australia's property advisors

Contains Confidential Information ANZ.017.004.7491

Valuation Repor t Opt eon.

Australia 's Property Advisors

Mount Direct ion, Tasmania

Prepared For Australia and New Zealand Banking Group Limited

Valuation Date 28 October 2013

Date Report Issued 7 November 2013

Our Reference

Opteon (Tasmania) Pty Ltd ABN 32 159 055 133 PO Box 1044, Launceston 7250 TAS T (03) 6335 1444 F (03) 6331 1966 E tas. [email protected] .au W opteonproperty .com.au

Value made visible


Confidential

Mount Direction , Tasmania

1.oExecutive Summary

Instructing Party

Client I Authorised Party

Borrower /Client Reference

Ian Wormald, Australia and New Zealand Banking Group Limited

Australia and New Zealand Banking Group Limited

Michael George Hugill Hirst

Valuation Purpose First mortgage security purposes ----------- -----------Property Address Mount Direction, Tasmania •

==--------Property Description The property comprises a forestry block currently planted with a

Certificate of Title

Registered Proprietor

Encumbrances

Total Land Area

Zoning

LGA

Interest Valued

Conditions Precedent to Issue of Mortgage Funds

Key Assumptions

Recommended Documents to Sight

eucalyptus plantation with a total plantable area of approximately 107 ha of which approximately 20 ha was not planted at the time of clearing.

Confidential

Michael George Hugill Hirst

The certificates of title indicate the property is subject to encumbrances and restrictions including: • Forestry right

161.88 ha

"Rural Resource"

Launceston City Council

Freehold interest assuming vacant possession

• Confirmation of termination of current lease and any interests of Managed Investment Scheme investors (if any);

• Securing of access licence over Forestry Tasmania land required to access/harvest timber on the property.

• The instructions and subsequent information supplied contain a full disclosure of all information that is relevant;

• The property can be sold with vacant possession with no claims by third party MIS investors (if any) over juvenille plantation.

• Forestry Right deed; • Access licence agreement with Forestry Tasmania.

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Mount Direction, Tasmania

Valuation

Market Value - As Is: Market Value: $155,000

Notwithstanding our market valuation, there is a degree of subjectivity in sales in the property market due to the influence of the particular circumstances of purchasers and vendors together with market segment and property specific issues outlined within this report. Having regard to this price volatility we consider an appropriate range of value for the subject property to be between $145,000 and $165,000.

Date of Inspection

Date of Valuation

Inspecting Valuer

Important

Opteon

28 October 2013

Doug Marshall Director AAPI, B.Bus (Prop Studies), CPV API Member 70066

All data provided in this Executive Summary must be read in conjunction with the remainder of this report. The Executive Summary is only a synopsis designed to provide a brief overview and must not be acted upon in isolation to the contents of the valuation report. Also the contents of the Report proper should be read in conjunction with the Assumptions, Qualifications and Disclaimers listed at the end of this Report.


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2 . 0 Location

The pr§ t Y is situated within the rural·residential area of Mount Direction, on the eastern banks of thel • ltr®'lfll, which is approximately PAjllti®'®t of Launceston's CBD. A local shop and post office is provided at • . whilst more extensive facilities are provided at Launceston or George Town, within approximate!

Location Map

3 .0 Tenure

Tenure Freehold interest.

Certificate of Ti tle

Registered Proprietor

Encumbrances

Total Land Area

Native Title

Opteon

Confidential

Michael George Huglll Hirst

The certificates of ti tle indicate the property is subject to encumbrances and restrictions including: • Forestry right

161 .88 ha

Unlikely

I

Contains Confidential Information

4.0 Planning

Local Government Authority

Current LGA Town Planning Scheme

Current LGA Zoning

Launceston City Council

Launceston Interim Planning Scheme 2012

"Rural Resource"

ANZ.017.004.7495

Confidential

Mount Direct ion, Tasmania

Zoning Effect The existing use of the property is a permitted use wi thin the current zoning.

Heritage Issues

5.0 Land

5. 1 Land Area

Total Land Area: apportioned:

Not applicable

Forestry - planted (approximate area) Forestry - unplanted (approximate area) Balance/Natiw bush

Land Area by Land Class

Ba I a nee/Na ti ve b ush, SS.12 ha, 34%

~~~~~

Fores try - unpl ante<r (approxlmatearea),

20.00 ha, 12%

161.88 ha

86.76 ha 20.00 ha 55 12 ha

161.88 ha

Forestry planted (approxl mate area),

86.76 ha, S4 %

Identif ication The property has been identified from a copy of the certificate of title and plan.

Opteon


Source of Land Area

5.2 Site Map

ANZ.017.004.7496

Confidential


The land area has been obtained from the Cerhficate of Title and Title Plan.

Our apportionment of the land area of the property into land type classes has been ascertained from topographic maps, aerial photographs and mapping software.

Exact calculation of the apportionment of land areas is not crit ical to the valuation assessment or process. Rather, consistency between the method of valuation and analysis of sales is considered more important. The land areas quoted herein should therefore not be considered as authoritative. Nevertheless should the reader of this report consider the areas to be erroneous or is aware of further reports by surveyors or agricultural consultants (which may not have been supplied to the valuer), this valuation report should be returned to the valuer for further consideration.

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Soils

Soil Quality

Salinity

Slope

Aspect/Views

Altitude

Drainage

Clearing

Landslip

Opteon

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Soils on the property are identified in the Land Systems of Tasmania (Region 4) publication as "Tippogoree":

"Large areas of gently rolling hills formed on Jurassic dolerite and related rocks are found in the north east and east of the Region. These hills trend mainly north-west/south-east. The largest body of this system stretches in a band from George Town to the Nile River near Deddington.

Average altitude of the system is about 200m, with Mount Direction, Mt George, Tippogoree Hills and Grassy Hut Tier some of the highest points.

Stony gradational soils have formed on all components except in the drainage lines, where a stony clay has developed on dolerite alluvium. All soils, except those on the gentler lower slopes have a gravelly clay loam surface so typical of doleritic soils. Dolerite boulders and outcrops are common, especially on the upper components.

The open forest vegetation is dominated by eucalypts, white gum and black peppermint being the major species. Understorey plants include black wattle, silver wattle, she-oak, native hope and paperbark.

Due to the rugged terrain and stony soils large areas are undeveloped but parts are used for forestry, rough graining, quarrying and recreation.

The major hazards are low to severe sheet and gully erosion".

Varies but generally regarded as light.

Our inspection of the property did not identify areas showing signs of salinity from rising water tables.

The site is of generally varying slope.

The property has a predominantly westerly aspect.

The property has an altitude ranging from 350 to 400 metres above mean sea level.

The property appears to have reasonable site run-off drainage. The property does not appear to be subject to flooding during normal climatic conditions.

The property has been predominantly cleared with approximately 55ha of remnant timber standing. It is assumed that any clearing on the land has been undertaken with reference to any planning or statutory requirements. The added value of standing timber (non· plantation) for firewood or industrial use is included in the valuation. The sales evidence used is similar in this respect and incorporates standing trees. If the commercial value of timber needs to be quantified it would be necessary to engage a specialist forestry consultant.

The property is not within a publicly known landslip area however this could be confirmed by obtaining copies of relevant searches from the Council and other authorities should this be considered necessary.

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Subsidence

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The property is not within an area which is publicly known to be subject to subsidence however this could be confirmed by enquincs from the Council and other authorities should this be considered necessary.

5.4 Mapping Information

5.4. 1 Topographic Map

5 .4. 2 Soils/Land Capability Map

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Class Definitions

Land capability class definitions are as follows:

CLASS 6 Land marginally suitable for grazing because of severe limitations. This land has low productivity, high risk of erosion, low natural fertility or other limitations that severely restrict agricultural use. This land should be retained under its natural vegetation cover.

6.o WaterResources

Stock Water Supply

Existing Water Licenses

7.0 Climate

Current Climatic Condition

Climate

Rainfall

Frost

Hail

Wind

8.o Services

Not applicable.

Not applicable

As at the date of inspection the property was experiencing normal climatic conditions.

The property is within a region which is generally regarded as having a cool temperate climate.

According to data from the Australian Government Bureau of Meteorology the property has a long term average annual rainfall of approximately 1,000 mm to 1,200 mm per annum. The majority of rainfall occurs in winter and spring from May to October

The property is subject to frosts.

The property can experience hail storms.

The area can be affected by strong winds which can cause soil erosion, damage to crops and orchards. In extreme condit ions damage can also be caused to buildings.

The subject property does not have any services. It is accessed via gravel roads over Forestry Tas land.

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9.0 Improvements

9.1 Existing Improvements

There are no structural improvements on the property.

10.0 Photography

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11.0 Environmental Issues

Site Contamination

API List of Potentially Contaminated Sites

Underground Fuel Storage Tanks

Site Fifi

Overhead Transmission Lfnes

Endangered Flora & Fauna

Opteon

Unlikely

No

Not obvious/unlikely

Not obvious/ unlikely

NH

This valuation is made on the assumption that there is no flora or fauna on the site which may affect the use of the property or any future development potential of the site.


Wet lands & Foreshores

Acid Sulfate Soils

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The property does not lie within an area affected by wetlands, river or coastal foreshore areas.

Our inspection of the property and general locality and available databases indicates that the property appears to have a low risk of ASS being present. However it must be recognised that we are not experts in this field.

12.0 Farm Management

Legal Framework

Forestry Reserves

Legal Framework

Forestry Operator

Commercial Value of Trees

Plant ed Area As Per Lease

Actual Planted Area

Species of Trees

Year Planted

Expected Harvest

The property is covered by a private timber reserve. Private timber reserves were created by the Tasmanian Parliament in 1985 to enable landowners to have their land dedicat ed for long -term forest management. The legislation provides that forestry activities on the land are subject to a single, consistent , state-wide system of planning and regulation th rough the Forest Practices Act 1985, rather than to variable systems that may be applied under different Councils and planning schemes through the Land Use Planning and Approvals Act 1993.

Total 161.88 ha

Leased to Forestry Operator. Forestry management plans in place.

FEA Plantat ions Ltd (in receivership)

Excluded from valuation.

106.88 ha approximately

86.88 ha approximately

Eucalyptus

2009

2028

Conservation Areas Part of the property is affect ed by private forest reserves.

Carbon Credits ft Trading Any cost implications or opportunities as a consequence of a carbon pricing and trading system in a fully informed market should be reflected in prices paid by prospective purchasers. This market evidence and hence any impact on market values is reflected in our valuation. In the event specific carbon schemes are proposed for the property we reserve the right to review the terms and conditions of such schemes and any impact on t he market value of the property.

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Contains Confidential lnfonnation ANZ.017.004.7503

Confidential


13.0 Occupancy and Lease Details

Occupancy Status Leased (Lessee in receivership and default of lease).

Lease Status Forestry right noted under Schedule 2 of the title however lessee in default. Status of lease discussed below. Forestry rights from 1-Jan-09 to 31-Dec-2028. Copy of Forestry Right not provided to valuer.

14.0 Sales History

Last Known Sale $250,000 on 27 May 08

15.0 General Comments

The property comprises a forestry block currently planted with a eucalypt plantation with a total plantable area of approximately 107ha. Of this area, approximately 87 ha is planted, with the balance 20ha cleared but not planted.

The current highest and best use for the property is considered to be the existing use for forestry purposes although demand for timber for woodchips is currently weak. The coups are mostly of eucalyptus nitens which is a species specifically grown for pulp production, rather than sawlog timber.

There are relatively few sales of properties which are directly comparable to the subject property. The shortage of directly comparable evidence restricts the ability of the valuer to make direct comparisons with actual sales evidence. We have however had regard to available market evidence in assessing our valuation .

The most likely prospective purchaser for the property in the current market is considered to be a speculative long term private investor. We understand the tenant has defaulted on the lease and steps are being taken to take back possession. The tenant has made considerable tenant improvements which ordinarily would revert to the landowner on default however there may be complicating aspects in terms of ownership of the plantation trees with associated tree growers under Managed Investment Schemes. Whilst our valuation is of the land only and excludes the plantation trees we have assumed the property can be sold with vacant possession, without any encumbering claims by third party MIS investors (if any).

Alternative potential buyers include private buyers for purchase as a bush lifestyle block or for conversion for conservation purposes, however this is unlikely.

The market for similar propert ies in this market segment has continued to decline over the last 12-18 months. This is partly as result of the failure of Gunns and their transition into receivership. There is also now a significant increase in supply of properties in this segment combined with few purchasers. Subsequently, the increase in supply and fall in demand has impacted sale prices which are being achieved. Properties are typically also taking a longer time to sell. We acknowledge our previous valuation of $200,000 in February 2012, but also note the change in market and forestry sector conditions since this time. This has resulted in a reduction to the current level of $155,000. A review of the available sales evidence indicates that properties in this segment now typically require a marketing period of 6-12 months in order to achieve a sale. Our assessment of the current market value of the property reflects a similar market ing period, in line with the market conditions. We further consider that the value of the property based upon a shorter selling period of 3-6 months to be $130,000, with a range of $120,000 to $150,000.

Opteon.


We do however note that the lack of comprehensive market transactions in this market segment as a result of limited demand limits the ability of the valuer to compare the subject property with recent sales. This ultimately impacts upon the ability of the valuer to conclude the valuation with confidence.

Overall, having regard to the characteristics of the property including (but not limi ted to) its physical features, location, and occupancy status, and the state of the current market we consider the property to be of generally poor marketability.

We consider that there are only a limi ted number of prospective purchasers for the property, and therefore an extended marketing period, i.e. in excess of 6 months, may be required, should it be necessary to realise the asset.

16.0 Property Analysis

16. 1 Risk Ratings

Based on the attributes of the property the valuer has considered the risk profile of the property. The risk profile is considered to be best illustrated graphically, as follows:

location

land (Inc plannll'l!I , tltle, leogll)

EnvironmMIAll lssuo5

l~ovements

Occupancy Status I Prolfle

Cash Flow

Recent Mar1<et Direction

Market Vola U lily

l oal Economy

0

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1'1 11

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'1 I•

I I

Risk Ratings

2 --~--- ~

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I

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.I

/ /

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Risk ratings: 1 - Low 2 · Low to medium 3 · Medium 4 • Medium to high 5 · High

s

I

Note: The above risk ratings are based on general knowledge and information currently available. Ul timately current perceptions of risks may not prove to be accurate.

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Confidential


Comments on any risk ratings "3" or above:

Location:

Land (incl. planning, title, legal):

Environmental Issues:

Improvements:

Occupancy Status

Asset Management

Cash Flow

Recent Market Direction:

Market Volatility:

Local Economy Impact:

Market Segment Conditions:

Strengths

Weaknesses

Opportunities

Threats

Opteon

No comment

No comment

No comment

No comment

Lessee in default . Valuation assumes removal of lease and also assumes no claims by third party MIS investors, if any.

No comment

Tenant in default. No likely income until harvest of trees upon maturity.

Volatile industry and market segment at present, with significant losses.

Refer above

The Tasmanian economy has seen recessionary conditions for the last two years after a downturn in rural sectors and manufacturing off the back of the high Australian dollar, the weak fiscal position of the State Government and upheaval in the forestry sector. We have seen an increase in unemployment, heavy reduction in government spending closure of businesses and a lack of business and consumer confidence.

Marketing period of 6-12 months then likely to be required.

Location within well known forestry area comparatively close to Launceston and wood chip mills at Bell Bay.

Extended marketing period may be required in order to achieve a sale; Lessee in liquidation;

Extinguishing of lease; Sale to private owner with vacant possession; Planting of northern 20 ha of cleared but unplanted land;

Potential legal issues associated with interests of tree growers under Managed Investment Schemes; Short to medium term future of forestry industry; Economic factors; Downturn in the property market and/or economic climate; Financial performance below assessed levels (lessee in liquidation).


Confidential

Mount D1rect1on, Tasmania

16.4 Future Value Trends

Factors which may affect the future value of the property are detailed in our SWOT and/or Property Analysis. The following comments are based on the assumption the property will continue to be appropriately managed and maintained.

Current State of Market As with all markets, the real estate market is subject to fluctuations and experiences cycles. Broadly speaking it Is our opinion the Forestry property market In Tasmania can be regarded as bein~ past the peak of the cycle and retract ing heavily.

Future Out look

Future Value Recommendation

Having regard to current influences in the property market and property specific factors, we are of the opinion the value of the property over the next two to three years may weaken In line with a general softening In the real estate market and wide Tasmanian economy.

Due to possible changes in the property market, economic conditions, occupancy status and property specific factors, we recommend the value of the property be reassessed at re&ular intervals.

17 .0 Market Evidence

17. 1 Sales Evidence

In forming our opinion of value we have had regard to various sales transactions, a selection of which arc detailed below.

Property

$.!le Price

Land Area

Co mments

Comparabtllty

Opteon

Sc!le Date 17·AUg·13

288.90 ha

The property comprises a grazing holding or approximately 289 ha, of which approximately 48 ha is cleared to pasture and 30 ha In plantation. The balance comprises native bush. Structural Improvements comprise a two large colorbond and metal clad workshops, fn addfUon to a garage/carport and traditional barn. One of the two main structures has a part reSldenlfal ht·out for shack style accommodation. There is no electricity to lhe buildings. Sale under contract · subject to completion.

Superfor property with agncultural utility.

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Property

Sale Price

Land Area

Comments

Co mparablllty

Property

Sale Price

Land Area

Comments

Comparablltty

Opteon

Confidential


e Date 07·Jul·13

39.22 ha

Forestry holding of approximately 39.22 ha Including 25.7 ha of juvenHe unencumbered niten plantation. Balance land native bush. Undulating topography in good rainfall area and relatively good access to Bell May chip mills. Reflects a gross S2, tOO per ha including the commercial value of the plantation.

Smaller sfte reflectlna higher rate per ha.

Sale Date 12·Nov·12

Comprises a nat ive bush and plantation allotment wllh a land area of approximately 326.6 ha, located In a rural area approximately pmtm)@M of Launceston. The property included approXlmately 77 ha of E.nlten plantation, planted around 2008. We understand that the Forestry Right to FEA Plantations Ltd had been removed at t~ time of sale. Zoned Rural Resource . Sale reflects approximately $960 pha. Previously sold in Jun·08 for $475,000, however, the selling agent advised that a considerable quantity of commercial ttmber had been harvested by the owner prior to t~ recent sate , and juvenile nlten plantation developed.

Larger forestry holdmg.


Property

Sale Price

Land Area

Comments

Comparability

Property

Sale Price

La nd Area

Comments

Comparability

Opteon

ANZ.017.004.7508

Confidential

Mounl Direction, Tasmania

Sale Date 2J·M· ll

The property comprises two adjoining forestry titles. It was planted to eucalypt plantation In 2008 and 2009 by the now defunct Great Southern with a total net plantable area of approximately 105.6 ha. The property was then sold on a leaseback with the lease subsequently te rminated upon the demise of Great Southern. The 2009 plantation also failed . The 2008 trees are more advanced but have not grown well. This most recent sale in 201 J is a sale of the two titles and unencumbered plantation. The sale reflects a gross S1 ,400 per ha including the value of the plantation.

Superior overall.

Sale Date 26-0ct-12

41 .03 ha

Comprises vacant land on a site area of 41ha. Mostly bush site, class 5+6 land. Lifestyle allotment in the foothills of Mother Cummings Peak. Limited if any prospects for approval for construction of a house.

Smaller lifestyle holding


Property

Sa le Price

Land Area

Comme nts

Comparability

ANZ.017.004.7509

Confidential

Mount D1rect1on, Tasmania

Sale Date 15-Jan-13

190.75ha

The property 1s characterized as a vacant bush block with natural bush cover of 190.75 Ha. The site is officially located off the northern side o~ with no direct formed road frontaBe . The site has variable gra~r m shape. The site has poor access via unformed The property comprises two titles and is zoned ·Rural Resource". Native Forestry allotment with some 'lifestyle' appeal. Limited If any prospects for successful application associated with perm1l for construct1on of a house.

Inferior native timber block.

Some of the above sates occurred some time ago, however, fn the ab~ence of more recent transactions of comparable properties we consider they remain relevant.

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18.0 Valuation Methodology and Conclusions

The most appropriate method of valuation for a property of this nature is direct market comparison whereby the subject property is compared with sales of comparable properties and adjustments made for points of difference.

Due regard has been given to sales of comparable properties, as discussed under the Market Evidence section of this report.

Our valuation calculations are summarised as follows:

Valuation Inputs:

Total Land Area: 161.88 ha

Land Value (including land improvements): Forestry

Forestry - not planted Balance

86.76 ha @ $1,400 p ha

20.00 ha @ $500 p ha

55.12 ha @$400 p ha

$121,464

$10,000

$22,048

$153,512

Adopt, Total Market Value: $155,000

19.0 Goods & Services Tax

Treat ment of GST

Recommendation

Opteon

All amounts and values expressed in this report are exclusive of GST unless otherwise specified.

If there is any uncertainty as to the GST treatment on the sale of a property then we recommend you seek further information regarding the nature of any potential transaction and parties involved (particularly in the case of possible default by the mortgagor and hypothetical sale with mortgagee in possession) and confirmation from a qualified accountant in relation to potential GST liability.

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20.0 Valuation

$155,000

(ONE HUNDRED AND FIFTY FIVE THOUSAND DOLLARS)

Notwithstanding our market valuation, there is a degree of subjectivity in sales in the property market due to the influence of the particular circumstances of purchasers and vendors together with market segment and property specific issues outlined within this report. Having regard to this price volatility we consider an appropriate range of value for the subject property to be between $145,000 and $165,000.

The above valuation is net or exclusive of GST.

Date of Valuation

Inspecting Valuer

Important

Pecuniary Inter est

28 October 2013

Doug Marshall Director AAPI, B.Bus (Prop Studies), CPV API Member 70066

This valuation is subject to the definitions, qualifications and disclaimers and other comments contained within this report.

We confirm that the valuer does not have any pecuniary interest that would conflict with the proper valuation of the property.

21.0 Mortgage Endorsement

Suitability as Security

Lender Specific Information

Loan to Value Ratios

Opteon.

The subject property is considered to be below average to poor security for first mortgage f inance, subject to the comments within this report.

This valuation has been prepared in accordance with ANZ's Professional Services Brief - Valuations (2012).

In accordance with our standard practice, loan to value rat ios are not stated in our reports in the belief and understanding that such is the commercial decision and prerogative of the intending mortgagee.


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22.0 Assumptions, Conditions and Limitations

Abbreviated Short Form This valuation report has been prepared with acknowledgement by the client that Report the valuation is presented in the form of an abbreviated short form report as per

standing instructions where applicable. A more detailed valuation report with additional advice can be provided if required. This valuation is subject to the definitions, qualifications and disclaimers and other comments contained within this report.

Scope o f Work Undertaken The scope of work undertaken by the valuer in completing the valuation has included: . Collation of information from relevant parties regarding the subject property;

• Undertaking our own research regarding the subject property; . An inspection of the property and measurement of buildings where required; . Undertaking market research in terms of values and/or costs of similar properties; . Preparation of valuation calculations; and . Preparation of this report .

Third Par t y Disclaimer This report has been prepared for the private and confidential use of our c;/ient, Australia and New Zealand Banking Group Limited for the specified purpose. It should not be reproduced in whole or part; or any reference thereto; or to the valuation figures contained herein; or to the names and professional affiliation of the Valuer(s) without the express written authority of Opteon (Tasmania) Pty Ltd or relied upon by any other party for any purpose and the valuer shall not have any liability to any party who does so. Our warning is registered here, that any party, other than those specifically named in this paragraph should obtain their own valuation before acting in any way in respect of the subject property.

Full Disclosure Disclaimer Whilst we have attempted to confirm the veracity of information supplied, the scope of work did not extend to verification of all information supplied or due diligence. Our valuation and report has been prepared on the assumption the instructions and information supplied has been provided in good faith and contains a full disclosure of all information that is relevant . The valuer and valuation firm does not accept any responsibility or liability whatsoever in the event the valuer has been provided with insufficient, false or misleading information.

Digi ta l Copies of Reports Where a report has been provided in digital copy and has not been received directly via our firm, the report contents, especiaf/y the valuations and critical assumptions, should be verified by contacting the issuing office to ensure the contents are bona fide. In particular if the reader of this report has suspicions that the report appears to be tampered or altered then we recommend the reader contact the issuing office.

Reliance on Whole Report This valuation should be read in its entirety, inclusive of any summary and annexures. The valuer and valuation firm does not accept any responsibility where part of this report has been relied upon without reference to the full context of the valuation report.

Publication of Report The publication of the valuation or report in whole or any part, or any reference thereto, or the names and professional affiliations of the valuers is prohibited without the prior written approval of the valuer as to the form and context in which it is to appear.

Mar ket Change Disclaimer This valuation is current as at the Date of Valuation only. The value assessed herein may change significantly and 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 changes in value. Without limiting the generality of the above comment, we do not assume any responsibility or accept any liability where this valuation is relied upon after the expiration of three (3) months from the date of the valuation, or such earlier date if you become aware of any factors that have any effect on the valuation. We recommend the valuation be reviewed at regular intervals.

Land Area Disclaimer In the event the actual surveyed land area of the property is different to the area adopted in this valuation the survey should be referred to the valuer for comment on any valuation implications.

Nat ive Title Assumpt ion We are not experts in native title or the property rights derived there from and have not been supplied with appropriate expert advice or reports . Therefore, this valuation is made assuming there are no actual or potential native title interests affecting the value or marketability of the property.

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Site Survey Disclaimer

Geotechnlca l Assumption

Planning Disclaimer

Condit i on/Structural Disc laimer

Environmental Disclaimer

Future Value Disc laimer

Leases and Lease Rental

Information Availabi lity (Market Evidence)

Appendices 1. 2.

Instructions Cert ificate of Title

Confidential


This report is not a site survey and no advice is given in any way relating to survey matters. Any comments given in relation to the property are not given in the capacity as an expert, however, are based on our inspection of the property and review of the Certificate of Title plans. Should the addressee require absolute certainty in relation to encroachments we recommend that a surveyor be engaged to provide appropriate advice and a survey of the property if considered necessary.

We have not sighted a geotechnical engineers' survey of the property. We are not experts in the field of civil or geotechnical engineering and we are therefore unable to comment as to the geotechnical integrity of the ground and soil conditions. It is specifically assumed that there are no adverse geotechnical conditions that compromise the utility of the property for the current or highest and best use. In the event there is found to be adverse ground conditions we recommend the matter be referred to this Company for comment.

Town planning and zoning information was informally obtained from the relevant local and State Government authorities. This information does not constitute a formal zoning certificate. Should the addressee require formal confirmation of planning issues then we recommend written application be made to the relevant authorities to obtain appropriate current zoning certificates.

This report is not a condition or structural survey and no advice is given in any way relating to condition or structural matters in the capacity of an expert. A condition or structural report on the building and/or its plant and equipment has not been sighted, and nor have we inspected unexposed or inaccessible portions of the premises. Therefore we cannot comment on the structural integrity, any defects, rot or infestation of the improvements, any use of asbestos or other materials now considered hazardous or areas of non-compliance with the Building Code of Australia, other than matters which are obvious and which are noted within this report.

This report is not an environmental audit and no advice is given in any way relating to environmental matters. Any comments given as to environmental factors in relation to the property are not given in the capacity as an expert. This assessment of value is on basis that the property is free of contamination. In the event the property is found to contain contamination the matter should be referred to this office for comment. Given contamination issues can have a significant impact on the Market Value of the property, we reserve the right to review and if necessary vary our valuation if any contamination or other environmental hazard is found to exist.

Any comments are made in relation to future values are based on general knowledge and information currently available. These comments should not be construed as a prediction of future value levels or a warranty of future performance as the property market is susceptible to potential rapid and unexpected change caused by multiple factors . Ultimately current expectations as to trends in property values may not prove to be accurate.

This valuation is based on the assumption that the lease agreement{s) are termina tedl expunged.

In preparing this valuation the valuer has researched market evidence from various sources. While we believe the information to be accurate, not all details have been formally verified. Due to privacy laws, confidentiality agreements and other circumstances beyond our control, the valuer may not have had access to: Personal details of parties involved in transactions and is therefore unable to confirm whether such dealings are arm's length transactions; Information on recent transactions which are yet to become public knowledge; Copies of /eases/contracts to confirm rents/prices and to ascertain whether or not rents/prices are inclusive or exclusive of GST. In the event additional market evidence information becomes available regarding these circumstances this may affect the opinion expressed by the valuer. Nevertheless the valuation is based on information and market evidence reasonably available to the valuer as at the date of the valuation in accordance with usual valuation practices.

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