Inputs. Model set-up. Pre-Construction Phase. Key model format Assumptions 100 Line summary 100 Units. Project Title Internal Reference

Transcription

1 Inputs Model set-up Key model format Assumptions 100 Line summary 100 Units Format Project Title Internal Reference Toronto Timing Land/ Project Acquisition Date 01-Sep-16 Delay between Acquisition & DA lodge Months - Delay between DA lodge & DA Months - Delay between DA & Construction Start Months 2 Construction Start Date 30-Nov-16 Construction Duration Months 24 End Construction Date 30-Nov-18 Delay between Construction and All Sales Months 2 Delay between All Sales and Distributions Months 1 Distributions to unitholders Date 28-Feb-19 Capital under management Months 27 Pre-Construction Phase Land Acquisition Purchase Price S 520, Stamp Duty S 21, Opportunity/ Spotters Fee (Now Part of Funding Costs) S 92, MER (Now Part of Funding Costs) S Legal Fees S 2, Total Land Acquisition S 636, Holding Costs Land Rates S 10, Land Tax S 20, Total Land Holding S 30, Consultants Architect S 40, Planning Consultant S 15, Quantity Surveyor S 10, Structural Consultants S 10, Services Consultants S 10, Land Surveyor S 10,000.00

2 Private Certifier S 10, Other S - Total Consultant Costs S 105, Consultants Spend Profile (Approx.) Proportion of Consultants Pre-Construction % 50% Proportion of Consultants Post-DA % 50% Cost of Consultants Pre-Construction 52, Cost of Consultants Post-DA S 52, Total Pre-Construction Phase Costs Total Pre-Construction Costs S 718, Post-DA Construction Council Contributions S94 Contribution Amount S 15, S94 Contribution Lots S 4.00 S94 Total S 60, Hunter Water S 10, Energy Australia S 10, Sundry S - Total Council Contributions S 80, Consultants Costs of Consultants Post-DA 52, Construction Costs Construction px/m2 $/m2 1, Project area m2 m Construction cost S 1,200, Contingency % % 5% Contingency amount S 60, Services S - Landscaping as % of Construction S 5% Landscaping cost S 60, Total Construction Cost S 1,320, Total Post-DA Construction Cost S 1,452, Sales Sales Income Sales Income Per 3-Bed Townhouse S 460, Sales Income Per 2-Bed Townhouse S 430, Sales Income Per 2-Bed Villa S -

3 Number of 3-Beds Townhouse Quantity 3.00 Number of 2-Beds Townhouse Quantity 3.00 Number of 2-Beds Villa Quantity - Income for 3-Beds Townhouse S 1,380, Income for 2-Beds Townhouse S 1,290, Income for 2-Beds Villa S - Total Sales Income S 2,670, Sale Costs Agents Fees % % 2% Agents Fee S 53, Legal Fee per Unit S 1, Total Legal fees S 6, Surveying & Strata S 15, Total Sales Costs S 74, GST Payment & Cash GST Recovery Rate % 10% GST Inclusive % 110% GST Factor Factor Land Purchase Price S - 520, Land Opportunity Fee S - Total Construction Costs S - 1,452, Total Consultant Costs S - 105, Total Sales Costs S - 74, Total Sales Income S 2,670, Net Receipts & Payments S 518, GST Payment S - 47, Cash Available from Sales Income S 2,670, GST Payment S - 47, Net Cash Available S 2,622, Profit Summary Total Costs Before Interest & Management Fees Land Acquisition S 636, Land Holding S 30, Consultants - Pre DA S 52, Council Contributions S 80, Consultants - Post DA S 52, Construction S 1,320, Sales Costs S 74,400.00

4 GST Payment S 47, Total Costs Before Interest & Management Fees S 2,292, Profit Before Interest & Management Fees Income S 2,670, Total Costs S - 2,292, Profit Before Interest & Management Fees S 377, Funding & Interest Costs Interest Rates Annual Rates Pre-Construction Financier (E.g. Boutique fund) % 15.0% Mezzanine Debt for Construction (E.g. Boutique Fund) % 9.5% Senior Debt for Construction % 6.5% Monthly Rates Pre-Construction Financier (E.g. Boutique fund) % 1.17% Mezzanine Debt for Construction (E.g. Boutique Fund) 0.76% Senior Debt for Construction 0.53% Equity Needs Total Costs Before Interest & Management Fees S 2,292, Pre-Construction Costs S - 718, Post-DA Costs Before Interest & Management Fees S 1,574, Pre-Construction Equity: Debt Equity 100.0% Pre-Construction Debt Financier 0.0% Pre-Construction Financing Splits Equity S 718, Pre-Construction Debt Financier S - Total Pre-Construction Financing S 718, Post-DA Debt & Equity Profile Post-DA Costs Before Interest & Management Fees S 1,574, Target Fund LVR % (before Equity for Manager Fixed Fe % 72.0% Post-DA Equity S - Post-DA Debt S 1,574, Total Post DA Finance S 1,574, Mix of Senior Debt to Mezzanine Debt Senior Debt % 100.0% Mezzanine Debt % 0.0% Post-DA Financing Splits Equity S -

5 Senior Debt S 1,574, Mezzanine Debt S - Total Post-DA Finance S 1,574, Summary Funding (before Management Fees) Pre-Construction Equity S 718, Post-DA Equity S - Total Equity 718, Pre-Construction Financier (Debt) S - Post-DA Senior Debt S 1,574, Post-DA Mezzanine Debt S - Total Debt 1,574, Total Debt + Equity S 2,292, Pre-Construction Interest Number of financing months Months Pre-Construction Interest of Pre-Construction Financier S - Total Pre-Construction Interest S - Construction Phase Interest Build Profile Months Build 1 Months 9.00 Build 2 Months 7.00 Build 3 Months 6.00 Build 4 Months 5.00 Build 5 Months 4.00 Build 6 Months 3.00 Build 7 Months 2.00 Build Completion Percentage Build % 1 Build % 2 Build % 3 Build % 4 Build % 5 Build % 6 Build % 7 % 5% % 15% % 18% % 18% % 18% % 15% % 11% 100% Senior Debt Financing During Construction Senior Debt Build 1 S 3, Senior Debt Build 2 S 8, Senior Debt Build 3 S 9, Senior Debt Build 4 S 7, Senior Debt Build 5 S 6, Senior Debt Build 6 S 3, Senior Debt Build 7 S 1,826.81

6 Senior Debt Interest During Construction S 38, Mezzanine Debt Financing During Construction Mezz Debt Build 1 S - Mezz Debt Build 2 S - Mezz Debt Build 3 S - Mezz Debt Build 4 S - Mezz Debt Build 5 S - Mezz Debt Build 6 S - Mezz Debt Build 7 S - Mezz Debt Interest During Construction S - Total Construction Interest S 38, Total Interest on Debt Total Interest S 38, Project Performance & Management Fees Invested Capital (Equity only) Pre-Construction Equity S 718, Post-DA Equity S - Total Invested Capital S 718, Manager Fixed Fee Manager Fixed Fee Percentages Project opportunity fee (on Land Acquisition Price) % 0.0% Invested Capital Fee - annual figure % 0.0% Invested Capital Fee - monthly figure % 0.00% Debt Arrangement Fee % 0.5% Duration of Invested Capital Under Management Months 27 Manager Fixed Fee Amounts Project Opportunity Fee S - Debt Arrangement Fee S 7, Invested Capital Fee S - Total Manager Fixed Fees S 7, Profit after interest & fixed mgmt fees Project profitability before interest S 377, Interest S - 38, Manager Fixed Fee Amounts S - 7, Project profit after interest & fixed management fees S 330, Summary Funding (Including Fixed Mgmnt Fee) Pre-Construction Equity 718,980.00

7 Manager Fixed Fees 7, Total Pre-Construction Equity 726, Post-DA Equity - Total Equity 726, Pre-Construction Financier (Debt) S - Post-DA Senior Debt S 1,574, Capitalised Interest 38, Post-DA Mezzanine Debt S - Total Debt 1,612, Total Debt + Equity S 2,339, Resultant Fund LVR Total Equity incl. Manager Fixed Fees 726, Total Debt Facilities 1,612, Total Project Finance 2,339, LVR incl. Manager Fixed Fees 68.94% Target Return & Out-Performance Target Annual Return on Unit Price NAV for Equity Inves % 12.0% Target Monthly Return on Unit Price NAV for Equity Investors 0.95% Profit Out-Performance Fee to Manager % 50.0% Target Return & Outperformance Fees Pre-Construction Unit Pricing Total Pre-Construction Equity (incl. Manager Fixed Fees S 726, NAV Unit Price at time of Pre-Construction Equity S 1.00 No. of Units issued MIS Units 726,850 Post-DA Unit Pricing Post-DA Equity S - NAV Unit Price at time of Post-DA Equity S 1.00 No. of Units issued MIS Units - Total New Units Issued S 726,850 Target Fund Returns Before Fund Manager OP Fee Target NAV Pre-Construction Equity S 1.29 Target NAV Post-DA Equity S 1.29 Target Fund Return Pre-Construction Equity S 211, Target Fund Return Post-DA Equity S - Total Target Fund Returns on Equity S 211, Fund Out-Performance of Target Return OP on All Equity S 119, Max Manager Out-Performance Fee 59,522.41

8 Target Fund Return Check Is there sufficient cash to cover Target Fund Return? YES Waterfall Distributions Net Cash Receipts S 2,622, Repay All Debt S - 1,612, Repay All Equity S - 726, , Actual Return to Pre-Construction Equity providers S - 211, Actual Return to Post-DA Equity providers S - 71, Actual Manager Outperformance Fee S - 59, Cash Available for Distributions 12, Viable Project Check Is there surplus cash after Manager Outperformance? YES Unit Pricing Post Project Completion Total Units for Project MIS Units 726,850 Available Additional Distribution per Unit S/ unit 0.02 Additional Fund Return Pre-Construction Equity S 12, Additional Fund Return Post-DA Equity S - Additional Fund Returns S 12, Project Returns Analysis Return on Equity Total Returns to Pre-Construction Equity Providers S 223, Total Returns to Post-DA Equity Providers S - ROE Pre-Construction % 30.75% ROE Post-DA % N/A Internal Rate of Return Capital under management Months Number of years Part Years 2.25 IRR Equivalent - Pre-Construction Equity Providers % 12.66% IRR Equivalent - Post-DA Equity Providers % N/A