8/3/2019 Cessnock Summary v2

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Major Strengths of the Centre

Long lease to Woolworths Limited expiring

in November 2026 with 4 x 5 year options.

Woolworths is already paying turnover rent.

59% of the gross income is secured by Wool-worths Limited and a further 19% by national

speciality retailers.

Established primary catchment area and

proven supermarket turnover performance

Convenience based tenancy mix supports the

centres on-going performance.

Dominant centre in Cessnock 

Very well maintained and presented

Excellent exposure to three street frontages

Fee Structure

DD Corporate (DDC) will be responsible for

all aspects of management of the property .

DDC will be paid a management fee calculated

as 5% of the gross income of the property.Any excess funds after property expenses and

debt servicing will be distributed as follows:

i) A preferred return of 8% on

investors funds will be distributed to

investors on a quarterly basis

ii) Any remainder will be distributed

65% to investors and 35% to DDC.

On sale of the property any profits after repay-ment of debt and investors funds will be distrib-

uted 65% to investors and 35% to DDC.

Location

Cessnock Plaza is located in the HunterValley, approximately 150 kilometers tothe north of Sydney CBD and only 50

kilometers west of Newcastle.

The property is more specifically boardedby Keene, Hall and Charlton Streets. The

centre is surrounded by the town’s re-maining retail including an IGA and Colessupermarket, Big W & Target discountdepartment stores and Cinemas. The con-centration of retailing in Cessnock createsa critical mass that benefits the centre. Inaddition the centre is located close to

Vincent Street (Cessnock’s ‘high’ Street). 

The town, Cessnock, is located in the

Hunter Region.

The Hunter Valley wine-growing area nearCessnock is Australia's oldest wine regionand one of the most famous, with around

1,800 hectares under vine. The vineyardsof Pokolbin, Mount View and Allandale,are also the focus of a thriving and grow-ing tourism industry. The extension andeventual completion of the F3 Freeway,created a property and tourism boom

during the 1990s and beyond.

Demographics

Trade area population is 46,206 as per

 June 2006 Census. 

Location Keene Street, Cessnock, New South Wales

 Type of Property Neighborhood Shopping Centre

Proposed Purchase Price $19,500,000

Forecast Net Income $1,607,292

Net Lettable Area (Approx) 6,130.20sqm

Car Parking Spaces 303

Major Tenant: Woolworths Supermarket

Expires November 2026 with 4 x 5 year options

 Anchor Tenant % Gross Rental 59% 

Key Specialty Tenants Cessnock Plaza Pharmacy, Subway,

Greater Building Society, EB Games,

Specsavers, Payless Shoes, Wendys

Number of Specialty Tenants 16

CESSNOCK PLAZA,

HUNTER REGION, NSW

The Property

The centre is an established neighbourhoodshopping centre anchored by a WoolworthsSupermarket, 16 speciality tenants (including 8nationals) and 2 ATMs. Car parking is providedfor some 303 vehicles on a site of 1.64 hec-

tares.

The car parking is accessed from Keene andCharlton Streets and surrounds the shoppingcentre with the exception of the northern side.The car parking provides easy access to thecentre, strengthening the centres convenience

retailing focus.

The centre was constructed as a single-levelenclosed shopping centre in 1981 and refur-bished in 2005. The centre presents very welland dominates the competition making the

centre the focus for retailing in Cessnock.

Cessnock Plaza is primarily distinguished fromthe bulk of investment grade neighbourhoodshopping centre assets on the market at pre-

sent by its dominant position in the primarycatchment area. It is a predominately every dayconvenience based centre with a good mix of speciality tenants trading off a WoolworthsSupermarket with an estimated MAT of $57m($12,498psm). The centre mix is well suited tothe local demographic and positioned to

weather the current economic conditions.

Forecast Returns on Investor Funds

These forecast returns do not include any de-

preciation benefits that may be available.

STRICTLY PRIVATE & CONFIDENTIAL

Terminal Yield

IRR 7.00% 7.25% 7.50% 7.75%

3 Year 19.08% 17.43% 15.83% 14.30%

5 Year 15.76% 14.86% 14.00% 13.16%