Young Academics Lithgow NSW 88 Landa Street (Corner Flint M c Clelland Avenue)

Transcription

1 Sales Leasing Valuations Management Young Academics Lithgow NSW 88 Landa Street (Corner Flint M c Clelland Avenue) Information Memorandum Auction am AEST Tuesday 8 August 207 Doltone House, Hyde Park, Sydney NSW

2 Table of Contents Introduction 4 Investment Features 6 Key Childcare Sector Attributes 8 Property Details 2 Lease Details 3 Tenant Profile 3 Location 5 Location Maps 6 Income Tax Savings Depreciation 7 Market Evidence 7 Sale Process 8 Contact 8 Property Management 9 Disclaimer 20 Appendices Title & Plan Building Plan Lease Schedule 2 Lithgow NSW, Childcare Centre, Information Memorandum Burgess Rawson 3

3 Introduction Burgess Rawson is delighted to offer the freehold interest in the childcare investment located on 88 Landa Street, Lithgow NSW, and leased to Young Academics. The property will be for sale by way of Auction, to be held from.00am AEST on Tuesday 8 August 207, at Doltone House, Hyde Park, 8 Elizabeth Street, Sydney. Burgess Rawson Since being established in 975, our Sales, Leasing, Property Management, Valuation and Advisory services fulfil the complete and ongoing needs of our clients. Burgess Rawson has a network of offices throughout Australia and extensive regional partnerships with local property specialists, giving unmatched depth and reach in all commercial property market sectors. Burgess Rawson s iconic Portfolio Auctions are held in Melbourne and Sydney bringing together a diverse range of national commercial and investment grade properties. Based on our knowledge and experience, Burgess Rawson are confident in recommending the property as an outstanding childcare investment opportunity. 4 Lithgow NSW, Childcare Centre, Information Memorandum Burgess Rawson 5

4 Investment Features New year lease to Young Academics to 2047 Young Academics ELC: successful early learning education provider with 7 centres in operation plus a further 4 centres to open in 207 Minimum 3.5% annual rent increases plus market review at options with ratchet provisions ensuring guaranteed rental growth Tenant pays all outgoings/ Substantial tax depreciation savings Brand new 642 sqm purpose-built facility, licensed for 85 LDC places Significant 2,735 sqm corner site with 3 on-site car spaces Strategic location opposite KFC, 50 metres from the Great Western Highway, km from Lithgow Hospital and two universities and,.2km from ALDI and Coles anchored Lithgow Shopping Centre Lithgow: located 40km west of the Sydney CBD and the gateway to the central west, with a trade catchment of over 230,000 people Building Area 642 sqm Site Area 2,735 sqm Title Details Lot 2 on Plan of Subdivision 2374 Lease Term: Ten (0) years from 8 May 207 to 7 May 2027 Options: One () x ten (0) plus two (2) x five (5) years from 8 May 2027 to 7 May 2047 Net Income $25,000 p.a. + GST and Outgoings Method of Sale For sale by Auction on Tuesday 8 August 207 at am Doltone House, Hyde Park, 8 Elizabeth St, Sydney Adam Thomas athomas@burgessrawson.com.au Natalie Couper ncouper@burgessrawson.com.au Michael Vanstone mvanstone@burgessrawson.com.au 6 Lithgow NSW, Childcare Centre, Information Memorandum Burgess Rawson 7

5 Key Childcare Sector Attributes According to the Department of Education and Training report for the September 205 quarter, the future looks bright for childcare investments with over.2 million children attending some form of approved childcare service in Australia. This has been steadily growing and has increased by 5.7% on the previous year. Children using Long Day Care by State and Territory September Quarter, % 34.% 2.2% 0.8%.7% According to IBIS World, a baby boom is coming with the rate of births expected to increase by 6.4% over the next few years as the workforce ages. The demand for childcare is being driven by a number of industry factors including: The high cost of living driving parents back to work The desire of more women to maintain careers than in the past The government s position that female workforce participation is good for the economy. The Australian Government subsidies the cost of child care for eligible families through the Child Care Benefit and the Child Care Rebate to help parents with the cost of approved child care. During the September 205 quarter, the total estimated expenditure on Child Care Benefit and Child Care Rebate was over $.8 billion, 64% of which was paid in relation to families using Long Day Care services. Under the proposed federal Budget the new Child Care Subsidy will replace both existing government subsidies where families earning up to $65,000 will be able to receive up to 85% off the cost of their childcare back in subsidies. This rate reduces with higher incomes, with families earning over $70,000 potentially receiving 50% back. Nationally, total government recurrent and capital expenditure on childcare services was $8.6 billion in (an increase of 9.6% from 203-4). Over the last five years, the average annual growth rate of real expenditure was 0.6% which may push up demand for childcare even further. Source: ABS and Department of Education and Training 8.2% 24.4% 6.2% n NSW n VIC n QLD n SA n WA n TAS n NT n ACT 8 Lithgow NSW, Childcare Centre, Information Memorandum Burgess Rawson 9

6 0 Lithgow NSW, Childcare Centre, Information Memorandum Burgess Rawson

7 Property Details Lease Details Address: 88 Landa Street (corner Flint M c Clelland Avenue) Title Details: Lot 2 on Deposited Plan 2374 Site Area: 2,735 sqm Zoning: The property is zoned Business under the Lithgow Local Environmental Plan 204 (LEP) Lessee Lease Term Kazcorp Holdings (Lithgow) Pty Ltd trading as Young Academics Ten (0) years Lease Commenced 8 May 207 Lease Expiry 7 May 207 Options One () x ten (0) years + two (2) x five (5) years to 7 May 2047 Outgoings Rent Reviews Security Rental All outgoings paid by the tenant Minimum 3.5% annual rent increases plus ratchet provisions at market review ensuring the rent cannot reduce. Bank guarantee equal to six (6) months rent plus outgoings and GST for the first three (3) years and an amount equal to three (3) months rent + outgoings and GST thereafter $25,000 pa + GST and Outgoings Tenant Profile Location The subject property is situated within an established and evolving residential precinct. Located 50 metres from the Great Western Highway, directly opposite KFC and kilometre from Lithgow Hospital, Universities and.2 kilometres from Lithgow Shopping Centre. Site Description The subject site is mostly irregular in shape. In accordance with the Title Plan, the property has the following boundary dimensions: Northern boundary 37.00m (Flint M c Clelland Ave) Southern boundary 60.83m (Lithgow Street frontage) Western boundary 49.33m (Landa Street) Eastern boundary 59.5m Total area 2,735 sqm Building Area 642 sqm Car parking 28 at grade car spaces Building Description Brand new purpose-built childcare facility licensed for 85 LDC places. The facility is finished to a high standard and comprises the following construction components: Building Construction Footings: Reinforced concrete Floors: Reinforced concrete slab Floor coverings: Combination of & carpet External s: Internal lining: Lighting: Windows: Doors: Ceilings: Roof: Combination of exposed brickwork and matrix board Painted plasterboard Recessed downlights Aluminium framed Aluminium framed Painted plasterboard Colorbond Landscaping Comprises of natural grass and tan bark to play equipment plus concrete paving. Further improvements include sand pits and fixed play equipment covered by shade sails. Young Academics centres have a unique learning environment, built to reflect the locality and the community around them. Each centre is architecturally designed with state of the art facilities and landscapes with a focus on bringing the natural environment in. Centres are open Monday to Friday, 52 weeks of the year (except for gazetted public holidays). Young Academics are dedicated to giving children aged 6 weeks to 6 years the brightest possible start. They are committed to providing the very best in programs, teaching methods, nutrition, and above all the highest level of personal care to every child. Young Academics believe that early childhood is a celebration of learning and this is portrayed by honouring diversity and valuing staff, children, families and the wider community every day For further information, please visit: 2 Lithgow NSW, Childcare Centre, Information Memorandum Burgess Rawson 3

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9 Location Lithgow is a thriving service city of 2 plus people, situated approximately 40 km west of Sydney CBD. It has a diverse range of educational providers including two university campuses, University of Western Sydney and Notre Dame which have both seen recent building upgrades to improve the quality of education they provide. On the back of this there is now a significant cluster of engineering and knowledge-based companies plus an established manufacturing sector. The Lithgow LGA is made up of one large urban centre called Lithgow, two townships called Portland and Wallerawang and numerous villages, hamlets and rural localities of varying proximity to Lithgow. The Blue Mountains & Greater Lithgow area is now seen as a major lifestyle location because it provides good access to the Greater Sydney area. Furthermore, $bn is being spent on upgrades to the Great Western Highway between Katoomba and Lithgow making driving and on road transport logistics to Sydney fast and efficient. This region is also well supported by regular daily rail services to and from Sydney. For further information, please visit: 5 Lithgow NSW, Childcare Centre, Information Memorandum Burgess Rawson 6

10 Income Tax Saving Depreciation Sale Process Taxation specialist and quantity surveyors Napier & Blakeley have provided an indicative depreciation schedule, which tables a yearly summary of capital allowances/ tax depreciation that may be claimed in order to reduce the amount of taxable income derived from each property. Details of this report will be made available to prospective purchasers upon request. Market Evidence Comparable sales of New South Wales childcare investments transacted by Burgess Rawson include: Method of Sale For sale by auction on Tuesday 8 August 207 at.00am Doltone House, Hyde Park, 8 Elizabeth Street, Sydney, NSW Date Address Sale Price Yield May 207 Wagga Wagga, 7 Ashmont Avenue $,850, % Apr 207 Salt Ash, 2634 Nelson Bay Road $3, % Apr 207 Carrington, 26 Cowper Street $3,500, % Apr 207 Tamworth, 8 Patrick Street $,404, % Feb 207 Katoomba, 2 Dora Street $4,00, % Feb 207 Green Point, Koolang Road $2,405, % Feb 207 Tamworth, 2A Kenny Street $,705, % Oct 206 Tamworth, - 3 Bligh Street $2,600, % Inspections Inspections can be arranged by prior appointment. Interstate Bidding Interstate bidding is available strictly by prior arrangement at one of Burgess Rawson s interstate offices. Terms of Sale Deposit of 0% payable upon exchange and the balance upon settlement. It is proposed the property will be offered as a going concern and if the purchaser meets the provisions of the GST legislation the sale will not incur GST. Burgess Rawson & Associates Level 7, 40 Bourke Street Melbourne Burgess Rawson & Associates Level 8, 5 Castlereagh Street Sydney Adam Thomas Michael Vanstone athomas@burgessrawson.com.au mvanstone@burgessrawson.com.au Natalie Couper ncouper@burgessrawson.com.au 7 Lithgow NSW, Childcare Centre, Information Memorandum Burgess Rawson 8

11 Property Management Burgess Rawson is not only a market leader in investment sales; we are also regarded as highly professional property managers. With an Australia-wide management portfolio of well in excess of $2billion, we are able to equally manage property whether it is CBD, metropolitan or regionally located. More than Rental Collection - care for your property and investment. Professional property management enhances and secures your tenant relationship, provides property accounting (including tax invoicing/ GST/BAS) reports and maximises rental. We take the weight off your shoulders. Achieve $ savings - through our buying power and access to the best providers: insurance brokers, maintenance contractors etc. We have the contacts and long standing relationships to be at your disposal. Improve your cash flow - Apart from ensuring regular rental increases are enacted to maximum sustainable levels, a professional property manager reviews council rating values, as well as accessing the best taxation depreciation assessment to improve your after income tax bottom line. We aim to add more to your overall capital value. 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. Problem solvers Owning property has never been more complicated, and highly regulated. We are fully conversant with the Retail Tenancies Act, Town Planning and Occupational Health and Safety Regulations. We can anticipate and prevent problems. Experience and involvement - Our professional property managers offer a wide range of expertise. Time in the profession, and continuous improvement and involvement in the property sector is an intellectual pursuit. We can provide a pool of such experience to individual clients in a way we believe self-managed property owners cannot. Value for money - free yourself up to concentrate on the returns of your investments, rather than the daily issues which can arise from your property. The small cost involved in professional management is money well spent. We have the resources to service your needs. To discuss your particular property management s needs, please contact either your Burgess Rawson selling agent or Ingrid Filmer today. Ingrid Filmer Director Principal Property Management Department ifilmer@burgessrawson.com.au Disclaimer The information contained in the report/information memorandum has been prepared in good faith and due care by the Vendor, Burgess Rawson. Any projections contained in the report therefore, represent best estimates only and may be based on assumptions. The information contained herein is supplied without any representation as to its truth or accuracy. All interested parties should make their own enquiries to satisfy themselves in all aspects and obtain their own independent advice in order to verify any of the information. All stated dimensions and areas are approximate. The vendor does not represent or warrant the accuracy of any information contained in this document. Subject to any statutory limitation on its ability to do so, the vendor disclaims all liability under any cause of action, including negligence, for any loss arising from reliance on this document. Specifically, we make the following disclosures: All areas, measurements, boundaries, car space numbers, rents are approximate only and subject to final confirmation; The indicative depreciation schedule has been provided by Napier & Blakeley and is an estimate only and cannot be used for tax purposes. The information contained in this document is provided as a guide and an aid to further investigation by potential purchasers. Prospective purchasers should seek legal, financial and other appropriate expert advice in order t he verify the accuracy of the information presented in this document GST Disclaimer Burgess Rawson advises that the financial information in this report relating to income, outgoings and the like is provided without reference to the possible impact of GST, if any. Purchasers should make their own assessment of the impact of GST on the investments and the returns derived there from after obtaining expert professional advice. Retail Leases Act 2003 Tenant outgoings Prospective buyers should note that the recovery of outgoings from a tenant is subject to the application of and proper compliance with the Retail Leases Act 2003 (Vic). The Act applies to leases of retail premises in Victoria. If the Act applies, certain outgoings, such as land tax and some maintenance costs, cannot be recovered from the tenant. If the Act applies, other outgoings, such as management fees, can only be recovered from the tenant if the Act has been complied with. 9 Lithgow NSW, Childcare Centre, Information Memorandum Burgess Rawson 20

12 Title & Plan Title & Plan InfoTrack An Approved LPI NSW Information Broker Title Search LAND AND PROPERTY INFORMATION NEW SOUTH WALES - TITLE SEARCH FOLIO: 2/ SEARCH DATE TIME EDITION NO DATE /7/207 9:46 AM /6/207 LAND ---- LOT 2 IN DEPOSITED PLAN 2374 AT BOWENFELS LOCAL GOVERNMENT AREA LITHGOW CITY PARISH OF LETT COUNTY OF COOK TITLE DIAGRAM DP2374 FIRST SCHEDULE GWH GROUP HOLDINGS PTY LIMITED SECOND SCHEDULE (6 NOTIFICATIONS) RESERVATIONS AND CONDITIONS IN THE CROWN GRANT(S) WITHIN THE PART(S) SHOWN SO INDICATED IN THE TITLE DIAGRAM 2 C LAND EXCLUDES MINERALS AND IS SUBJECT TO RIGHTS TO MINE 3 C COVENANT AFFECTING THE PART SHOWN SO BURDENED IN THE TITLE DIAGRAM. 4 AM85274 MORTGAGE TO ARAB BANK AUSTRALIA LIMITED 5 DP2374 EASEMENT TO DRAIN SEWAGE 2 METRE(S) WIDE AFFECTING THE PART(S) SHOWN SO BURDENED IN THE TITLE DIAGRAM 6 DP2374 EASEMENT FOR REPAIRS.5 METRE(S) WIDE APPURTENANT TO THE LAND ABOVE DESCRIBED NOTATIONS UNREGISTERED DEALINGS: NIL *** END OF SEARCH *** PRINTED ON 3/7/207 * Any entries preceded by an asterisk do not appear on the current edition of the Certificate of Title. Warning: the information appearing under notations has not been formally recorded in the Register. InfoTrack an approved NSW Information Broker hereby certifies that the information contained in this document has been provided electronically by the Registrar General in accordance with Section 96B(2) of the Real Property Act 0. Lithgow NSW, Childcare Centre, Information Memorandum Burgess Rawson

13 ,40,800 3,3 3,000,800 retaining S/03 5 RL +927,000 Ground Floor RL +930,000 Pitching Point RL +932,35 Ridge Height 5 RL +927,000 Ground Floor RL +930,000 Pitching Point RL +932,35 Ridge Height 5 RL +927,000 Ground Floor RL +930,000 Pitching Point RL +932,35 Ridge Height :00 :00 Western Elevation :00 Southern Elevation Eastern Elevation :00 Northern Elevation retaining parapet 2,682 garden 4,29 fall 3o garden F staff lockers F F fire exit luminaire garden 2, D_02 barge roll 4,000 fall 3o D_04 barge roll trimdek 3, fire exit luminaire dw rain water head fg, barge roll 0 RG 4,000 4,000 2,760 A: 6.53 m2 - R2 kitchen Sill A: 6.5 m2 0 8,354 4,204 W_04 food store 8,354 4,204 line of roof over A: 5.3 m2 staff room Sill footings to engineers detailstrimdek screen parapet mm diplomat style fencing 5 RL +927,000 Ground Floor external store,447 3, W_02 4,000 2,400 line of roof over line of roof over W_03,800 9, W_05 8,354 D_ yrs 3 children A: 5.52 m2 cpt / Sill 0 A: 8.60 m2 cpt. 600 infant hall D_4 W_07 3,780 0 A: 8.7 m2 cpt. cot room 650 cpt. W_08 3,780,800 2, ,295 cpt. 850 D_0 A: 29.0 m2 20 children A: m2 cpt /, D_5 0 2,40 D_8 2,2 A: 8.47 m2 A: m2 junior hall A: 2.5 m2 vinly store A: 5.54 m2 tiles toilet W_20 2 screen garden ridge capping fg face brickwork 2,35 face brickwork 2 3,260 :00 rain water head trimdek line of existing ground level Roof Plan :00 3,30 2,970,800 W_9 3, face brickwork fg weatherboard mount clothsline 2 fg fall 2 2 retaining rain water head 37,000 37,000 W_7 sump 2,90 S/02 0 garden mm high pool style fencing, pool latches to gates at 0mm high junior store S/02 clad gable end fall fall fall D_32 0 A: 8.47 m2 tiles access WC D_2 W_0 2,90 retaining garden 2,830 cpt. W_30 Sill A: 7.76 m2 office/interview A: 9.32 m2 vinly garden S/0 retaining 2,430 retaining footings to engineers details face brickwork 9,460 mm diplomat style fencing 2, 3, ,440 7,980 S/0 0 0 ridge capping 2,5 0 W_3 W_4 W_5 W_6 A: 0.20 m2 laundry Sill 0 line of roof over A: 9.00 m2 store 3 A: 9.72 m2,00 0 barge roll rain water head barge roll July 206 June 206 May 206 Joinery Drawings for Client & Provider Review Client & Provider Review Additional Stormwater Easement for Lot Sewer & Stormwater proposal for Lot Development Application Documentation DA_2 DA_ Sketch Design Presentation_ D E S C R I P T I O N A R E V. D A T E Feb 206 Feb 206 Feb 206 May 206 CC_ Drawing No.: Ben 72_CL_6 AWD 03.0 Project No: Date: 4/07/206 as A Revision No: Checked By: Scale: Northern Elevation, Eastern Elevation, Western Elevation, Southern Elevation Elevations & Sections - Elevations Drawing Title: 85 place Childcare Centre Landa Street. Lithgow Lithgow City Council Area Project Name GWH Group Holding Client The builder shall check and verify all dimensions and verify all errors and omissions to the Designer. Do not scale the drawings. Drawings shall not be used for construction purposes until issued by the Designer for construction. e_ben@ohallorandesign.com.au M_ FIRST FLOOR, 49 SUMMER ST. ORANGE. NSW 2800 o'halloran design, Sketch Design Presentation_2 B May 206 Construction Certificate Documentation_Rev D C DA_3 CC_ barge roll Copyright: This drawing shows design features and elements of a design prepared by O'Halloran Design, Orange and is to be used only for work authorised in writing by the designers. It can not be copied directly or indirectly, in whole or in part, nor shall it be used for any other building purpose. Unauthorised use will be considered an infringement of these rights. A: 3.80 m2 vinly art area store 2 training 450 A: 8.24 m2 tiles toilet 2 D_ D_25 D_28 Sill 0 0,80,850 D_ yrs 20 children A: 72.5 m2 cpt / W_2 940 Sill 0 2,620 D_22 4,330 6,080 Sill 0 2,480 fold down baby change cpt. W_,870 4,330, Sill bradford sound screen R_2.5 to office s excluding external 0 20 children A: m2 cpt / D_3 Sill 0 7, yrs 4, W_27 mm high pool style fencing, pool latches to gates at 0mm high 2,500,440 line of building under 3,680 fall 2 5,860 3,500 line of existing ground level 2,35 kinder store express jointed line of existing ground level 3, 4,680 W_8 reception/office 6 37, Sill 0 entry/reception W_09 3, yrs 7,450 0 Sill bradford sound screen R_2.5 to cot room s D_3 430 W_ yrs 2 children A: 4.83 m2 cpt / Sill 0,040 Sill 0 Ground Floor Plan trimdek 0 4,00 Sill 2,400 directional A: 3.65 m2 D_06 W_ open A: 5.85 m2 bottle prep. A: 2.40 m2 nappy change A: 4.02 m2 conc. kinder store Sill D_0 2, Sill 4, ,755 3, cot room 2,465 W_06 3,650 3,700 3,800 bradford sound screen R_2.5 to cot room s,8 cpt. 350 Sill Sill,800 7, ,400 2,40,3 RL +930,000 Pitching Point 3,70 mm diplomat style fencing RL +932,35 Ridge Height W_0 982,456 S/03 0 0,30 4,000,350 2, ,470 2,360,950 line of roof over Sill ,800 2,898,456 2,500 kitchenette, kitchenette 2,647 D_03 W_2 D_09 D_08,800 2, W_22 D_ D_2 0 W_25 W_ , ,500,60 2,500 9,050 2,950 2, , ,550 4,650 60,750 D_7 D_6,500 open D_9 D_20 0 D_05 2,275 3,000 W_28 0,500 2,6 D_30,800 2,400 D_24 D_ ,500 W_29 0,557 3, mount clothsline D_26 mount clothsline 2,,40 2, 4,550 5, 6,450 5,040 0,080 2,4 2,90 4,8,360,40,00 4, ,0 2,275 3,000 9,750 2,500 2,950 4,550 Lithgow NSW, Childcare Centre, Information Memorandum Building Plan Building Plan Burgess Rawson 24

14 Lease Schedule Lease Schedule SCHEDULE OF ITEMS (continued) Item 0 A. The guarantors: Not applicable (cls 2.3, 3.) (cl 3.7) B. Limit of guarantor s liability: Not applicable Item Additional leased property: Not Applicable (cl 3) Item 2 (cl 4) Option to renew A. Further period of Ten (0) years from: Item 5 (cl 5) Outgoings A. Share of outgoings: 00% B. Outgoings (a) local council rates and charges; (b) water sewerage and drainage charges; (c) land tax; (d) insurance; (e) all levies and contributions of whatsoever nature determined and/or levied by the owners corporation with the exception of any contribution to a sinking fund or special levy in respect of the strata scheme of which the property forms part (if applicable). for the land or the building of which the property is part, fairly apportioned to the period of this lease. B. Plus two further terms of 5 years. C. Maximum period of tenancy under this lease and permitted renewals: thirty (30) years Item 6 Interest rate: 6% (cl 5..5) D. First day option for renewal can be exercised: Six (6) months prior to expiry of lease E. Last day option for renewal can be exercised: Three (3) months prior to expiry of lease Item 3 A. Rent (cl 5) For the lease period: From the commencement date to the first rent review date: Afterwards: For the further period in item 2A: From the commencement date to the first rent review date: (for example: Current market rent) Afterwards: For the further periods in item 2B: From the commencement date to the first rent review date: (for example: Current market rent) Afterwards: $25, plus GST a year by monthly instalments of $7,96.67 plus GST At the new yearly rent beginning on each review date by monthly instalments of one twelfth of the new yearly rent. CURRENT MARKET RENT (not be less than the rent payable immediately prior to the market review date and not more than 0% of the rent payable immediately prior to the market review date) At the new yearly rent beginning on each review date by monthly instalments of one twelfth of the new yearly rent. CURRENT MARKET RENT (not be less than the rent payable immediately prior to the market review date and not more than 0% of the rent payable immediately prior to the market review date) At the new yearly rent beginning on each review date by monthly instalments of one twelfth of the new yearly rent. Item 7 (cl 5.4) Item 8 (cl 6.) Item 9 (cl 8..) Item 20 (Cl 6) Item 2 (cl 7) Rent review Rent review date Method of rent review If Method applies, increase by 3.5% (the increase should show percentage or amount) On each anniversary of the Commencement Date, except on the commencement date of each option term (if any) Higher of Method and Method 2 3.5% On the commencement date of each option term Method is a fixed amount or percentage. Method 2 is Consumer Price Index. Method 3 is current market rent. Method 3 Method 2 applies unless another method is stated. Permitted use: Childcare centre Amount of required public liability insurance: $20,000, ($20 million) Bank Guarantee See clause 6 Security Deposit Current market rent (not to be less than the rent payable immediately prior to the commencement of the option term and not more than 0% of the rent payable immediately before the commencement of the option term. Six (6) months rent and the lessee s proportion of outgoings increased by the rate of GST (expressed as a percentage) applicable from time to time for the first three (3) lease years of the initial term, then three (3) months rent and the lessee s proportion of outgoings increased by the rate of GST (expressed as a percentage) applicable from time to time thereafter. Item 4 B. GST (cl 5) Clause 5 provides for payment by the lessee of GST unless otherwise here indicated: Details of strata manager/secretary of the owners corporation (if applicable) Not Applicable Lithgow NSW, Childcare Centre, Information Memorandum Burgess Rawson