Valuation Report - Shire of Augusta-Margaret River · Lot 10 on Deposited Plan 29263. Certificate of Title Volume 1786 Folio 579. Registered Proprietor / Owner Lot 271: Shire of Augusta-Margaret

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Valuation Report

property: Portion of Lots 271 & 10 Fisher Road, Kudardup, Western Australia 6290

prepared for: Elizabeth Lumsden on behalf of the Shire of Augusta – Margaret River. The valuation is in accordance with the instructions of the party for whom it was prepared.

instructed by: Elizabeth Lumsden

purpose: To establish current market value on a pro rata basis of each of the subject portions of the properties for land swap purposes.

title details: Lot 271 on Diagram 55669. Certificate of Title Volume 1534 Folio 796.

Lot 10 on Deposited Plan 29263. Certificate of Title Volume 1786 Folio 579.

owner: Lot 271: Shire of Augusta-Margaret River. Registered 6 June 1979.

Lot 10: Molloy Investments. Registered 2 April 2007.

file ref: 48429

National Property Valuers and Consultants

Bunbury Office: Southpoint Nominees Pty Ltd trading as LMW Hegney

ABN 30 096 877 191 ACN 096 877 191 Suite 4, 10 Victoria Street, Bunbury WA 6230 / PO Box 2493, Bunbury WA 6231 Australia T: 08 9792 5544 F: 08 9792 5540 lmwhegney.com.au National Offices: NSW, VIC, QLD, WA & SA

table of contents

EXECUTIVE SUMMARY .................................................................................................................................... 2

LIMITATIONS ..................................................................................................................................................... 2

LAND PARTICULARS ....................................................................................................................................... 2

ADDITIONAL & MARKET COMMENTS ............................................................................................................ 2

SALES EVIDENCE ............................................................................................................................................. 2

VALUATION APPROACHES ............................................................................................................................. 2

VALUATION RECONCILIATION ....................................................................................................................... 2

VALUATION ....................................................................................................................................................... 2

ANNEXURES ..................................................................................................................................................... 2

LMW Hegney Our File Reference: 48429 Page 1

Lot 271 Fisher Road, Kudardup, Western Australia 6290

1 IMPORTANT: All data provided in this summary is wholly reliant on and must be read in conjunction with the information provided in the attached report. It is a synopsis only designed to provide a brief overview and must not be acted on in isolation.

1.1 Instructions & property details

Interest being valued Portion of each property on a Fee Simple basis.

Basis of valuation Current Market Value ‘As Is’

Primary approach Direct Comparison

Relevant dates Valuation Date: 12 July 2012 Inspection Date: 12 July 2012

Special instructions None

Title searched Yes

Site identified by Physical Inspection

Local authority / Designation Shire of Augusta / Margaret River Local Planning Scheme No.1.

Lot 271: Tourism – Caravan Park.

Lot 10: General Agriculture (as to portion being valued)

Planning comment The permitted use for Lot 271 is limited to caravan park whilst general agriculture activities can be undertaken on the portion of Lot 10 which is being valued.

Areas Site Area:

Lot 271: 44.2295 hectares

Lot 10: 37.4201 hectares

Portion Being Valued:

Lot 271: 19,545.35 m²

Lot 10: 1,529.00 m²

Brief description Both portions subject to this valuation comprise vacant land and having medium to dense native vegetation.

1.2 Property being valued

Submission date 25 July, 2012

Address Portion of Lot 271 & Lot 10 Fisher Road, Kudardup, Western Australia 6290.

Title details Lot 271 on Diagram 55669. Certificate of Title Volume 1534 Folio 796.

Lot 10 on Deposited Plan 29263. Certificate of Title Volume 1786 Folio 579

Registered proprietor / owner Lot 271: Shire of Augusta-Margaret River. Registered 6 June 1979.

Lot 10: Molloy Investments (WA) Pty Ltd. Registered 2 April 2007

Encumbrances

Lot 271: Save and except the rights to Mines of Coal or other Minerals.

Lot 10: Easement Benefit. Registered 6 June, 1979 and;

Mortgage to Bank of Western Australia. Registered 2 April 2007.

executive summary



1.3 Valuation (GST Exclusive)

Market Value “as to portion of Lot 271” $27,363 Market Value “as to portion of Lot 10” $2,141

signature:

valuer Mr Peter Kreutzer

Certified Practicing Valuer

AAPI Licensed Valuer No.6327

legal entity Southpoint Nominees Pty Ltd trading as LMW Hegney

Office Suite 4 / 10 Victoria Street, Bunbury WA 6230

File Ref: 48429



2.0 Special instructions

We have valued only a portion of each of the two subject lots with the portions and areas being identified by the Shire of Augusta –Margaret River.

2.1 Assumptions, limitations and conditions

This valuation is subject to the qualifications and assumptions set out in this report and the whole of the report should be read before any reliance is placed upon this valuation.

The valuation is prepared based on the following pertinent assumptions, conditions and limitations:

1. Based on an unencumbered Fee Simple Title being obtained.

2. This valuation is prepared on the understanding that no encumbrances, easements, rights of way or encroachments exist by or on the subject property other than those set out by the Certificate of Title.

3. The site is not in any way affected by environmental contamination.

4. Town Planning information has been obtained verbally from representatives of the respective authorities and this valuation assumes this information is correct.

5. The property is not affected by historical or anthropological matters.

6. The site is not prone to flooding under normal climatic conditions.

7. Unless otherwise stated, all valuation figures and calculations within this report are exclusive of GST.

8. Based on our observations, the site is not contaminated and no remediation works are required.

If there is any variance/contradiction in any of the above assumptions then we reserve the right to review this valuation accordingly.

Verifiable assumptions relate to environmental issues, structural integrity of the improvements, compliance

with applicable building regulations, condition of building services, zoning and encroachments, and can be confirmed by obtaining appropriate documentation relating to each.

Assumptions based upon opinion are detailed in Sections 5 to 7 of this report.

limitations



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3.1 Title details

Legal Description Lot 271 on Diagram 55669. Certificate of Title Volume 1534 Folio 796.

Lot 10 on Deposited Plan 29263. Certificate of Title Volume 1786 Folio 579.

Registered Proprietor / Owner Lot 271: Shire of Augusta-Margaret River. Registered 6 June 1979.

Lot 10: Molloy Investments (WA) Pty Ltd. Registered 2 April 2007.

Encumbrances / Interests Lot 271: Save and except the rights to Mines of Coal or other minerals.

Lot 10: Easement Benefit. Registered 6 June, 1979 and;

Mortgage to Bank of Western Australia. Registered 2 April 2007.

3.2 Town planning designation

Planning scheme Shire of Augusta – Margaret River under Local Planning Scheme No.1.

Zoning/designation

Shire of Augusta / Margaret River Local Planning Scheme No.1.

Lot 271: Tourism – Caravan Park.

Lot 10: General Agriculture (as to portion being valued).

Planning approvals / permits / applications

Unknown

Other matters Unknown

The planning information noted has been obtained from the relevant local council. This information has been relied upon in my assessment of value and no responsibility is accepted for the accuracy of the planning information provided. Should the information prove incorrect in any significant respect, the matter should be referred to me for review of the valuation.

3.3 Land area based on Certificate of Title

Based on the respective Certificates of Title the land area for each Lot is as follows; Lot 271: 44.2295 hectares Lot 10: 37.4201 hectares

Based on the information provided by the instructing party the areas of the relevant portions to be valued are as follows; Portion Lot 271: 19,545.35 m² Portion Lot 10: 1,529.45 m² Whilst I have physically identified the boundaries of the subject property on inspection, I am not a qualified Surveyor and no warranty can be given without the benefit of a formal identification survey.

land particulars



3.4 Site description (As to relevant portions only)

Lot 271

The subject portion comprises two small areas which are separated by the access road to the Molloy Island ferry. The portions have street frontage to Fisher Road and are level and having a medium density of native vegetation comprising Marri, Tea Tree and Grass Trees. The remaining area comprising Lot 271 is to the adjacent side of Fisher Road. Lot 10

The subject portion comprises a narrow portion which fronts the Blackwood River. It is heavily vegetated with Paperbark and Tea Tree and has swampy soils. It does not have direct road access and is separated from the remaining area of by the Fisher Road reserve which is unmade at this point.

3.5 Location and neighbourhood

The subject properties are situated in the Kudardup locality within the Shire of Augusta-Margaret River and is approximately 16 kilometres north of the Augusta township and some 325 kilometres south of the Perth Central Business District. The properties are next to the ferry which provides access to Molloy Island and are approximately 8 kilometres from Bussell Highway

There are no facilities in Kudardup with the exception of the caravan park which adjoins the subject portions and café situated on Bussell Highway. Basic facilities are situated within Augusta with a broader range of facilities found in Margaret River which is approximately 37 kilometres to the north. The surrounding area is predominantly rural comprising general agriculture activities and forestry.

Source: Landgate



3.6 Environmental issues

Issues

Current use and commencement Land is currently not being utilised although upon inspection it appears there is a leach drain to the portion of Lot 271 which is being valued.

Existing issues raising concern Nil.

Previous uses Nil.

Environmental report provided No, an environmental report has not been provided.

WA contaminated sites act By the Commencement of the Contaminated Sites Act 2003, a Public Register is now kept in Western Australia of land that has been classified as being either contaminated – remediation required; contaminated – restricted use or remediated for restricted use. In arriving at any assessment of the value of the land, a basic search of that register has been undertaken which discloses that the land is not classified. We do not accept any responsibility or liability whatsoever for the accuracy of the information contained in the search of the Contaminated Sites Register. In addition to searching the Register we have undertaken general enquiries on the previous use of the land and have relied on the accuracy of the information provided by you to use for this purpose.

No soil tests or environmental studies have been made available for my perusal. Therefore, it should be noted that my valuation is subject to there being no surface or sub-surface soil problems including instability, toxic or hazardous wastes, toxic mould, asbestos or building material hazards in or on the property that would adversely affect its existing or potential use or reduce its marketability. Should any problems be known or arise, then the valuation should be referred to me for review of the valuation as I deem appropriate. I am not an expert in this regard and if more detailed advice is required, an environmental consultant should be retained.

3.7 Flooding

Our valuation is on the basis that the lots are not subject to flooding.

3.8 Aboriginal sites

We have assumed the property to be unaffected by Native Title claim for the purpose of this valuation.

3.9 Heritage issues

Enquires to the relevant authorities have indicated that there are no current heritage implications in respect to the subject property, nor did we expect to discover any such implications in this instance.

Lot 271 Lot 10



3 4.1 Market comments

The residential and rural markets within the South West region of Western Australia experienced extremely strong growth value during the years of 2004 to 2007. The growth was fuelled by a limited supply of property being on the market, a shortage of residential land and strong demand for property by all sectors of the market including owner occupiers, investors, lifestyle purchasers and speculators. As a result of the Global Financial Crisis and an oversupply of wine grapes there has been a fall in values for rural lots with small holdings and lifestyle allotments within the South West also having experienced a reduction in property values over the past 18 months. Rural lifestyle properties of 40 – 50 hectares were regularly selling at rates of $25,000 per hectare for well located parcels of land at the peak of the market. This has now fallen to $15,000 per hectare to $20,000 per hectare for the same land holdings with rates lower for larger parcels. Agents active in the locality indicate an increase in enquiries for rural lifestyle properties which is resulting in sales, however this is for properties which are competitively priced and where the vendors have significantly discounted their original asking prices to meet the market. We also note that there is only a marginal increase in value for 40 – 50 hectare sites in comparison to 10 – 20 hectare lots. For the majority of rural lifestyle purchasers the smaller size is more than adequate to meet their requirements

additional & market comments



5.1 Sales evidence

It is conceded that not all properties are directly comparable, however a range of evidence has been put forward to provide the best cross section for valuation purposes.

A cross section of the market evidence examined is as follows:

Address

Sale Date Sale Price

1. Lot 101 Bussell Highway Kudardup 03/2011 $650,000

Comments:

Comprises a basic 2 bed fibro house on a 21.2170 hectare cleared parcel of rural land which has limited aesthetic appeal. Sale reflects a rate of $30,636 / ha of improved land.

Comparison: Superior land and location, smaller parcel and therefore a higher $/ha rate.

2. 1224 Bussell Highway Karridale 03/2011 $896,500

Comments:

Property comprises a mostly cleared undulating allotment of 35.7461 hectares which is bisected by a winter creek. Property comprises attractive lifestyle country with approximately 20% remnant bush and approx. 1 ½ acres of vines. Improvements include a basic fibro residence and sheds together with two dams. Analysis of the sale shows a rate of $25,080 / ha for the improved land area and an assessed rural land value of $20,000 excluding improvements.

Comparison: Similar size parcel of land, superior location.

3. Lot 403 McLeod Creek Road, Karridale 04/2011 $595,000

Comments:

Property comprises a rural lot of 40.2266 hectares of which approximately 34 hectares is cleared. It has a small dam and agent advises that enlarging dam or obtaining further supplies is not possible. There is ironstone present on the site which limits its utility. It has a powered shed and cattle yards. Analysis of the sale shows a rate of $14,791 / hectare with soils and fertiliser history being good.

Comparison: Similar size lot and overall considered broadly comparable.

4. L 21 Caves Road Deepdene 07/2011 $490,000

Comments:

Appears to comprise a vacant and cleared rural lot of 30.0614 hectares which is low lying and affected by surface water to parts during the wet seasons. Sale reflects a rate of $16,230 / hectare

Comparison: Smaller parcel, similar quality land, superior location.

5. Lot 102 Jindong - treeton Road Osmington

11/2011 $550,000

Comments:

Comprises a undulating predominantly cleared rural lot of 25.81 hectares which has a winter creek bisecting property. Improvements comprise of paddock fencing and horse shelters. Sale reflects a rate of $21,210 / hectare.

Comparison: Smaller parcel, siperio lifestyle lot and superior location.

6. L 113 Brockman Highway Karridale 11/2011 $476,000

Comments:

Comprises a 43.1062 hectare vacant and cleared rural site which is predominantly level. Battleaxe lot with location broadly comparable. Approximately 60% of the land comprises wet flats and drainage depressions which have a high water table in winter. Sale reflects a rate of $11,042 / hectare

Comparison: Similar parcel, similar location. Overall broadly comparable land rate would apply.

7. Lot 401 Benbow Road Karridale 12/2011 $740,000

Comments:

Comprises a 48.57 hectare parcel of vacant rural land which has Chapman Brook bisecting it and is approximately 80% cleared pasture land. It is attractively undulating and views over the property and surrounding rural land can be achieved. Shows a rate of $15,236 / hectare.

Comparison: Similar size lot, superior land and topography, location slightly more isolated Overall superior.

sales evidence



5.2 Rationale for direct comparison

In assessing the $ / hectare rate we have done so on the basis as to what each site on an overall basis would achieve. Although the zoning of both portions of land are different the zoning of the majority of Lot 10 is the same as Lot 271 and therefore we have not made any adjustments to reflect the different zonings. We also consider that given both properties comprise native vegetation there utility is similar. The isolated location is offset to some degree by the close proximity to the Blackwood River. However, the lack of utility which is in part due to the quality of the soils and the difficulty which would be achieved in obtaining clearing permits indicates that the $ / hectare rate would be less than the majority of sales analysed. Having regard to the evidence above, other market research and my knowledge I have adopted a land rate of $14,000 / hectare for both parcels.



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6.1 Valuation approaches

The most appropriate method of valuation for this type of property is the direct comparison on a rate per hectare basis.

6.2 Definitions

Market value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion.

6.3 Direct comparison method

This approach utilises sales that have been analysed on a $/ha land area to establish the property’s current market value. This approach is somewhat subjective. My adopted rate / hectare of land area as discussed under heading 5.3 Rationale for Direct Comparison is $14,000. Therefore the value of the respective portions is assessed as follows; Lot 271

1.954535 hectares @ $14,000 / hectare = $27,363 Lot 10

0.152945 hectares @ $14,000 / hectare = $ 2,141

valuation approaches



7.1 GST implications

Under the GST R2002/5 the property would not be classified as a going concern. As such, the ordinary method (whereby the full 10% GST is charged on the acquisition) or the margin scheme is likely to apply to the property.

valuation reconciliation



8.1 Valuation

Subject to the qualifications and assumptions contained within the body of this report, we consider the assessed Market Value exclusive of GST, as at 12 July, 2012 to be:

Portion of Lot 271

Market Value

$27,363

(TWENTY SEVEN THOUSAND THREE HUNDRED AND SIXTY THREE DOLLARS)

Portion of Lot 10

Market Value

$2,141

(TWO THOUSAND ONE HUNDRED AND FORTY ONE DOLLARS) This valuation is for the private and confidential use only of Elizabeth Lumsden, Shire of Augusta-Margaret River and for the specific purpose for which it has been requested. No third party is entitled to use or rely upon this report in any way and neither the valuer nor Southpoint Nominees Pty Ltd trading as LMW Hegney shall have any liability to any third party who does. Only a signed original of this valuation should be relied upon and no responsibility will be accepted for photocopies of the report or signatures to the report. No part of this valuation or any reference to it may be included in any other document or reproduced or published in any way without written approval of the form and context in which it is to appear. Neither the valuer nor Southpoint Nominees Pty Ltd trading as LMW Hegney has any pecuniary interest giving rise to a conflict of interest in valuing the property. This valuation is current at the date of valuation only. The value assessed herein may change significantly and unexpectedly over a relatively short period including as a result of general market movements or factors specific to the particular property. I do not accept liability for losses or damage arising from such subsequent changes in value including consequential or economic loss. Without limiting the generality of the above comment, I do not assume any responsibility or accept any liability where this valuation is relied upon after the expiration of three months from the date of the valuation, or such earlier date if you become aware of any factors that have any effect on the valuation. This valuation is prepared on the basis that Southpoint Nominees Pty Ltd trading as LMW Hegney does not extend liability to a mortgage insurer and that the Lender as referred to in the valuation report, if any, (and no other) may rely on the valuation for first mortgage finance purposes and the lender has complied with its own lending guidelines as well as prudent finance lending practices, and has considered all prudent aspects of credit risk for any potential borrower, including the borrower's ability to service and repay any mortgage loan.

valuation



The opinion of value expressed in this report is that of the valuer who is the prime signatory to the report. The counter signatory, verifies that the report is a genuine, authorised Southpoint Nominees Pty Ltd trading as LMW Hegney document. Signature

Signature

Valuer Mr Peter Kreutzer Certified Practicing Valuer AAPI Licensed Valuer No.6327

Counter Signatory

Mr Damien Schifferli Certified Practicing Valuer AAPI Licensed Valuer No. 37986

Legal Entity Southpoint Nominees Pty Ltd t/as LMW Hegney

Position Director

Office Suite 4 / 10 Victoria Street, Bunbury WA 6230



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1. Instructions

2. Title search

annexures













Documents

Valuation Report - Shire of Augusta-Margaret River · Lot 10 on Deposited Plan 29263. Certificate of Title Volume 1786 Folio 579. Registered Proprietor / Owner Lot 271: Shire of Augusta-Margaret