RAY WHITE COMMERCIAL North Coast Central 1 Levuka Ave Kings Beach

Information memorandum

1/8 Levuka Avenue, Kings Beach

Auction Wednesday, 16 March 2016 at 11:00am On Site

2

Contents

The Opportunity .................................................................................................. 3

Executive Summary ........................................................................................... 4

Property Overview .............................................................................................. 5

Location Details .................................................................................................. 6

Tenancy Schedule .............................................................................................. 8

Tenancy Overview .............................................................................................. 9

Tenancy Images ............................................................................................... 10

Tenancy 1 De Lish Fish .................................................................................... 11

Tenancy 2 J Kitchen on Kings .......................................................................... 11

Tenancy 3 Coffee Cat ...................................................................................... 12

Tenancy 4 Crusoes on kings ............................................................................ 12

Financials ......................................................................................................... 13

Sales Process .................................................................................................. 14

Disclaimer ......................................................................................................... 15

Annexure A Auction Conditions ........................................................................ 16

Annexure B Title Search .................................................................................. 18

Annexure C Floor Plans ................................................................................... 19

Annexure D Survey Plan .................................................................................. 20

Jason Wright Ray White Commercial North Coast Central 0451 497 368 [email protected]

Michael Shadforth Ray White Commercial North Coast Central 0488 981 076 [email protected]

Damien Poole Ray White Commercial North Coast Central 0414 457 022 [email protected]

Emily Pendleton Ray White Commercial North Coast Central 0402 435 446 [email protected]

THE OPPORTUNITY

Ray White Commercial North Coast Central is pleased to present to the market

by way of Auction, this tenanted investment opportunity at

1/8 Levuka Avenue, Kings Beach (hereafter refered to as the subject property).

The property incorporates 392 m2* of retail floor space, comprised of 4 tenancies.

The property is a ground floor strata titled unit located within the Rolling Surf Resort.

Property features Include:

• Net return of $358,000 per annum *

• Absolute beach front location

• Four long term existing tenants on strong lease terms

• 4.64 year WALE

• Good security

• Positioned beneath 4.5 star resort – Rolling Surf

• One of only a few beachfront retail investments in the Sunshine Coast Council region

*approx

4

Executive summary

The property 1/8 Levuka Avenue, Kings Beach Qld 4551

Property description Commercial ground floor strata titled retail unit

Building area 392 m2*

Method of sale Auction

Auction details Wednesday, 16 March 2016 at 11:00am

On Site

1/8 Levuka Avenue, Kings Beach Qld 4551

Marketing agents Jason Wright Ray White Commercial North Coast Central T 1300 255 075 M 0451 497 368 E [email protected] Michael Shadforth Ray White Commercial North Coast Central T 1300 255 075 M 0488 981 076 E [email protected] Damien Poole Ray White Commercial North Coast Central T 1300 255 075 M 0414 457 022 E [email protected] Emily Pendleton Ray White Commercial North Coast Central T 1300 255 075 M 0402 435 446 E [email protected]

* Approximately ^ Important: Prospective purchasers conduct due diligence investigations of the property strictly at their own expense and risk, and the vendor will have no liability in relation to such expenses. Consent by the vendor to the conduct by any potential purchaser of due diligence activities or investigation will not in any circumstance be construed as a representation that the vendor will be exercising, or refraining from exercising its rights to deal with the property, or any representation that the vendor intends to contract with that potential buyer, or at all.

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Property overview

Address 1/8 Levuka Avenue, Kings Beach

Real property details Lot 1 on SP132434

Parish Bribie

Title reference 50354547

Zoning Tourist Accommodation Zone

Local authority Sunshine Coast Council

Type Ground floor strata titled unit

Building age Circa 1990

Number of tenancies Four

NLA Total - 386 m2*

-Tenancy 1 – 79 m2*




Net income $357,919-96* per annum

-Tenancy 1 - $94,492-56* per annum

-Tenancy 2 - $30 421-20* per annum



Outgoings $90,720-00* per annum ($85,200-00* p/a retrievable)

Services Electricity, town water, sewerage & telephone services

Land & access The property is located beneath the Rolling Surf Resort which faces Levuka Avenue. The subject property fronts onto Kings Beach.

Access to the property is via Levuka Avenue.

There is approximately 25-30 onsite Council carparks (not attached to the title) near the entrance of the complex with additional street parking available.

*Approximate

THE LOCATION

With a population growth of 10.1% over the five year period between 2008 and 2013 (higher

than the national growth rate of 8.7%) and highest growth of international visitors (9.4%) of any Queensland region in the year ending September 2014, with more than $2.5 billion in

overall direct visitor expenditure, the Sunshine Coast is an ideal investment opportunity location. (source www.invest.sunshinecoast.qld.gov.au)

BRISBANE 1.5hr

maroochydore 20 mins

CALOUNDRA CBD 5 mins

STOCKLAND AURA 10 mins

levuka ave

KINGS BEACH

For more information on the Sunshine Coast, click the links to these videos:

https://www.youtube.com/watch?v=EFc7LfFel2o

https://www.youtube.com/watch?v=phCn9MQI1Uc

http://www.9news.com.au/national/2016/02/10/18/32/sunshine-coast-in-the-middle-of-a-boom

https://www.youtube.com/watch?v=SCquzul1oGE&feature=youtu.be

https://www.youtube.com/watch?v=EFc7LfFel2o

https://www.youtube.com/watch?v=phCn9MQI1Uc

http://www.9news.com.au/national/2016/02/10/18/32/sunshine-coast-in-the-middle-of-a-boom

https://www.youtube.com/watch?v=SCquzul1oGE&feature=youtu.be

The property is located in the heart of Kings Beach with absolute beach frontage at the front of the tenancies.

Kings Beach is part of the Caloundra region on the Sunshine Coast and is a gateway to both Brisbane and Northern Queensland regions 1.5 hours north of Brisbane, 20 minutes south of Maroochydore and 5 minutes to Caloundra CBD.

The property is approximately 25 km to the Sunshine Coast Airport and 10 minutes to Stockland’s new development Aura - which is Australia’s largest new master planned city. Aura will comprise 90 hectare city centre, 3 district centres and 6 neighbourhood centres creating 40,000 onsite & offsite jobs. (source - http://cityofcolour.com/vision/overview)

The Sunshine Coast has access to all major transport networks and export infrastructure.

This includes air, road, rail, broadband connectivity and the award winning Sunshine Coast Airport. It has room to grow – available

commercial, industrial and residential land with more than 2,700 industrial properties

across 830 hectares of land.

sunshine coast region

population growth 10.1%

vistor growth 9.4%

The Sunshine Coast is an Enterprise Corridor for business being centrally located and

providing a focal point for commercial, high value industry, retail and residential growth. The area has been nationally recognized as

a lifestyle location with advantages for small businesses.

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Tenancy schedule TENANT

AREA M

2

LEASE

CO

MM

ENCEM

ENT

LEASE E

XPIR

Y

TERM

OPTIO

N

BO

ND /

SECURIT

Y

INCREASE

CURRENT R

ENT

Delish Fish

79 m² 01/03/2013 28/02/2018 5 years 5 years $16,329 3% $94,492

J Kitchen 27 m² 01/12/2012 31/01/2021 5 years 2 x 5 years

$5,577

4% $30,421

Coffee Cat

137 m² 18/08/2011 31/02/2021 5 years 2 x 5 years

$28,049

4% $89,281

Crusoe’s 143 m² 01/10/2015 30/09/2020 5 years 5 years

$20,000

5% $143,725

386 m²

NLA WALE

4.64 years

$69,955 $357,919

tenancy overview

De lish Fish

De Lish Fish at Kings is a seafood eatery and award-winning gelateria located on beautiful Kings Beach in Caloundra. Their philosophy is to serve fresh and delicious food every time. There is something for the whole family, whether it is their famous beer-battered chips, fresh Australian and local seafood, mouth-watering burgers, delicious salads or homemade gelato. Take advantage of the outdoor seating on site for delicious family favourites by the beach.

J Kitchen Sushi

Located under the Rolling Surf Resort, J Kitchen Sushi offers a variety of sushi and curries made fresh each day. Established in 2011, owner Mie uses local fresh ingredients to bring her Japanese culture to Caloundra’s beautiful Kings Beach. Rated 4.5 stars on Trip Advisor, customers are very impressed with the high quality produce that can be purchased at fair prices.

Coffee Cat

A family owned & run business since 2014, Coffee Cat serves fine food and great coffee. With excellent service and live entertainment on weekends, Coffee Cat attracts people from all over the world.Owners, Pierre & Haley, along with head chef Ben Cox’s passion for food shows through, sourcing the best quality local ingredients and using traditional methods of cookery to make all sauces and stocks in-house.With a view to die for, a new inside dining space and the best beachside vibe in town, Coffee Cat is a must visit. It is available for weddings, private functions, breakfast, lunch and dinner bookings.

Crusoes on Kings

Crusoes on Kings is a new restaurant operated by local brother and sister chef combination Maureen & Titus O’Halloran. Overlooking Kings Beach this new restaurant is fast becoming a Caloundra favourite. Patrons can dine on local produce accompanied by their favourite wine & enjoy that undisturbed ocean view. Crusoes is open for breakfast & lunch daily and for dinner Thursday to Sunday.

9

10

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Tenancy 1 De Lish Fish

Business De Lish Fish

Tenant Delish Fish @ Kings Pty Ltd

Size 79 m2 approx

Lease commencement 01/03/2015

Lease expiry 25/02/2018

Term 5 years

Option 5 years

Estimated net income $94,492.56 per annum

Annual review 3%

Market review 25/02/2018

% of outgoings 21.5%*

Bank guarantee $16,329.18

*SINKING FUND – $5,520 per annum paid by owner. As per Retail Shop Act, no sinking fund fees payable by tenant.

Tenancy 2 J Kitchen on Kings

Business J Kitchen on Kings

Tenant Mies Pty Ltd

Size 27 m2 approx



Term 5 years

Option 5 years x 5 years


Annual review 4%



Cash bond $5,577.22


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Tenancy 3 Coffee Cat

Business Coffee Cat

Tenant Taycha Pty Ltd

Size 137 m2 approx



Term 5 years

Option 5 years x 5 years

Estimated net income $89,281.00.80 per annum

Annual review 4%



Cash bond $28,049.00


Tenancy 4 Crusoes on kings

Business Crusoes on Kings

Tenant Maztus Pty Ltd

Size 143 m2 approx



Term 5 years

Option 5 years


Annual review 5%



Cash bond $20,000

13

Financials

Estimated outgoings Annual estimated outgoings budget for the period 1 July 2015 to 30 June 2016 as provided by the owner are:

Item $ Per Annum

Administration costs $ 750.00

Body corporate levies $ 8,350.00 (excluding sinking fund)

Cleaning – common area $ 7,000.00

Cleaning – consumables $ 1,200.00

Cleaning – garbage bins $ 1,500.00

Cleaning – kitchen exhausts $ 3,000.00

Fire protection – extinguisher/reel $ 1,000.00

Gas – hot water supply $11,000.00

Hygiene services $ 500.00

Management fee $17,900.00

Repairs & maintenance $ 5,500.00

Rates $17,000.00

Rates – water & sewerage $ 6,500.00

Sinking fund $ 5,520.00

Trade waste disposal $ 4,000.00

Estimated annual outgoings $90,720.00

Financial summary

Income

Rental $357,919.96

Outgoings recoveries $ 85,200.00

Gross income $443,119.96

Less outgoings

Land tax $ 1,660.95

Estimated budget outgoings 2015/2016 $ 90,720.00

Estimated net income $350,739.01

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Sales process

The property will be presented to the market via Auction.

Auction Details Date Wednesday 16 March 2016 at 11:00am

Venue On Site

1/8 Levuka Ave, Kings Beach Qld 4551

Additional information available upon request Contract of Sale Current Leases Outgoings Notices CMS Property Certificates and Licences Financials

Please contact the marketing agents to obtain further information or to inspect the property.

Jason Wright Ray White Commercial North Coast Central T 1300 255 075 M 0451 497 368 E [email protected] Michael Shadforth Ray White Commercial North Coast Central T 1300 255 075 M 0488 981 076 E [email protected] Damien Poole Ray White Commercial North Coast Central T 1300 255 075 M 0414 457 022 E [email protected] Emily Pendleton Ray White Commercial North Coast Central T 1300 255 075 M 0402 435 446 E [email protected]

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Disclaimer The information contained in this Information Memorandum and any other verbal or written information given in respect of the property (“Information”) is provided to the recipient (“you”) on the following conditions:

1. Cecil Healy Pty Ltd trading as Ray White Commercial North Coast Central and or any of its officers, employees or consultants (“we, us”) make no representation, warranty or guarantee, that the Information, whether or not in writing, is complete, accurate or balanced. Some information has been obtained from third parties and has not been independently verified. Accordingly, no warranty, representation or undertaking, whether express or implied, is made and no responsibility is accepted by us as to the accuracy of any part of this, or any further information supplied by or on our behalf, whether orally or in writing.

2. All visual images (including but not limited to plans, photographs, specifications, artist impressions) are indicative only and are subject to change. Any measurement noted is indicative and not to scale. All outlines on photographs are indicative only.

3. The Information does not constitute, and should not be considered as, a recommendation in relation to the purchase of the property or a solicitation or offer to sell the property or a contract of sale for the property.

4. You should satisfy yourself as to the accuracy and completeness of the Information through your own inspections, surveys, enquiries, and searches by your own independent consultants, and we recommend that you obtain independent legal, financial and taxation advice. This includes as to whether any listing price is inclusive or exclusive of GST.

5. We are not valuers and make no comment as to value. “Sold/ leased” designations show only that stock is “currently not available” – not that the property is contracted/ settled. If you require a valuation we recommend that you obtain advice from a registered valuer.

6. The Information does not and will not form part of any contract of sale for the property. If an interested party makes an offer or signs a contract for the property, the only information, representations and warranties upon which you will be entitled to rely will be as expressly set out in such a contract.

7. Interested parties will be responsible for meeting their own costs of participating in the sale process for the property. We will not be liable to compensate any intending purchasers for any costs or expenses incurred in reviewing, investigating or analysing any Information.

8. We will not be liable to you (to the full extent permitted by law) for any liabilities, costs or expenses incurred in connection with the Information or subsequent sale of the property whatsoever, whether the loss or damage arises in connection with any negligence, default or lack of care on our part.

9. No person is authorised to give information other than the Information in this Information Memorandum or in another brochure or document authorised by us. Any statement or representation by an officer, agent, supplier, customer, relative or employee of the vendor will not be binding on the vendor or us.

10. To the extent that any of the above paragraphs may be construed as being a contravention of any law of the State or the Commonwealth, such paragraphs should be read down, severed or both as the case may require and the remaining paragraphs shall continue to have full force and effect.

11. You may not discuss the Information or the proposed sale of the property with the vendors or with any agent, friend, associate or relative of the vendor or any other person connected with the vendor without our prior written consent. We accept no responsibility or liability to any other party who might use or rely upon this report in whole or part of its contents.

12. The Information must not be reproduced, transmitted or otherwise made available to any other person without our prior written consent.

© 2015 Australia Cecil Healy Pty Ltd ABN 98 933 833 870 Current as at November 2015

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Annexure A auction conditions

Conditions of Sale

1. All bidders must be registered. The auctioneer may register a person as a bidder

only if the person has provided his/her name and address and satisfactory

evidence of his/her identify. The auctioneer is required to keep the register of all

bidders at the auction in accordance with Queensland Government regulations.

2. Bids will only be accepted from registered bidders.

3. Bidders must use the numbered identifier provided by the auctioneer to make a bid

during the auction.

4. The highest approved bidder will be the buyer subject to: the reserve price; and

the sellers approval.

5. The seller may bid, either personally or by a representative.

6. The bidder warrants their ability to enter and complete the contract of sale in

accordance with the terms.

7. Any person bidding on behalf of another person must provide the auctioneer with a

copy of their written authority before the Auction, otherwise the bidder will be taken

to be acting on their own behalf.

8. The auctioneer has the discretion to refuse to accept any bid from any person. A

bid will be taken to be accepted and irrevocable unless the auctioneer,

immediately after it is made, refuses it.

9. The decision of the auctioneer is final in all matters relating to the auction and no

bidder has any right of recourse against the auctioneer or the seller.

10. Without affecting condition 9, if there is any dispute over a bid, the auctioneer may:

reopen the bidding and resubmit the property for sale starting with the highest bid

previously accepted or; determine the dispute in any other way the auctioneer

considers appropriate in his/her absolute discretion.

11. Immediately on the fall of the hammer, the bidder of the highest bid accepted must

sign, as buyer, the Contract of Sale in the form displayed or circulated with these

conditions of sale and pay the deposit to the name nominated stakeholder.

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Conditions of Sale continued

12. The deposit payable under the contract of sale is 10% of the successful bid or any

other percentage or figure nominated in the Contract of Sale.

13. The seller and the buyer agree to sign all documents and do everything else

necessary to transfer the property to the buyer. The seller and the buyer each

appoint the auctioneer their agent to sign the Contract of Sale on their behalf. This

appointment is non-revocable.

14. If the buyer does not pay the deposit, at the sellers option; the result of the auction

will be treated as invalid and th property may be resubmitted to public auction at

the risk and expense of the buyer; or the seller may affirm the Contract for Sale

and pursue their legal and other remedies against the buyer as they see fit.

All bidders shall be deemed to have read and acknowledged the ‘Contract Warning‘ and

the ‘Disclosure Statement’ under the Body Corporate and Community Management Act

1997 which are annexed to the Contract of Sale by virtue of the fact that they have been

on display prior to this auction.

Cash unconditional basis, not subject to a cooling off period, finance, or building

inspection.

GST may be applicable to the purchase price.

Terms of sale

10% (or as otherwise agreed by prior arrangement) deposit on the fall of the hammer

and the balance in cash in 30 days, or any other such date or terms as specified by the

auctioneer prior to auction.

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Annexure B title search

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Annexure C floor plans

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Annexure D survey plan

Personal service

Premium resultsRay White Commercial North Coast Central positions itself as the leading commercial real estate and property management agency offering unparalleled market knowledge and expertise from Noosa to Caboolture.

Born from a merging of three commercial real estate agency powerhouses – Property Only, Ray White Commercial Maroochydore and Caboolture Commercial - Ray White Commercial North Coast Central combines more than one hundred years combined experience in sales, leasing and property management.

With a competitive team of sales agents, property managers, town planners, project managers, marketing, public relations and administration professionals all working towards the shared goal of providing expertise in market intelligence and excellent results, Ray White Commercial North Coast Central prides itself on a reputation of integrity and a strong work ethos.

Our sales agents are motivated, focused and willing to go the extra mile to achieve exceptional results and be the best in the industry. Ray White Commercial North Coast Central has an abundance mentality, believes in open communication and promotes respectful conduct with our clients and all Ray White Commercial North Coast Central team members.

It is this shared team goal that sets us apart from others within the market and assists us in delivering on clients expectations of Ray White Commercial North Coast Central being leaders within our field.

The Ray White Group is now one of Australasia's largest real estate focused businesses and has grown to more than 1,000 offices with 8,000 staff and an annual turnover of A$30 billion across Australia, New Zealand and Indonesia and through offices in Delhi, Bangkok, Hong Kong, Shanghai, Dubai and Abu Dhabi.

Ray White Commercial North Coast Central

1/77 Mooloolaba Esplanade, Mooloolaba Q 4557

raywhitecommercialnorthcoastcentral.com

1300 255 0075

ABN 98 933 833 870

Documents

RAY WHITE COMMERCIAL North Coast Central 1 Levuka Ave Kings Beach