2018 / 2019 Transactions

COMMERCIAL SALES 2018 / 2019 TRANSACTIONS cushmanwakefield.com.au The team at Cushman & Wakefield Valuation & Advisory have pleasure in enclosing analysis of key 2018/2019 transactions across the Sydney CBD, North Sydney and Metropolitan commercial markets. We hope these are of assistance to you and we look forward to also updating you over 2019 on the expansion of Cushman & Wakefield Valuation & Advisory. David Castles Adam Elias Tim Miles Daniel Hiscox National Director Divisional Director Divisional Director Valuer Sydney CBD Sydney CBD Sydney CBD Sydney CBD [email protected] [email protected] [email protected] [email protected] Lachlan Graham Matt Lucas Tony Seo Divisional Director Associate Director Senior Valuer Metropolitan Metropolitan Metropolitan [email protected] [email protected] [email protected] cushmanwakefield.com VALUATION AND ADVISORY COMMERCIAL SALES SUMMARY 2018/2019 TRANSACTIONS SYDNEY CBD 10-20 BOND STREET, 10 SHELLEY STREET, 60 MARGARET STREET, 12 SHELLEY STREET, SYDNEY SYDNEY SYDNEY SYDNEY Sale Price/Date: $325M Sale Price/Date: $533M Sale Price/Date: $420M Sale Price/Date: $270M MAR-19 DEC-18 DEC-18 DEC-18 Core Market Yield: 4.96% Core Market Yield: 5.03% Core Market Yield: 5.10% Core Market Yield: 5.22% IRR: 6.55% IRR: 6.89% IRR: 6.55% IRR: 6.98% $/m² NLA: 16,850M2 $/m² NLA: 19,227M2 $/m² NLA: 16,883M2 $/m² NLA: 18,037M2 183 CLARENCE STREET, WESTPAC PLACE, 55 CLARENCE STREET 117 CLARENCE STREET SYDNEY 275 KENT STREET, SYDNEY SYDNEY SYDNEY Sale Price/Date: $180.3M Sale Price/Date: $721.9M Sale Price/Date: $256M Sale Price/Date: $153M SEP-18 JUN-18 MAY-18 MAY-18 Core Market Yield: 5.04% Core Market Yield: 4.53% Core Market Yield: 4.94% Core Market Yield: 5.20% IRR: 6.60% IRR: 6.59% IRR: 6.64% IRR: 6.66% $/m² NLA: 22,919M2 $/m² NLA: 18,724M2 $/m² NLA: 17,195M2 $/m² NLA: 12,223M2 NORTH SYDNEY 52 GOULBURN STREET 1 YORK STREET, COCA COLA PLACE, 80 MOUNT STREET SYDNEY SYDNEY 40 MOUNT ST, NTH SYDNEY NORTH SYDNEY Sale Price/Date: $176M Sale Price/Date: $205M Sale Price/Date: $226.5M Sale Price/Date: $71M MAR-18 JAN-18 DEC-18 SEP-18 Core Market Yield: 5.22% Core Market Yield: 5.89% Core Market Yield: 5.23% Core Market Yield: 5.17% IRR: 6.49% IRR: 6.67% IRR: 6.65% IRR: 6.01% $/m² NLA: 15,235M2 $/m² NLA: 11,128M2 $/m² NLA: 15,874M2 $/m² NLA: 11,460M2 NORTHPOINT, 77 PACIFIC HIGHWAY 54 MILLER STREET, 123 WALKER STREET 100 MILLER ST, NTH SYDNEY NORTH SYDNEY NORTH SYDNEY NORTH SYDNEY Sale Price/Date: $300M Sale Price/Date: $112.35M Sale Price/Date: $59.4M Sale Price/Date: $21.3M APR-18 MAY-18 MAR-18 MAR-18 Core Market Yield: 4.81% Core Market Yield: 5.4% Core Market Yield: 6.0% Core Market Yield: 4.98% IRR: 6.37% IRR: 6.9% IRR: 7.0% IRR: 6.62% 2 $/m² NLA: 16,248M $/m² NLA: 11,963M2 $/m² NLA: 8,541M2 $/m² NLA: 10,730M2 VALUATION AND ADVISORY COMMERCIAL SALES SUMMARY 2018/2019 TRANSACTIONS METROPOLITAN 100 BROADWAY, 9 GEORGE STREET 465 VICTORIA AVENUE 67 ALBERT AVENUE ULTIMO PARRAMATTA CHATSWOOD CHATSWOOD Sale Price/Date: $77.14M Sale Price/Date: $44.3M Sale Price/Date: $166.5M Sale Price/Date: $158M DEC-18 DEC-18 NOV-18 NOV-18 Passing Initial Yield: 5.05% Core Market Yield: 6.01% Core Market Yield: 5.8% Core Market Yield: 5.71% IRR: 7.15% IRR: 7.13% IRR: 6.93% IRR: 6.72% $/m² NLA: 14,153M2 $/m² NLA: 7,970M2 $/m² NLA: 10,646M2 $/m² NLA: 10,707M2 33 ARGYLE STREET 91 PHILLIP STREET 72 CHRISTIE STREET 19 HARRIS STREET PARRAMATTA PARRAMATTA ST LEONARDS PYRMONT Sale Price/Date: $40.8M Sale Price/Date: $56.63M Sale Price/Date: $157.55M Sale Price/Date: $143M NOV-18 OCT-18 SEP-18 SEP-18 Core Market Yield: 5.68% Core Market Yield: 5.5% Core Market Yield: 5.00% Core Market Yield: 5.42% IRR: 6.56% IRR: 6.7% IRR: 6.51% IRR: 6.68% 2 $/m² NLA: 7,727M 2 $/m² NLA: 9,292M2 $/m² NLA: 13,993M2 $/m² NLA: 11,378M 60 STATION STREET 223 LIVERPOOL ROAD STRATA LOTS 1 & 2, PIER 8/9, 154 PACIFIC HIGHWAY PARRAMATTA ASHFIELD 23 HICKSON RD, WALSH BAY ST LEONARDS Sale Price/Date: $277.6M Sale Price/Date: $46M Sale Price/Date: $90.5M Sale Price/Date: $60.2M AUG-18 AUG-18 JUN-18 MAY-18 Core Market Yield: 5.36% Core Market Yield: 6.64% Core Market Yield: 6.36% Core Market Yield: 6.15% IRR: 6.48% IRR: 8.07% IRR: 7.18% IRR: 7.37% 2 $/m² NLA: 10,789M $/m² NLA: 4,733M2 $/m² NLA: 10,619M2 $/m² NLA: 9,557M2 4-10 BRIDGE STREET 2 LINCOLN STREET 2 MERIDITH STREET 11 BOWDEN STREET PYMBLE LANE COVE WEST BANKSTOWN ALEXANDRIA Sale Price/Date: $14.55M Sale Price/Date: $28.075M Sale Price/Date: $74.5M Sale Price/Date: $48.85M APR-18 MAR-18 FEB-18 FEB-18 Core Market Yield: 6.2% Core Market Yield: 6.8% Core Market Yield: 7.0% Core Market Yield: 5.81% IRR: 6.6% IRR: 7.6% IRR: 7.9% IRR: 6.80% $/m² NLA: 5,895M2 $/m² NLA: 3,031M2 $/m² NLA: 5,427M2 $/m² NLA: 8,574M2 SYDNEY CBD SALES ANALYSIS 2018/2019 TRANSACTIONS 10-20 BOND STREET, SYDNEY NSW The property comprises two commercial office towers (constructed in 1979 and fully refurbished in 2010/2011) known as 10 & 20 Bond Street. 10 Bond Street comprises an 8 level B-grade office building whilst 20 Bond Street comprises a 32 level A-grade office tower. A retail plaza area supporting 5 retail tenancies extends between the two buildings. Seven basement levels extend across the site and accommodate a Fitness First Gym and 150 car spaces fully leased to Secure Parking. KEY DETAILS Sale Date: March 2019 Sale Price: Sales$325,000,000 Analysis (50%) – headline price Vendor: Oxford Investa Property Partners (OIPP) Purchaser: Mirvac NABERS Rating: Energy: 5.5 Star Water: 2.5 Star Land Area: 3,250m2 NLA: 38,278m2 Parking: 150 spaces Vacancy: 7.7% (2,961m²) No of Tenants: 33 office tenants & 1 retail tenants. Net Passing Income: Circa $24 million INPUTS ANALYSIS Market Rentals: Office: Average $1,120/m2 pa gross Passing Initial Yield: 4.63% Retail: Average $626/m2 pa gross Core Market Yield*: 4.96% Avg Cmpd Mkt Growth: 3.9% (10 year) 10 Yr IRR (after costs): 6.55% Outgoings: $6,933,660 ($181/m2) Rate/m² NLA: $16,850/m² Leasing/Incentive Downtime (10 yrs): 6-12 months @ 50% retention Weighted Average Lease Income Area Allowances: Incentive (10 yrs): 22.5%-25% (average 21.3%) Expiry (Yrs): 3.2 yrs 3.4 yrs Cap Adjustment Period: 36 months Average Running Yield: 5 yr 10 yr Terminal Yield: 5.25% (12mth horizon – circa 7,100m2 expiry (before capex) 5.45% 6.08% accounted for) Capital Expenditure: Total Capex: Circa $800/m2 overall *Core Market Yield = the percentage return/yield analysed when the assessed fully leased net market income is divided by the adopted value/price which has been adjusted to account for property specific issues (i.e. rental reversions, rental downtime for imminent expiries, capital expenditure, current vacancies, incentives, etc). Lease Expiry by Area Use Composition by Passing Income NLA (m²) Car Parking 14,000 5% 36 mths; 49% NLA 12,000 Retail 9% 10,000 8,000 6,000 4,000 2,000 0 Office Current Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 86% Initial Expiries Renewals Vacancy Expiry Capture Window COMMENTS • Well-presented office buildings (10 Bond St – B-grade & 20 Bond St – A grade) providing a diversified tenancy profile with a WALE of 3.2 years (by income). • Major building tenants are The Trust Co (9% of NLA), Hudson (7.6% of NLA), JWS Services (6.6% of NLA) and Travelex (5.4% of NLA). • As currently tenanted, 83.5% of the NLA for 20 Bond is occupied on a whole floor or contiguous floor basis with the remaining 16.5% of NLA comprising subdivided suites. • For 10 Bond, 76.3% of the NLA is occupied on a whole floor basis with the remaining 23.7% of NLA comprising subdivided suites. • Ground floor retail plaza plus Fitness First tenancy over several basement levels. • Seven levels of basement accommodating 150 car spaces fully leased to Secure Parking on a five year lease expiring August 2020 with annual 3.50% rent reviews. • Off market transaction via pre-emptive purchase rights of a 50% interest which was triggered via Oxford Property Group’s purchase of the Investa Office Fund (IOF). • Sold on an ‘as is, where is’ basis albeit with some minor price adjustments applied at settlement (circa $2.5 million). The above information is purely for the purpose of a broad guide and whilst we understand the facts to be generally reliable we are unable to guarantee their accuracy. The information contained within may be confidential and must not be reproduced or circulated without the written consent of Cushman & Wakefield Valuations. Liability limited by a scheme approved under Professional Standards Legislation 10 SHELLEY STREET, SYDNEY NSW 16-level, A-grade office building constructed circa 2003 with major refurbishment undertaken prior to the Suncorp lease commencement in October 2017. Improvements comprise multi-level basement parking (104 spaces), ground floor retail and 15 upper office levels.

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