Nanna s Childcare Centre

Sales Leasing Valuations Management Nanna s Childcare Centre 31 Camille Street, Hallett Cove SA Information Memorandum Auction 11am AEST Wednesday 9 August 2017 River Room, Crown Casino, Melbourne

Table of Contents Introduction 4 Investment Features 6 Key Childcare Sector Attributes 8 Property Details 10 Lease Details 11 Tenant Profile 11 Location 12 Sale Process 15 Contact 15 Property Management 16 Disclaimer 17 GST Disclaimer 17 Appendices Appendix 1: Appendix 2: Title & Plan Lease Schedule 2 Information Memorandum - 31 Camille Street, Hallett Cove SA Burgess Rawson 3

Introduction Burgess Rawson and JLL are delighted to offer the freehold interest in a childcare investment located at 31 Camille Street, Hallett Cove, South Australia, and leased to Nanna s Childcare. The property will be offered for sale by way of Auction, to be held from 11.00am (AEST) on Wednesday 9 August 2017, at Crown Casino, Melbourne. Burgess Rawson Since being established in 1975, our Sales, 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. At every stage of ownership, our clients benefit from our specialist knowledge, experience, market insights and advice. Our strong market position, plus our targeted and effective marketing campaigns through a highly qualified database, generates maximum exposure for properties. 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 this property as an outstanding childcare investment opportunity. 4 Information Memorandum - 31 Camille Street, Hallett Cove SA Burgess Rawson 5

Investment Features Secure 15 year lease to Nanna s Childcare to August 2032 Three further 5 year options to August 2047 Nanna s Childcare: long established and proven provider in operation over 32 years Desirable 3% rent increases and to market at option Tenant pays all usual outgoings Well maintained facility licensed for 30 places Prominent 661sqm corner site only 650 metres from Hallett Cove Shopping Centre (Woolworths, Aldi, McDonald s, Big W) Hallett Cove: established bayside suburb located 23km south from the Adelaide CBD Address 31 Camille Street, Hallett Cove, SA Term: Fifteen (15) years from 1 August 2017 to 31 July 2032 Options: Three (3) to five (5) years from 1 August 2032 to 31 July 2017 Net Income: $600,000 pa + GST and outgoings Method of Sale For sale by Auction on Wednesday 9 August 2017 at 11am Crown Casino, Melbourne Natalie Couper 0413 856 983 ncouper@burgessrawson.com.au Adam Thomas 0418 998 971 athomas@burgessrawson.com.au Roger Klem 0423 919 373 roger.klem@ap.jll.com Tom Bailey 0407 607 266 tom.bailey@ap.jll.com 6 Information Memorandum - 31 Camille Street, Hallett Cove SA Burgess Rawson 7

Key Childcare Sector Attributes According to the Department of Education and Training report for the September 2015 quarter, the future looks bright for childcare investments with over 1.2 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, 2015 22.6% 34.1% 2.2% 0.8% 1.7% 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 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 subsidises 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 2015 quarter, the total estimated expenditure on Child Care Benefit and Child Care Rebate was over $1.8 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 $170,000 potentially receiving 50% back. Nationally, total government recurrent and capital expenditure on childcare services was $8.6 billion in 2014-15 (an increase of 9.6% from 2013-14). Over the last five years, the average annual growth rate of real expenditure was 10.6% 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 Information Memorandum - 31 Camille Street, Hallett Cove SA Burgess Rawson 9

Property Details Lease Details Address 31 Camille Street, Hallett Cove SA Title Details Lot 202 on Deposited Plan 10363 Site Area 661 sqm aprox. Zoning The land is zoned Residential Southern under the City of Marian Development Plan Lessee: Lease Term Global Sky Properties Pty Ltd trading as Nana s Childcare Centre Fifteen (15) years Lease Commenced 1 August 2017 Lease Expiry 31 July 2032 Options Three (3) further terms of five (5) years to 31 July 2047 Outgoings Rent Reviews Security Net Income All usual outgoings paid by the tenant Fixed 3% annual increases plus market review at options Bank guarantee equal to three (3) months rent $60,000 p.a. plus GST and Outgoings Tenant Profile Location The subject property is strategically located within an established bayside residential precinct and 650m from Hallet Cove Shopping Centre. Site Description The subject site is mostly regular in shape and has the following boundary dimensions: Northern boundary 30 m Eastern boundary 23 m (Camille Street frontage) Southern boundary 27 m (Apollo Drive) Western boundary 22 m Total area 661 sqm Building Description A single level facility with service approval for 30 Long Day Care (LDC) places. Car Parking 4 spaces at grade. Accommodation includes: Entry + foyer + office Three (3) education rooms with direct access to external play areas Children s bathrooms Disabled unisex WC Laundry + storage room Kitchen + staff room Building Construction Floors: Concrete slab Floor Coverings: Combination of tile, carpet & vinyl External walls: Rendered & exposed brick Internal lining: Painted plasterboard Windows: Aluminum framed Doors: Aluminium framed Ceilings: Painted plasterboard Roof: Tile Nanna s Childcare Centre is a privately owned business, operating since 1985, the first child care centre in Hallett Cove. Nanna s Childcare are fully qualified in all aspects of children s care, in line with the latest methodology and accreditation principles. Caring and driven educators bring a vast amount of experience in the childcare industry, with continuous professional and person development plans, the team proved the best quality learning experience for each child. Nanna s Childcare Centre provides long-day care from weeks 6 weeks old and a licensed and accredited Kindergarten program, facilitated by a qualified early childhood teacher. Nanna s Childcare Centre has two established centres: Kindy House (2-5 years old) 31 Camille Street, Hallett Cove. Baby House (0-2 ½ years old) 235 The Cove Road, Hallett Cove, 5158 For further details please visit: http://www.nannaschildcare.com.au 10 Information Memorandum - 31 Camille Street, Hallett Cove SA Burgess Rawson 11

Location Hallett Cove is a coastal suburb situated approximately 18 kilometres south-west of the Adelaide CBD. A residential suburb with a major commercial/retail hub at the Hallett Cove Shopping Centre. The Hallett Cove Shopping Centre is a sub-regional centre anchored by Woolworths, Big W, Foodland, ALDI and 55 specialities. The City of Marion covers the southern suburbs of Adelaide, South Australia and is one of the state s larger metropolitan councils covering approximately 55km sq, stretching from Glandore to the coastal suburb of Hallett Cove. With a population of approximately 88,900 residents, the City of Marion has modern transitoriented development, together with the upgrade of South Road and the electrification of rail lines contribute to a sustainable future for Marion. The southern communities of Hallett Cove and Sheidow Park continue to experience significant growth including a new shopping centre redevelopment and connector road supported by the council as part of its South Plan. The Housing Trust redevelopment at Mitchell Park and future affordable housing initiatives will also support increased community wellbeing. The City of Marion is a place characterised by diversity and change. Seven kilometres of rugged and beautiful coastline, hundreds of hectares of open space and bushland lie side by side with modern suburban development. For further information, please visit: www.marion.sa.gov.au 12 Information Memorandum - 31 Camille Street, Hallett Cove SA Burgess Rawson 13

Sale Process Method of Sale The property will be offered for sale by Auction Auction Wednesday 9th August 2017 at 11am River Room, Crown Casino, Melbourne VIC Flinders St Railway Clarendon St Yarra River Food Court Casino Kings St P Casino River Room Palladium P Yarra Promenade Escalators Crown Towers Main Complex Entry Atrium Crown Conference Centre Power St Crown Promenade Queensbridge St Melbourne Exhibition Centre Whiteman St P Multi-level Car Park Kings Way Normanby Rd Whiteman St Crown Metropol City Rd g Ln Clarke St Inspections The property will be open for inspection at a time to be advised. Please contact the agents to register your interest and confirm inspection times. Interstate Bidding Interstate bidding is available strictly by prior arrangement at one of Burgess Rawson s interstate offices. Burgess Rawson & Associates Level 7, 140 Bourke Street Melbourne VIC Natalie Couper 0413 856 983 ncouper@burgessrawson.com.au Adam Thomas 0418 998 971 athomas@burgessrawson.com.au JLL Level 2, 25 Grenfell Street Adelaide SA RLA 1842 Roger Klem 0423 919 373 roger.klem@ap.jll.com Tom Bailey 0407 607 266 tom.bailey@ap.jll.com 14 Information Memorandum - 31 Camille Street, Hallett Cove SA Burgess Rawson 15

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 0413 860 312 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 and Jones Lang LaSalle (SA) Pty Ltd. 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 to verify the accuracy of the information presented in this document GST Disclaimer Burgess Rawson and Jones Land LaSalle (SA) Pty Ltd 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. 16 Information Memorandum - 31 Camille Street, Hallett Cove SA Burgess Rawson 17

Title Lease Schedule LEASE PRIVACY COLLECTION STATEMENT: The information in this form is collected under statutory authority and is used for maintaining publicly searchable registers and indexes. It may also be used for authorised purposes in accordance with Government legislation and policy requirements. LAND DESCRIPTION THE WHOLE OF THE LAND IN CT VOLUME 5125 FOLIO 928 ESTATE & INTEREST IN FEE SIMPLE LESSOR (Full name and address) GLOBAL SKY PROPERTIES PTY LTD (A.C.N. 169 332 370) of PO Box 816 Surfers Paradise QLD 4217 LESSEE (Full name, address and mode of holding) GLOBAL SKY EDUCATION PTY LTD (A.C.N. 609 189 040) of PO Box 816 Surfers Paradise QLD 4217 TERM COMMENCING ON 1 ST AUGUST 2017 AND EXPIRING ON 31 ST JULY 2032 together with 3 rights of renewal as contained in clause 34 of this Lease RENT AND MANNER OF PAYMENT (or other consideration) The Lessee shall pay the Lessor an annual rent of SIXTY THOUSAND DOLLARS ($60,000.00) plus GST by equal monthly payments in advance of $5,000.00 each plus GST (and proportionately for any period of less than one month), subject to review at the times and in the manner set out in clause 33. The first payment shall be made on the 1st day of August 2017 followed by a payment on the 1st day of each calendar month. IT IS CONVENANTED BY AND BETWEEN THE LESSOR AND THE LESSEE as listed herein: (Covenants, where not deposited, to be set forth on insert sheet(s) and securely attached) Page 1 of 33 Information Memorandum - 31 Camille Street, Hallett Cove SA Burgess Rawson

Lease Schedule Lease Schedule 6 of 33 7 of 33 ITEM 1 - PERMITTED USE (Clause 31) ITEM 2 - PROPORTION OF OUTGOINGS (Clauses 9.12, 15 and 32 - if applicable) ITEM 3 - RENT REVIEW DATE(S) (Clause 33) Date of Review (a) (b) Percentage Rent Review Years Market Rent Review Years FIRST SCHEDULE LICENSED CHILDCARE FACILITY COMPRISING EDUCATION AND CARE CENTRE, TRAINING AND ANCILLARY USES 100% 1ST DAY OF AUGUST 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030, 2031, 2033, 2034, 2035, 2036, 2038, 2039, 2040, 2041, 2043, 2044, 2045 and 2046 2032, 2037 and 2042 (subject, if applicable, to operation of renewed term(s)) which valuation shall be borne by the LESSEE and the LESSOR equally) which valuer shall be deemed to act as an expert and not as an arbitrator and having regard to what would have been the increase in such index had it continued or had it continued to be determined on the same basis as at the date of this Lease as the case requires. 1.3 The stipulation in this Lease relating to the time method and manner of payment of rent shall apply to the reviewed annual rent installments varied from such date or dates (as the case may be) and any adjustment necessary in respect of any underpayment or overpayment of any installment paid after any such date or dates at the rate previously applicable shall be paid by the LESSEE to the LESSOR (or vice versa) forthwith upon the reviewed annual rent being determined by the LESSEE paying the current installments of rent due pending determination of the reviewed rate or rent and any failure by the LESSOR to effect such review at the relevant time shall not prevent such review being effected retrospectively at a later time. CURRENT MARKET RENT 2.1 The rent shall be reviewed as at the date and in the years specified in Item 3(b) of the First Schedule to a rate agreed by the LESSOR and the LESSEE but failing agreement shall be determined by a Land Valuer appointed, at the request of either the LESSEE or the LESSOR, by the person for the time being holding or acting in the office of President of the Australian Property Institute Inc. (SA Division) or its successor (the cost of which valuation shall be borne by the LESSEE and the LESSOR equally) which valuer shall be deemed to act as an expert and not as an arbitrator and who shall be instructed to determine the current market rent for the Premises. ITEM 4 RENT REVIEW METHODS (Clause 33) CPI NOT APPLICABLE 1.1 The rent shall be reviewed as at the date and in the years specified in Item 3(a) of the First Schedule by varying the rent payable immediately preceding such review (without reference to and taking no account of any rent or other incentive) by a percentage figure equal to the percentage by which the Consumer Price lndex (Adelaide - All Groups) published by the Australian Bureau of Statistics has varied during the one year period immediately preceding the relevant review date. 1.2 lf during the term such Index ceases to be published or if a substantial change takes place in the method or basis of calculating such Index the relevant rent variation shall correspond with the variation over the relevant one year period in the weighted average for Australia of weekly wage rates to be determined by the Australian Bureau of Statistics and if the said Bureau is unwilling to make a determination then the reviewed rate of rent shall be determined by a Land Valuer appointed at the request of either the LESSEE or the LESSOR, by the person for the time being holding or acting in the office of President of the Australian Property Institute Inc. (SA Division) or its successor (the cost of 2.2 The stipulation in this Lease relating to the time method and manner of payment of rent shall apply to the reviewed annual rent installments varied from such date or dates (as the case may be) and any adjustment necessary in respect of any underpayment or overpayment of any installment paid after any such date or dates at the rate previously applicable shall be paid by the LESSEE to the LESSOR (or vice versa) forthwith upon the reviewed annual rent being determined by the LESSEE paying the current installments of rent due pending determination of the reviewed rate or rent and any failure by the LESSOR to effect such review at the relevant time shall not prevent such review being effected retrospectively at a later time. 2.3 In determining the current market rent for the Land the Land Valuer shall: 2.3.1 exclude the value of any goodwill created by the LESSEE'S occupation and the value of the LESSEE'S fixtures and fittings within the Land and shall also exclude any deleterious condition of the Land if such condition results from any breach of any term of this lease by the LESSEE; 2.3.2 have regard to all of the terms of this Lease in particular to any liability on the part of the LESSEE to pay or contribute to rates, taxes (and in particular land tax) and outgoings pursuant to this Lease and as if the Information Memorandum - 31 Camille Street, Hallett Cove SA Burgess Rawson

Lease Schedule Lease Schedule 8 of 33 Land were unoccupied and offered for rent for the Permitted Use for the period until the expiry of the current term; 2.3.3 have regard to the current market rent of premises which are comparable with the Land; 2.3.4 take into account the value of all the LESSOR'S fixtures, fittings, plant and equipment on the Land (and if applicable in the building of which the Land forms part) and the value of any fit-out or other tenancy works provided by the LESSOR; 2.3.5 have regard to the GST exclusive rate of rent; and 2.3.6 have regard to any other matters the Land Value reasonably considers relevant. The Land Valuer must give detailed reasons for the determination and must specify the matters (including if relevant, incentives and concessions) taken into account in making the determination. PERCENTAGE RENT REVIEWS 3.1 The rent shall be reviewed as at the date and in the years specified in Item 3(a) of the First Schedule by increasing the rent payable immediately preceding such review (without reference to and taking no account of any rent or other incentive) by three per centum (3%) per annum. 3.2 The stipulation in this Lease relating to the time method and manner of payment of rent shall apply to the reviewed annual rent installments varied from such date or dates (as the case may be) and any adjustment necessary in respect of any underpayment or overpayment of any installment paid after any such date or dates at the rate previously applicable shall be paid by the LESSEE to the LESSOR (or vice versa) forthwith upon the reviewed annual rent being determined by the LESSEE paying the current installments of rent due pending determination of the reviewed rate or rent and any failure by the LESSOR to effect such review at the relevant time shall not prevent such review being effected retrospectively at a later time. ITEM 5 RIGHT(S) OF RENEWAL (Clause 34) First Renewed Term Second Renewed Term Third Renewed Term ITEM 6 - REPAINTING PERIOD (Clause 9.11) 9 of 33 5 YEARS 5 YEARS 5 YEARS 5 YEARS OR UPON THE EXPIRATION OR SOONER DETERMINATION OF THE TERM OR ANY EXTENSION OF IT. Information Memorandum - 31 Camille Street, Hallett Cove SA Burgess Rawson