109 Burwood Road, Hawthorn, VIC. SALE PARTICULARS SALE PRICE $63,000,000 SALE DATE Apr-14 PURCHASER GPT Platform Limited as trustee for GPT Metro Office Fund VENDOR Private Investor - Developer PROPERTY PARTICULARS SITE AREA 3,529 sq.m ZONING Commercial 1 Zone (B2Z) NLA 13,029.00 CARS 455 CONSTRUCTED 2008 TENANTS Amcor, McConnell Dowel, Fusion Brands. GROSS INCOME (PASSING) $6,330,730 ADOPTED OUTGOINGS ($/m2) $64.60 VACANCY (%) 0% LETTABLE AREAS & INCOME ANALYSIS WALE 3.43 by Income TENANT 0.35 Ha 1 bay per 28.64 m2 $485.90 AREA (GLA) GROSS PASSING ($PA) GROSS MARKET ($PA) DESCRIPTION McConnell Dowell Corporation Limited 4,371 sqm $1,759,412 $1,479,668 The property is located within the inner eastern suburb of Hawthorn, approximately 6km from the CBD of Melbourne. The site is positioned on the north east corner of the intersection of Power Street and Burwood Road and is within a short distance of both Hawthorn and Glenferrie Train Stations, as well as enjoying tram access along Burwood Road. The site is improved with a office, retail and car park development which provides basement levels of car parking for 455 vehicles, above which is constructed a 5 level office and retail building providing ground floor retail, ground floor office and four upper levels of office accomodation. The floor plates are very large providing up to 3,170m2 of office accomodation around a side core. The property under the current leases provides a WALE of 3.43 years and provides modern office accomodation in a popular location with above average views and outlook. Amcor Limited 3,170 sqm $1,296,530 $1,298,438 Fusion Retail Brands Pty Ltd 3,098 sqm $1,233,004 $1,253,457 Amcor Limited 1,728 sqm $706,752 $681,872 Amcor Limited 212 bays $470,640 $508,800 Other 662 sqm $864,392 $873,681 13,029 sqm $6,330,730 $6,095,916 TOTAL LEASE EXPIRY PROFILE 9,000 8,000 Lettable Area 7,000 ASSUMPTIONS NET RENT GROWTH (10 Yr Ave.) 3.37% OUTGOINGS GROWTH (10 Yr Ave.) 3.25% NET INCENTIVE (10 Yr Ave.) 10.75% CAPEX GROWTH (10 Yr Ave.) 3.25% VACANT SPACE ASUMPTION 5 Years LETTING UP ALLOWANCE (Months) 10 YEAR CAPEX NPV ($PSQM) CPI (10 Yr Ave.) 6,000 5,000 4,000 3,000 2,000 1,000 0 Office Car Parking 9 Months $166 sq.m 2.47% PROJECTED NET CASH FLOW & CAPITAL EXPENDITURE $8,000 k $7,000 k $100 k Capital Expenditure $90 k $80 k $6,000 k SALE ANALYSIS SALE PRICE ($Mil.) $PSQM NLA (UNADJUSTED) $63,000,000 $4,835 $70 k Net Income before Capital Expenditure $5,000 k $4,000 k $60 k $50 k $40 k $3,000 k INITIAL YIELD (PASSING) 8.74% INITIAL YIELD (FULLY LEASED) 8.74% $2,000 k EQUATED MARKET YIELD (36 MONTHS) 8.30% $1,000 k TERMINAL YIELD 8.50% $0 k 10 YEAR IRR 9.14% $30 k $20 k $10 k $0 k 1 2 3 4 5 6 Year 7 8 9 10 11 COMMENTS The property was purchased by GPT following an off market campaign. It is believed that the asset will seed the new metropolitan office fund. The purchase represents the largest transaction in the suburban office market since Cromwell purchased (via a fund through arrangement) the ATO offices in Dandenong and Box Hill in 2013. Our analysis captured 36 months of adjustments which includes the expiry of the lease for McConnell Dowell Corporation who occupy levels 3 and 4 of the office accomodation. The property provides a reasonable medium term WALE with some leasing risk, although is positioned within a popular precinct in which supply has historically been restrained, and subsequently, medium term leasing prospects are considered to be better than areas with abundant supply capability, such as parts of Richmond and Cremorne. For further information please contact MELBOURNE BEN KOOPS Associate Director [email protected] 03 8663 4806 The information prepared within this sales analysis is provided for guidance only and does not constitute advice, offer or part of any contract for sale or otherwise. The analysis has been prepared by Urbis based on available evidence and information taken from various sources including publicly available information from newspapers, statements by public companies, subscription to information databases and information generally provided verbally by others such as estate agents, property managers, property valuers and consultants. In many instances we have had not had access to the original source material such as contracts of sale or signed leases. Although we have no reason to doubt the validity of information provided to us and we have relied on this information in good faith, we are unable to state with certainty that the information upon which we have relied is consistent with the contractual arrangements between relevant parties. Urbis and its employee’s extend no liability to any person for any loss, liability, damage or expense arising directly or indirectly from or connected in any way with any use of our reliance on the analysis provided. This document may not be reproduced or distributed without prior written consent from Urbis.