Subject: Feasibility Testing 2-16 Myrtle Street Marrickville · residential apartments to a maximum of 8 storeys on the site at 2 to 16 Myrtle Street, Marrickville (hereafter referred

C18040 Feasibility Testing 3-5 Carrington Road & 3 Myrtle Street Marrickville Feasibility Testing 1 of 8

Mark Maryska

Director – CityState Property Level 32, 200 George Street NSW 2000

30 August 2017

Dear Mark,

Subject: Feasibility Testing 2-16 Myrtle Street Marrickville

It is understood CityState is reviewing the DP&E Sydenham to Bankstown Urban Renewal Corridor Marrickville

Station Precinct (strategy) and is currently testing the feasibility of developing medium to high density

residential apartments to a maximum of 8 storeys on the site at 2 to 16 Myrtle Street, Marrickville (hereafter

referred to as the Subject Site). The strategy notes the future land use of the Subject Site as medium to high

density residential.

Figure 1: Subject Sites Tested

HillPDA was commissioned by CityState to model and comment on the feasibility of the hypothetical

development of the Subject Site which is the purpose of this letter. HillPDA used its proprietary Estate Master

Development Feasibility software which simulates the costs and revenues in a cash flow to derive key

performance indicators such as development margin, net present value and internal rate of return.

Level 3, 234 George St

Sydney NSW 2000

02 9252 8777

[email protected]

hillpda.com

ABN 52 003 963 755


Option Tested and Results

Option Description

1 – Medium Density Residential

Site Area: 2,942sqm

FSR: 2.73:1

GFA: 8,027sqm

Total Units 97

5% Affordable Housing Gifted (Approx. 5 units)

Feasibility Assumptions

Site assumptions, development contributions and site costs were provided by CityState. The assumptions used

in the feasibility assessment includes land costs, construction costs, project timing and staging, professional

fees, development contributions, end sale values and car parking requirements. The feasibility assumptions are

summarised in the table below:

Table 1: Feasibility Assumptions

Feasibility Assumptions

Land Purchase $24,084,759 (equal to $3,000/sqm GFA)

Due Diligence on Land $10,000

Professional fees

Master planning 0.5% of construction

Professional Fess (pre-

construction) 2.5% of construction

Professional Fess

(during -construction) 2.5% construction

PM and Supervision $10,000/mth

Development

Management $15,000/mth

Construction Costs

$350,000 per unit which includes basement car parking, balconies, site costs and

external works

No Escalation was applied to costs and revenues

Contingency 5% of construction

Statutory Fees

DA/CC/ Long service 0.5% of CC Paid 1 month prior construction Start

S94 Contributions $20,000 per unit

Paid 1 month prior to construction start

SIC No SIC was applied

Marketing

1% of Gross Revenue


Financial Return

The financial returns of the project is summarised in the table below:

Land Holding Costs

Unimproved Land value estimated at $6,311,000 paid Y-on-Y diminishing with

settlements

Water and rates paid quarterly

Sales

End Sales Values Residential $13,000/sqm NSA

5% affordable housing is gifted i.e. no revenues were received

Sales

Sales Commissions = 2.25% of Gross Revenue

Sales Rate for Apartments = 20/month

Presales 100% of the development

No Escalation was applied to End sales

GST GST costs are assumed to be paid at settlement of the apartments at one eleventh

of (the gross sales price less the acquisition cost) under the consideration method

Financing

Equity 35% of Net Cash to be funded/ repaid at project end

Loan

4.5% per annum compounded

Application Fee $250,000

Line Fee $750,000 (around 1.5% of peak debt)

Required Hurdle Rates

Project IRR 20%

Development Margin 20%


Discussion

The results show that development is not viable as the forecast development margin of 10.2% and Project IRR

of 8.8% are both well below the required or target levels of 20% and 20% respectively. It is worth nothing this

model does not include the proposed Special Infrastructure Contribution (SIC) levy under the structure plan

(currently unknown at this time). Any additional costs would further undermine development viability of this

test site.

These results reflect impediments to the viability of the hypothetical development scenario in the Sydenham to

Bankstown Precinct for medium – high density residential (8 storey) development with the most substantial

being:

The going rate of the land at $3,000/sqm GFA implies developers are paying a premium in the area for

infill development. We have sited the letter from Nick Countouris of R&W (addressed to CityState and

dated 24 September 2017) and we generally concur with his comments. In the past few years land

owners have developed high expectations and developers have recognised that high premiums on

land costs need to be paid where multiple lots need to be amalgamated.


The substantial construction costs (as indicated by CityState) and weakening unit market can hamper

access to bank capital (if available), leading to increased lending costs not reflected in the feasibility;

and

Thirdly, the affordable housing provision and SIC. As can be seen in the feasibility, despite the

increased density proposed, a 5% affordable housing provision and $0 SIC levy, the project is still not

viable. It would follow that developments of lesser density using the same applicable metrics would

also not be viable.

Please feel free to call me if you wish to discuss any matter in relation to the above.

Yours sincerely,

30 August 2017

……………………………………… Date ………………….

HillPDA Consulting

Level 3, 234 George Street,

Sydney NSW 2000, Australia

GPO Box 2748, Sydney NSW 2001

T | +61 2 9252 8777

W | hillpda.com

ABN | 52 003 963 755

ADRIAN HACK

M. Land Econ. B.Town Planning (Hons). MPIA

Principal Urban and Retail Economics

[email protected].


: CASHFLOW APPENDIX A

Myrtle Street Marrickville : 5% Affordable Housing

Development Feasibility ModelEstateMaster Licensed to: HillPDA

Project Size :Date of Report :

Time Span :

Type :

Status :

Site Area : 2,942 SqM

Under Review

Miscellaneous

1 per 0.36 SqM of Site Area

2.73:1

8,031.66 SqM

Project Size :

FSR :

Equated GFA :

Address :

State/County

Country

Developer :

Prepared For :

Prepared By :

Jan-17 to Apr-20 (39 Months)

29-Aug-2017 97 Units

1 per 30.32 SqM of Site Area

8,027 GFA

City State

City State

HillPDA

City/Suburb

Address

Disclaimer1.This report and its attached appendices are based on estimates, assumptions and information provided by the Client or sourced and referenced from external sources by Hill PDA. While we endeavour to check these estimates, assumptions and information, no warranty is given in relation to their reliability, feasibility, accuracy or reasonableness. Hill PDA presents these estimates and assumptions as a basis for the Client’s interpretation and analysis. With respect to forecasts, Hill PDA does not present them as results that will actually be achieved. Hill PDA relies upon the interpretation of the Client to judge for itself the likelihood of whether these projections can be achieved or not.2. Due care has been taken to prepare the attached financial models from available information at the time of writing, however no responsibility can be or is accepted for errors or inaccuracies that may have occurred either with the programming or the resultant financial projections and their assumptions.

2017/01 : Marrickville

EstateMaster DF Ver 6.30 Page 1 of 1 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM

M rtle treet Marrickville fforda le o sing

Estate Master icensed to: illPD

ime an: an 17 to r 20 39 Mont se: Miscellaneo s

tat s: nder Revieite rea: 2 9 2 M

F R: 2.73:1 E ated F : 8 031.66 MPro ect i e: 97 nits 1 er 30.32 M of ite rea

8 027 F 1 er 0.36 M of ite rea

D Per D Per D Pernit F otal et Reven e

antit M D/ antit D96.99 6 983. 9 889 226.7 86 2 6 102 889 13 10 7 109.6

Residential nits 92.1 6 63 .32 936 033.23 86 2 6 102fforda le o sing .8 3 9.17

ess elling Costs 1 921 132 19 80 239 2. ess P rc asers Costs 0.0

E E REVE E 8 32 970 869 330 10 0 107.2

REVE E efore aid 8 32 970 869 330 10 0 107.2 ess aid on all Reven e 6 1 031 8 2 8 70 7.2

and P rc ase Cost 2 08 7 9 2 8 296 3 000 30.6and c isition Costs 1 637 23 16 881 20 2.1

39 212 2 0 0 2 0 88 9.8t er Constr ction Costs 37 3 000 38 000 6 2 7.

Contingenc 1 867 2 0 19 2 0 233 2.Professional Fees 2 2 67 26 316 318 3.2

tat tor Fees 2 330 061 2 021 290 3.0and olding Costs 6 0 920 6 607 80 0.8

Pre ale Commissions 1 067 296 11 003 133 1.Finance C arges inc. Fees 1 937 00 19 97 2 1 2.nterest E ense 2 022 821 20 8 2 2 2.6

C efore reclaimed 7 8 70 778 203 9 0 9 .9 ess reclaimed 281 310 137 33 . Pl s Cor orate a 0.0

Per nit Per F

77 006 9313

ased on total costs inc selling costsResid al and Val e ased on arget Margin of 20 18 0 9 191 2 7 2 311

ased on Disco nt Rate of 20 .a. ominal6 enefit Cost Ratio 0.8 377

Per ann m ominal8 Resid al and Val e ased on PV 1 09 200 1 8 8 8 1 920

E it RR Per ann m ominal 11. 0E it Contri tion 23 777 669Peak De t E os re 7 718 179E it to De t Ratio 3.8

9 eig ted verage Cost of Ca ital CC 2.9310 reakeven Date for C m lative Cas Flo Mont 39 r 202011 ield on Cost 0.0012 Rent Cover . .13 Profit Erosion . .

1. Develo ment Profit: is total reven e less total cost incl ding interest aid and received3. Develo ment Margin: is rofit divided total costs inc selling costs

. Resid al and Val e: is t e ma im m rc ase rice for t e land ilst ac ieving t e target develo ment margin.

. et Present Val e: is t e ro ect s cas flo stream disco nted to resent val e. t incl des financing costs t e cl des interest and cor ta .6. enefit:Cost Ratio: is t e ratio of disco nted incomes to disco nted costs and incl des financing costs t e cl des interest and cor ta .7. nternal Rate of Ret rn: is t e disco nt rate ere t e PV a ove e als ero.8. Resid al and Val e ased on PV : is t e rc ase rice for t e land to ac ieve a ero PV.9. e eig ted verage Cost of Ca ital CC is t e rate t at a com an is e ected to a to finance its assets.

10. reakeven date for C m lative Cas Flo : is t e last date en total de t and e it is re aid ie en rofit is realised .11 ield on Cost is C rrent et nn al Rent divided otal Costs efore reclaimed incl ding all elling Costs.

12. e total net develo ment rofit divided t e c rrent net ann al rental e ressed as a a n m er of ears/mont s.13. e eriod of time ost ractical com letion t at it can remain nsold t leased o t ntil finance and land olding costs erodes t e rofit for t e develo ment to ero.

F E R E R E R E F E F E F E


M rtle Street Marrickville fforda le o sing


Develo er s E it Senior oan

E it De t De t De t De t E it De t

ender ame ender ame ender ame oan

1 F nds Invested (Cas tla ) 23 777 669 1 8 28 23 777 669 1 8 28 of Total F nds Invested 3 .00 0.00 0.00 0.00 6 .00 3 .00 6 .00

2 Peak E os re 23 777 669 7 718 179 23 777 669 7 718 179Date of Peak E os re an 18 . . . . . . Fe 20 an 18 Fe 20Mont of Peak E os re Mont 12 Mont 37 Mont 12 Mont 37

eig ted verage Interest Rate . . . . . . . . . 0 . . . 0Interest C arged 2 022 821 2 022 821

ine Fees C arged 1 687 00 1 687 00lication Fees C arged 2 0 000 2 0 000

Profit S are Received 3 Total Profit to F nders 7 69 3 960 321 7 69 3 960 321

Margin on F nds Invested 31. 1 . . . . . . 8.97 31. 1 8.97Pa ack Date r 20 . . . . . . r 20 r 20 r 20Mont of Pa ack Mont 39 . . . . . . Mont 39 Mont 39 Mont 39

6 IRR on F nds Invested 11. 0 . . . . . . 9.01 11. 0 9.017 E it to De t Ratio . . . . . . 3.8 3.88 oan to Val e Ratio 27. 7 0.00 0.00 0.00 .33 27. 7 .339 oan Ratio 98.72 0.00 0.00 0.00 71. 6 98.72 199.79

of and P rc ase Price. of and P rc ase Price. of and P rc ase Price. of and P rc ase Price. of Project Costs (net of Interest/Fees and GST).

of and P rc ase Price. of and P rc ase Price.

1. T e total amo nt of f nding injected into t e roject cas flo .2. T e ma im m cas flo e os re of t at e it /de t facilit incl ding ca italised interest.3. T e total re a ments less f nds invested incl ding rofit s are aid or received.

. Margin is net rofit divided total f nds invested (cas o tla ).

. Pa ack date for t e e it /de t facilit is t e last date en total e it /de t is re aid.6. IRR on F nds Invested is t e IRR of t e e it cas flo incl ding t e ret rn of e it and realisation of roject rofits.7. E it to De t Ratio is t e amo nt of e it contri ted into t e roject as a ercentage of de t f nding.8. oan to Val e ratio is t e Peak E it /De t E os re divided Total Sales Reven e.9. oan Ratio is t e total f nds invested t e lender (cas o tla ) divided t e nominated ratio calc lation met od. It incl des ca italised interest and fees.

Contri tion S are

Developer's Equity Loan 1 Loan 2 Loan 3 Senior Loan

Dev

elop

er's

Equ

ity

Loan

1

Loan

2

Loan

3 Seni

or L

oan

(50)

(40)

(30)

(20)

(10)

-

10

20 AU

D M

illio

ns

.

Contri tion vs Profit

Contribution Interest & Fees Profit Share

Jan-

17

Feb-

17

Mar

-17

Apr-

17

May

-17

Jun-

17

Jul-1

7

Aug-

17

Sep-

17

Oct

-17

Nov

-17

Dec

-17

Jan-

18

Feb-

18

Mar

-18

Apr-

18

May

-18

Jun-

18

Jul-1

8

Aug-

18

Sep-

18

Oct

-18

Nov

-18

Dec

-18

Jan-

19

Feb-

19

Mar

-19

Apr-

19

May

-19

Jun-

19

Jul-1

9

Aug-

19

Sep-

19

Oct

-19

Nov

-19

Dec

-19

Jan-

20

Feb-

20

Mar

-20

Apr-

20

F nding D ration (First Dra do n to Final Re a ment)

Developer's Equity

Loan 1

Loan 2

Loan 3

Loan 4

Main Inputs for Marrickville Myrtle Street Marrickville - 5% Affordable Housing


Estate Master icensed to: illPDA

Cash Flow Title Myrtle Street Marrickville Description of Option/Stage 5% Affordable ousing Input S eet astDate of First Period: an-2017 as ption Stage Cash Flow Rest Period: MonthlyPro ect Si e (a) 97.00 UnitsPro ect Si e (b) 8,027.00 GFASite Area 2,942.00 S M Floor Space Ratio 2.73 :1 E uated Gross Floor Area 8,031.66 S M

Type MiscellaneousStatus Under Review

Using Margin Scheme

NGoods and Services Tax Rate 10.00% 12.50% 20.00% 0.00% Developer Credits Reclaimed in the Same Month iability Paid in the Same Month iability on Sales All Paid by Developer

Value at 1-7-2000 or Ac uisition Price 24,084,7590.0%

Start Span %Owner All Pro ect Costs To be entered Exclusive of GST - 0 - - Rental Income easing Costs To be entered Inclusive of GST

Sales Revenue To be entered Inclusive of GSTOther Income To be entered Inclusive of GST

Costs to be entered Exclusive of GST -

and Purchase Price 24,084,759GST Component on Purchase Price -

% of and Purchase Price AND/OR Month Month Cash Flow Add GST on and Price N Total Current Total Current Total EscalatedCode Stage % paid Amount ump Amount Start Span Period Reclaim All After Final and Settlement Costs (exc GST) Costs (inc GST) Cost1002 - Deposit In Trust Account ¹ 10.00% 2,408,476 - 0 1 an-17 - an-17 No input credit is available to the developer for 2,408,476 2,408,476 2,408,4761003 - Payment 1 0.00% - - 0 - - land purchase because the margin scheme is selected - - - 1004 - Payment 2 0.00% - - 0 - - - - - 1005 - Payment 3 0.00% - - 0 - - - - - 1006 - Payment 4 0.00% - - 0 - - - - - 1007 - Settlement (Balance) 90.00% 21,676,283 12 1 an-18 - an-18 21,676,283 21,676,283 21,676,2831008 - Stamp Duty ¹ NS 1,626,423 12 1 an-18 - an-18 (Stamp Duty calculated on and Value of 24,084,759) Stamp Duty 1,626,423 1,626,423 1,626,423

Interest on Deposit in Trust Account 0.00% Interest from deposit shared between parties T TA 25,711,182 25,711,182 25,711,182Profit Share to and Owner 0.00% Paid progressively as pro ect makes a profit.

t er Ac uisition Costs % of and Price inc Tax AND/OR Month Month Cash Flow Total Current Total Current Total EscalatedCode Stage (to be entered Exclusive of GST) % paid Amount ump Amount Start Span Period Add GST Remarks Costs (exc GST) Costs (inc GST) Cost1011 - Ac uisition Costs 0.00% - 10,000 0 1 an-17 - an-17 10,000 11,000 11,0001012 - . 0.00% - - 0 - - - - - 1013 - 248296.4845 0.00% - - 0 - - - - - 1014 - 3000.468295 0.00% - - 0 - - - - - 1015 - . 0.00% - - 0 - - - - -

Manual Input (refer to Cash Flow) - - - ¹ (No GST credit available for Stamp Duty) ² Pro-rata with and Payments ( ) T TA 10,000 11,000 11,000Monthly Compounded Escalation - based on Cashflow Period ears commencing

an-17 an-18 an-19 an-20 an-21 an-22 an-23 an-24 an-25 an-26Professional Fees

Code Construction Costs (Uncategorised)SUB Subdivision CostsSTG Stage CostsBUI Built FormOT1 OtherOT2 Other

None Statutory FeesEstateMa or orksMiscellaneous Costs 2Miscellaneous Costs 3

and olding CostsSelling and easing CostsFinance Costs

- And / Or 0.00% of Construction, Professional (exc Development Management), Statutory Fees, EstateMa or orks, Miscellaneous Costs 2, Miscellaneous Costs 3 and Pre-Sale Commissions T TA -

Costs to be entered Exclusive of GST

Code Stage Description % ofConstruct. ¹

AND / ORNo. Units

BaseRate / Unit

Escalate(E,R,N) S-Curve Month

Start²Month

SpanCash Flow

Period% Paid by

Owner Add GST Remarks Total Current Costs (exc GST)

Total Current Costs (inc GST)

Total EscalatedCost

3001 - Masterplanning 0.50% - - - - 0 12 an-17 - Dec-17 - 178,238 196,061 196,0613002 - Pre Const Design 2.50% - - - - 0 15 an-17 - Mar-18 - 891,188 980,306 980,3063003 - Design during Const 2.50% - - - - c - Sep-18 - Feb-20 - 891,188 980,306 980,3063004 - . 0.00% - - - - 0 - - - - - - 3005 - . 0.00% - - - - 0 - - - - - - 3006 - . 0.00% - - - - 0 - - - - - - 3007 - . 0.00% - - - - 0 - - - - - - 3008 - Development Management 0.00% 12 15,000 - - 0 12 an-17 - Dec-17 - 180,000 198,000 198,0003009 - Pro ect Managment 0.00% 18 10,000 - - 12 18 an-18 - un-19 - 180,000 198,000 198,000



3010 - . 0.00% - - - - 0 - - - - - - 3011 - . 0.00% - - - - 0 - - - - - - 3012 - . 0.00% - - - - 0 - - - - - - 3013 - . 0.00% - - - - 0 - - - - - - 3014 - . 0.00% - - - - 0 - - - - - - 3015 - . 0.00% - - - - 0 - - - - - -

¹ % Based on Net Costs ² Pro-rata with Construction ( C )3099 - Development Management 0.00% % of Pro ect Costs (exc and, Finance Tax) - p2 - an-17 - Feb-20 - - - -

² Dev Mgmt Fee: Pro-rata with Construction ( C ), Settlements ( S ), Pro ect Costs inc and ( P1 ) or exc and ( P2 ) Manual Input (refer to Cash Flow) - - - T TA 2,320,613 2,552,674 2,552,674


Code Stage Description Cost Type Units BaseRate / Units

Escalate(E,R,N)1 S-Curve Month

StartMonth

SpanCash Flow

Period% Paid by



Total EscalatedCost

4001 - Construction Cost - 97 350,000 E S 20 18 Sep-18 - Feb-20 - 33,950,000 37,345,000 37,345,0004002 - Basement - - - - - 0 - - - - - - 4003 - Balconines - - - 0 - - - - - - 4004 - . - - - - - 0 - - - - - - 4005 - Cost per GFA - - - - - 0 - - - - - - 4006 - 4229.47552 - - - - - 0 - - - - - - 4007 - . - - - - - 0 - - - - - - 4008 - . - - - - - 0 - - - - - - 4009 - . - - - - - 0 - - - - - - 4010 - . - - - - - 0 - - - - - - 4011 - . - - - - - 0 - - - - - - 4012 - . - - - - - 0 - - - - - - 4013 - . - - - - - 0 - - - - - - 4014 - . - - - - - 0 - - - - - - 4015 - . - - - - - 0 - - - - - - 4016 - . - - - - - 0 - - - - - - 4017 - . - - - - - 0 - - - - - - 4018 - . - - - - - 0 - - - - - - 4019 - . - - - - - 0 - - - - - - 4025 - . - - - - - 0 - - - - - -

¹ Escalation ( N no escalation, E escalation to start period, R escalation to start period and through span) Manual Input (refer to Cash Flow) - - -

4099 Construction Contingency - And / Or 5.00% of Construction Costs (inc GST) Construction Contingency 1,697,500 1,867,250 1,867,250T TA 35,647,500 39,212,250 39,212,250


Code Stage Description Units BaseRate / Units

Escalate(E,R,N) S-Curve Month

StartMonth

SpanCash Flow

Period% Paid by



Total EscalatedCost

5001 - DA/CC 1 178,238 - - 19 1 Aug-18 - Aug-18 - 178,238 196,061 196,0615002 - Section 94 97 20,000 - - 19 1 Aug-18 - Aug-18 - 1,940,000 2,134,000 2,134,0005003 - . - - - - 0 - - - - - - 5004 - SIC - - - - 0 - - - - - - 5005 - . - - - - 0 - - - - - - 5006 - . - - - - 0 - - - - - - 5007 - . - - - - 0 - - - - - - 5008 - . - - - - 0 - - - - - - 5009 - . - - - - 0 - - - - - - 5010 - . - - - - 0 - - - - - - 5011 - . - - - - 0 - - - - - - 5012 - . - - - - 0 - - - - - - 5013 - . - - - - 0 - - - - - - 5014 - . - - - - 0 - - - - - - 5015 - . - - - - 0 - - - - - -

Manual Input (refer to Cash Flow) - - - T TA 2,118,238 2,330,061 2,330,061


Code Stage Description %of Construction¹

AND / ORNo. Units Base Rate / Unit Escalate

(E,R,N) S-Curve MonthStart²

MonthSpan

Cash Flow Period

% Paid byOwner Add GST Remarks Total Current Costs

(exc GST)Total Current Costs

(inc GST)Total Escalated

Cost6001 - Traffic 0.00% - - - - 0 - - - - - - 6002 - Stormwater 0.00% - - - - 0 - - - - - - 6003 - andscaping 0.00% - - - - 15 3 Apr-18 - un-18 - - - - 6004 - . 0.00% - - - - 0 - - - - - - 6005 - . 0.00% - - - - 0 - - - - - - 6006 - . 0.00% - - - - 0 - - - - - - 6007 - . 0.00% - - - - 0 - - - - - - 6008 - . 0.00% - - - - 0 - - - - - - 6009 - . 0.00% - - - - 0 - - - - - - 6010 - . 0.00% - - - - 0 - - - - - -

Manual Input (refer to Cash Flow) - - - ¹ Based on net costs. ² Pro-rata with Construction ( C ) or Settlements ( S ) T TA - - -





MonthSpan

Cash Flow Period




Cost6001 - . 0.00% - - - - 0 - - - - - - 6002 - . 0.00% - - - - 0 - - - - - - 6003 - . 0.00% - - - - 0 - - - - - - 6004 - . 0.00% - - - - 0 - - - - - -



6005 - . 0.00% - - - - 0 - - - - - - 6006 - . 0.00% - - - - 0 - - - - - - 6007 - . 0.00% - - - - 0 - - - - - - 6008 - . 0.00% - - - - 0 - - - - - - 6009 - . 0.00% - - - - 0 - - - - - - 6010 - . 0.00% - - - - 0 - - - - - -






MonthSpan

Cash Flow Period




Cost6001 - . 0.00% - - - - 0 - - - - - - 6002 - . 0.00% - - - - 0 - - - - - - 6003 - . 0.00% - - - - 0 - - - - - - 6004 - . 0.00% - - - - 0 - - - - - - 6005 - . 0.00% - - - - 0 - - - - - - 6006 - . 0.00% - - - - 0 - - - - - - 6007 - . 0.00% - - - - 0 - - - - - - 6008 - . 0.00% - - - - 0 - - - - - - 6009 - . 0.00% - - - - 0 - - - - - - 6010 - . 0.00% - - - - 0 - - - - - -



Code Stage Description No. Units Base Rate/unit/term Term ¹ Escalate

(E,R,N)Month

StartMonth

Span²Cash Flow

Period% Paid by

Owner Add GST Remarks Total Annual Costs (exc GST)

Total Annual Costs (inc GST)

Total Escalated Cost

7001 - and Tax 1 106,820 - 3 Ds Apr-17 - Apr-20 - N 106,820 106,820 320,4607002 - ater 1 13,353 - 3 Ds Apr-17 - Apr-20 - N 53,410 53,410 160,2307003 - Rates 1 13,353 - 3 Ds Apr-17 - Apr-20 - N 53,410 53,410 160,2307004 - . - - M - 0 - - - - - - 7005 - . - - M - 0 - - - - - - 7006 - . - - M - 0 - - - - - - 7007 - . - - M - 0 - - - - - - 7008 - . - - M - 0 - - - - - - 7009 - . - - M - 0 - - - - - - 7010 - . - - M - 0 - - - - - - 7011 - . - - M - 0 - - - - - - 7012 - . - - M - 0 - - - - - -

Manual Input (refer to Cash Flow) - - - ¹ early, BA BiAnnualy, uarterly, BM BiMonthly, M Monthly ² Diminish proportionally with easing ( DR ) or Settlements ( DS ) T TA 213,640 213,640 640,920

Monthly Compounded Escalation - based on Cashflow Period ears commencing

Code Category an-17 an-18 an-19 an-20 an-21 an-22 an-23 an-24 an-25 an-26RS1 Residential - UnitsRS2 Residential - 2 Bedroom UnitsRS3 Residential - 3 Bedroom UnitsRDD Detached Dwelllings otsAF Affordable ousingCOM Commerical OfficeRET Retail ShopsIND Industrial UnitsST Storage arehousingOT Other

Rental escalation occurs up to lease start date. For rent review escalation during lease period refer to the Tenants sheet. S

Sales Commission (To be entered Exclusive of GST)

SalesComm¹

% of Comm.Pre-sales²

Deposits (% of Price)³ ¹ % of Gross Purchase Price




Cost8001 RS1 Residential - Units 2.25% 50.00% 0.00% ² Percentage of Sales Commission paid at exchange date for pre-sales - 1,940,537 2,134,591 2,134,5918002 RS2 Residential - 2 Bedroom Units 2.00% 0.00% 0.00% ³ Percentage of price deposited on exchange (for pre-sales) - - - - 8003 RS3 Residential - 3 Bedroom Units 2.00% 0.00% 0.00% - - - - 8004 RDD Detached Dwelllings ots 0.00% 0.00% 0.00% - - - - 8005 AF Affordable ousing 0.00% 0.00% 0.00% - - - - 8006 COM Commerical Office 0.00% 0.00% 0.00% - - - - 8007 RET Retail Shops 0.00% 0.00% 0.00% - - - - 8008 IND Industrial Units 0.00% 0.00% 0.00% - - - - 8009 ST Storage arehousing 0.00% 0.00% 0.00% - - - - 8010 OT Other 0.00% 0.00% 0.00% - - - -

T TA 1,940,537 2,134,591 2,134,591Pre-sale Comm are reported as a Pro ect Cost

Interest Rate on Deposits Invested in Trust Account 0.00%% of Interest retained by Developer upon Settlement 0.00%

t er Selling Costs % of AND / OR Base Rate / Escalate Month Month Cash Flow % Paid by Total Current Total Current TotalCode Stage To be entered Exclusive of GST Gross Sales No. Units Unit (E,R,N) Start Span Period Owner Add GST Remarks Costs (exc GST) Costs (inc GST) Escalated Cost8101 - Marketing 0.60% - - - 12 6 an-18 - un-18 - 517,477 569,224 569,2248102 - egals 0.30% - - - s - Mar-20 - Apr-20 - 258,738 284,612 284,6128103 - . 0.00% - - - 0 - - - - - - 8104 - . 0.00% - - - 0 - - - - - - 8105 - . 0.00% - - - 0 - - - - - - 8106 - . 0.00% - - - 0 - - - - - - 8107 - . 0.00% - - - 0 - - - - - -



8108 - . 0.00% - - - 0 - - - - - - 8109 - . 0.00% - - - 0 - - - - - - 8110 - . 0.00% - - - 0 - - - - - - 8111 - . 0.00% - - - 0 - - - - - -

Manual Input (refer to Cash Flow) - - - Pro-rata with Settlements ( S ) or Exchanges ( E ) T TA 776,215 853,836 853,836

t er easing Costs % of AND / OR Base Rate / Escalate Month Month Cash Flow % Paid by Total Current Total Current TotalCode Stage To be entered Inclusive of GST Gross Rent No. Units Unit (E,R,N) Start Span Period Owner Add GST Remarks Costs (exc GST) Costs (inc GST) Escalated Cost8201 - . 0.00% - - - 0 - - - - - - 8202 - . 0.00% - - - 0 - - - - - - 8203 - . 0.00% - - - 0 - - - - - - 8204 - . 0.00% - - - 0 - - - - - - 8205 - . 0.00% - - - 0 - - - - - - 8206 - . 0.00% - - - 0 - - - - - - 8207 - . 0.00% - - - 0 - - - - - - 8208 - . 0.00% - - - 0 - - - - - - 8209 - . 0.00% - - - 0 - - - - - - 8210 - . 0.00% - - - 0 - - - - - - 8211 - . 0.00% - - - 0 - - - - - -

Manual Input (refer to Cash Flow) - - - Pro-rata with Rental Income ( R ) T TA - - -

Sales Revenue to be entered Inclusive of GST1 Current Sales Pre-Sale Exchange Settlements Sales Rate and Revenue Total Current Total Current Total Escalated

Code Stage Description No. Units Total Area Sale Calc Month Month Month Month Cash Flow Units / S M % Split to GST Use Collection Sales Revenue Sales Revenue Sales RevenueS M Price Method Start Span Start Span Period per Month Owner Included Code Profile (exc GST) (inc GST)

9001 - Affordable ousing % Per S M - - - - - - - - 9002 - 0.05 5 349 - Per S M 38 2 Mar-20 - Apr-20 174.59 - N AF - - - - 9003 - Per S M 38 2 Mar-20 - Apr-20 - - - - - - - 9004 - Market Unit Balcance 92 6,634 13,000 Per S M 12 5 38 2 Mar-20 - Apr-20 1,326.86 - RS1 - 80,595,070 86,246,102 86,246,1029005 - . - - Per S M 0 - 38 2 Mar-20 - Apr-20 - - - - - - - 9006 - Per S M 0 - 38 2 Mar-20 - Apr-20 - - RS1 - - - - 9007 - . - - - Per S M 0 - 0 - - - - - - - - - 9008 - . - - - Per S M 0 - 0 - - - - - - - - - 9009 - . - - - Per Unit 0 - 0 - - - - - - - - - 9010 - . - - - Per Unit 0 - 0 - - - - - - - - - 9011 - . - - - Per Unit 0 - 0 - - - - - - - - - 9012 - . - - - Per Unit 0 - 0 - - - - - - - - - 9013 - . - - - Per Unit 0 - 0 - - - - - - - - - 9014 - . - - - Per Unit 0 - 0 - - - - - - - - - 9015 - . - - - Per Unit 0 - 0 - - - - - - - - - 9016 - . - - - Per Unit 0 - 0 - - - - - - - - - 9017 - . - - - Per Unit 0 - 0 - - - - - - - - - 9018 - . - - - Per Unit 0 - 0 - - - - - - - - - 9019 - . - - - Per Unit 0 - 0 - - - - - - - - - 9020 - . - - - Per Unit 0 - 0 - - - - - - - - -

Capitalised Sales (refer to Tenants) - - - Manual Input (refer to Cash Flow) - - -

T TA 80,595,070 86,246,102 86,246,102

Other Income to be entered Inclusive of GST

Code Stage Description and Use Code Units BaseRate / Units

MonthStart

MonthSpan

Cash Flow Period

% Split toOwner GST Included Remarks Total Current

Income (exc GST)Total Current

Income (inc GST)Total Escalated

Income9101 - . - - - 0 - - - - - - 9102 - . - - - 0 - - - - - - 9103 - . - - - 0 - - - - - - 9104 - . - - - 0 - - - - - - 9105 - . - - - 0 - - - - - - 9106 - . - - - 0 - - - - - - 9107 - . - - - 0 - - - - - - 9108 - . - - - 0 - - - - - - 9109 - . - - - 0 - - - - - - 9110 - . - - - 0 - - - - - -

Manual Input (refer to Cash Flow) - - - T TA - - -

(Simple Mode)

General otes All ine Fees are paid during period of debt, in arrearsAll Profit Share is Paid progressively as pro ect makes a profit.

E uity E uity otes E uity is paying outstanding debt Opening Balances E uityDeveloper s E uity Contribution Fixed Amount Percentage E uity is repaid at pro ect end. TotalsProgressively in ected when re uired. - 35.00% % of Net Cash Flow to be Funded Developer s In ections 23,777,669

10001 Interest Charged on E uity 0.00% per annum Nominal - Capitalised (Compounded) - Interest Charged - 10002 Interest received on Surplus Cash 0.00% per annum received in arrears. - Interest Received -

% of Available Funds to Repay E uity Before Debt 0.00%

and Owner s E uity Contribution - -

Senior oan Description oan Debt Senior oan otes Senior oan is being used as an overdraft facility. Opening Balances Senior oan

No imit (use as overdraft facility) - Totals



Drawdown 44,158,52810007 Interest Rate 4.50% per annum Nominal - Capitalised (Compounded) - Interest Charged 2,022,821

10008 Fees Amount Percentage Month PaidApplication Fee 250,000 0.00% 19 Aug-2018 - Application Fees 250,000

Annual ine Fee 750,000 0.00% Monthly Paid in Arrears - ine Fees 1,687,500

Maintain everage on Senior oan 65.00% % of Future Positive Net Cash Flows

0.00% -

inancing Costs No. of Base Rate / Escalate Month Month Cash Flow % Paid by Total Current Total Current TotalCode Stage (to be entered Exclusive of GST) Units Unit (E,R,N) Start Span Period Owner Add GST Remarks Costs (exc GST) Costs (inc GST) Escalated Cost10009 - . - - - 0 - - - - - - 10010 - . - - - 0 - - - - - - 10011 - . - - - 0 - - - - - - 10012 - . - - - 0 - - - - - - 10013 - . - - - 0 - - - - - - 10014 - . - - - 0 - - - - - - 10015 - . - - - 0 - - - - - - 10016 - . - - - 0 - - - - - - 10017 - . - - - 0 - - - - - - 10018 - . - - - 0 - - - - - -

Manual Input (refer to Cash Flow) - - - T TA - - -

Pro ect Discount Rate (target IRR) 20.00% per annum Nominal, on cash flow that includes financing costs but excludes interest and corp tax. 0.00%

Nominate an estimate of IRR 20.00% per ann.Developer s Target Dev. Margin 20.00% on total development costs (inc selling costs).Developer s Cost of E uity (for ACC) 0.00%

Cash Flow Table for Marrickville Myrtle Street Marrickville - 5% Affordable Housing


T TA

18.43 18.43 18.43 36.86 19.0 38.0 1 326.86 1 326.86 1 326.86 2 653.73 19.0 38.0 17 249 220 17 249 220 17 249 220 34 498 441 20.0 40.0

94 871 94 871 94 871 94 871

2 419 476 23 302 706 98 192 98 192 98 192 98 192 98 192 98 192 98 192 98 192 98 192 98 192 98 192 98 192 76 354 76 354 133 525 26 705 26 705 26 705 213 459 213 459 9 927 8 927 8 927 8 927 8 927 8 927 8 927 8 927 8 927 8 927 8 927 8 927 34 971 34 971 2 507 742 89 266 89 266 222 791 89 266 89 266 115 971 89 266 89 266 115 971 89 266 89 266 23 584 253 254 842 2 507 742 89 266 89 266 222 791 89 266 89 266 115 971 89 266 89 266 115 971 89 266 89 266 23 679 124 349 712 2 507 742 2 597 007 2 686 273 2 909 063 2 998 329 3 087 595 3 203 565 3 292 831 3 382 097 3 498 067 3 587 333 3 676 598 27 355 722 27 705 434 2 507 742 89 266 89 266 222 791 89 266 89 266 115 971 89 266 89 266 115 971 89 266 89 266 23 679 124 349 712 2 507 742 2 597 007 2 686 273 2 909 063 2 998 329 3 087 595 3 203 565 3 292 831 3 382 097 3 498 067 3 587 333 3 676 598 27 355 722 27 705 434

0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 507 742 89 266 89 266 222 791 89 266 89 266 115 971 89 266 89 266 115 971 89 266 89 266 20 101 071 2 507 742 2 597 007 2 686 273 2 909 063 2 998 329 3 087 595 3 203 565 3 292 831 3 382 097 3 498 067 3 587 333 3 676 598 23 777 669 23 777 669 2 507 742 89 266 89 266 222 791 89 266 89 266 115 971 89 266 89 266 115 971 89 266 89 266 20 101 071

3 578 053 349 7124.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50

13 418 62 500 3 578 053 4 003 683

5.32 5.84 3 578 053 349 712 1.25 3 578 053 4 003 683

14.86 16.31 664.54 605.37 1.25 2 507 742 89 266 89 266 222 791 89 266 89 266 115 971 89 266 89 266 115 971 89 266 89 266 23 679 124 425 630 2 507 742 2 597 007 2 686 273 2 909 063 2 998 329 3 087 595 3 203 565 3 292 831 3 382 097 3 498 067 3 587 333 3 676 598 27 355 722 27 781 352

2 507 742 89 266 89 266 222 791 89 266 89 266 115 971 89 266 89 266 115 971 89 266 89 266 23 679 124 412 212

2 507 742 87 802 86 363 212 012 83 555 82 185 105 021 79 512 78 209 99 940 75 666 74 425 19 418 810 332 506 7 687 403 5 265 989 5 263 002 5 259 965 5 121 128 5 115 726 5 110 235 5 077 502 5 071 374 5 065 143 5 031 659 5 024 767 5 017 759 18 972 387

20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00

5

an 17 Fe 17 Mar 17 r 17 Ma 17 n 17 l 17 g 17 e 17 ct 17 ov 17 Dec 17 an 18 Fe 18

Sale Su arynits old 96.99

C m lative nits old nits old

M old 6 983.49 C m lative M old M old

D old 86 246 102 C m lative D old D oldHandover Su ary

nits anded ver 96.99 C m lative nits anded ver nits anded ver

M anded ver 6 983.49 C m lative M anded ver M anded ver

D anded ver 86 246 102 C m lative D anded ver D anded ver

ro ect Cash Flow evenue ross ales Reven e 86 246 102 elling Costs 1 921 132 ross Rental ncome easing Costs t er ncome nterest Received Pa ments ia ilities 5 651 031 T TA T 78 673 938 Costs and and c isition 25 722 182 Professional Fees 2 552 674 Constr ction Costs inc. Contingenc 39 212 250 tat tor Fees 2 330 061 EstateMa or orks Miscellaneo s Costs 2 Miscellaneo s Costs 3 Pro ect Contingenc Reserve and olding Costs 640 920 Pre ale Commissions 1 067 296 Financing Costs e c Fees Ref nds n t Credits 4 281 310 T TA C STS 67 244 072

et Cas Flo efore nterest Cor orate a 11 429 866 C m lative Cas FloCor orate a

et Cas Flo efore nterest after Cor orate a 11 429 866 C m lative Cas FloFinancing evelo er s uity Man al d stments n ect / Re a n ections 23 777 669 nterest C arged E it Re a ment 31 247 214 ess Profit are E it alance 7 469 544 E it Cas Flo 7 469 544 ro ect Cash Account r l s Cas n ection 17 517 380 Cas Reserve Dra do n 17 517 380 nterest on r l s Cas r l s Cas alance Senior oan - oan De t Dra do n 44 158 528 oan nterest Rate /ann nterest C arged 2 022 821 lication and ine Fees 1 937 500 nterest Paid E it oan Re a ment 48 118 850 nterest and Fees 3 960 321 Princi al 44 158 528 oan alance of Pro ect Costs net of nterest/Fees and . enior oan Cas Flo 3 960 321 nterest Coverage Ratio 19.89 De t ervice Ratio 1.65 Pro ect verdraft of and P rc ase Price. otal E it to De t Ratio 53.85 otal De t nterest Coverage Ratio 19.89 otal De t ervice Ratio 1.65

et Cas Flo after nterest Cor orate a 7 469 544 C m lative Cas FloC eck alance

ro ect Cas Flo t at incl des financing costs t e cl des interest and cor ta . Static iscount ate er ann no inal 20.00 PV for eac Mont 7 687 403 PV of F t re Cas Flo s ariable iscount ate er ann no inal 20.00 PV sing eig ted avg disco nt rate 7 687 403



T TA 5

an 17 Fe 17 Mar 17 r 17 Ma 17 n 17 l 17 g 17 e 17 ct 17 ov 17 Dec 17 an 18 Fe 18

ncl des alf interest from de osit on land ac isition l s nterest received from re sale de osits

C m lative Cas Flo fter nterest is reven e less costs incl ding interest on overdraft




T TA

18.43 18.43 18.43 55.29 73.71 92.14 92.14 92.14 92.14 92.14 92.14 92.14 92.14 92.14 92.14 92.14 92.14

57.0 76.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 1 326.86 1 326.86 1 326.86 3 980.59 5 307.45 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32

57.0 76.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 17 249 220 17 249 220 17 249 220 51 747 661 68 996 881 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102

60.0 80.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

94 871 94 871 94 871 94 871 94 871 94 871 94 871 94 871

76 354 11 000 11 000 11 000 11 000 11 000 35 508 40 899 39 919 47 761 41 635 53 888 57 565 69 818 980 306 1 195 974 1 156 761 1 470 459 1 225 383 1 715 536 1 862 582 2 352 735 2 330 061 133 525 26 705 26 705 26 705 133 525 213 459 213 459 213 459 34 971 29 030 29 030 9 625 1 000 212 824 92 347 112 443 108 789 138 020 115 183 160 857 174 559 220 232 254 842 328 954 195 429 1 375 36 705 2 128 238 923 467 1 151 135 1 087 891 1 380 201 1 178 539 1 608 568 1 745 588 2 335 846 349 712 423 825 290 300 96 246 36 705 2 128 238 923 467 1 151 135 1 087 891 1 380 201 1 178 539 1 608 568 1 745 588 2 335 846 28 055 147 28 478 971 28 769 271 28 865 517 28 902 222 31 030 460 31 953 927 33 105 062 34 192 953 35 573 154 36 751 693 38 360 261 40 105 848 42 441 695 349 712 423 825 290 300 96 246 36 705 2 128 238 923 467 1 151 135 1 087 891 1 380 201 1 178 539 1 608 568 1 745 588 2 335 846 28 055 147 28 478 971 28 769 271 28 865 517 28 902 222 31 030 460 31 953 927 33 105 062 34 192 953 35 573 154 36 751 693 38 360 261 40 105 848 42 441 695

0 0 0 0 0 0 0 0 0 0 0 0 0 0 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669

349 712 423 825 290 300 96 246 36 705 2 128 238 923 467 1 151 135 1 087 891 1 380 201 1 178 539 1 608 568 1 745 588 2 335 8464.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50

15 014 16 616 18 502 19 894 20 564 21 013 30 245 34 056 38 735 43 194 48 766 53 603 60 070 67 076 62 500 62 500 62 500 62 500 62 500 312 500 62 500 62 500 62 500 62 500 62 500 62 500 62 500 62 500 4 430 909 4 933 850 5 305 152 5 483 792 5 603 561 8 065 312 9 081 524 10 329 215 11 518 341 13 004 235 14 294 040 16 018 710 17 886 868 20 352 290

6.36 6.99 7.42 7.57 7.62 10.79 12.16 13.87 15.49 17.54 19.29 21.69 24.28 27.76 349 712 423 825 290 300 96 246 36 705 2 128 238 923 467 1 151 135 1 087 891 1 380 201 1 178 539 1 608 568 1 745 588 2 335 846 1.22 1.20 1.17 1.15 4 430 909 4 933 850 5 305 152 5 483 792 5 603 561 8 065 312 9 081 524 10 329 215 11 518 341 13 004 235 14 294 040 16 018 710 17 886 868 20 352 290

17.76 19.52 20.73 21.12 21.28 30.11 33.95 38.73 43.24 48.97 53.87 60.55 67.79 77.49 555.88 505.77 476.35 467.34 464.00 327.84 290.81 254.92 228.30 201.58 183.27 163.06 145.62 127.40

1.22 1.20 1.17 1.15 427 226 502 941 371 302 178 640 119 769 2 461 751 1 016 212 1 247 691 1 189 126 1 485 895 1 289 805 1 724 670 1 868 158 2 465 422 28 208 578 28 711 519 29 082 821 29 261 461 29 381 230 31 842 981 32 859 193 34 106 884 35 296 010 36 781 904 38 071 709 39 796 379 41 664 537 44 129 959

412 212 486 325 352 800 158 746 99 205 2 440 738 985 967 1 213 635 1 150 391 1 442 701 1 241 039 1 671 068 1 808 088 2 398 346

327 055 379 531 270 814 119 858 73 675 1 782 904 708 420 857 705 799 681 986 436 834 640 1 105 425 1 176 458 1 534 935 19 707 676 20 455 220 21 290 570 22 004 093 22 532 220 23 008 615 25 873 508 27 307 134 28 996 115 30 648 948 32 626 509 34 432 007 36 704 793 39 154 762

20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00

5 5

Mar 18 r 18 Ma 18 n 18 l 18 g 18 e 18 ct 18 ov 18 Dec 18 an 19 Fe 19 Mar 19 r 19















T TA 5 5

Mar 18 r 18 Ma 18 n 18 l 18 g 18 e 18 ct 18 ov 18 Dec 18 an 19 Fe 19 Mar 19 r 19






T TA

2.42 2.42 92.14 92.14 92.14 92.14 92.14 92.14 92.14 92.14 92.14 92.14 94.57 96.99

95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 97.5 100.0 174.59 174.59 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 634.32 6 808.90 6 983.49

95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 97.5 100.0 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102 86 246 102

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

48.50 48.50 48.50 96.99 50.0 100.0 3 491.75 3 491.75 3 491.75 6 983.49 50.0 100.0 43 123 051 43 123 051 43 123 051 86 246 102 50.0 100.0

43 123 051 43 123 051 675 954 675 954 2 825 516 2 825 516 39 621 581 39 621 581

69 818 72 269 85 777 73 523 98 031 78 425 73 523 49 015 58 818 44 114 2 352 735 2 450 766 3 431 072 2 940 919 3 921 225 3 136 980 2 940 919 1 960 613 2 352 735 1 764 551 26 705 26 705 26 705 220 232 229 367 319 714 274 040 365 387 292 310 274 040 182 693 219 232 164 424 61 450 61 450 2 202 321 2 293 668 3 223 840 2 740 402 3 653 869 2 949 800 2 740 402 1 826 934 2 219 026 1 644 241 61 450 61 450 2 202 321 2 293 668 3 223 840 2 740 402 3 653 869 2 949 800 2 740 402 1 826 934 2 219 026 1 644 241 39 683 032 39 683 032 44 644 016 46 937 684 50 161 524 52 901 926 56 555 794 59 505 594 62 245 996 64 072 930 66 291 957 67 936 197 28 253 166 11 429 866 2 202 321 2 293 668 3 223 840 2 740 402 3 653 869 2 949 800 2 740 402 1 826 934 2 219 026 1 644 241 39 683 032 39 683 032 44 644 016 46 937 684 50 161 524 52 901 926 56 555 794 59 505 594 62 245 996 64 072 930 66 291 957 67 936 197 28 253 166 11 429 866

0 0 0 0 0 0 0 0 0 0 0 0 31 247 214 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 23 777 669 7 469 544 31 247 214

17 517 380 17 517 380 17 517 380

2 202 321 2 293 668 3 223 840 2 740 402 3 653 869 2 949 800 2 740 402 1 826 934 2 219 026 1 644 241 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50

76 321 85 100 94 255 106 932 117 844 132 223 144 015 155 065 162 732 171 898 178 943 96 727 62 500 62 500 62 500 62 500 62 500 62 500 62 500 62 500 62 500 62 500 62 500 62 500 22 165 652 25 953 198 3 801 094 159 227 18 364 558 25 793 971 22 693 433 25 134 701 28 515 296 31 425 130 35 259 343 38 403 866 41 350 782 43 395 281 45 839 540 47 718 179 25 793 971

31.03 34.44 39.24 43.31 48.75 53.13 57.21 59.92 63.22 65.67 65.67 2 202 321 2 293 668 3 223 840 2 740 402 3 653 869 2 949 800 2 740 402 1 826 934 2 219 026 1 644 241 22 165 652 25 953 198 164.10 248.84 1.79 1.53 22 693 433 25 134 701 28 515 296 31 425 130 35 259 343 38 403 866 41 350 782 43 395 281 45 839 540 47 718 179 25 793 971

86.64 96.16 109.55 120.92 136.09 148.34 159.72 167.31 176.52 183.35 183.35 113.95 102.67 90.12 81.64 72.54 66.55 61.81 59.01 55.93 53.85 53.85

164.10 248.84 1.79 1.53 2 341 142 2 441 268 3 380 595 2 909 834 3 834 213 3 144 523 2 946 916 2 044 500 2 444 259 1 878 639 39 441 589 39 523 804 46 471 102 48 912 370 52 292 965 55 202 799 59 037 012 62 181 535 65 128 451 67 172 951 69 617 209 71 495 848 32 054 260 7 469 544

2 264 821 2 356 168 3 286 340 2 802 902 3 716 369 3 012 300 2 802 902 1 889 434 2 281 526 1 706 741 39 620 532 39 620 532

1 425 718 1 458 906 2 001 497 1 679 081 2 189 798 1 745 842 1 597 850 1 059 452 1 258 335 925 891 21 141 417 20 794 836 42 245 660 45 252 323 48 401 965 52 549 777 56 275 224 60 991 452 65 070 481 69 004 606 72 075 608 75 596 420 78 591 547 39 620 532

20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00

5

Ma 19 n 19 l 19 g 19 e 19 ct 19 ov 19 Dec 19 an 20 Fe 20 Mar 20 r 20















T TA 5

Ma 19 n 19 l 19 g 19 e 19 ct 19 ov 19 Dec 19 an 20 Fe 20 Mar 20 r 20







80

60

0

20

0

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60

D M

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Pro ect verdraft et Cas Flo C m lative et Cas Flo

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and ner s E it Develo er s E it oan 1 oan 2 oan 3 enior oan




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et Cas Flo C m lative et Cas Flo

Assumptions Report for Marrickville as at Aug-2017Myrtle Street Marrickville - 5% Affordable Housing


enerala ation Format oods ervices a

C rrenc Format stralian Dollar Dtam D t ocation Calc lated on and inc.

Cas Flo Rest Period Mont lCas Flo D ration an 2017 to e 2020 Mont sFinancial ear End Mont neCost and ales Escalation Rates Mont l Com o nded Escalation ased on Cas flo Period earsDevelo ment Management Percentage asis of Pro ect Costs e c and Finance aEstateMa or orks Percentage asis of Constr ction Costs e c aMiscellaneo s Costs 2 Percentage asis of Constr ction Costs e c aMiscellaneo s Costs 3 Percentage asis of Constr ction Costs e c a

ales Reven e Collection Profile Disa ledtage Cas Flo lo al Cost llocation Met od s er lo al Costs Cas Flotage Cas Flo RR/ PV Calc lation Calc late from tart of Pro ect

a ationominated a e oods and ervices a ingle Rate 10.00

Pro ect Costs Entered E cl sive of Rent and easing Costs Entered ncl sive of

ales Reven e Entered ncl sive of t er ncome Entered ncl sive of a ia ilit Calc lation Met od Margin c eme it Val ation

Develo er s a ia ilities Paid in t e ame MontDevelo er s a n t Credits Reclaimed in t e ame MontDevelo er s a n t Credits on and P rc ase Reclaim ll fter Final and ettlement

oint entureDevelo ment e ingle Entit

a ia ilit ortionment ll Paid Develo erand ner s a ia ilities /and ner s a n t Credits /

Hurdle RatesPro ect Disco nt Rate target RR 20.00

and ner s Disco nt Rate arget RR /nn al to Rest Period Conversion Met od Converted to Mont l Rate sing ominal met od.

RR and PV Calc lation Calc lated on cas flo t at incl des financing costs t e cl des interest and cor ta .Develo er s arget Dev. Margin 20.00Develo ment Margin Calc lation Calc lated on total develo ment costs inc selling costs .

e Performance ndicators Calc lated on et Develo ment Profit fter Profit are

inancial ReportingFinancial Re orting and Cor orate a Ena ledReven e Recognition e Com letedReven e Recognition old Met od ased on of Reven e old

and ncl ded in P Calc lation esorks in Progress E ensed or erating Cost

and and c istion P Pro ect Contingenc PProfessional Fees P and olding Costs P

Constr ction Costs P elling Costs Ptat tor Fees P easing Costs P

EstateMa or orks P Finance Costs e c nterest Fees PMiscellaneo s Costs 2 P lication and ine Fees PMiscellaneo s Costs 3 P nterest C arges P

a enefit Roll for ard loss ntil rofit is realiseda Pa ment Paid Mont l

Pro ect E it reatment are olders E it Pro ect Ca ital

eneral inancing nn al nterest Rates Converted to Mont l Rate sing ominal conversion met od.otal De t to oan Ratio Calc lation mmar Re ort ased on of and P rc ase Price.

R nning De t to oan Ratio Calc lation Cas Flo Re ort ased on C m lative oan Dra do nstatic De t to oan Ratio Calc lation mmar Re ort ncl des Ca italised nterest and Fees

Profit are Pa ments Paid rogressivel as ro ect makes a rofit.ard Costs

and Pa ments ncl ded tat tor Fees ncl dedand c isitions Costs ncl ded and olding Costs ncl ded

Pro ect Contingenc ncl ded EstateMa or orks ncl dedProfessional Fees ncl ded Miscellaneo s Costs 2 ncl ded

Constr ction Costs ncl ded Miscellaneo s Costs 3 ncl deda on ard Costs E cl ded

uityoan Facilit imit ased on 3 of et Cas Flo to e F nded

E it Dra do n Met od Progressivel in ected en re ired.nterest C arged on E it 0.00 Ca italised Com o ndednterest Received on l s Cas 0.00

E it Ratio Calc lation mmar Re ort ased on of and P rc ase Price.E it Re a ment Met od 0 of vaila le F nds to Re a E it efore De t t en alance re aid at ro ect end.E it Pa s tstanding De ts at Pro ect End es

oan 1 ebtoan Facilit imit ased on Fi ed mo nt of 0oan Dra do n Met od Dra n do n in total at loan commencement.

nterest C arged on oan 0.00 Ca italised Com o ndedine Fee Pa ment Mont l Paid in rrearsoan Ratio Calc lation mmar Re ort ased on of and P rc ase Price.oan Commencement tomatic oan Mat rit tomatic

Refinancier at Man al oan Mat rit ot lica le as loan is a tomaticall re aid as f nds are availa le.

oan 2 ebtoan Facilit imit ased on Fi ed mo nt of 0oan Dra do n Met od Dra n do n in total at loan commencement.



oan ebtoan Facilit imit ased on Fi ed mo nt of 0oan Dra do n Met od Dra n do n in total at loan commencement.



Senior oan ebtoan Facilit imit o imit se as overdraft facilit

nterest C arged on oan . 0 Ca italised Com o ndedine Fee Pa ment Mont l Paid in rrearsoan Ratio Calc lation mmar Re ort ased on of Pro ect Costs net of nterest/Fees and .


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SYDNEY

Level 3, 234 George Street

Sydney NSW 2000

GPO Box 2748 Sydney NSW 2001

t: +61 2 9252 8777

f: +61 2 9252 6077

e: [email protected]

MELBOURNE

Suite 114, 838 Collins Street

Docklands VIC 3008

t: +61 3 9629 1842

f: +61 3 9629 6315

e: [email protected]

WWW.HILLPDA.COM

24th September 2017

Citystate Property

L32, 200 George St

Sydney NSW 2000

To whom it may concern

I specialise in site sales and acquisition with particular focus on the inner west region. I have sat with

many landowners over the past 18 months whose properties have been earmarked for rezoning

under the Sydenham to Bankstown strategy. Many of the properties earmarked are owner occupied

homes that have a great deal of sentimental attachment to the owners. Many of which have lived in

their houses for over 30 years. They are very reluctant to sell and in order to motivate these owners

to sell then a significant premium above their current property value needs to be offered. From my

day to day hands on experience with these people there typically needs to be a significant increase

in current value to entice them to sell. That usually is the tipping point for them to leave their family

home, cover stamp duty on the next purchase and pay commissions.

If a site has been earmarked for an 8-storey redevelopment with an FSR of say 3:1, a $4m price

expectation equates to $3000/m2 of GFA. If Citystate Property are looking to purchase in Dulwich

Hill, then in my experience the willingness for landowners to sell will usually be within the range of

$3000/m2 - $3,300/m2 of the new uplifted GFA.

We hope this assists in your future acquisitions.

Sincerely Yours

Nick Countouris - B.Econ, M.Bus

Principal & Director

M: 0414 947 760 P: (02) 9660 6005 F: (02) 9552 2205 A: 80 Harris St, Pyrmont NSW 2009 W: pyrmont-glebe.randw.com.au

31st August 2017

CBRE (RP) Pty Ltd

ABN 92 127 174 207

Level 29, 177 Pacific Hwy

North Sydney NSW 2060

T 61 2 8969 8500

F 61 2 8969 8599

www.cbre.com.au

Mark Maryska Citystate Property L30, 200 George St Sydney NSW 2000

Dear Mark Maryska,

RE: 2-16 Myrtle St, Marrickville To whom it may concern, CBRE sell over 3000 apartments in Sydney alone in 2016 and consider

ourselves market leaders in residential off the plan sales. We have considered the average revenue for

feasibility purposes for an 8 storey development at the above location. In our opinion, using $13,000/m2

for your sales revenue input is realistic.

If you require further information do not hesitate to contact me on 0418200236.

Yours faithfully,

David Milton Managing Director CBRE Residential Projects

Level 8, 20 Hunter StreetSydney NSW 2000PO Box R608Royal Exchange NSW 1225T 02 9299 1899F 02 9299 9525E [email protected]

30 August 2017Our File: 2204072210/CW-Apts-R1

Oliver McGeachieCityState PropertyLevel 32200 George StreetSYDNEY NSW 2000

Dear Oliver

Indicative Apartment Pricing – Sydney’s Inner West & Surrounding Suburbs

We have recently undertaken an analysis for several clients on completed and near completedresidential developments for projects up to a maximum of 8 storeys incorporating basementcarparks.

Construction price ranges per apartment have been from $310k to $370k per apartment.However, the projects that formed part of the analysis had Preliminaries from 14% - 16% withour most recent commencing projects having Preliminaries increase to 22% - 26% for the samestyle of projects.

Noting this increase, it would be prudent to allow an additional 8% - 12% for this increasingtrend.

We would therefore recommend a mid range price of the adjusted range of $310k to $370k toarrive at a price per apartment of say $335k to $415k. Also note that an additional allowance ofapproximately $5k to $7.5k per apartment would be required in order to satisfy fire servicesrequirements where buildings exceed the BCA height requirements (approximately 8 storeys)for fire sprinklers.

If you should wish to discuss this matter further, please contact Peter Hammond or CraigWilliams of this office.

Yours faithfully

Napier & Blakeley Pty LtdENCL

3-5 Carrington Road, Marrickville Page 230 August 2017File Ref: 2204072210/CW-Apts-R1

Report Parameters

This report is the opinion of Napier & Blakeley Pty Ltd ACN 006 386 278 atf Napier & Blakeley Unit TrustABN 87 601 474 307 (Napier & Blakeley) and is to be read together with and is subject to the term andconditions of our engagement. Our opinions in this report are based on the information referred to in thisreport that has been made available to us by or on behalf of the addressee (Information).

Napier & Blakeley has not obtained independent verification of the Information. As such, our opinion maybe different if the Information is incorrect or inaccurate in any way. This report was prepared solely for theaddressee and its use is limited to the purpose for which it was provided. No third party may rely on thisreport without first obtaining the prior written consent of Napier & Blakeley.

Napier & Blakeley does not warrant the accuracy or completeness of the Information, and to themaximum extent permitted by law, does not accept any responsibility or liability for any loss suffered byany person or entity as a result of or in connection with error, inaccuracy, misrepresentation,incompleteness or similar defect in the Information and/or this report or any default, negligence or lack ofcare in relation to the preparation or provision of the Information and/or this report.

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Documents

Subject: Feasibility Testing 2-16 Myrtle Street Marrickville · residential apartments to a maximum of 8 storeys on the site at 2 to 16 Myrtle Street, Marrickville (hereafter referred