City Model Portfolio Three

1 Contents EXECUTIVE SUMMARY 1 ABOUT SPRING FG REALTY 1 INVESTMENT RANGES AND OPTIONS 1 HOW TO INVEST 1 BRISBANE PORTFOLIO 2 PORTFOLIO MARKET 2 Summary list and objectives 5 Blackfold, West End 5 Brisbane Casino Towers, South Brisbane 6 Laguna - Newstead Central, Newstead 7 Mode, Newstead 9 Highline, West End 10 PORTFOLIO SUBURBS 12 West End and South Brisbane 12 Newstead 12 KEY ABS STATISTIC BY PORTFOLIO SUBURBS 13 PORTFOLIO DEVELOPERS 14 WHY AN OFF-THE-PLAN PORTFOLIO 16 THE GENERAL RISKS OF PROPERTY INVESTMENT 16 CONCLUSION 17 DISCLAIMER AND FEES 17

2 Executive Summary direct and SMSF residential real estate investment. Spring FG Realty Pty Ltd has partnered with Spring Financial Group clients hold residential DomaCom Australia Limited to offer multi-property property investments exceeding $500M in value. residential portfolios through DomaCom’s fractional investment platform. The portfolios take advantage of Investment ranges and options DomaCom’s multi-property book-build functionality Domacom multi-property portfolios prepared by offer a direct property solution with immediate Spring FG Realty are available from as little as $10,000 diversification across multiple properties, developers giving the investor exposure to up to five (5) properties and locations. in different geographic locations.

The portfolios are open to retail and wholesale An investment of $25,000 gives an investor exposure investors through Domacom-accredited advisers or to up to ten (10) properties. directly by opening a Domacom account. In accordance with DomaCom fund rules all $100,000 or more provides exposure to up to 15 properties have been independently valued by properties in different geographic locations. a leading valuation house. All properties include The model portfolios offered in the first release of window furnishings, depreciation schedules, third- portfolios designed by Spring FG Realty comprise a party quality inspections on settlement and first tenant total of in excess of $25M of high-quality inner-city and/or rental guarantee periods of a minimum of 42 Melbourne and Brisbane residential assets developed days and up to 90 days providing investors further by Australia’s leading public and private company peace-of-mind. developers.

Each of the developers, developments and individual Each of the projects is under development properties in the assembled portfolios has passed construction with various expected completion dates Spring FG Realty’s stringent due diligence processes over the next 6-18 months. to facilitate not only inclusion in the DomaCom portfolios but investment by Spring Financial Group How to invest direct investing clients. Investment in this portfolio is available to direct About Spring FG Realty investors by opening an account with Domacom or through a Domacom-accredited financial adviser. Spring FG Realty Pty Ltd is a wholly-owned subsidiary of ASX-listed diversified financial group Spring FG You should also download and read the Domacom Limited (ASX: SFL) and part of the Spring Financial Product Disclosure Statement (PDS) and consider the Group. information contained therein before making any decisions regarding the products. It holds corporate real estate licences in New South Wales (1708663), (3510266), Victoria Please note that this information memorandum has (074746L) and ACT (18401881). Its role in the Spring been prepared without taking into account your Financial Group is to research and identify residential objectives, financial situation or needs. Before acting property solutions for inclusion in portfolios of Spring on any information contained herein we recommend Financial Group clients. that you consider whether it is appropriate for your circumstances and consider obtaining advice from a Spring FG Limited (Spring FG) is a diversified financial suitably qualified adviser. services company offering financial planning and investment advice; wealth management; insurance and superannuation; finance; and tax & accounting services.

Its advice and product offerings are broad and include a specialisation in the high-growth markets of self-managed superannuation funds (SMSFs); and

1 Brisbane Portfolio properties and the included suburbs and Market: Brisbane localities including in later sections. Number of properties: Brisbane, Queensland Total 5, consisting of 2 x 1-bed and 3 x 2-bed Population growth; a diverse economy not overly apartments reliant on a single facet; and a strong track-record Portfolio value: of innovation and infrastructure investment from governments from both sides of politics, make $2,619,500 (excluding stamp duty) Queensland and its capital Brisbane a sound place to Suggested investment size*: invest for the longer term. $10,000 to $500,000 Anticipated gross rental yield*: Queensland generates around 20% of Australia’s gross 4.5% pa domestic product through an economy built upon Anticipated annual capital growth over mining, agriculture, tourism and financial services. 10-year cycle*: Queensland’s main exports are coal, metals, meat 4.2% pa and sugar.

Spring FG’s Brisbane Portfolio consists of five (5) Queensland’s ports are amongst the busiest and luxurious apartments across five landmark projects by fastest growing in the country. Port Brisbane for the leading Brisbane developers Devine Limited, BPM example has seen more than $1.3Bn of infrastructure Group and Metro Property Group. and asset investment over the past 20 years and now facilitates more than 2,400 ships pa, transporting more The portfolio has been assembled with investors with than 32 million tonnes of cargo. a minimum of $10,000 and up to $500,000 to invest in mind. Like the Port of Brisbane the city’s airport has also *Based on Spring FG Realty’s market analysis of historical 10 and 15 year sales data and prevailing trends. seen significant growth in recent years. Brisbane Airport is now the largest capital city airport in Portfolio market Australia – three times the size of Sydney. The Airport in currently undergoing a massive $5.2 billion The Brisbane Portfolio has been assembled to expansion; underpinned by the construction of the deliver investments that will provide a sound new $1.35 billion parallel runway. On completion in balance of rental returns with strong capital 2020 Brisbane Airport will become the “Gateway to upside in future years. Our goal in assembling the Australia” and will have the same capacity as both portfolio is to strike the right balance between Hong Kong and Singapore. buying great real estate and achieving superior investment outcomes. Like any market Queensland is not immune to global economic factors and the potential for global Rental yields will vary across the portfolio relative economic weakness; but there is little or no doubt to market conditions at settlement and from as to the long-term demand for Queensland’s time-to-time however we have carefully selected agriculture and mining resources on a global basis, the included properties to a) offer an edge nor for it’s incredible tourism landmarks, and as such when offering the assets to the rental market we invest with confidence in the mid-to-long term in to ensure minimum vacancy across the life of the State. the investments; and b) endeavour to ensure Population growth has long been significant and demand from investors and owner-occupiers consistent. The ABS noted Queensland’s population alike when offering the assets for sale in future at 4,476,000 people as at 2011 representing years. staggering growth of more than 23% over the 10 years from 2001 (just behind WA at 24%). To put that The underlying logic of constructing the portfolio in perspective across the same 10 year period the across Brisbane is set out below with further ABS notes Australia’s population growth as a (still information on each of the specific portfolio very healthy) 13.4%. And Queensland’s population

2 growth continues with total population increasing to Capital prices in Brisbane remain considerably 4,792,000 by the end of September 2015 according more affordable than Sydney on a like-for-like basis to the ABS. Further the ABS is forecasting it to around representing great value-for-money investment double by 2061 to between 7.9 and (an incredible) opportunities. The latest quarterly data from leading 11.1M. research house RP Data Core Logic showed Brisbane median apartment prices at $380,000 or an incredible Brisbane’s (greater metro area) population growth 42% more affordable than the $660,000 median for generally mirrors, and typically runs ahead of the apartments in Sydney. It remains a similar picture for broader State. From 2001 to 2011 the ABS reports the houses with Brisbane 47% more affordable at $490,000 greater Brisbane area population grew by 24% (just versus $921,500. behind Perth at 25%). Yet according to the latest ABS data the annual pre- The Brisbane population was 1.72M at the 2006 census tax wage and salary of those living in Brisbane was and by 2011 was in excess of 2.15M; with an average $52,171 trailing Sydneysiders at $57,612 by just 9%. annual rate of growth of more than 43,000 people. Significantly from an investment perspective, greater Despite a softening in global commodity markets and current affordability translates to greater room for an end to Australia’s so-called mining “boom” the capital upside in our assessment. Brisbane tenants Brisbane population continued to grow across FY2015 and owner-occupiers have more scope to pay with a net increase of more than 35,000 people increased rental and capital prices even if wages again being recorded with most recent ABS forecasts growth remains flat. This is a critical factor in times of estimating sustained growth to between 4.1M and regional and global economic uncertainty. 5.6M by 2061. People living in Brisbane do not need to earn more Whilst the Brisbane market, like any real estate market, to be able to afford to pay more. There is a serious will almost certainly see periods of both growth and imbalance (verging on a complete disconnect) decline, property investment is about the longer term between wages and rents/capital prices in Brisbane. and the basics of supply-demand economics make We see this imbalance being materially corrected an investment in Brisbane an easy recommendation over coming years as the population and demand to make. continues to grow even if wages do not grow.

Brisbane’s population growth continues to put In Sydney the imbalance is almost inverted making upwards demand pressure on accommodation the next serious leg-up in capital growth a real and can be a key driver to rents and future capital challenge without real strength in the Australian growth. Whilst a significant supply shortage has seen economy and without significant wages growth. an increase in building activity over the past four years, to put things in perspective, with average Of course if we see substantial economic and wages occupants-per-household of 2.7 (a lot less in the inner growth across Australia over the next 10 years or so city), Brisbane requires around 15,000 new dwelling then in our opinion Brisbane will only benefit further. each year. It is challenging to see how it will under-perform our other capital cities in the mid-to-longer term.

Development Developer Apart. Suburb State Bed Bath Car Total sqm Price

Black Fold BPM 302 West End Qld 2 2 1 81 $537,500 Highline BPM 214 West End Qld 2 2 1 83 $560,000 Brisbane Casino Towers Metro 2101 South Brisbane Qld 1 1 1 65 $500,000 Newstead Central - Laguna Metro 21410 Newstead Qld 1 1 1 59 $467,000 Mode Devine 311 Newstead Qld 2 2 1 71 $555,000 Total portfolio value (excluding stamp duty) $2,619,500 3 4 Summary list and objectives Each of the five properties in the Brisbane Portfolio is summarised in the table on the previous page.

The portfolio has been assembled with an objective of striking the right balance between buying great real estate and achieving superior investment outcomes. Key to this is investing in suburbs and localities with the right fundamentals.

Our default position has been to include properties close to the CBD in Brisbane and/or in areas with a solid mix of (most or all of) infrastructure and amenity such as transport, education, health care, recreational and retail and high centralised employment. We have targeted more affluent and desirable areas and areas that have already undergone, or are well advanced with, urban renewal and gentrification. • Rooftop sky terrace with entertaining facilities • Secure basement parking The underlying logic for the inclusion for each of the • Storage space for all apartments properties is provided below with further information on suburbs, localities and portfolio developers in later Set close to the vibrant Boundary Street retail spine, sections. everything is within a short walk - shopping, dining, universities, schools, parklands and world class cultural Blackfold, West End facilities. Blackfold by BPM Group 27 Bank Street, West End, Queensland The West End dining and entertainment precinct is an Apartment 302 energetic cultural blend of trendy new restaurants, 2-bed 2-bath 1-car cafes, bars, clubs retail, are all within just a few $537,500 (excluding stamp duty and other minutes’ walk. costs) Architect: Noel Robinson Architects Situated on the quite Bank Street the site has a lovely Interiors: Hecker Guthrie “suburban” feel yet is in the heart of the action and Total apartments: 39 apartments just: Key amenity: Rooftop terrace and sky-garden • 400m to Davies Park where the weekend community markets take place Designed by renowned Noel Robinson Architects • 200m to the city bus stop Black Fold is a beautifully stylish 6-level residential • 750m from Coles West End development by one of Australia’s most respected • 350m to Boundary Street – the West End dining private developers, BPM. and entertainment precinct. • 750m from IGA South Brisbane and from leading Black Fold offers an exciting new way to experience employers such as Downer EDI, Roche Mining, the best of sophisticated inner-city living and is ideally Macarthur Coal, SMEC, Sinclair Knight Merz, located just 1.7km from the Brisbane’s CBD and Macmahon surrounded by all the arts, music, food, fashion and • 900m from Brisbane State High School and the shopping in thriving West End. Convention Centre • 950m from South Brisbane Train Station and the Black Fold comprises: South Bank Institute of Technology • 40 apartments • 900m from Queensland Performing Arts Centre • 10 1-bed plus study apartments (QPAC), the Cultural Centre Busway Station, • 30 2-bed apartments 5 Griffith University & the Qld Conservatorium of Music, ABC Queensland TV/Radio Headquarters and the Queensland Museum • 1km from Grey St and Little Stanley St dining precinct, South Bank Cinemas and Parklands • 1km from Queensland Gallery of Modern Art (GoMA) and the Queensland State Library • 1.7km from the CBD and Queen Street Mall

West End is stylish and chic and this apartment at Black Fold is brilliantly suited to the market.

This will be a highly desirable place for tenants and owner-occupiers to live. Black Fold has the essential lifestyle facilities for the type of tenant and owner- occupiers that reside in this area. The building has a fantastic rooftop sky terrace with entertaining facilities for all tenants to enjoy.

Importantly, there is no-short-term-rental covenant at Black Fold, something that the majority of Brisbane Casino Towers, South Brisbane developments in West End and South Brisbane do not Brisbane Casino Towers by Metro Property offer. It will not be a service apartment development Development which in our opinion will offer a strong pint-of-difference 70 Hope Street, South Brisbane, Queensland in terms of mid-to-long term capital growth prospects. Apartment 2101 1-bed 1-bath 1-car The specific apartment included in the portfolio is $500,000 (excluding stamp duty and other apartment 302 priced at $537,500 (with a car space). costs) This apartment is located on the 3rd floor of the Architect: ML Design development with a southern aspect over the quiet Interiors: ML Design Bank Street. Total apartments: 378 apartments Key amenity: Incredible foyer, pool & spa, The floor plan is a well-designed Type 02 layout with a gymnasium, recreation pods, terrace and total of 81m2 of space inclusive of the well-sized 11m2 BBQ facilities facing across Southbank towards balcony. The apartment features a cleverly-designed Brisbane CBD. kitchen that maximises internal space. The bedrooms are well-thought out with both having Located in the heart of the vibrant suburb of South an abundance of natural light, an increasing rarity in Brisbane, Brisbane Casino Towers is a magnificent the 2-bed apartment market. The master bedroom 30 level development by arguably Brisbane’s most is well placed with direct access to the living space successful developer, Metro Property Group. and an ensuite. Brisbane Casino Towers features: • 198 one bed apartments The apartment features floor to ceiling glass windows • 176 two bed apartments in the bedroom and living space which is great as • 4 three bed penthouses it opens the apartment up to the Queensland sub- • 378 apartments in total tropics. • 108 sqm of retail tenancy on the ground floor Renters and owner occupiers alike will love the • 5-star lobby lifestyle offered by Black Fold and vibrant West • Infinity pool, gymnasium, and private bbq End with the cool cafes, high-end shops, transport facilities choices, schools and parks just metres from the door. Brisbane Casino Towers’ cutting-edge architectural Expected completion: Jul 2017 aesthetic will be a focal point for Hope Street and the

6 South Brisbane area as a whole. Globally recognised conditioning and high-speed internet cabling to the for their leadership in architecture, ML Design have living area and bedroom. extensive experience in creating master-planned communities, urban design precincts, architectural Expected completion: Jul 2017 feats and interior design concepts that inspire the imagination, and they have certainly gone above and beyond with Brisbane Casino Towers.

Brisbane Casino Towers is set only metres away from the and with second-to-none proximity to nearby amenity including: • 250m to South Brisbane train station • 150m to the Queensland State Library • 200m to the Queensland Museum & Sciencentre • 200m to the Queensland Art Gallery • 300m to the Queensland Performing Arts Centre (QPAC) • 1km to Brisbane CBD Laguna - Newstead Central, Newstead • Less than 1km to South Brisbane Parklands Newstead Central – Laguna by Metro Property • Less than 1km to the South Bank man-made Development beach 1055 Ann Street, Newstead, Queensland • 800m to South Bank Ferry Terminal Apartment 21410 • 1.5km to Suncorp Stadium 1-bed 1-bath • 3km to the Gabba $467,000 (excluding stamp duty and other • Less than 2km to the Mater Private Hospital costs) precinct Architect: Cox Rayner Architects • 1.8km to the Eagle St Pier Interiors: Cox Rayner Architects Total apartments: 189 apartments Brisbane Casino Tower’s extensive residents’ facilities Key amenity: man-made beach, plunge will offer unprecedented luxury and will serve as a key pool, lap pool and lagoon, private rooms and attraction to the development. reading nooks, BBQ facilities, sun decks and lawns, gymnasium. These considerations are all critical features for young professionals and those who love city life when Located in one of Brisbane’s most desirable river-side seeking a place to live. domains Newstead Central is an exciting multi-stage development that will be the jewel in the crown of The apartment including in the portfolio is apartment Newstead’s gentrification process. Laguna is the 2101 priced at $496,000 (with car space). The floor stunning 16-floor tower that forms the second stage plan is a well-designed A2.1 layout with a total of to the Newstead Central development by Metro 60m2 of space. From the balcony the occupier/s will Property Group. enjoy a nice suburban aspect. Laguna features: The apartment features floor-to-ceiling glass that • 75 one bed apartments opens living areas and bed room to the outside • 16 One bed + Multi-Purpose Room Apartments world which is great in the Queensland sub-tropics. • 88 two bed, two bath apartments The kitchen is well appointed with stone bench tops, • 189 apartments in total quality European appliances and ample storage. • Podium level swimming pool & Billiard/activities Living areas are tiled throughout to enhance sense of rooms space and serviceability. The project has been designed to express the class The bedroom is carpeted and features built-in robes. and elegance Newstead has come to be known The apartment includes down lights, ceiling fans, air- for; a place where the contemporary meets the

7 8 cosmopolitan. This is the Newstead way. The look, feel and location offers what is desired by Brisbane’s most affluent tenants.

Newstead Central is brilliantly is set on two street frontages occupying the site between Ann Street & Stratton Street. The location offers great proximity to nearby amenity: • 400m to The Gasworks shopping and commercial precinct • 600m to Water Front Park and The Brisbane River • 900m to The Newstead Ferry terminal • 300m to The Emporium’s renowned shopping & dining • 700 to the stylish James Street Precinct • 900m to The RNA Showgrounds • 1.2km to Chinatown and the Brunswick Street Entertainment Precinct • 2.0km to the CBD • 2.5km to The Eagle Street Pier Precinct • 2.7km to Queen Street Mall

One of the great attractions to Newstead Central is its proximity to the $1.1 Billion Gasworks development located just a short walk down the road, which Mode, Newstead features a mix of 90,000m2 of A-grade office space, Mode by Devine Limited boutique retail, leisure outlets and a vibrant plaza. The 37-39 Wyandra Street, Newstead, Queensland Gasworks will include five hectares of parklands and Apartment 311 a major bus interchange. 2-bed 2-bath 1-car $555,000 (excluding stamp duty and other The apartment including in the portfolio is apartment costs) 21410 priced at $467,000 (with car space). The floor Architect: Devine Design Team plan is a well-designed Type-2A2m layout with a total Interiors: Devine Interiors Team of 59m2 of space. Total apartments: 157 apartments Key amenity: Rooftop terrace and BBQ The apartment features floor-to-ceiling glass sliding facilities doors onto the balcony, opening the living areas to the outside world, down lights, ceiling fans, air- Mode is the latest creation of one of Australia’s most conditioning and high-speed internet cabling to the prolific developers, ASX-listed Devine Limited. The living area and bedroom. project lies at the very heart of an exciting urban renewal that is transforming the inner-northern Apartment 21410 is well elevated on level 14 and suburbs of Brisbane. residents will enjoy expansive and captivating views. Laguna residents will enjoy unmatched tenant The dynamic position of Mode in the exclusive facilities including the man-made beach, plunge enclave of Newstead and just 100 metres away from pool, lap pool and lagoon. Newstead’s Gasworks development sets the path for this brilliant opportunity. Additionally there is a variety of private rooms and reading nooks, BBQ facilities, sun decks and lawns, Located in one of Brisbane’s most desirable river-side and well equipped gymnasium. domains Mode is a stunning 11-floor development and the latest development by the ASX-listed Expected completion: Mar 2017 company, Devine Limited.

9 The project has been designed to express a confident understatement; a place where the contemporary meets the cosmopolitan. This is the Newstead way. The look, feel and location offers what is desired by Brisbane’s most affluent tenants.

Mode features: • 89 one bed apartments • 68 two bed apartments • 157 apartments in total • 1 rooftop terrace with leisure deck • And one residential car space per apartment (157 in total)

Highline, West End Mode is brilliantly is set on two street frontages Highline by BPM Group occupying the site between Wyatt Street and 4/14 Bank Street, West End, Queensland Wyandra Street. The location offers great proximity to Apartment 214 nearby amenity: 2-bed 2-bath 1-car • 200m to The Gasworks shopping and commercial $560,000 (excluding stamp duty and other precinct costs) • 250m to Water Front Park and The Brisbane River Architect: Noel Robinson Architects • 400m to The Newstead Ferry terminal Interiors: Hecker Guthrie • 700m to The Emporium’s renowned shopping & Total apartments: 142 apartments dining Key amenity: Rooftop sky terrace with pool • 800m to the stylish James Street Precinct and outdoor amenity • 1.4km to Chinatown and the Brunswick Street Entertainment Precinct Designed by renowned Noel Robinson Architects • 2.0km to the edge of the CBD Highline is a beautifully stylish 8-level residential • 2.0km to The Royal Brisbane Hospital development by one of Australia’s most respected • 2.6km to The Eagle Street Pier Precinct private developers, BPM. • 2.8km to Queen Street Mall

Highline offers an exciting new way to experience The roof will serve as a key attraction to the the best of sophisticated inner-city living and is ideally development with recreation facilities for residents to located just 1.5km from the Brisbane’s CBD and enjoy. surrounded by all the arts, music, food, fashion and shopping in thriving West End. The apartment including in the portfolio is apartment 301 priced at $555,000. Apartment 311 is a well Highline comprises: thought out 2-bed 2-bath 1-car Type-B layout with a • 142 apartments total of 71m2 of space. • 44 1-bed apartments • 96 2-bed apartments The apartment features ensuites to both the master • 2 3-bed apartments and second bedroom, floor-to-ceiling glass and an • 1 rooftop sky terrace with pool and outdoor open-plan kitchen that is well appointed with stone amenity bench tops, quality European appliances and ample • secure basement parking storage. Living areas are tiled throughout. • 2 lifts servicing all residential levels The apartment features a study nook, down lights, Set close to the vibrant Boundary Street retail spine, ceiling fans, air-conditioning and high-speed internet everything is within a short walk, from shopping, cabling to the living area and bedroom. dining, universities, schools, parklands and world class cultural facilities. Expected completion: Feb 2017

10 The West End dining and entertainment precinct is an West End is stylish and chic and this apartment at energetic cultural blend of trendy new restaurants, Highline is brilliantly suited to the market. This will be cafes, bars, clubs retail, are all within just a few a highly desirable place for tenants and owner- minutes’ walk. occupiers to live.

Situated on the quite Bank Street the site has a lovely Highline has the essential lifestyle facilities that tick all “suburban” feel yet is in the heart of the action and of the boxes for the type of tenant/owner-occupier just: that reside in this area. The building has a pool • 150m to Davies Park where the weekend located on the roof as well as a fantastic rooftop community markets take place. terrace. • 180m to the city bus stop • 200m from Coles West End The investment that we recommend at Highline is • 500m to Boundary Street – the West End dining apartment 214 priced at $560,000 (with a car space). and entertainment precinct. This beautiful 2-bed 2-bath 1-car apartment is located • 700m from IGA South Brisbane and from leading on the second floor of the development. The floor employers such as Downer EDI, Roche Mining, plan is a well-designed Type C2 layout with a total of Macarthur Coal, SMEC, Sinclair Knight Merz, 83m2 of space inclusive of a well-sized 10m2 balcony. Macmahon The apartment features an open plan living space • 350m from Brisbane State High School and the connecting the dining and entertainment areas. Convention Centre • 500m from South Brisbane Train Station and the Expected completion: January 2017 South Bank Institute of Technology • 500m from Queensland Performing Arts Centre (QPAC), the Cultural Centre Busway Station, Griffith University & the Qld Conservatorium of Music, ABC Queensland TV/Radio Headquarters and the Queensland Museum • 450m from Grey St and Little Stanley St dining precinct, South Bank Cinemas and Southbank Parklands • 650m from Queensland Gallery of Modern Art (GoMA) and the Queensland State Library • 1.8km from the CBD • 2.0km from Queen Street Mall

11 Portfolio suburbs We have targeted suburbs with higher-than- average income profiles, generally with younger demographics more inclined towards renting and with key attributes such as a high percentage of lone-person and couple-only households that are attracted to 1-and-2 bedroom apartment living. We have carefully matched portfolio property type to these and other attributes such as car ownership and means of transport to work. We have also sought to address any identifiable imbalance between available stock in the suburbs and where demand is heading. young professional couples who enjoy the convenience of living and working in these dynamic West End and South Brisbane suburbs.

South Brisbane and West End are among the most As the ABS summary data tables show more than walkable suburbs in Brisbane with numerous amenities 20% of all households in the two suburbs are No-car including retail, dining, cultural, commercial, green Households while 11.4% of West End residents and space and parkland on residents doorsteps. more than 25% of South Brisbane residents walk to work. Median Individual incomes in both suburbs Both suburbs deliver a terrific balance of waterfront (whilst above National averages) are dragged down living with extensive green space combined with by the large resident student population; however inner-city convenience and amenity with the Household Incomes in both suburbs are well above CBD a short walk (or bus ride) across on of several National averages at $2,061 for West End and $2,026 river bridges. Of course South Brisbane is home to for South Brisbane. Brisbane’s entrainment and lifestyle precinct of South Bank home to parklands and beaches and almost Newstead 100 bars and restaurants. Newstead is brilliantly located adjacent to the The suburbs offer great appeal to the 130,000 strong Brisbane CBD and Fortitude Valley and in the same CBD workforce; and even more appeal to the 30,000 key growth pocket. It is vibrant, dynamic and a or more workers in South Brisbane itself. highly-desirable place for people to live providing access to employment, entertainment, dining and a All within easy walking distance of our portfolio vast array of retail outlets and public facilities. These properties are The Queensland Art Gallery, factors drive rental returns and capital prices. the Queensland Performing Arts Complex, the Queensland Museum, and the Brisbane Convention We love to invest in highly-desirable suburbs, areas and Exhibition Centre. Within a 2km of West End there and precincts with socio-economic and income are more than 126,000 students at institutions that profiles well above the national averages. By any include the University of Queensland, Queensland measure Newstead is clearly such a suburb. University of Technology, Southbank Institute of It is hard to track the rise and rise of incomes, rents Technology and Griffith University. The West End and and capital prices in Newstead over the past South Brisbane Catchment areas also include a 10+ years because for the 2001 and 2006 Census number of Brisbane’s coveted secondary schools, reports the suburb was included in a broader area including Brisbane State High School, St Laurence’s that covered much of Teneriffe and some parts of College and Somerville House. Fortitude Valley as well.

Major public transport infrastructure along with However prior to the 2011 Census local residents were pedestrian accessibility to Brisbane CBD caters for successful in their bid to have the exclusive enclave residents employment and leisure needs. South excised from its broader surrounds to more clearly Brisbane and West End residents are predominantly define the “status” of their suburb.

12 With a median house price exceeding $1M and a As you might expect rents are considerably higher median apartment price of $600,000 (nearly 50% than surrounding suburbs with the median rent for higher than the adjoining Fortitude Valley) the the suburb recorded as $490/week as at Census 2011 suburb is home to arguably Brisbane’s most exclusive (Fortitude Valley $400). Given inner-Brisbane rental apartments including its record-breaking $14.25M growth averages over the past 5-years we estimate penthouse apartment at Mirvac’s Pier at Waterfront this number to be circa $600/week as at 2016. development (where the average sale price exceeded $3M).

As the ABS summary data tables below show median Individual incomes in the suburb exceed National and State levels by more than double; whilst Family and Household incomes are just below double the State and National levels. It’s not surprising that a mere 3% were recorded in the 2011 Census as unemployed.

An incredible 32% of households in the suburb are recoded as Lone Person Households whilst a further 40% of households house Couples without Children. Yet as at 2011 only 3% of dwellings were 1-bed apartments (and 55% 2-bed) for us representing a significant opportunity for investors to capitalise on demand from both of these household types.

Key ABS Statistic by Portfolio Suburbs

Source ABS 2011 Quick Stats National Newstead West End South Brisbane

Median Individual Weekly Income $577 $1,263 $726 $665 Median Household Weekly Income $1,234 $2,480 $1,485 $1,588 Median Family Weekly Income $1,481 $2,750 $2,061 $2,026 Population aged above 65 13.2% 16.5% 8.8% 8.1% Lone Person Households 24.3% 32.0% 34.6% 34.5% Couple Only Household 27.0% 40.5% 24.4% 31.2% Population in full-time employment 59.7% 74.3% 60.3% 61.1% Population Unemployed 5.6% 3.0% 7.0% 8.9% Population renting 33.2% 51.2% 59.10% 64.3% Median weekly rent $285 $490 $367 $450 Households without a car 8.6% 6.0% 20.5% 24.3% Walk-to-work 3.7% 8.7% 11.4% 25.5% Public transport to work (all types) 10.4% 18.2% 23.4% 21.5% Rent greater than 30% household income 10.4% 14.3% 20.7 % 26.4% Dwelling type - studio or 1-bed 5.2% 3.0% 19.2% 23.2% Dwelling type - 2-bed 19.1% 55.3 % 39.4% 46.6%

13 Portfolio Developers At Spring FG we consider that developer “due diligence” is central to the successful selection of any property whether for a one-off investment or Metro in building a portfolio like this one. The emphasis is amplified when selecting apartment developments The included portfolio properties at Brisbane Casino off-the-plan as we have here to ensure we are able Towers, Broadway on Ann and Laguna are being to maximise depreciation benefits and create a developed by Metro Property Group. portfolio of properties that meet the latest trends in our chosen suburbs. We need a high level of Whilst it is a relatively new corporate entity the confidence that each project will be completed on- principals of Metro, David Devine, Ken Woodley and time and on-budget to a high standard. Luke Hartman, have an outstanding, and probably unmatched, record of success in the development of We have worked extensively with each of the residential real estate in Australia. Together they have developers selected to participate in our Domacom provided Australia with more than 25,000 homes and portfolios and summarise below why they have been apartments over the past 25 years. included. They know the market inside out and back-to-front and have a knack of securing the absolute best sites in the city. Broadway is a classic example. It’s immediately opposite The Emporium; 250m from James Street Precinct; 500m from the new Gas Works precinct; and 800m to the riverfront and ferry. And of BPM course right on the doorstep of the CBD. The included portfolio properties at Black Fold, The name Devine is synonymous with successful, Night Fall, Shadow Play and The Standard are being large-scale residential housing estates and apartment developed by BPM Corporation. BPM was founded developments having built a reputation on delivering by Jonathan Hallinan in 1996. BPM established itself quality outcomes on-time and on-budget for families early on as a high-end house and land developer in and investors alike. the most upmarket suburbs of Melbourne forging itself Having sold their stakes in the ASX-listed Devine Group as a brand-name in designer living. David and Ken formed Metro in 2010 with former In more recent years BPM is one of the most Devine Group executive Luke Hartman. respected developers in Australia and has broadened its horizons by delivering fantastic The team’s past projects (under the Devine brand) residential apartment developments in Melbourne include Cathedral Place; Charlotte Towers; River including the: Willim Apartments in Carnegie; Elske City; Casino Towers; Festival Towers; River Place; Apartments in Caulfied; Walter in Carnegie; Collins & and Victoria Point (Melb). They also conceived the Queen in Essendon; Church Street Hill in Brighton; and stunning Harbour One; Harbour Two; and Riverside Graphite in North Fitzroy. In Brisbane BPM has focused developments. on core CBD fringe suburbs and is quickly emerging as a specialist in this market with the delivery of the In its relatively short history Metro has created The Escent and the Onyx developments in West End. Chelsea; Madison Heights; Brooklyn on Brookes; The Plaza; Cambridge Towers; Oxford Towers; and now Their experience, design and delivery quality give us Broadway on Ann. no hesitation in including them in our portfolios. The Metro team pioneered building amenity in Brisbane and continue to take it to the next level with each new development. Their pools; gyms; roof-top terraces; stunning lobbies; street level retail etc. really set the standard for other to follow. We love buildings with great amenity because tenants and owner-

14 occupiers love the amenity. They really know how to create a “highly-desirable” place to live.

With their unrivalled track record and backing from top-4 Australian banks Spring FG Realty adds Metro’s Brisbane Casino Towers, Broadway on Ann and Laguna projects to this portfolio with absolute confidence.

Devine Devine Limited ticks all the boxes for Spring FG Realty. As an ASX Top 500 company, Devine is one of Australia’s most progressive property groups with over 30 years’ history of residential, commercial and retail development. Devine is highly regarded for its innovation, quality and dedication to service, traditions that have continued since its establishment.

Devine’s enviable portfolio of high-rise and boutique inner city residential apartments offer both style and convenience for today’s discerning market.

Over the past 15 years, Devine’s Apartments division has developed over 3,000 apartments worth more than $1.5billion including: DoubleOne 3 (111 apartments); KSD 1 (5 level commercial); Hamilton Harbour (660 apartments); 333 Ann Street (24 level commercial); ICB Central (4 level commercial); Charlotte Towers (416 apartments); Victoria Point (447 apartments); Festival Towers (401 apartments); Casino Towers (214 apartments); River City (221 apartments); River Place (316 apartments); and Cathedral Place (512 apartments).

You only have to look at the award winning Hamilton Harbour development and Teneriffe project DoubleOne 3 to appreciate their Devine’s commitment to excellence. We include them in our portfolios with confidence.

15 Why an off-the-plan portfolio either increase the holding cost of property through From a practical perspective assembling a portfolio further taxes or remove the tax deductibility of some of multiple properties for fractional ownership through expenses in holding property. the Domacom Fund would be all-but impossible without the benefit of time-to-completion offered by Interest Rates - Interest rates could rise over the period selecting off-the-plan. of holding this property and thus increase the holding costs if you have borrowed money to invest. Beyond this practical consideration buying new maximises tax deductions through depreciation Your income reduces - You could thus have difficulty allowances improving portfolio returns. The best funding the ongoing costs. developments sell-out off the plan so gaining access to the best opportunities means being in early. Whilst Specific risks associated with purchasing off the plan we discourage property speculation, insisting that a There are specific risks associated with an off-the-plan 7-year+ view be taken on selecting investments, the property purchase that also need to be considered. prospect of exchanging contracts at today’s price They can be summarised as follows: and settling at yesterday’s price is attractive, and can work in favour of investors, particularly from a rental Legislative changes – there is a risk that there could yield perspective. be legislative changes which make holding property in the chosen manner less attractive. Of course, we revert to due diligence on the developer. In buying off-the-plan the need for Completion Risk – There is a risk that the developer confidence in the track record of the developer is and/or builder could face unforseen circumstances paramount. that delay completion or that the completed product does not meet the indicated specifications. The General Risks of Property Investment As with any investment you need to consider the risks Property Value - The property value could drop from associated with property investment. A summary of the time of exchange to settlement. these key risks is as follows: Finding the right property! Property is not just property! General Risks of property investment - There are In addition to the specific issues to be addressed general risks associated with investment property such when investing in there are many general issues that as fire, flood, tenant damage or other unforeseen need to be considered. Just like the share market damage to your property. has different sectors, there are markets within the property market. It is essential that a comprehensive Market Risks - There are risks that could impact on assessment occurs when considering residential the demand for rental property, such as a surplus in investment property. For example: property stock, population decrease or other market factors. This could mean your property stagnates or • Should the purchase be a house or an drops in value, or that your rental income stagnates, apartment? decreases or remains untenanted for a period of • In what area should you purchase? time. • What are the differences between buying a new or old property? Tenant Risks - There is the risk that the tenant could damage the property, non-payment of rent, or other Just as with any other type of investment, quality and problems. appropriateness are paramount. There are many different factors that can influence the performance of an investment property. There are also different Landlord Liability - As a landlord you have a duty types of property available i.e. apartments, town of care to provide premises that are safe for houses, freestanding homes, land, commercial occupation. property and industrial property. If you have any doubts you should consult an adviser. Taxation - There is a risk that legislative changes

16 Conclusion Disclaimer and Fees The Brisbane Portfolio has been designed to offer Any advice and commentary contained in this not just a portfolio of sound investments to produce Information Memorandum is general market advice superior return-on-investment but to include great only and is provided for information purposes. It does pieces of real estate. not represent financial advice. It has been provided without taking into account your objectives, financial This is a balancing act that is too often forgotten situation or needs. Before acting on any advice or when investing in residential real estate. It is easy to information in this Information Memorandum, Spring find investment properties that make sense on paper. FG Realty recommends that you consider whether it It is also relatively easy to find quality real estate. is appropriate for your circumstances and consult a The challenge is balancing these things to achieve professional financial, legal and/or tax adviser. both; in particular across multi-property portfolios. The Brisbane Portfolio achieves that balance. Spring FG Realty is a licensed real estate agent. If you invest in portfolios assembled by it Spring FG Realty In summary the portfolio: we will be entitled to an agents’ commission from the • Is assembled across one of Australia’s fastest vendor/s of the properties. growing cities with strong state economies, high wages and significant room to the upside in Such payments do not change the cost of the terms of current affordability properties. If they do we are obligated to tell you and • Includes four landmark developments by you must agree. experienced world-renowned developers . • Offers a mix of mid-to-high-yielding assets that will all attract quality tenants prepared to pay a premium • Features developments that will all attract high numbers of owner-occupiers in the longer term, resulting in strong bodies corporate that will maintain buildings to a high standard to ensure rental yields remain high and capital prices are maximised in future years • Offers a total of 5 specific apartments each with a unique “edge” that will provide for advantage in retaining long term and quality tenants and on exit if/when the assets are disposed of in future years • Represents excellent value against the broader market

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