AUDIT PURPOSES VALUATION REPORT

AUDIT PURPOSES VALUATION REPORT NORWEST CHRISTIAN COLLEGE Corner Regent and McCulloch Streets, Riverstone NSW 2765 Under Instructions from David Griffiths Norwest Christian School Limited Cnr. Rawson Street and Carlingford Road, Epping NSW 2121 DATE OF INSPECTION & VALUATION 27/03/2015 Valuation No. 0028.15 Diamond s Property Consultancy Pty Ltd ABN 25 156 356 688 Registered valuers and consultants servicing NSW, QLD & Victoria

EXECUTIVE SUMMARY Instructing Party: David Griffiths Norwest Christian College Client: Norwest Christian School Limited Address: Corner of Regent Street and McCulloch Street, Riverstone NSW 2765 Date of Inspection & Valuation: 27/03/2015 Instructions: To determine the Market Value of the subject property comprising a School and associated improvements at the corner of Regent Street and Mcculloch Street, Riverstone NSW 2765 for Audit Purposes. Property Summary: Norwest Christian College caters for students from preparatory to year 12. It is erected on a 6 hectare rectangular shape parcel of land which is situated on the corner of Regent Street and McCulloch Street Riverstone. Lot 3 in DP 712 was purchased from the school in December 2006 for $2,300,000 by Investment and Finance Limited and in our understanding it is leased back to Norwest Christian College on a Peppercorn Rental arrangement. Method of Valuation: A mixture of Direct Comparison and Summation methodologies. Valuation: $17,300,000 Inc. GST (Seventeen Million, Three Hundred Thousand Dollars) Market Value Signature: Principal Valuer: Stuart N Rowan F.A.P.I Qualifications/Registration #: Registered Valuer No 13784 (Unrestricted) Diamonds Property Consultancy Pty Ltd 2

TABLE OF CONTENTS 1. INSTRUCTIONS... 5 2. PROPERTY ADDRESS... 5 3. PURPOSE OF VALUATION... 5 4. DATE OF INSPECTION & VALUATION... 5 5. DEFINITION OF MARKET VALUE... 5 6. LOCATION... 5 7. PROPERTY PARTICULARS... 6 7.1 ENCUMBRANCES AND ENCROACHMENTS ON TITLE... 6 8. TOWN PLANNING... 6 8.1 LOCAL AUTHORITY... 6 8.2 ZONING... 7 8.3 FLOODING... 7 8.4 SUBDIVISION... 8 9. SITE DETAILS & DESCRIPTION... 9 10. SITE SERVICES... 9 11. SITE ACCESS... 9 12. SCHOOL AND ASSOCIATED IMPROVEMENTS... 9 13. CONSTRUCTION... 10 13.1 MAIN ADMINISTRATION/SCIENCE BUILDING... 10 13.2 ASSEMBLY HALL/PRIMARY SCHOOL BUILDING... 10 13.3 LIBRARY/SENIOR SCHOOL BUILDING... 10 13.4 DEMOUNTABLE BUILDINGS... 10 13.5 FIBRO COTTAGE... 10 13.6 BRICK RESIDENCE... 10 14. ACCOMODATION... 11 14.1 MAIN ADMINISTRATION/SCIENCE BUILDING... 11 14.2 ASSEMBLY HALL/PRIMARY SCHOOL BUILDING... 11 14.3 LIBRARY/SENIOR SCHOOL BUILDING... 11 14.4 DEMOUNTABLE BUILDINGS... 11 14.5 FIBRO COTTAGE... 11 14.6 BRICK RESIDENCE... 12 14.7 OTHER IMPROVEMENTS... 12 15. AREA OF IMPROVEMENTS... 12 16. AGE & CONDITION... 13 17. SITE CONTAMINATION... 13 18. SALES EVIDENCE... 14 3

18.1 SCHOOL PROPERTY SALES... 14 18.2 VACANT LAND SALES... 15 19. PHOTOGRAPHIC STUDY... 16 20. VALUATION APPROACH... 20 21. VALUATION CONSIDERATIONS... 22 22. INSURANCE ASSESSMENT... 23 23. REPORT QUALIFICATIONS... 23 24. VALUATION... 24 4

1. INSTRUCTIONS We have been instructed by David Griffiths to determine the Market Value of the subject property comprising a School and associated improvements at the corner of Regent Street and McCulloch Street, Riverstone NSW 2765 for Audit Purposes. 2. PROPERTY ADDRESS Corner of Regent Street and McCulloch Street, Riverstone NSW 2765 3. PURPOSE OF VALUATION Determination of Market Value for Audit purposes. 4. DATE OF INSPECTION & VALUATION 27/03/2015 5. DEFINITION OF MARKET VALUE Market Value is the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm s length transaction after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion. 6. LOCATION Riverstone is approximately 48 Kilometres West of the Sydney CBD. Surrounding development is rural and residential and nature, some properties with acreage and others on smaller blocks. LOCALITY MAP Riverstone is easily accessible by train, bus or car approximately 20 minutes from Blacktown, Castle Hill and Windsor. Riverstone Railway station is located approximately 1.5 kilometres South West of the subject property. 5

Access to the College is via Windsor Road to the East which provides access to Garfield road then to McCulloch Street; alternative access is via Railway terrace which provides direct access to Regent Street. Bus services are provided to the school by a range of private companies and supplemented by the colleges own fleet of 4 buses. 7. PROPERTY PARTICULARS The property comprises: Lot 2 in Deposited Plan (DP) 615626 Lot 2 in Section N of Deposited Plan (DP) 712 Lot 3 in Section N of Deposited Plan (DP) 712 7.1 Encumbrances and Encroachments on Title We note various registered Easements on Title, these have not been researched. A Title search however is attached. We reserve the right to review our valuation assessment if these easements and encumbrances detrimentally affect the value of the subject property. 8. TOWN PLANNING 8.1 Local Authority Blacktown City Council 6

8.2 Zoning Corner of Regent Street and McCulloch Street, Riverstone NSW 2765 The land is classified (zoned) R2 - Low Density Residential under the State Environmental Planning Policy (Sydney Region Growth Centres) 2006 Zone R2 Low Density Residential 1. Zone R2 Objectives To provide for the housing needs of the community within a low density residential environment. To enable other land uses that provides facilities or services to meet the day to day needs of residents. To allow people to carry out a reasonable range of activities from their homes, where such activities are not likely to adversely affect the living environment of neighbours. To support the well being of the community, by enabling educational, recreational, community, religious and other activities where compatible with the amenity of a low density residential environment. 2. Development that may be carried out without consent Home occupations 3. Development that may be carried out only with consent Bed and breakfast accommodation; Business identification signs; Child care centres; Community facilities; Drainage; Dual occupancies; Dwelling houses; Earthworks; Educational establishments; Environmental protection works; Exhibition homes; Exhibition villages; Group homes; Health consulting rooms; Home-based child care; Home businesses; Home industries; Neighbourhood shops; Places of public worship; Roads; Secondary dwellings; Semi-detached dwellings; Shop top housing; Veterinary hospitals 4. Development that is Prohibited Any other development not specified in item 2 or 3 8.3 Flooding We note the property is partially flood affected. The affectation impacts primarily on the sports field areas. (Refer to diagram above) The property would only be affected by flooding under extreme weather conditions. 7

8.4 Subdivision Corner of Regent Street and McCulloch Street, Riverstone NSW 2765 Subdivision-consent requirements 1. Land to which this Precinct Plan applies may be subdivided, but only with consent. 2. However, consent is not required for a subdivision for the purpose only of any one or more of the following: a. widening a public road, b. a minor realignment of boundaries that does not create: i. additional lots or the opportunity for additional dwellings, or ii. lots that are smaller than the minimum size shown on the Lot Size Map in relation to the land concerned, c. a consolidation of lots that does not create additional lots or the opportunity for additional dwellings, d. rectifying an encroachment on a lot, e. creating a public reserve, f. Excising from a lot land that is, or is intended to be, used for public purposes, including drainage purposes, rural fire brigade or other emergency service purposes or public toilets. The table below states the minimum lot frontage and lot size required for subdivision on the subject property zoned R2 Low Density Residential in the Blacktown Council Region. Dwelling Type Lot Frontage (minimum) Lot size (minimum) Detached dwelling 12 m 250 m 2 Dual Occupancy Dwelling 15 m 500 m 2 Secondary Dwelling 12 m 450 m 2 Semi Detached Dwelling (per dwelling) 8 m 200 m 2 Attached Dwelling (per dwelling) 5 m 125 m 2 Multi Dwelling Housing 26m 1,500 m 2 Residential Flat Buildings 30 m 2,000 m 2 Corner Lots 15 m 450 m 2 Battle Axe Lots - Only for single detached dwellings 15 m 500 m 2 8

9. SITE DETAILS & DESCRIPTION The subject corner site is situated on the North-Western side of Regent Street and on the Eastern side of McCulloch Street. The property enjoys a substantial road frontage to both streets. The site area is approximately 6.05 hectares. The areas are dissected as follows: Lot 2 Deposited Plan 615626 2.013 hectares Lot 2, Section N, Deposited Plan 712 2.023 hectares Lot 3, Section N, Deposited Plan 712 2.015 hectares Total 6.05 hectares A Site Detail survey is annexed. 10. SITE SERVICES Mains electricity, water and telephone, National Broadband Network, sewerage and natural gas are connected to the site. 11. SITE ACCESS Regent Street and McCulloch Street are wide kerbed, sealed and guttered with footpaths adjacent to the land. Entry to the college is via Regent Street to a concrete sealed parking area at the front and side of the main building; alternative access is also via McCulloch Street to a large crushed concrete surfaced parking area adjacent to the fibro cottage. 12. SCHOOL AND ASSOCIATED IMPROVEMENTS Erected on the land are School building improvements used for the operation of Norwest Christian College catering for Kindergarten to year 12 students which was constructed circa foundation 1980. The buildings are dissected as follows: Lot 2 in Deposited Plan 615626 contains the part 1 and 2 storey Administration/Science building, Assembly Hall and Primary school classrooms, the multi purpose building, the fibro cottage and external amenities including car parking and courtyards. Lot 2 in Section N Deposited Plan 712 contains the demountable buildings, play areas and the Maintenance workshop. Lot 3 in Section N Deposited Plan 712 contains the brick residence, Multi Purpose Courts and the grassed oval/playing field across both lots 2 and 3. Deposited Plans Annexed 9

13. CONSTRUCTION All buildings are of cavity brick construction with concrete floors off reinforced concrete footings and have Colorbond steel roofs overall. Internal linings consist of painted and rendered brick work and plasterboard partition walls, ceilings are of plasterboard and or suspended acoustic tile ceilings incorporating fluorescent light fittings. 13.1 Main Administration/Science building Free standing part 1 and 2 storey building of double brick construction, Colorbond steel roof, tile overlayed floors to Main administration area, foyer and amenities area, carpet overlayed floors to offices and classrooms. Circa 1987. 13.2 Assembly Hall/Primary School Building Free standing single storey building of double brick construction, Colorbond steel roof, and tile overlayed floors to amenities area, carpet overlayed floors to church hall area, offices and classrooms. The original Primary School building is circa 1989 and along with the Assembly Hall; which was refurbished in 2012 under the BER program. 13.3 Library/Senior School Building Free standing double storey building of double brick construction, Colorbond steel roof, tile overlayed floors to amenities area, carpet overlayed floors to offices and classrooms. Circa 2004. 13.4 Demountable Buildings The demountable buildings are erected on brick/concrete piers, with water and electricity connected. Steel framed, with steel clad external walls, fully lined, poly or plywood flooring and steel deck roof covering. All with covered verandahs. 13.5 Fibro Cottage No internal inspection was undertaken on this dwelling. From enquires we have been told the dwelling is a fibrous weather board, metal and tile dwelling, internal veneer construction, with prime cost items and a minor verandah. 13.6 Brick Residence No internal inspection was undertaken on this dwelling. From enquires we have been told the dwelling is a brick dwelling with a concrete tile roof, internal veneer construction, with prime cost items and a minor verandah. Miscellaneous Features and Finishes The following services are provided to the buildings: Air Conditioning Fire sprinklers Smoke detectors Thermal Alarms Fire Hydrants 10

14. ACCOMODATION 14.1 Main Administration/Science building The main entry to the administration is via a covered verandah area; the ground floor comprises of a main entry foyer and reception area, several offices including the principal s office, common room and interview room. Amenities including staff room kitchen facilities, toilets and sick bay. To the rear of the administration are classrooms comprising of 3 science rooms, 2 kindergarten rooms, storage rooms and a teachers office. To the carpark side of the building is an IT office and an IT storage room. The first floor level comprises of a staff room, 5 classrooms and a storage room. 14.2 Assembly Hall/Primary School Building The Assembly Hall area comprises of a main stage, pastors office, female, male and disabled amenities (which can be accessed via external doors), kitchen facilities, storerooms, and various office spaces. Kitchen facilities are used as a canteen and sometimes utilised by the Church s congregation. The Primary section of the building contains 6 separate classroom used for the operation of year 1 year 6 classes. 14.3 Library/Senior School Building The Senior School Building was constructed circa 2004. The ground floor level comprises of the library with adjoining staff offices, kitchenette, computer lab and senior study space, a large canteen, and various class rooms including large woodwork and Hospitality rooms. The building is serviced by wide pedestrian access stairs, a lift, appropriate male and female toilet amenities and store rooms. The first floor level comprises various class rooms, a large drama hall with adjoining music classrooms, 2 large art rooms and a dark room. The first floor level has a wrap around balcony with metal balustrades which provides a covered walkway for the ground floor level. 14.4 Demountable Buildings There are 4 demountable buildings in total on the site. Three of the four demountable buildings are located behind the senior school building surrounding an assembly/recreation area. The demountable buildings comprise of several classrooms, female and male amenities, staff offices and staff amenities. The demountable building at the rear of the three is predominately utilised for storage or exam purposes. 14.5 Fibro Cottage No internal inspection was undertaken on this dwelling. From enquiries we understand that the dwelling was originally utilised as the intensive care English centre for overseas students; now it is occupied by a school teacher. 11

14.6 Brick Residence No internal inspection was undertaken on this dwelling. From enquiries we understand that the dwelling comprises 3 bedrooms, 1 bathroom and a detached double garage. 14.7 Other Improvements 2 x all-weather steel post/wire mesh fenced tennis/basketball courts Steel post/mesh and tubeless steel perimeter fencing with security gates 15. AREA OF IMPROVEMENTS The improvements have a total gross floor area of 10,174 sqm dissected as follows: Description Building Areas Covered Areas Total Area Administration/Science Buildings 2,100 m 2 210 m 2 2,310 m 2 Assembly Hall 575 m 2-575 m 2 Primary School Building 535 m 2 158 m 2 693 m 2 Library/Senior School Building 3,000 m 2 1,050 m 2 4,050 m 2 1 205 m 2 63 m 2 268 m 2 Demountables 2 254 m 2 52 m 2 306 m 2 3 615 m 2 200 m 2 815 m 2 4 450 m 2 100 m 2 550 m 2 Residence 138 m 2 - Fibro Cottage Garage 36 m 2 - Verandah 27 m 2 201 m 2 Brick Residence 135 m 2-135 m 2 Maintenance / Work Shop 212 m 2 59 m 2 271 m 2 TOTAL AREAS 8,255 m 2 1,919 m 2 10,174m 2 Tennis / Basketball Courts - - 1,296 m 2 Car Park Areas - - 2,860 m 2 14,330 m 2 12

16. AGE & CONDITION The original subject improvements appear to have been constructed in circa 1980 and the balance of the improvements have been constructed and refurbished at various dates since. (Refer to 13. Construction) They are in good overall condition commensurate with their age and considered adequate for the purpose used. We have not carried out a structure survey of the building and were unable to inspect parts of the premises that were unexposed or inaccessible, and cannot say that such parts are free from defects. We have not sighted a pest control clearance, and the valuation is subject to the property being free of any pests or vermin. We have not sighted an Environmental Audit and our valuation has been made assuming that these would be available and satisfactory under all relevant Environmental, Occupational Health and Safety Legislation. The relevant information was obtained from records deemed to be reliable and whilst we believe it to be correct, we have not made a detailed search of title and the owners Corporation records nor sighting a survey report. Although all care has been taken in the preparation of the valuation, we stress that our valuation is an opinion of value based upon current market evidence 17. SITE CONTAMINATION There is no obvious evidence of site contamination. We have not carried out a search of the Environmental Management Register, or of the Contaminated Land Register and so our valuation report and concluded value, assumes that searches would not identify matters of concern, that may/would adversely affect the value, or use, of the site overall. We therefore reserve the right to review our report if such became evident. 13

18. SALES EVIDENCE 18.1 School Property Sales Property Details Remarks 149-153 Albert Rd, Strathfield, NSW, 2135 Sale Date: 1 July 2013 Sale Price: $26,400,000 Land Size: 11,000sqm. Analysis: $2,400/sqm improved Comments: Australasian Conference Association sold the school to the Minister for Education. Called the Sydney Adventist College. Older school established 1937. 4 Richardson Road, Narellan, NSW 2567 Sale Date: 16 th March 2012 Sale Price: $5,500,000 Land Size: 14,620 sqm / 1.462 ha. Analysis: $376.19 /sqm improved Comments: Hope Christian School Incorporated placed themself into voluntary liquidation due to the lack of cash flow to keep the school operating, The School board Chair Mick Agius said the withdrawal of The Lakes Christian College from a potential partnership meant the Hope Christian College was no longer viable. 20 36 Mungerie Road, Beaumont Hills, NSW 2155 Sale Date: 21 st January 2011 Sale Price: $9,200,000 Land Size: 40,652 sqm / 4.06 ha. Analysis: $226.31 /sqm improved Comments: The Australian Federation of Islamic Council s purchased St Gregory s Armenian School Sold mortgagee in possession after St Gregory s was liquidated and the Commonwealth Bank was appointed as its creditor. 14

69 Farm Road, Riverstone, NSW 2765 Sale Date: 13 th March 2009 Sale Price: $1,650,000 Land Size: 21,421 sqm / 2.14 ha. Analysis: $77.02 /sqm improved Comments: Australian Christian College Rural campus comprising 2 modern main educational buildings with ancillary improvements. Sold a few years ago under different marketing conditions. 18.2 Vacant Land Sales Property Details 129 Crown St, Riverstone NSW 2765 Remarks Sale Date: 25 July 2014 Sale Price: $2,356,000 Land Size: 11,920sqm Analysis: $177psm (adjusted) Comments: Older house on the land, which we removed to come to a vacant land figure. This Rate will be higher due to smaller land size than subject property. Located within the Riverstone Land Release Area. Lot 3 & 4 Bligh St, Riverstone NSW 2765 Sale Date: 04 November 2014 Sale Price: $7,000,000 Land Size: 40600sqm Analysis: $172psm Comments: There is an old house on the property, which we deem to have no value. Slightly sloping land, This rate will be higher due to smaller land size than the subject property. 11 Cranbourne St, Riverstone, NSW, 2765 Located within the Riverstone Land Release Area. Sale Date: 06 January 2015 Sale Price: $3,500,000 Land Size: 16252sqm Analysis SP Zoned Land: $77psm Analysis R2 Zoned Land: $117psm Comments: There are no buildings on the property. There are large trees toward the south west boundary of the property. The SP Zoned land is not suitable to be built on, but the R2 zoned land is suitable. Located within the Riverstone Land Release Area. 15

19. PHOTOGRAPHIC STUDY Reception and Main Foyer Assembly Hall area Kitchen Facilities Primary School Building Primary Classroom 16

Main Administration/Science Building Kindergarten Classroom Science Room Store room Play Area and Courtyard Library / Senior School Building Library 17

Wood Work Classroom Hospitality Classroom Senior Classroom Drama Hall Computer Room Music Room Demountable Buildings Demountable Classroom 18

Fibro Cottage Brick Residence Playing Field Workshop/Shed Multi - use Courts 19

20. VALUATION APPROACH In concluding our opinion as to the value of the subject, we have had regard to two bases of valuation:- 1. The Direct Comparison method, which has regard to the recent sales of other properties, considered to be comparable and relevant to the subject. 2. The Summation Approach method, whereby we have assessed our opinion of the value of the land with the existing zoning plus the added value of the improvements. The primary method of valuation utilises a summation method for the land component and additional value for the existing improvements resulting in the figures shown below. Calculations 1. Summation Land Value Our assessment of the 3 lots land value has been based on the limited sales we have obtained over the past few years in the Riverstone Region. Research of similar vacant land properties within the area indicates a range of $117-$130 per square metre. Total land area of approximately 60,500 sqm (6.05 ha.) (3 lots) @ $150 per square metre shows a value of $9,075,000 @ $135 per square metre shows a value of $8,167,500 @ $117 per square metre shows a value of $7,078,500 From the above calculations we have adopted a rate of $130/m 2 resulting in a land value of: $7,865,000 2. Depreciated Added Value of Improvements In calculating the depreciated added value of the improvements we have used Cordell Building Cost Guide to whom we act as consultants. We have utilised depreciation rates which ranges from 7.5% - 80%, depending on age, construction, and condition of the improvements. The above calculations should be regarded to some extent to be subjective and not purely based on standard accounting rates of depreciation. 20

The depreciated added value of the improvements is dissected as follows: Description Administration / Science buildings Gross Floor Area m 2 Replacement Cost Covered Areas m 2 Replacement Cost Total Replacement Cost 2,100 m 2 $ 4,179,000 210 m 2 $ 56,070 $4,235,070 Assembly Hall 575 m 2 $ 1,092,500 - - $1,092,500 Primary School Building Library / Senior School building 535 m 2 $ 1,064,650 158 m 2 $ 42,186 $1,106,836 3,000 m 2 $ 5,970,000 1,050 m 2 $ 280,350 $6,250,350 Demountables 1,524 m 2 $ 1,066,800 415 m 2 $ 110,805 $1,177,605 Fibro Cottage 138 m 2 $ 129,996 27 m 2 $ 7,209 $137,205 Cottage Garage 36 m 2 $ 18,576 - - $18,576 Brick Residence 135 m 2 $ 133,380 - - $133,380 Maintenance / Workshop Tennis / Basketball Courts 212 m 2 $ 124,020 59 m 2 $ 15,753 $139,773 1,296 m 2 $ 181,440 - - $181,440 Car Park Areas 2,860 m 2 $ 371,800 - - $371,800 Depreciated Value $2,541,042 (40%) $1,010,562 (7.5%) $608,760 (45%) $4,531,503 (27.5%) $353,281 (70%) $44,591 (67.5%) $6,037 (67.5%) $66,690 (50%) $27,954 (80%) $90,720 (50%) $167,310 (55%) Total 12,411 m 2 1,919 m 2 $14,844,535 $9,448,450 We have assessed the Market Value for the purpose used as is for the Church of Australia to be as follows: Land Value $ 7,865,000 Depreciated added Value of the Improvements $ 9,448,450 TOTAL VALUE $ 17,313,450 But say assessed value of land and buildings on a summation basis is: Adopt for valuation purposes As is $17,300,000 As a check method on a Direct comparison basis we have calculated the value as follows: 60,500 m2 @ $285 /m2 = $17,300,000 21

21. VALUATION CONSIDERATIONS We note the property is composed of multiple titles and the value is on the basis of a sale in one line. We have valued the subject property on a summation basis taking into account the fair market value of the land which has been based on comparative sales evidence. The indicative value range is between about $117-$150 m 2 and for the purposes of this valuation we have adopted a rate of $130m 2 which results in a current land value assessment of $7,865,000. We have then calculated a value to the school and associated improvements and depreciated each component separately after considering their age, construction, and inclusions. For valuation purposes the depreciated value of the improvements is assessed at $ 9,448,450. The total figure combines the assessed land value plus depreciated value of the building improvements and has been rounded off to $17,300,000. This figure represents the fair market value of the land and improvements for audit purposes on the assumption that the improvements will continue to be used for educational purposes. The subject property at the date of writing this report is not on the market for sale. However we are aware that the possibility exists that it may come on the market in the near future. If this was to eventuate we believe that this property would be readily saleable to other educational institutions. The existing building improvements are considered to be highly adaptable and could be utilised for a number of other alternate uses by other educational groups wishing to utilise these premises for similar use to the existing current use. We note that the subject premises were purpose built as a school and consider the existing improvements to be the highest and best use of the existing site. We believe that there would be considerable interest in this property if it came on the market for sale. While economic conditions remain uncertain it is our view that the subject premises should find a ready real estate market as the location and adaptability of the improvements are considered favourable. We note the property could be adapted for low density residential redevelopment but we do not consider this to be an ideal current alternate use. Riverstone land release area 22

The Riverstone precinct (refer to image above) was rezoned for Urban Development in May 2010. It is bounded by Bandon Road to the north, Schofields Road to the south, Richmond Rail Line to the west and First Ponds Creek and Windsor Road to the east. The 975 Hectare area will deliver capacity for more then 9,000 dwellings to accommodate approximately 27,000 residents, it will features open space, conservation reserves, employment land, schools, rail duplication and new walking/cycling paths and upgrades to already existing roads. Therefore as the subject property is located in this precinct the land is suitable for subdivision. The concept of plottage value is often considered where smaller lots of land are aggregated and consolidated into one larger site. We note this has occurred in this case but as this valuation has been prepared for audit purposes we have taken a conservative valuation approach. 22. INSURANCE ASSESSMENT School and Associated Improvements $14,844,535 Cost Escalation $ 770,000 Professional Fees $ 700,000 Demolition and Removal of Debris $ 250,000 TOTAL: $16,564,535 BUT SAY $16,500,000 We consider the insurable value of the improvements erected on the land on a replacement and reinstatement basis inclusive of escalation clause, professional fees, demolition and removal of debris and GST but excluding loss of rent to be $16,500,000. We advise that the above assessment should be taken as an indication only and should a more detailed estimate be required is recommended that a quantity surveyor be instructed. 23. REPORT QUALIFICATIONS This audit was undertaken on the basis of information provided to us by our instructing party and whilst we have no doubt about its reliability, for obvious reasons we are unable to guarantee its accuracy. Furthermore, information obtained from various sources was anecdotal. Any potential purchasers or mortgagees must undertake their own due diligence and satisfy themselves as to the facts prior to proceeding with any transaction. The audit is for the use only of the parties to whom it is addressed and for no other purposes. No responsibility is accepted to any third party who may use or rely on the whole or any part of the content of this audit. Furthermore, neither the whole nor any part of this report may be included in publication or document or disseminated to any other person without our prior written consent. This audit is subject to the property, land and improvements not being affected by materials of a dangerous or deleterious nature, which would classify the land as being contaminated. The value assessed in the valuation report may change significantly or unexpectedly over a relatively short period (including as a result of general market movements or factors specific to the particular property). We do not accept liability for losses arising from such subsequent 23

changes in value. Without limiting the generality of the above comment, we do not assume any responsibility or accept any liability if this audit is relied upon after a period of 3 months. Diamonds Property Consultants or Stuart Rowan do not have any pecuniary interest in the subject property and the opinion expressed is free of any bias but has had regard to instructions from Norwest Christian College in the preparation of this audit for a sale and settlement to occur within 60 days. 24. VALUATION We have assessed the Market Value for audit purposes, for the Norwest Christian College to be as follows: $17,300,000 Inc. GST (Seventeen Million, Three Hundred Thousand Dollars) Signature: Principal Valuer: Stuart N Rowan F.A.P.I Qualifications/Registration #: Registered Valuer No 13784 (Unrestricted) Diamonds Property Consultancy Pty Ltd www.valuations.sydney 24