Stronghold Mulgrave Property Trust No. 11 Investment Summary

STRONGHOLD MULGRAVE PROPERTY TRUST NO. 11 INVESTMENT SUMMARY

PROPERTY LOCATION: 13-15 Compark Circuit, Mulgrave VIC

INDICATIVE CASH RETURN: Average 8.3% per annum for the first three years (8.0% year 1).

FUND STRATEGY Sustainable income with the potential for capital gain

EQUITY REQUIRED: $12.050 million

WALE: 4.5 years from 1 July 2017

KEY TENANTS: Tyco, PZ Cussons, Carter Grange

NET DISTRIBUTION: Every two months

INVESTMENT FEATURES:  Prime location at the centre of the Monash Employment Cluster, Melbourne’s largest concentration of jobs outside the CBD.  Planning now under way to double the number of jobs within the cluster.  Established business precinct with close proximity to the Monash Freeway, Princes Highway, Wellington Road and Monash University.  Two modern, fully leased, multi-tenanted office buildings on two titles  Quality tenants, staggered lease expiry profile  226 car parks at a very generous ratio of 1 bay per 26 square metres  Depreciation allowances

Bruce Anderson Steve de Nys Tony Boyd T: 0403 056 103 T: 0413 515 808 T: 0435 533 123

[email protected] [email protected] [email protected]

Stronghold Investment Management Pty Ltd [ABN 76 164 389 682] – www.strongholdinvest.com.au This investment summary contains a summary of the main features of this opportunity. Any person proposing to invest in the Trust should read the full Information Memorandum and Trust Constitution, seek professional advice from a qualified expert and undertake their own independent investigations with regard to the projections, values, assumptions and estimates contained therein. Information Memorandum Issuer & Trustee – Stronghold Investment Management Pty Ltd [ABN 76 164 389 682 & AFSL 480957

Location The property is located approximately 24 kilometres South East of the Melbourne CBD within the City of Monash. Monash has an estimated population of 186,943 and is forecast to grow by 11.12% to 207,727 by 2036. (forecast.id, 2017). Mulgrave is a central suburb within the Monash Employment Cluster which has Melbourne’s largest concentration of jobs outside the CBD (Victorian Planning Authority, 2017). Major employers within the Monash Employment Cluster include:  Monash University Clayton Campus (33,689 enrolments), Australia’s largest University and ranked in the top one per cent of world universities (1.5klm)  The Australian Synchrotron, a world-class national research facility (1.25klm)  Monash Medical Centre Clayton – a 640 bed teaching and research hospital of international standing (4.0klm)  CSIRO – Australian Manufacturing and Materials Precinct (AMMP) – a hub for a wider network of industry and research-based organisations to connect, collaborate and focus on translating research outcomes to industry (4.6klm)  The Melbourne Centre for Nanofabrication (MCN) – a $50 million investment in micro- nanotechnology infrastructure as a joint venture between six Victorian Universities and the CSIRO (1.3klm).  Australian head offices for BMW Australia, Mercedes Benz Australia/Pacific, Mazda Australia, Renault Australia, Kmart, Adidas Australia, Bristol-Myers Squibb, Energy Power Systems (Cat) and Victorian state head offices for Woolworths, Samsung, Panasonic and Canon Australia. The property offers easy access to Wellington Road, Springvale Road, the Monash Freeway and EastLink.

CLICK MAP TO VIEW IN GOOGLE MAPS CONSISTENT EMPLOYMENT GROWTH

Building Overview 13-15 Compark Circuit comprises two freestanding office buildings, each on its own title.

No. 13 is located on the western side of the site and features a distinctive blue stripe on the building’s façade. No. 15 is on the eastern side with a green stripe.

The buildings are separated by a common area featuring a recently constructed recreational/BBQ area and rear joint accessway from Gilda Court.

Internally, ground and upper level accommodation feature plasterboard walls, a combination of plasterboard and acoustic fibre ceiling tiles, recessed fluorescent lighting and ceramic tile, carpet and vinyl flooring. Each level is fully air conditioned and has natural light from 4 sides.

Identical in structure, both buildings provide two Both properties offer ample basement level car levels of modern office accommodation totalling parking plus external on grade car parking at the 2 approximately 5,851 m . front and rear of the buildings. Access to the Constructed in 2006, the structures of both basement and rear on grade car parking is via buildings feature concrete floor slabs, concrete tilt Gilda Court. panel walls, full height to façade aluminium framed A total of 226 car parks a provided at a very windows and metal deck roofing. generous ratio of 1 bay per 26 m2 of net lettable area.

Each building has a basement, ground and upper level accessed via a lift and internal stairs. Building accommodation is a mix of open plan office space, The base buildings have both been awarded 3.5 contained offices, meeting rooms, boardrooms Stars National Australia Built Environment Rating and breakout areas. All tenancies feature front System (NABERS) Energy rating. foyers with male and female amenities to the rear.

Net Lettable Areas and Parking

SITE AREA: 8,330m2 13 COMPARK 15 COMPARK

GROUND FLOOR OFFICES 1,412.9 m2 1,459.3 m2

FIRST FLOOR OFFICES 1,482.3 m2 1,496.6 m2

TOTAL NET LETTABLE AREA (APPROX): 2,895.2 m2 2,955.9 m2

BASEMENT SECURE CAR BAYS: 56 53

AT GRADE CAR BAYS 55 62

TOTAL CAR PARKING 111 115

COMBINED NLA: 5,851.1 m2

COMBINED CAR PARKING: 226 bays

Tenants Radiant, Down to Earth, Rafferty’s Garden and Trix. Globally in 2016 the company employed over 5,000 people across Africa, Europe, Asia and North America with annual revenue of £821.2m. Tyco Australia Group The company operates its head office for www.tyco.com / www.wormald.com.au Australia and New Zealand from 15 Compark Tyco is the world’s largest dedicated fire Circuit. protection, life safety and security company with 57,000 employees in more than 900 locations. In September 2016, Tyco merged with Johnson Controls, a global technology and industrial leader to become Johnson Controls International plc, a Fortune 500 company with 130,000 employees and 2016 global sales of US$37.7 billion. www.cartergrange.com.au ADT Security, a Johnson Controls/Tyco business providing home and business security Carter Grange is an established luxury home systems and personal alarms and Wormald builder offering an exclusive range of new occupy the tenancy. Wormald is a leading house designs, plans and packages in the provider of fire protection solutions in Australia greater Melbourne area to suit the taste and and has been helping to protect people and lifestyle of all clients. property for over 125 years. In 2016 Wormald The company specialises in Luxury Home was sold to Wormald International, LLC a new Designs, Custom Home Designs, Knock Downs subsidiary of Evergreen Capital. and Rebuilds and Dual Occupancy Homes.

www.pzcussons.com.au PZ Cussons is a multi-national consumer goods business with over 130 years of history. The company operates in four core categories – Personal Care, Beauty, Home Care and Food & Nutrition. Company brands in Australia and New Zealand include Imperial Leather, Morning Fresh,

Tenancy Schedule

With the highest concentration of jobs outside the Monash National Employment and Melbourne Central Business District, nationally Innovation Cluster significant facilities, important institutions and a skilled local workforce, the Monash Cluster has all Draft Framework Plan the ingredients for a successful modern business March 2017 destination. The population of metropolitan Melbourne is Growing partnerships between the major forecast to grow to 7.9 million people by 2050. Institutions of Monash University, Monash Medical The state government’s strategic planning policy, Centre, Monash Children’s Hospital, CSIRO, and Plan Melbourne 2017-2050, provides directions to Australian Synchrotron with business and successfully navigate the challenges associated affiliated research and development facilities will with this growth. unlock the future potential for growing It describes Melbourne as a city of centres linked employment and innovation in the precinct and to regional Victoria. The focus of which is to surrounds. achieve a productive city that attracts investment, Planning for the long term and strategic public and fosters innovation and creates jobs. Driving private investment will provide the potential to investment into areas with the potential to foster double the number of jobs in the precinct. With innovation and growth of the knowledge suitable buildings, services and facilities to serve a industries will help sustain an increase in jobs at new breed of worker and increased accessibility pace with population growth. for established and growing areas of Melbourne’s The Monash Cluster is one of seven major south-east it will thrive. agglomerations of health, education and The Monash National Employment and Innovation employment activities identified within Plan Cluster Framework Plan (the framework plan) sets Melbourne. Focussing on these agglomerations out a shared vison for the next 30 years to build and connecting them to bring jobs closer to where on the cluster’s key assets and boost local people live will help to reduce travel times, employment by defining actions to improve the minimise greenhouse gas emissions and enable amenity of the cluster, encouraging new services greater localisation of activities which contribute and businesses to establish, improving transport to enhanced liveability. links and public transport and creating partnership The Monash Cluster is located 20km south-east of groups to coordinate business attraction and central Melbourne and is a significant contributor investment. to the national economy. It supports Under the plan 13-15 Compark Circuit is approximately 85,000 jobs across a diverse range designated ‘High Density Employment Area of industries and contributes over $9.4 billion to Monash Technology Precinct’ and is 300 metres the Victorian economy each year. It is anticipated from the indicative preferred location of a that employment numbers within the Monash proposed ‘Future Business Town Centre.’ Cluster have the potential to double over the next 35 years. To download the Victorian Planning Authority’s Draft Framework Plan click here. (Victorian Planning Authority, 2017)

MONASH NATIONAL EMPLOYMENT AND INNOVATION CLUSTER FRAMEWORK PLAN

The Monash National Employment and Innovation Cluster will transform and modernise over the next three decades as a connected and exciting place for employment, education, innovation, leading-edge technology and research. It will be positioned as a globally competitive value- creating economy. Victorian Planning Authority

Further Investment Details

MINIMUM INVESTMENT: $100,000 (Trustee may accept lower amounts)

DISTRIBUTIONS: Every two months

TRUST TERM: 7 years

UNITS ON OFFER: 12,050,000 Units at $1 each

GEARING: Maximum 55%

INTEREST COVER: Indicative 3.3x

ISSUER AND TRUSTEE: Stronghold Investment Management Pty Ltd (ABN 76 164 389 682), holder of AFSL No. 480957.

INVESTMENT MANAGER: Stronghold Investment Services Pty Ltd (ABN 84 613 238 609)

Who Can Invest? Australian investors must fall within the definition of a ‘wholesale client’ in the Corporations Act. For foreign investors and further information contact the Manager or the Trustee. About Stronghold Stronghold Investment Services Pty Ltd (www.strongholdinvest.com.au) provides property related investment and advisory services. We specialise in Business and Technology Precincts and manage or jointly manage circa $180 million worth of quality properties in Brisbane, Melbourne and Sydney.