Sales Leasing Valuations Management

Zebra Early Learning (G8 Education) Hahndorf SA 2 Road

Information Memorandum

Auction 11am AEST Wednesday 9 August 2017 River Room, Crown Casino, Table of Contents

Investment Features 4

Introduction 6

Key Childcare Sector Attributes 8

Property Details 10

Lease Details 11

Tenant Profile 12

Location 14

Sale Process 16

Contact 16

Property Management 17

Disclaimer 18

GST Disclaimer 18

Appendices Appendix 1: Title & Plan Appendix 2: Lease Schedule Appendix 3: Lease Variation

2 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 3 Investment Features

••Long 15 year lease to G8 Education Limited to June 2029 ••G8 Education Ltd: largest ASX listed early education provider with over 480 centres nationally and a market cap of $1.7 billion ••Three further 5 year options to June 2044 ••Fixed 4% annual rental increases, plus ratchet provisions at market review (i.e. rent cannot reduce) ensuring guaranteed rental growth ••Tenant pays all usual outgoings including management fees ••Well-maintained facility licensed for 79 LDC places ••Central 1,740 sqm site metres from two Primary Schools & only 100 metres from the junction with Mount Barker Rd ••Hahndorf: long established and desirable Hills location, 29km and easy commuter distance from the CBD, via the South Eastern Fwy

Address 2 Balhannah Road, Hahndorf, SA Term: Fifteen (15) years from 27 June 2014 to 26 June 2029 Options: Three (3) to five (5) years from 27 June 2029 to 26 June 2044 Net Income: $170,892 pa + GST and outgoings

Method of Sale For sale by Auction on Wednesday 9 August 2017 at 11am Crown Casino, Melbourne

Adam Thomas 0418 998 971 [email protected]

Natalie Couper 0413 856 983 [email protected]

Roger Klem 0423 919 373 [email protected]

Tom Bailey 0407 607 266 [email protected]

4 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 5 Introduction

Burgess Rawson and JLL are delighted to offer the freehold interest in a childcare investment located at 2 Balhannah Road, Hahndorf, South , and leased to G8 Education. The property will be offered for sale by way of Auction, to be held from 11.00am (AEST) on Wednesday 9 August 2017, at Crown Casino, Melbourne.

Burgess Rawson Since being established in 1975, our Sales, Burgess Rawson’s iconic Portfolio Auctions are Leasing, Property Management, Valuation and held in Melbourne and Sydney bringing together Advisory services fulfil the complete and ongoing a diverse range of national commercial and needs of our clients. Burgess Rawson has a investment grade properties. network of offices throughout Australia and Based on our knowledge and experience, extensive regional partnerships with local property Burgess Rawson and JLL are confident in specialists, giving unmatched depth and reach in recommending this property as an outstanding all commercial property market sectors. childcare investment opportunity. At every stage of ownership, our clients benefit from our specialist knowledge, experience, market insights and advice. Our strong market position, plus our targeted and effective marketing campaigns through a highly qualified database, generates maximum exposure for properties.

6 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 7 Key Childcare Sector Attributes

According to the Department of Education and Training report for According to IBIS World, a baby boom is coming – with the rate of the September 2015 quarter, the future looks bright for childcare births expected to increase by 6.4% over the next few years as the investments with over 1.2 million children attending some form workforce ages. of approved childcare service in Australia. This has been steadily growing and has increased by 5.7% on the previous year. The demand is being driven by a number Under the proposed federal Budget the new of industry factors including: Child Care Subsidy will replace both existing government subsidies where families earning ••The high cost of living driving parents up to $65,000 will be able to receive up back to work to 85% off the cost of their childcare back Children using Long Day Care by State and Territory ••The desire of more women to maintain in subsidies. This rate reduces with higher September Quarter, 2015 careers than in the past incomes, with families earning over ••The government’s position that female $170,000 potentially receiving 50% back. workforce participation is good for the Nationally, total government recurrent and economy. capital expenditure on childcare services ••The Australian Government subsidises 34.1% was $8.6 billion in 2014-15 (an increase the cost of child care for eligible families of 9.6% from 2013-14). Over the last five through the Child Care Benefit and the years, the average annual growth rate of Child Care Rebate to help parents with real expenditure was 10.6% which may the cost of approved child care. push up demand for childcare even further. Source: ABS and Department of Education and Training 22.6% During the September 2015 quarter, the total estimated expenditure on Child Care Benefit and Child Care Rebate was over $1.8 billion, 2.2% 64% of which was paid in relation to families 0.8% using Long Day Care services. 1.7% 8.2%

6.2% 24.4%

n NSW n WA n VIC n TAS n QLD n NT n SA n ACT

8 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 9 Property Details Property Details

Lessee: G8 Education Limited trading as Zebra Early Learning Centre Address 2 Balhannah Road, Hahndorf, SA Lease Term Fifteen (15) years Lease Commenced 27 June 2014 Title Details Lease Expiry 26 June 2029 Lot 103 on Deposited Plan 75253 Options Three (3) further terms of five (5) years to 26 June 2044 Site Area Outgoings All outgoings paid by the tenant including management fees 1,740 sqm Rent Reviews Fixed 4% annual increases plus ‘ratchet’ provisions at market review ensuring the rent cannot reduce Zoning Security Bank guarantee equal to three (3) months rent The land is zoned ‘Country Township’ Net Income $170,892 p.a. plus GST and Outgoings under the Mount Barker District Council Development Plan Tenant Profile

Location Accommodation includes: The subject property is located 100 metres ••Reception + office from the intersection of Hahndorf’s main street ••Four (4) education rooms with direct access and ideally positioned neighbouring Education to external play areas facilities of St Michaels Lutheran Primary ••Children’s bathrooms School and Hahndorf Primary School. ••Disabled unisex WC G8 Education Limited (ASX: GEM) listed on the Australian Securities Site Description ••Laundry + storage room Exchange on 5 December 2007 is the largest ASX listed early education The subject site is mostly irregular in shape and ••Kitchen + staff room centre provider in Australia, with a current market capitalisation of has the following boundary dimensions: $1.7 billion. ••Northern boundary 67 m* Building Construction (Balhannah Road frontage) ••Footings: Reinforced concrete G8 currently owns and operates over 480 centres nationally and their premium brands include: ••Western boundary 79 m* ••Floors: Reinforced concrete slab ••Eastern boundary 32 m* ••Floor Coverings: Vinyl ••Southern boundary 55 m* ••External walls: Brick ••Total area 1,740 sqm* ••Internal lining: Painted plasterboard ••Windows: Aluminum framed Building Description ••Doors: Aluminium framed A single level facility with service approval ••Ceilings: Painted plasterboard for 79 Long Day Care (LDC) places. ••Roof: Colourbond sheeting *Approx

For further details please visit: www.g8education.edu.au

10 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 11 Location

Hahndorf is one of the Adelaide Hill’s most popular towns, located 28 kilometres from the Adelaide CBD. Hahndorf is Australia’s oldest surviving German settlement and is characterised by beautiful shady, tree-lined streets, cafes, bars and restaurants, making it one of ’s premier tourist attractions.

Mount Barker is the largest township in the Council estimated that the existing capacity of and operates as a regional service the current preschools, primary and secondary centre for the central Mount Loft Ranges schools would not be able to accommodate Region, providing a wide diversity of retail, the growth in demand that will result from commercial, institutional and business activities development in the Mount Barker growth area. and services. Mount Barker, along with the Council has since estimated there is potential townships of Littlehampton and Nairne are demand for up to five pre-schools, five primary experiencing high and sustained growth which schools and two secondary schools, based on is likely to continue for the foreseeable future. a total population of 50 000, and has identified preferred sites in the Mount Barker growth area The District currently has above average for these new schools. proportions of children and young people, and this is likely to continue as new homes are marketed toward first home buyers and Source Burgess Rawson Research, young families. In 2011, family households www.forecast.id.com.au and with dependent children made up 45.4% of all www.mountbarker.sa.gov.au District households, compared with 39.5% in Greater Adelaide.

12 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 13 Sale Process

Method of Sale linders St arra romenade

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Haig n Inspections The property will be open for inspection at a time to be advised. Please contact the agents to register your interest and confirm inspection times.

Interstate Bidding Interstate bidding is available strictly by prior arrangement at one of Burgess Rawson’s interstate offices. Bidding facilities also available in Adelaide.

Burgess Rawson & Associates JLL Level 7, 140 Bourke Street Level 2, 25 Grenfell Street Melbourne VIC Adelaide SA RLA 1843

Adam Thomas Roger Klem 0418 998 971 0423 919 373 [email protected] [email protected]

Natalie Couper Tom Bailey 0413 856 983 0407 607 266 [email protected] [email protected]

14 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 15 Property Management Disclaimer

The information contained in the report/information The information contained in this document is provided Burgess Rawson is not only a market leader in investment sales; memorandum has been prepared in good faith and due as a guide and an aid to further investigation by potential care by the Vendor, Burgess Rawson and Jones Lang purchasers. Prospective purchasers should seek legal, we are also regarded as highly professional property managers. LaSalle (SA) Pty Ltd. Any projections contained in the financial and other appropriate expert advice in order t With an Australia-wide management portfolio of well in excess of report therefore, represent best estimates only and may he verify the accuracy of the information presented be based on assumptions. in this document $2billion, we are able to equally manage property whether it is CBD, The information contained herein is supplied without GST Disclaimer any representation as to its truth or accuracy. metropolitan or regionally located. Burgess Rawson and Jones Lang LaSalle (SA) Pty Ltd All interested parties should make their own advises that the financial information in this report relating enquiries to satisfy themselves in all aspects and to income, outgoings and the obtain their own independent advice in order to ••More than Rental Collection - care for your ••Experience and involvement - Our like is provided without reference to the possible impact verify any of the information. All stated dimensions property and investment. Professional professional property managers offer of GST, if any. Purchasers should make their own and areas are approximate. property management enhances and a wide range of expertise. Time in the assessment of the impact of GST on the investments secures your tenant relationship, provides profession, and continuous improvement The vendor does not represent or warrant the and the returns derived there from after obtaining accuracy of any information contained in this document. expert professional advice. property accounting (including tax invoicing/ and involvement in the property sector is an Subject to any statutory limitation on its ability to do so, GST/BAS) reports and maximises rental. intellectual pursuit. We can provide a pool the vendor disclaims all liability under any cause of We take the weight off your shoulders. of such experience to individual clients in action, including negligence, for any loss arising from reliance on this document. ••Achieve $ savings - through our buying a way we believe self-managed property Specifically, we make the following disclosures: power and access to the best providers: owners cannot. insurance brokers, maintenance contractors ••Value for money - free yourself up to •• All areas, measurements, boundaries, car space numbers, rents are approximate only and subject etc. We have the contacts and long standing concentrate on the returns of your to final confirmation; relationships to be at your disposal. investments, rather than the daily issues •• The indicative depreciation schedule has been ••Improve your cash flow - Apart from ensuring which can arise from your property. provided by Napier & Blakeley and is an estimate only and cannot be used for tax purposes. regular rental increases are enacted to The small cost involved in professional maximum sustainable levels, a professional management is money well spent. We have property manager reviews council rating the resources to service your needs. values, as well as accessing the best taxation To discuss your particular property depreciation assessment to improve your management’s needs, please contact after income tax bottom line. We aim to add either your Burgess Rawson selling agent more to your overall capital value. or Ingrid Filmer today. ••Not missing a beat - With our daily contact in the market, we hear about new developments, tenants on the move etc. Whether this information helps protect your investment or leads to further opportunities, we have our ears to the ground. Ingrid Filmer ••Problem solvers Owning property has Director Principal never been more complicated, and highly Property Management Department regulated. We are fully conversant with the 0413 860 312 Retail Tenancies Act, Town Planning and [email protected] Occupational Health and Safety Regulations. We can anticipate and prevent problems.

16 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 17 Title

Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson Lease Schedule Lease Schedule

Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson Lease Schedule Lease Variation

Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson Lease Variation

Information Memorandum - 2 Balhannah Road, Hahndorf SA