For Personal Use Only

CONTACT DETAILS REGISTRY

Level 16, 61 Lavender Street c/- Link Market Services Limited Ardent Leisure Trust Milsons Point NSW 2061 Level 12, 680 George Street ARSN 093 193 438 AUSTRALIA Sydney NSW 2000 Ardent Leisure Limited Telephone +61 2 9409 3670 Locked Bag A14 ABN 22 104 529 106 Investor Services 1800 ARDENT Sydney South NSW 1235 Ardent Leisure Management Limited Fax +61 2 9409 3670 Telephone 1300 720 560 ABN 36 079 630 676

www.ardentleisure.com.au [email protected] (AFS Licence No. 247010)

ASX RELEASE

27 April 2016

The Manager Company Notices Section ASX Limited 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

D’ALBORA MARINAS PORTFOLIO OVERVIEW

Please see attached for release to the market an overview prepared for the sale of the d’Albora Marinas portfolio.

Yours faithfully

Alan Shedden Company Secretary

Ardent Leisure Group is a specialist operator of leisure and entertainment assets across Australia, New Zealand and the United States. The Group owns

For personal use only use personal For and operates Dreamworld, WhiteWater World, SkyPoint, SkyPoint Climb, d’Albora Marinas, Hypoxi Body Contouring, Goodlife health clubs, AMF and Kingpin bowling centres across Australia and New Zealand. The Group also operates Main Event Entertainment, the fastest growing family entertainment chain in the United States. For further information on the Group’s activities please visit our website at www.ardentleisure.com.au

For personal use only McVay Real Estate is excited to exclusively offer for sale the a’Albora Marina Collection (the ‘Collection’ or ‘Portfolio’). This opportunity to acquire 7 of Australia’s most high profile marinas, represents the largest marina portfolio ever to be offered for sale in Australia.

The Portfolio is offered for sale by

International Expressions of Interest. For personal use only use personal For

ii/ EXECUTIVE SUMMARY

NELSON BAY AKUNA BAY

THE SPIT, MOSMAN THE LARGEST MARINA RUSHCUTTERS BAY PORTFOLIO EVER CABARITA POINT PIER 35 OFFERED FOR SALE VICTORIA HARBOUR IN AUSTRALIA

BRIEF DESCRIPTION LOCATION METHOD OF SALE ES d’Albora Marinas is Australia’s largest marina group, The 7 marinas are located exclusively in some of the For Sale by International Expressions of Interest closing consisting of a portfolio of 7 high profile marinas Australian eastern seaboard’s most popular recreational Friday 20th May 2016 at 4.00pm AEST. located in New South Wales and Victoria. Collectively, waterways, including 3 in Sydney Harbour, 2 adjacent the marinas can accommodate more than 1,400 vessels to the Melbourne CBD and a further 2 at the popular For more information please contact the exclusive and are fully supported by a range of marine, leisure leisure destinations of Nelson Bay and Akuna Bay, north sales agents below: and tourist businesses on site. of Sydney.

The Portfolio provides premium marine storage facilities PORTFOLIO DETAILS with a choice of wet berthing, dry storage, swing moorings, kayak and stand up paddle board storage. Wet Berths 923 Additionally, following a recent substantial upgrade Dry Stack Spaces 462 of The Spit marina, vessels up to 44m can now be Moorings 60 accommodated. Retail / Commercial NLA 9,232sqm For Portfolio Enquiries: Due Diligence Enquiries: Hardstand GLA 2,922sqm

Dockmaster assistance is offered at each marina as well Dan McVay Sam McVay Brock McDermott as 24/7 fuelling stations, with the exception of Victoria PORTFOLIO FORECAST FY 16 Chairman Managing Director Director, Harbour. d’Albora customers also currently benefit from NORMALISED AND PRO FORMA EBITDA McVay Real Estate McVay Real Estate McVay Real Estate

reciprocal / exchange berthing rights at each of the 7 +61 412 872 859 +61 402 613 603 +61 449 951 075 For personal use only use personal For marinas. $11,356,000* [email protected] [email protected] [email protected]

Each marina benefits from exceptional locale, strong demand, ease of access and genuine barriers to entry from additional competition.

* Underlying detail including normalisaiton and pro forma adjustments to derive normalised and pro forma EBITDA are contained on page 60 of this document.

/01 INVESTMENT IMMEDIATE AND UNRIVALLED SCALE EXCEPTIONAL QUALITY GEOGRAPHIC DIVERSIFICATION

HIGHLIGHTS The Collection is the largest marina portfolio in The Portfolio comprises some of the best and most The offering provides excellent geographic Australia. The opportunity to gain immediate scale of dominant recreational and tourism based marinas in diversification across the key marine recreation locations

this quality and magnitude in such a heavily fragmented New South Wales and Victoria. Substantial recent in Australia’s 2 most densely populated states - New For personal use only use personal For market is unlikely to be repeated in the foreseeable investment in capital expenditure has ensured each South Wales and Victoria. Australia’s eastern seaboard future. The Portfolio’s scale and quality provides a marina is of exceptional quality and specifically is the major focus of Australia’s marine market and each legitimate platform for further growth. designed for each location’s marine and land marina in the Portfolio is strategically located in the high requirements. The quality of the Collection underpins demand regions within these markets. its consistently robust berth pricing metrics compared to competitors.

02/ GENUINE REDEVELOPMENT UPSIDE LIMITED SUPPLY AND SIGNIFICANT ESTABLISHED MARINAS CONSTRAINTS TO COMPETITOR ENTRY Along with the Portfolio’s established operating base and IN PREMIUM POSITIONS core marina locations, there remain numerous genuine Given the limited locations, complexity and timeframes ON AUSTRALIA’S MOST IH

value add opportunities. Expansion, redevelopment associated with negotiating the regulatory framework For personal use only use personal For and remixing options exist and provide potential for applicable to the development of new marinas, there are BEAUTIFUL WATERWAYS driving increased returns across the Collection. The substantial barriers to entry to the marina market. The premium Portfolio locations create unique opportunities NSW Maritime’s latest growth forecasts to 2026, estimate to develop land and water assets on unparalleled an average annual growth rate in vessel ownership of waterfront positions. 2.9% in NSW. The combination of these 2 factors should continue to drive strong demand levels for marina facilities, particularly in the Portfolio’s key locations.

/03 For personal use only use personal For

04/

RUSHCUTTERS BAY ~ NSW For personal use only use personal For

/05 The property comprises 106 berths utilising a floating concrete pontoon system with 24 hour fuel facilities, pump out facilities, hardstand area and 2 levels of retail, commercial, leisure and workshop facilities. Car parking for approximately 24 vehicles is provided on

an upper floor open deck. For personal use only use personal For

06/ RUSHCUTTERS BAY

~ 1B New Beach Road, Rushcutters Bay, NSW

PREMIUM LOCATION ON SYDNEY HARBOUR WITH SPECTACULAR VIEWS OF THE ICONIC HARBOUR BRIDGE

MARINA LOCATION MARINA SUMMARY

Rushcutters Bay marina is arguably Sydney’s premier Land Area 1,492 sqm RB marina, superbly positioned only minutes to the CBD with Sydney Harbour Bridge views, flanked by parkland Marina Area 1.456 hectares and centrally located on the world famous Sydney Harbour. Rushcutters Bay is the marina of choice for Wet Berths 106 those wanting an unrivalled location in Sydney Harbour, Length of Wet Berths 8m to 36m the heart of boating in Australia. Kayak Spaces 36

Retail / Commercial NLA (sqm) 829 sqm

Hardstand Area (sqm) 511

Car Parking 24 spaces

FY 16 Forecast EBITDA(1) $2,002,000

FY 16 Normalised EBITDA(1) $2,238,000

FY 16 Normalised and Pro Forma EBITDA(1) $2,004,000 For personal use only use personal For

(1) FY 16 Forecast EBITDA represents 8 months actual results and 4 months forecast results for the financial year ending 30 June 2016. Underlying detail including normalisation and pro forma adjustments to derive normalised and pro forma EBITDA are contained on page 60 of this document

/07 LEASE OVERVIEW

Water Component Land Component

Lessor NSW Roads and Maritime Services Lessor The State of NSW - Crown Land

Commencement Date 12 July 2016 (current lease expires 11 July 2016) Commencement Date 1 January 2016

Expiry Date 11 July 2041 Expiry Date 31 December 2040

Ter m 25 years Ter m 25 years

Extension Up to 15 years based on the level of capital Extension Up to 15 years based on capital investment on the investment on the Marina in accordance with RMS land and buildings by 1 January 2023 Policy Area 1,492 square metres Base Rent Variable turnover based rent calculated on various categories of revenue. Rental discount based Base Rent Fixed base rent increasing annually by CPI on eligibility under Sydney Harbour Boating Turnover Rent 8% of turnover Destinations Plan Outgoings Payable in full by Lessee Improvement Rent 10% of revenue excluding fuel revenue, reducing to 5% based on capital investment Permitted Use Business Purposes

Outgoings Payable in full by Lessee

Permitted Use 106 Berth multi-armed floating pontoon facility including industrial hardstand, boat lift, fuel facility, sewerage pump out facility, kayak storage, boat brokerage, marine related services and hardstand used for outdoor dining and operating in accordance

with all relevant Planning Approvals For personal use only use personal For

08/ Artist’s impression

Artist’s impression Artist’s impression For personal use only use personal For

/09 RB

BERTHING PLAN For personal use only use personal For

10/ MARINA OPPORTUNITIES

~ Refurbishment or redevelopment of the existing land improvements (STA)

~ This site has the potential for being a world class waterfront lifestyle precinct – the most iconic marina in Australia and the jewel in the Portfolio’s crown

~ Remix and resizing of wet berths to better tailor the marina to the upper echelon of Australia’s marina users. This should increase berthing margins as well as lower operating costs (STA)

Retail - Office - Function - Dining

Marina Resize For personal use only use personal For

/11 For personal use only use personal For

12/

THE SPIT, MOSMAN ~ NSW For personal use only use personal For

/13 A concrete floating Bellingham designed marina comprising 192 wet berths, 60 moorings, kayaks, fuel and pump out facility. In late 2015, the marina facility underwent a multimillion dollar transformation, which substantially improved the existing infrastructure and amenities and also remixed the wet berths available. The redevelopment included the creation of a Premium Berthing Arm with 22 x 25m, and 29 x 15m berths and 3 superyacht berths to 40m, a floating member lounge / recreation area and a new state of the art high speed fuelling system and floating berth for improved fuel access. Minor redevelopment works on the roadside of the marina entrance are scheduled for completion in July 2016. A new lease of 35 years will be executed upon completion.

Land based improvements include a 2 level office and retail building with a hardstand and slipway. The retail includes the MIAA award winning ‘Marina Restaurant of the Year’, 2 Hat Restaurant Ormeggio at The Spit. A substantial public car park is located nearby, with limited on site car parking.

A current Development Approval provides for further berth resizing and expansion of the marina to 200 berths, hardstand over

the water and new workshop space. For personal use only use personal For

14/ THE SPIT

The Spit Marina, Spit Road, Mosman NSW

THE GATEWAY MARINA FOR LEISURE CRUISING ON SYDNEY’S PICTURESQUE MIDDLE HARBOUR

MARINA LOCATION MARINA SUMMARY

The Spit marina is located in the exclusive Sydney Combined Wet And Land Area 3.361 hectares TS suburb of Mosman, offering a centrally located Middle Harbour address. The marina provides easy access to Wet Berths 192 Sydney Harbour and a spectacular vista as you cruise out of the Sydney Harbour Heads, and is within 15 Length of Wet Berths 8m to 40m minutes drive of the Sydney CBD. Kayak Spaces 32

Mooring Licences 60

Retail / Commercial NLA (sqm) 798

Hardstand Area (sqm) 555

Car Parking 9

FY 16 Forecast EBITDA(1) $2,165,000

FY 16 Normalised EBITDA(1) $2,299,000

FY 16 Normalised and Pro Forma EBITDA(1) $2,599,000 For personal use only use personal For

/15 LEASE OVERVIEW

Lessor NSW Roads and Maritime Services

Current Lease Expiry Date 31 August 2027 (all 3 existing leases comprising the Marina expire on this date)

New Lease Lessor and Lessee are parties to an Agreement for Lease entered into in November 2014 governing the Lessee’s redevelopment works and pursuant to which a new long term Lease will be executed upon completion of the current roadside works and registration of the new plan, which will consolidate the 3 existing leases into 1

New Lease Commencement Estimated September 2016

New Lease Term 35 years (25 year minimum term for marina leases plus an additional 10 years based on THE SPIT redevelopment capital expenditure to date)

Extension Further redevelopment capital expenditure will entitle the Lessee to a further 5 year tenure, extending the new Lease to a maximum term of 40 years to 2056 SYDNEY CBD

Rent under New Lease Variable turnover based rent calculated on various categories of revenue. Rental discount based on eligibility under Sydney Harbour Boating Destinations Plan

Outgoings Payable in full by Lessee

Permitted Use Operation in accordance with all relevant legislation, the project approval and development consent of a commercial marina, travel lift, its associated hard stand and decking, car parking, boat brokerage, maintenance and repairs, refuelling and sewage

pump out facilities, kayak storage, restaurant and kiosk and commercial offices For personal use only use personal For

16/ For personal use only use personal For

/17 TS

CONCEPTS For personal use only use personal For

18/ MARINA OPPORTUNITIES

~~Complete redevelopment of existing land improvements to create greater retail and dining amenities (STA)

~~DA approval current for:

- further berth resizing and expansion of the northern edge of the marina to increase total berths to 200

- creation of a hardstand area and new workshop space over the water to the northern end of the marina

~~Addition of berthing infrastructure to northern end of

the marina For personal use only use personal For Retail - Office - Function - Dining Marina Extension

/19 For personal use only use personal For

20/

CABARITA POINT ~ NSW For personal use only use personal For

/21 A concrete floating Bellingham designed marina comprising 86 wet berths across 4 marina arms:

~ Strata Lot Lease - 28 berths within a 72 berth strata plan positioned across Arms A & B;

~ C & D Arm Lease - 58 berths; and

~ A fuel dock and pump out facility.

Land based improvements include a predominantly single level retail building, consisting of a restaurant, bar & kiosk offering.

The management of the shore facilities and Arms A & B is conducted by d’Albora Marinas under a For personal use only use personal For Marina Management Agreement with the body corporate of the strata plan.

22/ CABARITA POINT

138 Cabarita Road, Cabarita Point, NSW

THE MOST DESIRABLE MARINA TO ENJOY SYDNEY’S VIBRANT INNER WEST LIFESTYLE

MARINA LOCATION MARINA SUMMARY

Cabarita Point Marina is situated in Sydney’s affluent Shore Facilities and Fuel Pontoon 1,237 sqm CP inner west on the Parramatta River, nestled in stunning parklands with excellent access to fine dining and an Marina Area A & B Strata: 1.121 hectares Olympic size swimming pool. C & D Non-Strata: 1.512 hectares

The marina offers boat owners the opportunity to be Wet Berths 86 centrally located to Sydney Harbour, in close proximity Length of Wet Berths 10m to 45m to Sydney Olympic Park and a convenient drive from the city (approximately 25 minutes). Its customer base is Retail / Commercial NLA (sqm) 311 largely derived from Sydney’s inner west. Car Parking Adjacent public car park

FY 16 Forecast EBITDA(1) $892,000

FY 16 Normalised EBITDA(1) $892,000

FY 16 Normalised and Pro Forma EBITDA(1) $892,000

(1) FY 16 Forecast EBITDA represents 8 months actual results and 4 months forecast results for the financial year ending 30 June 2016. Underlying detail including normalisation and pro forma

adjustments to derive normalised and pro forma EBITDA are contained on page 60 of this document For personal use only use personal For

/23 LEASE OVERVIEW

Strata Lot Leases (28 separate but identical leases) Shore Facilities Sub Lease C & D Arm Head Lease

Lessor NSW Roads and Maritime Services Sub-Lessor The Owners of Strata Scheme Lessor NSW Roads and Maritime 50237 Services Commencement 12 July 2010 Date Commencement Date 13 July 2010 Commencement Date 12 July 2010

Ter m 15 years Ter m 14 years and 363 days Ter m 25 years

Terminating Date 11 July 2025 Terminating Date 10 July 2025 Terminating Date 11 July 2035

Options Nil, however the Head Lessor (RMS) Options Nil, however the Head Lessor Extension Up to 15 years based on the has indicated in principle approval (RMS) has indicated in principle level of capital investment on to the joint application by the body approval to the joint application the Marina in accordance with corporate and d’Albora Marinas to by the body corporate and RMS Policy separate the Shore Facilities from the d’Albora Marinas to separate the balance of the Common Property Shore Facilities from the balance Rent Variable turnover based rent on and enter into new 25 year leases of the Common Property and various categories of revenue. with each of (i) d’Albora in relation enter into new 25 year leases Rental discount based on to the Shore Facilities (ii) the body with each of (i) d’Albora in eligibility under Sydney Harbour corporate in relation to the balance relation to the Shore Facilities Boating Destinations Plan of the Common Property; and (iii) (ii) the body corporate in relation Permitted Use Operation of a 58 berth each of the strata berth lot owners to the balance of the Common commercial marina in Property; and (iii) each of the Rent $1 pa accordance with all relevant strata berth lot owners legislation, project approval and Strata Levies Levies payable based on lot Rent Minimum rent $100 pa development consent entitlements in the strata scheme. Such levies cover the body Permitted Use The operation of a marina Outgoings Payable in full by Lessee corporate’s rent to the head landlords including without limitation the and repair/maintenance expenses business of a restaurant or club for the Common Property/Marina or both, shipwright, boat sales infrastructure and brokerage, dinghy storage and tender service and all other Permitted Use Berthing and mooring of a vessel activities associated with the operation of a marina

Outgoings 26% of strata outgoings For personal use only use personal For

24/ For personal use only use personal For

/25 CP

BERTHING PLAN For personal use only use personal For

26/ MARINA OPPORTUNITIES

~~Construction of an additional marina arm south of Arm D, creating an additional 30-40 berths approximately (STA)

~~Expansion of land improvements and increase retail / food & beverage offering (STA)

~~Introduction of popular kayak and stand up paddleboard storage to increase berthing income for minimal capital expenditure

Retail - Dining

Marina - Stage 1 For personal use only use personal For

/27 For personal use only use personal For

28/

AKUNA BAY ~ NSW For personal use only use personal For

/29 Akuna Bay marina is a concrete floating designed marina that currently comprises 219 wet berths, a fuel and pump out facility and a 169 space dry store facility.

Land based improvements include a 2 level office and retail building and a hardstand, with car parking provided on

an adjacent vacant site. For personal use only use personal For

30/ AKUNA BAY

Liberator General San Martin Drive, Ku-ring-gai Chase, NSW

ENVELOPED BY PRISTINE NATIONAL PARK SCENERY, WITH IMMEDIATE ACCESS TO THE HAWKESBURY RIVER SYSTEM AND THE PACIFIC OCEAN

MARINA LOCATION MARINA SUMMARY

Set within a superb national park, just a 1 hour drive Land Area 1.313 hectares AB north of Sydney CBD, the serene Akuna Bay marina is located in the picturesque Cowan Creek off the Marina Area 5.515 hectares Hawkesbury River in the Ku-ring-gai Chase National Park. The marina mainly services the North Shore and Wet Berths 219 Northern Beaches of Sydney and provides quick and Length of Wet Berths 8m to 25m easy access to both the Hawkesbury River system, the Pittwater and the Pacific Ocean. Dry Store Spaces 169

Retail / Commercial NLA (sqm) 1,172

Hardstand NLA (sqm) 672

Car Parking 221

FY 16 Forecast EBITDA(1) $2,076,000

FY 16 Normalised EBITDA(1) $2,123,000

FY 16 Normalised and Pro Forma EBITDA(1) $2,123,000 For personal use only use personal For

/31 LEASE OVERVIEW

Lessor NSW National Parks

Commencement Date 1 January 2011

Ter m 25 Years

Terminating Date 31 December 2035

Option 15 years AKUNA BAY Works Lessee obliged to carry out specified redevelopment works. Such works to be substantially commenced by August 2019 and June 2020 respectively pursuant to 2 separate National Parks and Wildlife Determination Notices

Permitted Use Marina comprising up to 400 vessels (wet and dry), associated marina services, restaurants, fuel sales, provision of public services, boat hire, supply of potable water and other ancillary and incidental marina uses

Base Rent Fixed amount per annum indexed to CPI

Turnover Rent Variable turnover percentage rent on various categories of Marina revenue

Outgoings Payable in full by Lessee SYDNEY Market Rent Review The base and turnover rent percentages may be varied by market review on the CBD

following dates: 1 July 2023, 1 July 2030, 1 July 2035, 1 July 2043 For personal use only use personal For

32/ For personal use only use personal For

/33 CP

BERTHING PLAN For personal use only use personal For

34/ MARINA OPPORTUNITIES

~~Remix and resizing of wet berths to better tailor the marina to customer demand (STA)

~~Potential for ecotourism on the land improvements, both the existing car parking area and the land adjoining the marina (STA)

~~Expansion of the marina to the north, in line with the Lease boundary

~~Remixing of existing retail tenants, given the recent success of Pilu at Akuna Bay, a function centre owned and operated by the celebrated Sydney chef, Giovanni Pilu

Ecotourism Marina Extension - Stage 1

Marina Extension - Stage 2 For personal use only use personal For

/35 For personal use only use personal For

36/

NELSON BAY ~ NSW For personal use only use personal For

/37 A concrete floating Bellingham designed marina comprising 194 wet berths, fuel and pump out facility. Land based improvements include 2 x 2 level retail buildings and a hardstand.

Car parking is provided on the subject

site and via an adjacent public car park. For personal use only use personal For

38/ NELSON BAY

6 Teramby Road, Nelson Bay, NSW

THE EPICENTRE OF PORT STEPHEN’S MARINA AND DINING SCENE

MARINA LOCATION MARINA SUMMARY

Nelson Bay is 2 and a half hours drive north of the Combined Land and Marina Area 4.347 hectares NB Sydney CBD in the popular tourism destination of Port Stephens. A major domestic airport, Newcastle Airport, Wet Berths 194 is only a 20 minute drive from the marina with direct flights from Brisbane, Sydney and Melbourne. Length of Wet Berths 8m to 35m Retail / Commercial NLA (sqm) 3,831 Nelson Bay marina is the recreation focal point of the community and NSW’s largest marine tourism and Function Centre (sqm) 588 sqm dining precinct north of Sydney. Crows Nest Apartment (sqm) 185 sqm

Car Parking 97

FY 16 Forecast EBITDA(1) $2,550,000

FY 16 Normalised EBITDA(1) $2,725,000

FY 16 Normalised and Pro Forma EBITDA(1) $2,945,000

(1) FY 16 Forecast EBITDA represents 8 months actual results and 4 months forecast results for the financial year ending 30 June 2016. Underlying detail including normalisation and pro forma

For personal use only use personal For adjustments to derive normalised and pro forma EBITDA are contained on page 60 of this document

/39 LEASE OVERVIEW

Lessor NSW Crown Land

Commencement Date 29 September 2009

Ter m 20 years and 50 days

Terminating Date 17 November 2029 NELSON BAY Options Nil 2.5 HOURS Permitted Use Commercial Marina BY CAR

Outgoings Payable in full by Lessee

Base Rent Fixed amount per annum, increased annually by CPI

Market Rent Review Market review every 3 years SYDNEY CBD

Turnover Rent None For personal use only use personal For

40/ For personal use only use personal For

/41 NB

BERTHING PLAN For personal use only use personal For

42/ MARINA OPPORTUNITIES

~~Potential to expand marina management footprint

~~Potential to negotiate extended tenure from Crown Land in return for redevelopment commitment

~~Potential to drive business through local events including fishing competitions, as well as social

events at the recently completed d’Albora owned, For personal use only use personal For function centre on site

Retail - Dining

/43 For personal use only use personal For

44/

PIER 35 ~ VIC For personal use only use personal For

/45 The Pier 35 marina is a modern concrete floating Bellingham design which comprises a total of 77 wet berths and a fuel and pump out facility. There are 19 berths that are subject to longer term sub licence agreements, which revert back to d’Albora Marinas at the end of their term (89% of which revert back by 2020).

Land based improvements include a large 2 level office and retail building and an adjoining 293 bay dry stack facility. Car parking is provided on land adjacent the marina. Opportunity exists (STA) to

For personal use only use personal For expand dry storage or create a hardstand area.

46/ PIER 35

Pier 35, 263 - 329 Lorimer Street, Port Melbourne

IDEAL LOCATION TO MELBOURNE’S PORT PHILLIP BAY, THE EPICENTRE OF BOATING IN VICTORIA

MARINA LOCATION MARINA SUMMARY

The Pier 35 marina is on the southern bank of the Land Area 2.787 hectares P35 Yarra River, directly south of the Port Melbourne Terminals and has frontage to Lorimer Street. It is Marina Area 2.579 hectares 5.5 km south west of the Melbourne CBD with an approximate drive time of 10 minutes. Wet Berths 77, with 19 on long term sub-lease agreements Length of Wet Berths 12m to 38m The precinct is a mix of semi industrial, office warehousing and is just north of Fisherman’s Bend Dry Store Spaces 293 which has been master planned for a 40 year urban renewal project. Retail / Commercial NLA (sqm) 2,231 Hardstand Area (sqm) 2,020

Vacant Land 2,400 sqm

Car Parking Water front - 50 spaces Office building - 37 spaces

FY 16 Forecast EBITDA(1) $2,107,000

FY 16 Normalised EBITDA(1) $2,207,000

For personal use only use personal For FY 16 Normalised and Pro Forma EBITDA(1) $2,250,000

/47 LEASE OVERVIEW

Lessor Port of Melbourne Corporation

Commencement Date 1 April 2015

Ter m 21 years MELBOURNE CBD

Terminating Date 31 March 2036

Option Nil VICTORIA HARBOUR Permitted Use Industrial Marine Park and ancillary uses including storage of boats, repair and PIER 35 maintenance of boats, boat building, sail making and repairs, boat detailing, boat charters, convenience store, mooring and offices

Base Rent Fixed annual base rent and fixed licence fee

Rent Review Base rent increased annually by fixed 3% Market review of base rent in January 2017, 2022, 2027 and 2032

Outgoings Payable in full by Lessee

First right of refusal The Lessee has the first right to purchase the freehold of the land at market value if

offered for sale For personal use only use personal For

48/ For personal use only use personal For

/49 P35

BERTHING PLAN For personal use only use personal For

50/ MARINA OPPORTUNITIES

~~Redevelopment of vacant land to the northern end of the site can be utilised as boat lift, boat repair / hardstand use (STA)

~~Redevelopment of current car parking area to a double storey retail/commercial/leisure precinct (STA)

~~Extension of the marina to the south to allow for 20 additional berths (STA)

For personal use only use personal For Retail - Office - Function - Dining Hardstand - Ship lift Marina Extension

/51 For personal use only use personal For

52/

VICTORIA HARBOUR ~ VIC For personal use only use personal For

/53 The Victoria Harbour marina is a modern concrete floating Bellingham design which comprises 72 wet berths, including 3 T Heads. The marina office, member lounge and amenities are located in

nearby leased premises. For personal use only use personal For

54/ VICTORIA HARBOUR

Victoria Harbour, 28 Cumberland Street, Docklands, Melbourne

EXCELLENT PROXIMITY TO THE MELBOURNE CBD AND SURROUNDED BY A VIBRANT DINING AND ENTERTAINMENT PRECINCT

MARINA LOCATION MARINA SUMMARY

The marina is located on the southern shore of Marina Area 1.831 hectares VH Victoria Harbour, a mere 1.1 kms west of Southern Cross Railway Station, within the Victoria Harbour Wet Berths 72 precinct of Docklands, one of Australia’s largest urban renewal projects. Effectively forming an extension of Length of Wet Berths 12m to 30m the Melbourne CBD, with Collins and Bourke Streets Retail / Commercial NLA (sqm) 20 central to the area, it forms part of a vibrant mix of residential, office, retail and community open space. FY 16 Forecast EBITDA(1) $335,000

FY 16 Normalised EBITDA(1) $414,000

FY 16 Normalised and Pro Forma EBITDA(1) $414,000

(1) FY 16 Forecast EBITDA represents 8 months actual results and 4 months forecast results for the financial year ending 30 June 2016. Underlying detail including normalisation and pro forma

adjustments to derive normalised and pro forma EBITDA are contained on page 60 of this document For personal use only use personal For

Artist’s impression

/55 LEASE OVERVIEW The marina office and amenity facilities are currently let under the following third party lease:-

Sub-Lessor Lend Lease Development Pty Ltd (under Head Lease Leased Land Apartment 13 and related parking space, Dock 5, from Vic Urban) Victoria Harbour Docklands

Commencement Date 31 December 2006 Terminating Date 21 December 2016

Ter m 20 years Permitted Use Commercial office and club room facilities

Terminating Date 30 December 2026 Outgoings Paid by Lessee

Option 4 years Rent Fixed rent, reviewed annually by CPI

Permitted Use Boating hub and a commercial, residential and Market Rent Review 22 December 2018, 2021, 2024 visitor’s marina and related activities (as approved by Vic Urban and Lend Lease) Options 2 x 5 years to align with Marina Lease

Outgoings Payable in full by the Sub Lessee

Rent $1 per annum (Marina was built at Sub Lessee’s cost and a development fee was paid to Lend Lease)

Public & Private Berths The Sub Lessee is to ensure there are at least 62 MELBOURNE CBD private berths and 10 public berths

Future Marina The Sub Lessee has a first right of refusal in respect of any future Marina stages that Lend Lease elects to develop at Victoria Harbour. If a future stage is VICTORIA HARBOUR developed the Sub Lessee must relocate part of the PIER 35 existing Marina infrastructure which is temporary

Marina Amenities The Sub Lessee must maintain marina amenities including an office within the Victoria Harbour Precinct, and Lend Lease must ensure adequate

For personal use only use personal For premises are available for the Sub Lessee

56/ For personal use only use personal For

/57 VH

BERTHING PLAN For personal use only use personal For

58/ MARINA OPPORTUNITIES

~~Expand Marina to the west, to allow for an additional 69 berths (subject to Victoria Harbour masterplan)

~~Creation of floating retail / commercial area (STA) on the southern end of the easternmost marina Arm. This could house the management office, which is currently rented from a third party, or a retail / commercial user (from which interest has already been received)

~~Introduction of popular kayak and stand up paddleboard storage to increase berthing income for minimal capital

expenditure For personal use only use personal For

Floating Office / retail Marina Extension

/59 FINANCIAL SUMMARY

REVENUE BY TYPE FY 16 FORECAST PERFORMANCE BY MARINA(1)

Victoria Cabarita Rushcutters Fuel $’000 Akuna Bay Nelson Bay Pier 35 Harbour Point Bay The Spit Corporate Total 20% Water 2,796 1,876 2,191 578 1,365 2,035 2,481 - 13,321 Land 396 2,171 880 10 284 775 648 - 5,165 Fuel 409 1,223 871 - 197 1,107 794 - 4,602 Other 20 231 6 4 10 27 24 7 329 Total Revenues 3,622 5,501 3,949 592 1,855 3,945 3,947 7 23,417 Business Costs Water COGS (336) (1,053) (684) (2) (167) (866) (642) - (3,750) 57% Land 22% Other Operating And Overhead Costs (806) (1,491) (640) (179) (374) (606) (787) (1,881) (6,763) Total Business Costs (1,142) (2,544) (1,324) (181) (541) (1,473) (1,428) (1,881) (10,513) Property Costs (404) (407) (518) (76) (423) (470) (353) (100) (2,753) Other FY 16 Forecast EBITDA(1) 2,076 2,550 2,107 335 892 2,002 2,165 (1,974) 10,152 1%

The table below presents FY 16 forecast EBITDA adjusted: FY 16 NORMALISED AND PRO FORMA EBITDA BY MARINA ~~ to remove items which management considers one off/abnormal in nature, or not forming part of the business’ normal operating activities to derive FY 16 normalised EBITDA; and

~~ to reflect embedded revenue and costs in the business that management expects will be generated and incurred respectively in the future to derive FY 16 normalised Rushcutters Bay The Spit and pro forma EBITDA. 15% 20% Both these adjustments should be considered subjective and judgmental. Cabarita Point 7% FY 16 NORMALISED AND PRO FORMA EBITDA BY MARINA

Victoria Harbour Akuna Bay Victoria Cabarita Rushcutters 3% 16% $’000 Akuna Bay Nelson Bay Pier 35 Harbour Point Bay The Spit Corporate Total FY 16 Forecast EBITDA(1) 2,076 2,550 2,107 335 892 2,002 2,165 (1,974) 10,152 Normalisation Adjustments(2) 47 176 100 79 - 236 134 - 772 Pier 35 17% FY 16 Normalised EBITDA 2,123 2,725 2,207 414 892 2,238 2,299 (1,974) 10,923 (3)

Nelson Bay Pro Forma Adjustments - 220 43 - - (233) 300 103 433 For personal use only use personal For 22% FY 16 Normalised and Pro Forma EBITDA 2,123 2,945 2,250 414 892 2,004 2,599 (1,871) 11,356

Note: (1) FY 16 Forecast Performance represents 8 months actual and 4 months forecast results for the financial year ending 30 June 2016. Amounts are presented in $’000’s and therefore may contain rounding differences. (2) Main adjustments include the normalisation of: Rushcutters Bay land revenue, which was impacted in FY 16 by delays in completing the new head lease for that marina; redundancy and back pay payments made at Nelson Bay; start-up costs of a new function centre at Nelson Bay; berth and fuel income at The Spit, which was impacted in FY 16 by redevelopment works; Victoria Harbour berth income, which was disrupted during the first half of FY 16 due to adjacent building construction; the overstatement of land tax at Pier 35; and a number of other one-off items. (3) Pro forma adjustments include: the future annual EBITDA uplift at The Spit that management expects to achieve as a result of that marinas redevelopment in FY 16, through a combination of increased average yield and occupancy; the net income management expects the new Nelson Bay function centre, which opened in FY 16, will contribute once matured; incremental annual rent that will be payable at Rushcutters Bay above FY 16 rent following the recent head lease renewal of that marina; incremental revenue from kayak storage at Rushcutters Bay; and a number of other smaller items.

60/ MARINA MARKET COMMENTARY

THE BOATING INDUSTRY IN AUSTRALIA CONTINUES TO FLOURISH, BENEFITING FROM SUSTAINED INCREASES IN BOTH COMMERCIAL AND RECREATIONAL USE THAT CONTRIBUTE AN ESTIMATED $8 BILLION TO THE AUSTRALIAN ECONOMY EVERY YEAR.

Across Australia, there are over 1 million boat licences and 850,000 registered boats with limited options for quality vessel storage. Importantly, given the complexity in the development approval process and limited green field sites, there are substantial barriers to entry, particularly in strategic locations and this ensures long term high demand for existing marina facilities. MC

Based on the latest 2013 HAMI [W1] Survey, Australian marinas average occupancy rates were 83%. Further, a high percentage of key marinas were at full capacity, not able to accommodate additional boats during 2012-2013, illustrating the considerable pent up demand in the market and the resilience of the asset class as a whole.

In terms of additional demand drivers, there has been a significant shift over the past 20 years in vessel size and there is genuine demand for larger berths. Only 20 per cent of Australian marinas were able to accommodate superyachts (>24m) and only half of those can accommodate 4 or more superyachts at a time. Where permissible, marinas are changing berthing configurations to larger berths and adding

For personal use only use personal For further onshore amenities, (i.e. food and beverage outlets), to cater for this very lucrative leisure sector of the market.

/61 SALES PROCESS

A 100% interest in the a’Albora Marina Collection is INFORMATION TO BE PROVIDED For more information please contact the exclusive offered for sale by International Expressions of Interest, sales agents below: with the Portfolio to be sold in one line. Any interested Party must specify the following information in any EOI submitted: Please note the vendor reserves the right to accept or reject any bid or withdraw from the sale process or 1. The name of the interested Party submitting the EOI amend the terms and conditions of the process at any together with: time without notice. ~~ The principals supporting that interested party;

For Portfolio Enquiries: Due Diligence Enquiries: FORMAL ASSET PRESENTATIONS ~~ Details of the holding company or entity if the (ONSITE) interested Party (or any part of a interested Party) is a Dan McVay Sam McVay Brock McDermott Via appointment. subsidiary of part of the group of companies; Chairman Managing Director Director, McVay Real Estate McVay Real Estate McVay Real Estate SP ~~ Details of all beneficiaries if the interested Party (or +61 412 872 859 +61 402 613 603 +61 449 951 075 EXPRESSIONS OF INTEREST CLOSE any part of the interested Party) submits the EOI as the [email protected] [email protected] [email protected] Expressions of Interest (EOI) close at 4.00 pm (AEST) Trustee of a Trust; on Friday 20th May 2016. ~~ All major consultants to that interested Party. www.mcvayre.com.au/marinas

ACQUISITION STRUCTURE 2. The price the interested Party is offering for the The sale of the Portfolio will be by way of sale of acquisition of the Portfolio. the vendor’s interest in the Portfolio assets with the purchaser to receive the benefit of the marina 3. General financial information evidencing the interested headleases as well as the subtenancy agreements, Party’s ability to complete the acquisition of the berthing agreements, leasehold improvements, Portfolio. equipment, other business assets and staff. 4. Details of any conditions to be satisfied or approvals required for the interested Party to proceed with the acquisition (eg. FIRB, board or trustee approval) and, where there are 1 or more conditions to be satisfied

or approvals required, details for the process of the For personal use only use personal For interested Party in satisfying the conditions or obtaining the approvals.

5. The name, postal address, telephone number, and email address of a contact person for the interested Party.

62/ This document has been prepared by Ardent Leisure Limited, Ardent Leisure Trust and McVay Real Estate to provide the recipient with summary information about the Portfolio current as at the date of this document, unless otherwise stated.

The information contained in this document is for information purposes only. The information contained in this document is of a general background nature and does not purport to be complete. The information contained in this document does not constitute investment or financial product advice (nor taxation or legal advice) and is not intended to be used as the basis for making an investment decision. In all cases, each recipient should conduct its own investigation and analysis of the Portfolio and should seek its own independent legal, tax and financial advice.

No representation or warranty, express or implied, is made as to the accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained in this document. Neither Ardent Leisure Limited, Ardent Leisure Trust, their respective related bodies corporate (as defined in the Corporations Act 2001 (Cth)), shareholders or affiliates, nor any of the aforementioned persons’ respective officers, directors, employees, affiliates, partners, representatives, consultants, agents or advisers (each a Limited Party) guarantees or makes any representations or warranties, express or implied, as to, or takes responsibility for, the accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained in this document. The Limited Parties do not represent or warrant that this document is complete or that it contains all material information about the Portfolio.

To the maximum extent permitted by law, each Limited Party expressly disclaims any and all liability, including, without limitation, any liability for any loss or damage (whether foreseeable or not and whether direct, indirect or consequential) whatsoever arising from any use of the information contained in this document. The recipient agrees for itself and its representatives that it shall not directly or indirectly seek to sue or to hold any Limited Party liable in any respect whether in tort (including negligence), contract, statute or otherwise by reason of the provision or use of the information contained therein, and releases each Limited Party from such claims, in each case to the maximum extent permitted by law and except as may be agreed in a definitive transaction document.

This document contains forward looking statements, comments about future events and opinions, including expectations about the performance of the Portfolio. Forward looking statements involve inherent risks and uncertainties, both general and specific, and there is a risk that such predictions, forecasts, projections and other forward looking statements will not be achieved. Forward looking statements are provided as a general guide only, and should not be relied on as an indication or guarantee of future performance. As such, reliance should not be placed on any forward looking statement. Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward looking statements, forecast financial information or other forecast. The forward looking statements have been made subject to assumptions and to adjustments as described further in this document.

Neither this document nor any of the information contained herein shall form the basis of any contract or commitment. For personal use only use personal For

/63 For Portfolio Enquiries: Due Diligence Enquiries:

Dan McVay Sam McVay Brock McDermott Chairman Managing Director Director, For personal use only use personal For McVay Real Estate McVay Real Estate McVay Real Estate +61 412 872 859 +61 402 613 603 +61 449 951 075 [email protected] [email protected] [email protected]