a5035 otan presentation email-4.2.13

IMPORTANT INFORMATION

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This presentation has been prepared

without taking account of the

objectives, financial situation or needs of

any particular individual.

Before acting on the information in this

presentation, you should consider its

appropriateness to your circumstances

and, if necessary, seek appropriate

professional advice.

AFSL Licence: 342911

Registered Scheme: 142104158

IMPORTANT INFORMATION

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• 50% of the Otan board is independent

• Yearly independent audit of fund finance

• Yearly independent audit of the fund’s compliance procedures

• Otan as the responsible entity must retain a minimum of $500,000 of cash

• Proven track record managing funds and property

• Strict processes for conflicts of interest

Requirements for Otan to have a Retail Australian Financial

Securities Licence

IMPORTANT INFORMATION

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• These are lodged with the Australian Securities and Investments Commission

• Complete transparency and disclosure

• All statements must be supported

• Tax

• Legal

• Valuation

• Cost

• Revenues

• Financial

Otan Product Disclosure Statements

Signed off by

experts and

supported by facts

WELCOME

TO OTAN

WELCOME TO OTAN

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Otan was established to make the most of a unique

opportunity in the West Australian property industry.

Otan has a retail AFSL licence (Lic No 342911) and it

will provide investors with the ability to participate

in property opportunities across Western

Australia. (Australian Registered Scheme Number

142104158)

Queens Park | North 1 Subi Centro | South Beach

South Beach 461 Housing | Karratha | Belmont

South Headland | Karratha Infill

OTAN IS AN OPPORTUNITY FUND

WELCOME TO OTAN

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OTAN FUNDS UNDER MANAGEMENTApril 2010 to October 2012:-

• $53,000,000 plus

• $1.104 Million raised on average per month

• Average investment $1,177,000 per investor

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THE OTAN INVESTMENT STRATEGYThe three main objectives of the fund are to combine these critical factors in the investment

strategy:-

• Maximise the actual returns of the fund.• Cost down • Revenue up • Project brought forward

• Manage the risk of the fund.

• Non recourse debt

• Land mainly owned outright at settlement.

• Pre sales of the properties to be developed will normally cover any development debt by 120%.

• The prices of the individual properties are very “middle ground” which was the most

resilient in the GFC.

• Deliver the returns of the fund.

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THE FOUR MAIN TYPES OF PROPERTY DEVELOPMENT ARE:

Infill residential property (20-100 houses in an existing residential area)

Residential projects incl. apartments (30-200 apartments)

Broad acre residential land subdivision (50-1000 lots subdivisions)

Commercial projects (pre leased)

The current benchmark for minimum investors returns on a new project is 20% IRR

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PROCESS OF AN OTAN FUND

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INVESTOR PROCESS

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The acquisition team is equipped with specialised skills, up to date market

knowledge/information and current planning contacts.

SITE IDENTIFICATION

The past knowledge of the delivery of $100s of millions of projects as well

as the experience to know when to say NO.

FEASIBILITY

Experience and knowledge.

CONTRACT

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BOARD OF DIRECTORS

JOHN WELBORN

Director

JOHN NICHOLAS

Chairman

DAVID PRINGLE

Executive Director

MARK BUTLER

Managing Director

WELCOME TO OTAN

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• 50% shareholder and fulltime director of the Pindan group of

companies since 1981

• In these 30 years Pindan has grown to one of the largest builders in

Western Australia

• annual turnover exceeding $500 million and employing a staff in

excess of 350.

• David’s responsibilities for the Pindan group including over seeing all

the accounting and financing functions

• Pindan has been active as a developer

• David was also the managing director of Axiom Properties Ltd from

1991 until September 1997. The company listed on the Australian

Stock exchange in early 1997.

DAVID PRINGLE EXECUTIVE DIRECTOR

WELCOME TO OTAN

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• 20 years as Director and Executive Director of a number of property firms

• Director of firms from start-up to listed on the Australian Stock Exchange

• Created national award winning brand strategies and

• Proven track record as a capital raiser.

• Founder of Butler & Company (in Victoria) undertaking

commercial, residential and rural sales, acquisition and management.

• Raised $500,000,000 of capital and the acquisition of over a billion dollars

of properties across Australia.

• Extensive property project experience including “Royal Domain Tower” in

St Kilda Road Melbourne, “Flinders Wharf” in Docklands Victoria and

“Hidden Valley”, a 950 lot residential golf community.

MARK BUTLER MANAGING DIRECTOR

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• Fellow of the Institute of Chartered Accountants

• 35 years experience in accounting and corporate advisory work

• Partner in Ernst and Young ( 12years )

• Arthur Andersen ( 8 years )

• Nicholas and Stedman ( 6 years )

• Commercial Director - Wunan Foundation Inc - 11years

• Chairman of Noahs Ark (WA ) Inc.

JOHN NICHOLAS EXTERNAL CHAIRMAN

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• Chartered accountant

• More than 15 years experience as an investment banker

• Currently the Managing Director of Equatorial Resources Limited

• Director of Prairie Downs Metals Limited

• Director of Rugby WA

• Member of the Australian Institute of Chartered Accountants, The

Financial Services Institute of Australia, and the Australian Institute of

Company Directors.

• First West Australian to play rugby for the Wallabies playing six tests for

Australian between 1996 and 1999.

JOHN WELBORN EXTERNAL DIRECTOR

WELCOME TO OTAN

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Monthly development reports

provided for each project.

KEEPING YOU INFORMED

WELCOME TO OTAN

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Otan Unit Certificate

KEEPING YOU INFORMED

INVESTING

WITH OTAN

INVESTING WITH OTAN

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THE PROCESS

INVESTING WITH OTAN

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WHO INVESTS WITH OTAN

Institutional

INVESTING WITH OTAN

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EXAMPLE LEGAL STRUCTURE: OTAN QUEENS PARK

INVESTING WITH OTAN

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HOW LONG IS MY INVESTMENT

This is a guide of the time frames of each type of residential projects that Otan undertakes, however there will

be specific time frames in each product disclosure statement for each project.

INVESTING WITH OTAN

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SELF MANAGED SUPER FUNDS

Otan, like most SMSFs is designed for high capital growth. It’s as easy as filling in one

simple application form and you are invested in the project of your choice.

• No special structures required other than your fund.

• No lengthy professional consultation.

• Debt is handled in accordance with SMSF rules (no guarantees required).

• It is normally very hard to undertake property development of any type in your

SMSF, not with Otan.

Otan advises that you seek your own advice before investing

INVESTING WITH OTAN

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THE CHOICE IS YOURS

• The investor selects how much they wish to invest in which Otan project.

• You are able to spread your investment across a number of Otan projects.

• Each project fund (Project specific part B) is a separate fund and therefore

“ring fenced” financially.

• Risk minimised by pre-sales of the project product prior to construction.

INVESTING WITH OTAN

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MANAGING RISK

Even if a project is unable to proceed, the land is owned with no or very little debt. In most

cases the sale price of the land (valued by an independent property valuer) is increased by

obtaining the statutory approvals to develop the land.

OPTION ONE

Sell the land with the development approvals and return the money to the

investors. Depending on the lands sale price the returns for example may vary from 70-

110% of the invested capital.

OPTION TWO

Delay the development until circumstances change in favour of the development. As the

site has little or no debt the fund has the ability to not develop the site.

If this situation was to happen these two options (or others) would be discussed with the

investors and the appropriate action would be undertaken.

INVESTING WITH OTAN

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RETURNS

• The Otan development funds have an minimum investment benchmark of

15% internal rate of return (annual) nett to the investor. Funds are projected

to exceed this.

• The returns are NOT guaranteed.

• Returns can be increased by Otan working with cost, revenues and

time management.

• There are no partial returns only those paid at the completion of the project.

INVESTING WITH OTAN

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FEES

All fees are set out exactly in each project’s Product Disclosure Statement

Acquisition fee buy the right project (3% of purchase price)

Capital raising fee the cost to raise the capital (4% of the capital)

Funds management fees cost to maintain the fund (2% of funds per year)

Performance bonus The bonus paid once a result is achieved by Otan at the end of

the project. (A percentage of the top end of the return

in excess of 15% per annum)

Note: Refer to your Product Disclosure Statement for the exact fees, the above are to

be seen as a guide only.

THE PROJECTS

THE PROJECTS

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THE PROJECTS

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QUEENS PARKInfill Housing

• Capital $2.96 million

• 48 houses and

apartments

• Opposite train station

and just 15 minutes to

the city

• Construction and

settlements started

THE PROJECTS

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QUEENS PARKInfill Housing

QUEENS PARKInfill Housing

THE PROJECTS

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South BeachInfill Housing

• Capital $2.96 million

• 20 town houses

• 200m from the beach

• Approvals achieved

ready for pre sales

THE PROJECTS

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South BeachInfill Housing

THE PROJECTS

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South Beach

461 HousingInfill Housing

• Contract $3.0 million

• 24 townhouses

• Estimated return of 22%

per annum

THE PROJECTS

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South Beach 461 Housing

Infill Housing

THE PROJECTS

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North One Subi CentroApartments

• Capital $16 million

• 88 apartments and commercial units

• 80% pre-sold

• Institutional investor (ISPT DOF fund)

• Construction started

THE PROJECTS

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North One Subi CentroApartments

THE PROJECTS

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Otan KarrathaSubdivision

• Capital $10 million

• 330 residential lots

• 100 lots pre sold with houses for $80 million

• Construction started

THE PROJECTS

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Otan KarrathaSubdivision

THE PROJECTS

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191 Great Eastern

Highway BelmontOffice

• 3439 sq m of nettlettable space.

• 10,954 sq m site with dual frontages

PROJECTS

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Otan Nickol Karratha559 Grouped Dwellings

• $1.75 Million capital

• 4,814 sq m site

• 15 homes

• 29% IRR

PROJECTS COMING SOON

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Otan South HedlandGrouped Dwellings

• Otan South Headland

• $2.0 Million capital

• 4,885 sq m site

• 16 homes

• 54% IRR

PROJECTS COMING SOON

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Otan GuilfordGrouped Dwellings

• Located on the banks of the Swan River

• $4.7 Million capital

• 2.16 Hectare site

• 54 homes

• 23% IRR

INVEST IN

THE WEST

INVEST IN THE WEST

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THE WA ECONOMY

Western Australia’s economy was

valued at $217 billion in 2010-11. It

grew 3.5% in real terms in

2010-11, below its annual average of

4.4% over the past five years. Growth in

2010-11 was mainly driven by increased

business investment, household

consumption and mining activity. The

State had the highest per capita gross

state product of $93,593, 50% higher

than the national average of $62,424.

INVEST IN THE WEST

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THE WA ECONOMY

INVEST IN THE WEST

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THE WA ECONOMY

While nuclear power is diminishing globally WA’s Gorgon project alone supplies 20% of the

world’s LNG (Liquid Natural Gas)

INVEST IN THE WEST

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GOING FORWARD

INVEST IN THE WEST

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GOING FORWARD

INVEST IN THE WEST

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GOING FORWARD

INVEST IN THE WEST

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GOING FORWARD

INVEST IN THE WEST

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SUMMARY

• $160 billion (AUD) of capital expenditure in Western Australia

• Strong population growth

• Very low vacancy rates for both residential and commercial markets

• Sales volume increasing

• Various strong commercial drivers for the state

• Diminishing supply of apartment projects

• Undersupply of residential property

PREFERRED BUILDER:

PINDAN

PINDAN

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• Pindan Managing Director

• 50% Owner

• Past president of Master Builders Association

of Western Australia

• Member of MBA Council

• Chairman of WorkSafe

George Allingame

PINDAN

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• 400+ employees

• 5 offices statewide

• West Australian owned and operated

• Established 35 years

AN INTEGRATED PROPERTY GROUP

PINDAN

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• 2 national awards for Best

Multi-Unit Dwelling in Australia

• 7 state awards for Best Multi-

Unit Dwelling in WA in 8 years

• 3 state awards for Best Aged

Care Facility in WA in 5 years

• 2 state awards for Best

Commercial Alterations and

Additions in 4 years

• Master Builders Association

Overall Winner

VOTED BEST IN WA FOR MULTI UNIT DWELLINGS SEVEN

TIMES IN EIGHT YEARS

PINDAN

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Senior management

PINDAN

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One of WA’s largest

privately owned and

operated commercial

construction companies

CONSTRUCTIONS

PINDAN

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WA’s largest multi-unit

builder and in the top

10 nationally

APARTMENTS

PINDAN

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RESIDENTIAL

Top ten residential

builder in WA

PINDAN

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RESIDENTIAL – APARTMENTS

Location:

Development:

Project Cost:

Project Profit:

Dev. Period:

Equity:

Equity Return:

Beaufort Street, Perth

136 residential apartments

10 commercial tenancies

Extensive common facilities

2 swimming pools and 3 spas

gymnasium and residents lounge.

$32,000,000

$4,000,000

50 months

$6,930,000

16% Equity IRR

BEAUFORT CENTRAL

PINDAN

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RESIDENTIAL – GROUPED DWELLINGS

Location:

Development:

Project Cost:

Project Profit:

Dev. Period:

Equity:

Equity Return:

Frederick Street, Perth

65 survey-strata

combination of villas, loft homes

and townhouses. Communal

facilities including a

pool, gymnasium, spas and BBQ

pavilion

$6,200,000

$800,000

30 months

$1,480,000

28% Equity IRR

MORETON BAY COURT

PINDAN

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RESIDENTIAL – GROUPED DWELLINGS

Location:

Development:

Project Cost:

Project Profit:

Dev. Period:

Equity:

Equity Return:

Fisher Street, Belmont

54 medium density homes

comprising 34 townhouses,

11 villas and 9 loft houses, plus

common pool, gymnasium and

recreation facilities.

$5,500,000

$1,400,000

36 months

$1,600,000

29% Equity IRR

ALEXANDER PLACE

PINDAN

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RESIDENTIAL – GROUPED DWELLINGS

Location:

Development:

Project Cost:

Project Profit:

Dev. Period:

Equity:

Equity Return:

Sydenham Street, Belmont

A grouped dwelling development

of 22 townhouses sold as house

and land packages.

$2,980,000

$955,000

15 months

$1,013,000

59.4% Equity IRR

SYDENHAM MEWS

HOW TO INVEST

HOW TO INVEST

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INVESTING WITH OTAN IS SIMPLE

AND YOU’RE IN THE FUND – IT’S THAT EASY!

HOW TO INVEST

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AVAILABLE TO INVEST 4/2/2013

Minimum investment $25,000 (AUD)

• Otan Nickol Karratha 559 $1,750,000 29% return Grouped dwellings

• Otan South Beach $168,000 10% return Grouped dwellings

• Otan South Beach 461 $500,000 19% return Grouped dwellings

• Otan South Headland $2,000,000 54% return Grouped dwelling

COMING SOON

• Otan Residential (land subdivision) $40.0 Million

• Otan Office Fund $10.0 Million

• • Apartments $30.0 Million

• Infill projects Karratha

THE PROJECTS

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South Beach

Total capital

$3.95 million

Balance available

$168,000

Return estimate

10% pa

Timing estimate

17 months

21 townhouses

Average Price $880,000

3 bed, 2 bath

Product disclosure

statement available at

www.otan.com.au

THE PROJECTS

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South Beach

461 Housing

Total capital

$3.0 million

Balance available

$500,000

Return estimate

22% pa

Timing estimate

24 months

24 townhouses

Average Price $770,000

3 bed, 2 bath

Product disclosure

statement available at

www.otan.com.au

THE PROJECTS

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Otan Nickol

Karratha Group

Dwelling Site 559

$1.75 Million capital

4,814 sq m site

15 homes

29% IRR

THE PROJECTS

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Otan South HedlandGrouped Dwellings

• Otan South Headland

• $2.0 Million capital

• 4,885 sq m site

• 16 homes

• 54% IRR

HOW TO INVEST

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NON AUSTRALIAN RESIDENTS can easily invest in

Australian residential developments via the Otan fund

THANK YOU

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THANK YOU FOR YOUR TIME

For more information and to download the Product Disclosure Statements please visit the

Otan website at www.otan.com.au

Contact

Mark Butler

Managing Director

154 Abernethy Road Belmont

Western Australia 6984

Phone +61 8 9463 7177

Mobile +61 400 771 636

email

mark.butler@otan.com.au

Skype markfbutler

Scott Staniforth

Business Development Manager

154 Abernethy Road Belmont

Western Australia 6984

Phone +61 8 9463 7227

Mobile +61 415 453 043

email scott.staniforth@otan.com.au