Business Overview

The Galleria at 105 Forest Road, Hurstville is a development comprised of:

• 10 commercial premises

• 116 residential units

• 33 x 1 bedroom

• 60 x 2 bedroom

• 23 x 3 bedroom

• 179 car spaces

The 2,630 square metre site is zoned Zone No.3(b) – City Centre Business Zone and the project has a Development Consent (12/DA-132) dated 11 October 2012 and valid until 13 November 2017.

The site is approximately 650 metres from the Hurstville train station, 320 metres from Westfield Hurstvillee Shopping Centre and around 14 km from the Sydney CBD.

The owner of the site is Australian Consulting Builder Pty Ltd, A.C.N. 146 052 397, A.B.N 67 146 052 397 (“ACB”).

The project has a gross sale value of $100,060,000, less GST of $9,096,364 and realisation costs (estimated at 2.5% of gross sales) of $2,174,091 for an estimated net revenue of $88,689,545.  Total development costs are expected to be in the order of $45 million, net of GST.

ACB is considering a Section 96 application to vary the existing Development Consent to add a further 13 residential units to the project, providing additional gross revenue of $9.5 million and additional net profit of $5.2 million to an already outstanding project.

Investment Opportunity

Sophisticated investors only are eligible to participate.

ACB wishes to enter into a commercial partnership with one or more professional or sophisticated investors under the following indicative terms:

• Contribution of $20 million in equity funding

• Class A Preference Shares

• 15% per annum coupon rate

• Interest capitalised and compounding

• Second ranking mortgage over property

• Option to take property in lieu of dividends

Based on an investment of $20 million and a development period of 2 years, the investor would obtain a gross return of $6,450,000 and would receive return of principal funds immediately folllowing payment of the commercial financier holding a first mortgage over the property.

ACB intends to obtain commercial finance in the sum of $30 million, to be drawn as required during the construction phase.