Herron Todd White Pro-Forma Report

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Herron Todd White Pro-Forma Report R CBA.0517.0135.1437 INDEPENDENT PROPERTY ADVISORS Rural Herron Todd White Pro-forma Report Client/Instructing Party: Commonwealth Bank of Australia Business Unit/Address: Risk Management Property Consultants (Qld) Tel: Fax: 07 3237 3043 GPO Box 1423, Brisbane 4000 For Attention: Alec Crombie Borrower/Applicant: Comanche Grazing Co Pty Ltd Reference/Job No. 11020223 Instructions: To assess the market value of "Lake Learmonth" for mortgage security purposes on behalf of Commonwealth Bank of Australia. 1. PROPERTY SUMMARY Lake Learmonth Type of Property: Freehold/Leasehold - Grazing Address: 18IiPP»BKplii^ Yaamba Real Property Description: Freehold and leasehold land as described on the attached schedule. Title Details: Comprising twelve (12) freehold parcels and one (1) special lease parcel, held under thirteen (13) separate titles in the Counties of Liebig and Livingston. Lot Parish Tenure Title Reference Owner Area (ha) Lake Freehold Comanche Grazing Company Pty Ltd 242.8110 Learmouth as Trustee Lake Freehold Comanche Grazing Company Pty Ltd 302.3000 Learmouth as Trustee Lake Freehold Comanche Grazing Company Pty Ltd 472.6730 Learmouth as Trustee Lake Freehold Comanche Grazing Company Pty Ltd 430.5860 Learmouth as Trustee Lake Freehold Comanche Grazing Company Pty Ltd 308.3700 Learmouth as Trustee Lake Freehold Comanche Grazing Company Pty Ltd 2,151.1340 Learmouth as Trustee Lake Freehold Comanche Grazing Company Pty Ltd 403.4720 Learmouth as Trustee Lake Freehold Comanche Grazing Company Pty Ltd 258.9990 Learmouth as Trustee Lake Freehold Comanche Grazing Company Pty Ltd 480.7670 Learmouth as Trustee Lake Freehold Comanche Grazing Company Pty Ltd 517.9980 Learmouth as Trustee Yaamba Freehold Comanche Grazing Company Pty Ltd 517.9980 as Trustee Yaamba Freehold Comanche Grazing Company Pty Ltd 282.4710 as Trustee Yaamba Speacial Comanche Grazing Company Pty Ltd 94.8990 Lease as Trustee Total Area 6,464.4780 Special Lease Details: Term: 20 years commencing 1 July 1992 Expiry: 30 June 2012 Purpose: Grazing only Conditions: Standard / Restrictive Location: On the eastern boundary over laneway access to an original Camping and Water Reserve on the Fitzroy River. Description: Timbered, mostly flood affected forest and swamps onto permanent water. S:\Rockhampton\AAA Jobs\Will\Current Jobs\Farmer\Lake Learmonth\ROK054095 Report.doc R CBA.0517.0135.1438 "LAKE LEARMONTH". YAAMBA____________________________________________________________________________________________________________________ Page 2 of 38 Encumbrances/ Restr'ns: None detrimental to title as revealed on the Title Searches. Copies are annexed to this report. Note: We are advised that:- An "Area Management Advice" from Queensland E^PA that unexploded ordnance exists in^^^^^^^^^Hand (total area about 2554ha) in the north­ western corner of the property. This is undulating mostly rung forest country including the timbered Sugarloaf Mountain^^^H We are aware that exploded and unexploded ordnance has been located and reported in the past and that cost to have the area cleared to remove the advice is prohibitive. The advice effectively prohibits subdivision for resale in small blocks. Conclusion: While retained in use for non intensive grazing as part of the aggregation we do not consider the declaration reduces grazing value of this useful forest country. Assumptions And Qualifications: ■ Clear chemical residue status. ■ The Vendor has not been served with a compliance notice or a show cause notice under the Vegetation Management Act 1999. ■ This valuation is assessed on an improved basis/bare of livestock, plant and equipment and GST exclusive. ■ The farm centre pivot irrigation scheme is operating efficiently to water the four circles. Land Area: Freehold 6,369.5ha Leasehold 94.9ha Total Approx. 6464.0ha Zoning: Rural. LGA: Rockhampton Regional Council. UCV: Not available - amalgamated with other land. Business Operation: Grazing on native and improved pastures with irrigation assistance. Carrying Capacity or Productivity: Assessed at 2,440AE (l-2.65ha) with irrigation assistance. Grazing area: 6,464 hectares. Area Under Cultivation: 320ha centre pivot area (not worked at inspection) General Country Type: A balance of good quality forest onto the river frontage and fair forest into ridges providing a balance of flood free high land. Fencing: In fair stock proof condition, predominantly 4 wires mostly 4 barb. Some plain wires in part reinforced by old electric fencing, subdivided into 17 paddocks Waters: 21km frontage to permanent water in the Fitzroy River, scattered permanent and semi permanent lagoons. Stock and domestic pumping scheme at the homestead and 1 equipped bore. Water Entitlement: 1,378MI Medium Priority Allocation^^^^^^^^^^^J Climate & Seasonal Conditions: 830mm rainfall district. Seasonal conditions are currently fair after recent rain and a good winter season. Pastures in the closer in / superior country are generally eatened down requiring spelling to regenerate. 2. RISK ASSESSMENT SUMMARY Lending Cautions: Marketability: □ Good 0 Average □ Moderate □ Poor Organic status and contract to supply ACC to be retained to hold value. High Average Low Quality: O 1 02 03 04 05 "LAKE LEARMONTH" 18 March 2011 ROK054095 'LAKE LEARMONTH". YAAMBA Page 3 of 38 3. VALUATION & ASSESSMENTS SUMMARY Interest Valued: Unencumbered Fee Simple In possession. Mortgage Security Value: $9,800,000 (Nine Million, Eight Hundred Thousand Dollars) Net of GST Assessed Land Value: $7,401,280 Adopted hectare rate: $1,145 Added Value of Improvements: $398,000 Animal Area Rate: $3,035AE Added Value of Allocation: $1,998,100 ($1,450/ML) Contract of Sale: None Replacement Insurance: $650,000 Recommended Documents to Sight: Nil. This valuation is current as 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). We do not accept liability for losses arising from such subsequent changes in value. Without limiting the generality of the above comment, we do not assume any responsibility or accept any liability where this valuation is relied upon after the expiration of three (3) 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. I hereby certify that I have personally inspected the above property and carried out the above valuation and assessment. This valuation has been prepared in accordance with the terms of instructions provided by Commonwealth Bank of Australia. Neither I, nor any member of this firm, has no interest, financial or otherwise in the property subject to appraisal or with the parties with whom the Bank is dealing; is independent to the lending transaction involved; and confirms the valuation has been prepared for mortgage lending purposes. The property has been identified by registered plan and/or cadastral mapping and the improvements appear to be within site boundaries. This report is for the use only of the party to which it is addressed and its mortgage insurers for mortgage purposes and is not to be used for any other purpose. No responsibility is accepted or undertaken to third parties in respect thereof. This report does not constitute a site or structural survey. Inspection Date/Valuation Date: 18 April 2011 Valuation Reference No: ROK054095 WM:mc CBA Valuer Code: Q058 Valuer's Signature: Valuer/Qualifications/Reg.# W JC McLAY API Qld Registration No. 3055 Firm: Herron Todd White (Central Queensland) Pty Ltd .............................................. Address: PO Box 379, Rockhampton, Qld 4700 GW Litherland, Director Phone: Fax: E-Mail: The counter signatory verifies that this report is genuine and endorsed by Herron Todd White. The opinion of value expressed in this report has been arrived at by the primary signature alone. 4. THE PROPERTY 4.1 The Land Zoning Effect: Complies with the provisions of the zoning. Location: 12.5km to Yaamba State Primary School, Store and Hotel. 50km north of Rockhampton. Access is good by the Bruce Flighway (3.5km frontage). Locality: This is an established grazing / rural residential district. Services: Power and telephone are connected. Mail service and school bus services are available. Vegetation Management Status: Our valuation assumes that all clearing completed on the property complies with current tree clearing policies for leasehold and freehold land under The Vegetation Management Act 1999 and that the owner advises that he has not been served with a Compliance Notice to (a) stop committing an offence; or (b) stop committing an offence and rectify the matter; or (c) rectify the matter. Chemical Residue Status: The property is Cattle Care accredited and has "Australian Certified Organic" compliance. The owners advise the property has clear status. The valuation assumes this to be correct. “LAKE LEARMONTH" 18 March 2011 ROK054095 R CBA.0517.0135.1440 "LAKE LEARMONTH". YAAMBA Page 4 of 38 Land Description: This is a good forest property benefited by 21 kilometre frontage to the Fitzroy River, a balance of country types from flooded flats to ridges incorporating significant areas of flats and swamps suitable for ponded pastures or fodder crops with irrigation assistance. We estimate a total area about 2,200 hectares is affected by major flooding in the Fitzroy River but only lower terrace flats on the river and creek frontages are subject to regular flooding. Our classification
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