International | 2010 To 2012

• Established the national Auction Portfolio platform in conjunction with state and national management stakeholders.

- Major transaction included retail and town centre sites along with group portfolio auctions exceeding $100M in sales across three state auctions in a single week.

RoleRay White | 2004 to 2010

• Retail/Commercial leading agent and business owner in Queensland and Australia with numerous awards and top fee earning periods throughout time in service with Ray White Commercial and Ray White Retail.

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DISCLAIMER

This Information Memorandum has been prepared in good faith and with due care by Alchemy IP and if applicable, its conjunctional agent. By accepting this Information Memorandum, recipients agree for themselves and their affiliates to the terms of this Disclaimer.

This Information Memorandum has been prepared solely for general information purposes and not as specific advice to any particular recipient or any other person. It is not to be construed as a recommendation by Alchemy IP that any recipient proceeds with any investigation or with any purchase and/or lease of a property or service. In all cases recipients should carry out their own independent investigation, assessment and analysis.

Intending purchasers should note: In the event of any inconsistency of this property report and the contract for sale of land, the provisions of the contract for sale of land shall prevail.

The lease details (if applicable) contained in this Information Memorandum are only illustrative of the relevant lease document/s. Figures for outgoings and rentals as stated in this Information Memorandum may be based on estimates. Potential purchasers should make their own judgement as to the likely net income.

The only representations and warranties which have any legal effect will be those that are expressly included in any legally binding contract that may be concluded with a successful purchaser. All stated dimensions and areas are approximate.

To the maximum extent permitted by law, no member of Alchemy IP, their respective directors, employees, agents, conjunctional agents, advisors or

representatives, as the case may be:• provides any undertaking, express or implied, as to the accuracy, adequacy, reliability, reasonableness or completeness of the information or any opinion or statement contained in this Information Memorandum;

• Shall have any liability (including for negligence) for any statements, opinions, information or matters arising out of, contained in or derived from, or for any errors or omissions from or failure to correct, any information in this Information Memorandum or any other written or oral communications transmitted to any recipient; and/or;

• Is under any duty of disclosure or fiduciary duty or any obligation to update any information contained in this Information Memorandum or any other written or oral communication transmitted or made available to a recipient, or to notify any person should any such information cease to be correct after the date hereof or the date of provision, as the case may be,

• And each recipient, by accepting delivery of this Information Memorandum, waives all rights in that regard.

This Information Memorandum is provided to the recipient on a confidential basis, and is not to be resupplied to any other person without the prior written consent of Alchemy IP. The recipient may, however, disclose the Information Memorandum to any of its employees, advisors (including lawyers and accountants) or agents to the extent absolutely necessary to allow the recipient to evaluate the property/properties and to act on an opportunity to purchase the property/properties, but will ensure that those employees, advisors or agents maintain the confidentiality of this Information Memorandum.

Pre-committed Prime Property Joshua Hall | jh@alchemy-ip.com | 0450 291 851