INFORMATION MEMORANDUM A VISIONARY INVESTMENT 1-5 RAILWAY STREET, CHATSWOOD FOR SALE PAGE 1 CHATSWOOD CENTRAL 01. EXECUTIVE SUMMARY . 6 02. LOCATION . 10 03. THE PROPERTY . 16 04. FINANCIAL INFORMATION . 22 05. ARCHITECTURAL VISION . 24 06. MARKET OVERVIEW . 28 07. SALES PROCESS . 30 PAGE 2 INFORMATION MEMORANDUM Chatswood Central is a world class investment opportunity, situated directly adjacent to Sydney’s major north shore transport interchange. Generating secure income from two office On behalf of Taverners Value Funds, selling towers and a dynamic retail podium, Chatswood agents CI Australia and Colliers International Central also offers future potential to stage a invite interested parties to submit Expressions statement development scheme that will link the of Interest to purchase the longterm leasehold eastern and western precincts and redefine the interest of Chatswood Central, 1-5 Railway Street Chatswood skyline. by 4pm (AEDT) Thursday 30th March 2017. It is quite simply the finest and most prestigious For further information or to schedule an commercial property location in Chatswood. inspection please contact the exclusive agents: Bevan Kenny Jon Chomley +61 411 223 213 +61 412 219 830 [email protected] [email protected] Chris Veitch Steam Leung | +61 434 566 355 +61 412 236 138 [email protected] [email protected] PAGE 3 CHATSWOOD CENTRAL The finest location in Chatswood PAGE 4 INFORMATION MEMORANDUM PAGE 5 CHATSWOOD CENTRAL 01. EXECUTIVE SUMMARY Address Description Chatswood Central Chatswood Central consists of two commercial 1-5 Railway Street, Chatswood office towers linked by a retail podium and New South Wales, Australia basement parking accessed from Railway Street. Zoning Location B3 Commercial Core Chatswood is located on Sydney’s lower North Shore approximately 10km north of the Sydney CBD. Title The property is situated on the western side of Lot 101 DP 1094273 Chatswood Railway Interchange close to Victoria Avenue with a corner frontage to Help Street, providing immediate access to public transport Net Lettable Area and the Chatswood retail precinct. Retail 1,691.1 sqm Site Area Gym 1,875.5 sqm Office 14,520.1 sqm 3,806.6 sq m Storage 160.9 sqm Total 18,247.6 sqm Typical Floor Plate Car Parking 660 sqm approx 103 spaces reflecting 1:140sqm of office space Tenants WALE 11 retail tenants, 80 office tenants and 3 years (by income) a gymnaisum Occupancy Estimated Net Income 96% $7.63 Million p.a. (fully leased) NABERS Rating Outgoings $2,256,368 p.a ($123.65/sqm) 4 Stars PAGE 6 INFORMATION MEMORANDUM PAGE 7 CHATSWOOD CENTRAL A Visionary Opportunity in Australia’s Internationally Renowned Mixed Use Precinct The Finest Location in Secure and Diversified Chatswood Income Mix Chatswood Central is located immediately Comprising two multi-let office towers, a popular adjacent to the Chatswood Interchange, a retail podium and basement parking, the asset strategic transport node, integral to the new generates secure and diversified income. Sydney Metro railway system. No other office scheme in the area can boast of such a central and prestigious location. 96% Occupied with a 3 year W.A.L.E. Testament to its strong property fundamentals, Immediate Access to the property is 96% leased to a range of global, national and local tenants and has a weighted Retail Amenity average lease expiry by income of 3 years. Tenants have immediate access to a range of restaurants within Chatswood Central’s ‘Eat Robust Tenant Retention Street’ retail podium and benefit from the convenience of a childcare centre, gym and Chatswood Central’s tenant renewal rate is coffee shops within the complex. tracking at 92% financial year to date. It is a short stroll along Victoria Avenue to the major shopping centres of Westfield and Chatswood Chase which anchor Australia’s second largest retail precinct. PAGE 8 INFORMATION MEMORANDUM Forecast Rental Limited Capex Growth Requirement Chatswood has one of the lowest vacancy rates Chatswood Central has benefited from of the north shore markets at only 7.7%*(PCA pro-active management, resulting in upgrades January 2017). Limited new office development to and replacement of plant and machinery and withdrawals of commercial property including the air-conditioning, lifts and from the market for residential conversion is escalators. translating into effective rental growth and lease renewal by existing tenants. A Pathway to Freehold or to The Vision – Redefine Extend the Ground Lease the Chatswood Skyline Chatswood Central is currently held under Whilst securely leased for the medium term, a leasehold title from Railcorp, however the the large 3,806 sqm site provides tremendous building owner has had extensive dialogue with future potential to stage an iconic transport Railcorp and there is a known pathway for the orientated development (TOD) linking the retail new owner to either freehold the title or to precinct situated east of the railway line to the extend the ground lease term. commercial CBD on the western side, redefining the Chatswood skyline. PAGE 9 CHATSWOOD CENTRAL 02. LOCATION Internationally Renowned Chatswood is located approximately 10 kilometres north of the Sydney CBD and is HUAWEI COFFEY internationally renowned as a successful mixed- use centre integrating public transport with an institutional grade commercial office market, VICTORIA AVENUE a world class retail precinct and landmark residential apartment schemes. MERITON APARTMENTS Outstanding Retail METRO (GALLILEO / ISPT) Amenity IGLU STUDENT ACCOMMODATION Chatswood is the largest retail centre in the Sydney Region outside of the Sydney CBD. RAILWAY STREET Regional Shopping centres Westfield Chatswood and Chatswood Chase anchor the precinct in the geographical heart of the affluent north shore. In addition to Chatswood Central’s retail podium, tenants are within an easy walking distance to an array of retail amenities including the Chatswood Interchange, ‘The District’, Victoria Avenue and the Mandarin Centre. CHATSWOOD TRANSPORT INTERCHANGE VICTORIA AVENUE WESTFIELD PAGE 10 INFORMATION MEMORANDUM A Centre for Commerce Chatswood is an established regional business centre and forms part of Sydney’s Economic Growth Corridor. It is a key market for major corporate occupiers and government departments and therefore attracts institutional landlords. ZENITH PACIFIC HIGHWAY Local Population HELP STREET Growth Chatswood’s population increased by 57% from 2006 – 2011 primarily due to the increase MANTRA in residential living in multi-unit apartment SERVICED developments. The tallest of these developments, APARTMENTS PACIFIC PLACE Pacific Place, reaches 46 levels and incorporates (MIRVAC) 850 apartments. A Major Rail and RAILWAY STREET Bus Terminal The Chatswood Transport Interchange has been redeveloped into a world class inter-modal public transport interchange. Its pivotal role in Sydney’s transport infrastructure will be further enhanced BUS INTERCHANGE due to the construction of the Sydney Metro. THE CHATSWOOD Chatswood station will link the Sydney Metro (TOGA) Northwest rail line with the Sydney CBD, Barangaroo and Sydney Airport via the addition of VICTORIA AVENUE REGENCY TOWERS two rail lines that run beneath Sydney Harbour. ENDEAVOUR STREET Immediate Road Access ANDERSON STREET Easy vehicular access to the Sydney CBD and North Sydney is provided directly via the Pacific Highway. The Sydney orbital road network is accessed via the nearby Gore Hill Expressway and M2 Motorway. PAGE 11 CHATSWOOD CENTRAL PAGE 12 INFORMATION MEMORANDUM PAGE 13 CHATSWOOD CENTRAL 02. LOCATION Chatswood’s Pivotal Role in the Sydney Metro Rail Network Chatswood Transport Interchange is one of Linking Epping with Chatswood, the number of Sydney’s most important intermodal junctions. trains will increase in peak periods to 15 per hour, It currently serves c.35,000 rail and bus almost 4 times greater than present. commuters per day and is predicted to increase to 50,000 by 2021 (source: NSW Treasury). Chatswood will serve as the junction between the North West Line and the existing North Shore Chatswood station provides access to the Line, requiring passengers to change platforms Sydney CBD and the Central Coast via the to then travel southwards into the Sydney CBD. ‘T1’ Line which consists of the Northern, North In our opinion this will make Chatswood a natural Shore and Western Lines. departure point for passengers, thereby creating demand for conveniently located office space. Sydney Metro The second stage, Sydney Metro South, is due for completion in 2024 and involves connecting This role will be enhanced by the integration of a new railway line to the northwest line from the new Sydney Metro Railway into the existing Chatswood, under Sydney Harbour, through rail network. As Australia’s largest infrastructure to Barangaroo, the Sydney CBD and out to project with a forecast spend of $8.3 billion, Bankstown in the southwest. the Sydney Metro will provide the first fully automated metro rail system in Australia. The first stage, Sydney Metro Northwest, is set for completion in early 2019. This new rail line will deliver eight new railway stations in the north west of Sydney, an area with the highest population growth forecasts in N.S.W., to provide the population with access to major employment zones such as Chatswood. PAGE 14 INFORMATION MEMORANDUM C.50,000 RAIL AND BUS COMMUTERS PER DAY BY 2021 (NSW TREASURY) KEY SYDNEY METRO NORTHWEST OPEN 2019 DURAL SYDNEY METRO CITY & SOUTHWEST ALIGNMENT ROUSE HILL UPGRADE AND CONVERSION