airspace final members' briefing meeting 3

City Tattersalls Club Guiding Principles

The potential development has been created to align with the

Club’s Guiding Principles.

1. Retain City Tattersalls Club (CTC) as a registered Club recognising and ensuring

compliance with the CTC ACT and Rules.

2. Retain ownership of all assets by our Club*

3. Primary focus on Club, subsidiary clubs and members both now and in the future

4. Maximise value of the Club assets in short, medium and long term

5. Minimise cost and maximise benefits of the Club

3

* Possible sale of Private Apartments

6. Minimise risk to the club

7. Achieve a long term reduction in financial dependence on gaming

and secure the long term financial future of the Club

8. Create a long term new business model for Club

9. Continued trading of the Club

4

* Possible sale of Private Apartments

City Tattersalls Club Guiding Principles

1. Highest and Best Use

The highest and best use of the CTC site. Based on independent marketing advice.

Appropriate uses within the City of Sydney planning framework.

2. Independent CTC Site

Not reliant on neighbouring properties.

Retain 202-204 Pitt Street as a neighbouring building which facilitates

continuous trading on all floors with dedicated street entrance during the build.

3. Mixed Use – Club, Hotel, Private Apartments and Commercial

Provision of Club use, new serviced apartments (hotel accommodation),

private apartments and commercial above with separate dedicated street

access

5

What is the preferred development for our Club?

4. 194 Pitt Street

Amalgamation of 194 Pitt Street into total development adding to the overall

development potential

Without 194 Pitt Street this development would not be possible

5. No Parking and New Loading Dock

Addresses the key site constraints of car parking, loading and services.

6. Lease

Long term lease for private apartments or possible sale if highest and best use

6



7. Heritage

The Pre-DA proposes an envelope which addresses key planning constraints

including solar height plane, FSR and heritage. It protects the significant

façade and key interiors of the site and proposes a tower set back behind

them as part of the varied City skyline.

8. New Business model

Allows for a new business model

9. Unleashes the Airspace

Position CTC as a going concern along with a physical presence as a CBD

destination of choice with iconic Club branding on top of the tower. Maximise

the international appeal of the site with panoramic views of the city, gardens,

harbour and greater metropolitan area

7

8

City Tattersalls Club

Indicative Development Option

The proposed envelope is a site specific control

The Indicative Development Option;

- Is not a proposal, it tests the proposed envelope

48 Floors of high rise development

7 Floors of Upgraded Dedicated Club Facilities (Floors G - 6)

2 shared sub-basement floors

7 Floors of Serviced Apartments (Hotel Accommodation) (Floors 7 – 13)

32 Floors of High Quality Designer Apartments (Floors 14 – 46)

2 Uppermost Floors of Commercial Usage (Restaurant/Bar) (Floors 47 & 48)

9

Maximise the international appeal of the site with

panoramic views of the city, gardens, harbour and

greater metropolitan area

Position CTC as a going concern along with a physical

presence as a CBD destination of choice with iconic

Club branding on top of the tower


Indicative Development Option

10


11


1. Decision to progress to next stage due to positive feedback from Council

2. Funds of $220,000 approved to proceed to the next stage - December 2013

3. Media coverage commenced

4. Colliers distributed the Information Memorandum to open market

5. Receipt and Appraisal of Expressions of Interest

6. Negotiation with short list of prospective developers commences creating

competitive tension period

7. Independent Check and Evaluation of Expression of Interest undertaken

8. Members Briefing 3 to be held in December 2013

15

Actions Summary

Member’s Communication

17

SEPTEMBER Information added to Club website includes; Airspace Development landing page Members Briefing Meeting 2 Presentation

Club Information Memorandum SEPT/OCT- Weekly updates showcasing market response during EOI period Digital signage regarding development placed around Club

OCTOBER All media coverage listed on Club website

NOVEMBER Notice of Members Briefing Meeting 3 added to ;

Club Magazine, notice boards and website

DECEMBER- Email invitation to Members Briefing Meeting 3 sent to Members ,

Followed by reminder email and SMS notifications

Regular information updates will continue

Media Coverage

Due to the extensive media interest in the development opportunity at City

Tattersalls Club, a media plan was prepared to manage the distribution of

information to the market place.

Key Dates

City Tattersalls Club held an exclusive Media Briefing Session and our media

consultant distributed a press release to the marketplace on Wednesday 28

August 2013

18

Media Coverage

19

Property

‘City Tatts enters new era’ – Monday, 2 September 2013

The Weekend Australian

‘Final piece in waterfront puzzle’ by Ben Wilmot and Lisa Allen – Saturday, 31 August 2013

The Daily Telegraph

‘City Tatts reaches skywards to secure future’, Thursday 29 August 2013

SMH

‘City Tatts Club plans 48-floor tower’ by Carolyn Cummins, Thursday 29 August 2013

AFR

‘City Tattersalls Clubs plans to ‘unleash’ Pitt Street space’ by Robert Harley, Thursday 29 August 2013

The Australian – ‘Tatts unveils CBD tower plan’ by Lisa Allen, Thursday 29

August 2013

Brisbane Times

New 48-storey tower could spark Chinese interest’, Thursday 29 August 2013

Channel Ten 5PM News

Wednesday, 28 August 2013. (Link will be available shortly)

SMH

’New 48-storey tower could spark Chinese interest’ by Carolyn Cummins and Stephen Nicholls, Wednesday 28 August 2013

Brisbane Times

‘City Tatts Club plans 48-floor tower’, Wednesday 28 August 2013

Property Observer

‘City Tattersalls Club proposes 48-level Pitt Street Sydney mixed use

redevelopment’ by Nicola Trotman, Wednesday 28 August 2013

SMH

‘Office sector subdued as rents flatten’ by Carolyn Cummins, Wednesday 28 August 2013

The Australian

‘City Tattersalls bets on tower block plan ‘, Saturday 24 August 2013

20

21

Media Coverage

Property OZ

‘City Tatts enters new era’

Monday, 2 September 2013

22

Media Coverage

‘City Tatts reaches skywards to secure future’

Thursday 29 August 2013

23

Media Coverage

City Tatts Club plans

48-floor tower’ by

Carolyn Cummins

Thursday 29

August 2013

24

Media Coverage

Channel Ten 5PM News

Wednesday, 28 August 2013.

Commencement of Expression of Interest

1. Information Memorandum was issued to the marketplace

2. 6 week marketing campaign was launched from 2 September 2013

to 9 October 2013 with display advertisements in the Australian Financial

Review, Sydney Morning Herald, direct email marketing and

website listings

3. Data Room Set-up

4. Provision of responses to Data Room enquiries

5. Management of expression of interest process

25

Information Memorandum

City Tattersalls Club and Colliers

International developed a 36 page

Information Memorandum that

contained pertinent information

required by Company to make a

satisfactory assessment of the City

Tattersalls Club development

opportunity and its value

Example Pages 6 -7


Example Pages 8 - 9


Example Pages 10 - 11


30

ADVERTISING DATE MEDIUM

Week 1 03/09/2013 Australian Financial Review - Tuesday

07/09/2013 Sydney Morning Herald - Commercial


14/09/2013 Sydney Morning Herald


CAMPAIGN ITEMS

E-Marketing 03/09/2013 Email Marketing to qualified database of 2,500

Internet 03/09/2013 Real Commercial web listing

6 Week Marketing Campaign LAUNCHED FROM 2 SEPTEMBER - 9 OCTOBER 2013

Display Advertisements

Level of Market Interest From the 6 Week Marketing Program

1. Internet hits – 812

2. Information Memorandum sent – 67

3. Confidentiality Agreements sent – 21

4. Groups in Data Room – 17

33

Receipt and appraisal of Expressions of Interest 10 OCTOBER 2013 – 9 DECEMBER 2013

1. Seven initial submissions reviewed

2. Shortlist of three companies advised

3. Shortlisted companies enter into competitive tension period to refine offers

4. All companies required to resubmit refined proposals by 4 December 2013

5. Committee to select the preferred company and enter into exclusive

arrangement period for next stage

34

Working with shortlisted companies

Over 20 workshops with 3 individual companies and their design teams were

held with City Tattersalls Club to identify and clarify the following parameters:

• Site constraints - Heritage, planning, structural, construction access

• Full understanding and integration of Club, hotel and private apartment

requirements

• Temporary Club operation during the construction phase

• Documents required for further independent evaluation, as part of the revised

submissions

• Club requirements in all areas

35

City Tattersalls Club is proud to announce

that Mirvac was selected as the preferred

property group to work in partnership

with our Club

37

FINANCIAL: Financial strength

DESIGN: Club Brief – listened and responded

Future proofed the Club for generations to come

Created an iconic concept to reposition the Club

Construction: Experts in fast tracking CBD projects

Understanding of City of Sydney Council requirements

Integrated model = speed and efficiency

Minimal impact to Club operations during construction

Extensive experience in heritage sites

38

Why was Mirvac selected?

PREFERRED

DEVELOPMENT

PROPOSAL PRESENTED BY TONY GUILFOYLE

CHIEF EXECUTIVE OFFICER

CITY TATTERSALL CLUB

39


Indicative Development

Proposal

What is included in the development proposal

42

• Seven floors of new Club space with a range of amenities including restaurants,

bars, fitness centers, day spa, function facilities and gaming

• Hotel - 100 rooms with a 4 Star rating

• Sky Terrace - 100 seat restaurant and bar area

• Two shared basement floors

• Signage naming rights on the top of the tower

Total of 48 Levels



Proposal



Proposal

Interim club during the build

45

1. Interim Club will provide members with restaurant, bars, fitness facilities,

functions, dancing classes and gaming in 202 204 Pitt Street

2. Special arrangements for swimming, snooker and dancing

3. Neighbouring construction work happening next door during the build

period

INTERIM CLUB

46

1. Interim Club will provide members with gaming, restaurant, bars,

fitness facilities, functions and dancing classes in 202 204 Pitt Street

2. Special arrangements for swimming, snooker and dancing

3. Neighbouring construction work happening next door during the

build period

What does this mean for Members long term?

47

1. Complete upgraded and new facilities and amenities

2. Ownership of a 100 room hotel with business opportunities (4 Star)

3. Decrease the reliance on gaming

4. Complete new offering for local, interstate and international members –

a total change to the Club’s business model

5. Private apartments supporting City Tattersalls Club offerings and giving a

greater presence in the Sydney CBD

6. Substantial increase of overall value of Club assets

7. The long term survival and prosperity of our Club

Key Milestones for the Next Stage DECEMBER 2013 – JULY 2014

49

December 2013 –

May 2014

• Development management agreement terms

and conditions negotiations

• Set-up member’s dedicated development

information display area

• Continue to refine the indicative development

proposal

February – July 2014 • Member’s Information Process

• Various Members’ Briefing Meetings

May – July 2014 • Member Vote

50

Development Timelines

2013 2014

Dec Jan Feb Mar Apr May Jun Jul

10-Dec

Member's

Briefing

11-Dec Exclusivity Period

Dec 13 -July 14 Work up Development Management Agreement

DMA /

Agreement

Signed

Feb 14 - May 14

Set up member display and

information area

Jul-14 Set up Member Approval process Member Vote

Recent Media Coverage

51

'Developers circle Sydney CBD'

by Lisa Allen and Ben Wilmot

28 November 2013

airspace final members' briefing meeting 3

Documents

club assets

city tattersalls club

mixed use club

registered club recognising

iconic club branding

preferred development

potential development

total development