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COMMERCIAL

EXPRESSIONS OF INTEREST

FLOREAT BEACH KIOSK

SUBMISSIONS CLOSING THURSDAY 14 NOVEMBER 2019 AT 2PM ISSUES BY ACTON COMMERCIAL ON BEHALF OF THE TOWN OF

CAMBRIDGE

Expression of Interest – Floreat Beach Kiosk

EXECUTIVE SUMMARY Location: Floreat Beach Kiosk, 195 Challenger Parade, City Beach WA. The Facility: The Net Lettable Area the tenancy is:

170m²* plus an alfresco area of 85m2* A proposed external storeroom of approximately 32m2* will be constructed in 2020.

*subject to final survey

Lessor: Town of Cambridge ("the Town"). Lease: A lease will be prepared by the Town and will be made available

to selected short-listed proponents during the next stage in early 2020.

Term: The Town is flexible on the length of the lease term however as

an indication will consider an initial term of up to 10 years. Option: Option periods to be negotiated, however as an indication two (2)

further terms of five (5) years each would be considered. Uses: Café/Kiosk/Restaurant. Rent: To be negotiated. Return of Submissions: Documents entitled “Floreat Beach Kiosk - Expressions of

Interest” to be delivered by hand or mail to: Tender Box

Town of Cambridge Administration 1 Bold Park Drive, Floreat WA 6015

by no later than 2.00 p.m. on Thursday the 14 November 2019.

Note: Submissions must be in writing, and entered into the tender

box as detailed above, with supporting information as required. Electronic only submissions (including email or facsimile submissions) will not be accepted. Submissions received after this deadline, will not be considered.

Further Enquiries: For all enquiries related to this Expression of Interest, please

contact the Town’s Hospitality Leasing Negotiator: Enzo Evangelista

ACTON Commercial D (08) 9468 7721 M 0419 867 806 E: [email protected]


Introduction ACTON Commercial, on behalf of the Town of Cambridge ("the Town") have the pleasure in offering an iconic and exceptional Food & Beverage premises with a panoramic ocean frontage located within the premier suburb of City Beach. The Town and its consulting team are currently seeking Expressions of Interest from operators to enter into a lease for the existing premises, which are currently in the process of being refurbished. The refurbishment works are scheduled for completion by May 2020. Following this EOI stage, a short-list of proponents will be invited to tender for the leasing of the Floreat Beach Kiosk. It is anticipated that the Floreat Beach Kiosk will be available for fit-out by the successful Operator(s) from July 2020.


Location The Floreat Beach Kiosk is located approximately 12 kilometres west of the Perth Central Business District and more specifically is situated adjacent to the Floreat Surf Life Saving Club building. The area immediately surrounding the Kiosk is used for beachside recreational purposes with the existing single kiosk providing beach users with basic food and beverage offerings. Larger casual family restaurants (Clancy's Fish Bar, Odyssea, Hampton’s at City Beach and Rise Pizza) provide more substantial dining experiences and are situated approximately 900 metres to the south of the Floreat Beach Kiosk. The Town is currently undertaking a refurbishment of the existing public toilets adjacent to the Floreat Beach Kiosk with these works due for completion in late 2019. In addition, the Town has recently undertaken minor refurbishment works of the existing Kiosk building including:

Installation of a new alfresco decking; and Upgrading of glass bi-fold doors.

The Town will also be installing an external store room module adjacent to the Kiosk. The existing development is surrounded by residential and recreational facilities including the Floreat Surf Club and the City of Perth Surf Club.


Aerial photo depicting site with existing parking adjacent Source: NearMaps

Floreat Beach Kiosk


The Floreat Beach Kiosk The existing building comprises of an open plan restaurant area, service counter / kitchen, rear preparation / cleaning area and communal toilet facilities. Access is via an extensive glazed frontage incorporating newly installed bi-fold doors. There is a service core running along the rear of the property which leads to communal ablutions comprising of male, female and disabled persons toilet facilities. A licensed alfresco area of approximately 85m2 is situated to the beachside front of the property. A new external store room of approximately 32m2 delivered as a shell and core, will be constructed as depicted in the plan below.

NB: All areas are approximate and are subject to survey.

The existing fitout is the property of the current tenant. All proponents are to assume that the premises will be in a bare shell state.


Indicative Timeline for Refurbishment Works The indicative timeline proposed by the Town is as follows:

Expressions of Interest sought from the market closing 14 November 2019

Town invites selected Respondents from this EOI process to submit Tenders End February 2020

Tenders close End March 2020

Contract award to selected Operator(s) End May 2020

Kiosk building ready for fit out July 2020

Assumed commencement of trading September 2020

The Premises The Floreat Beach Kiosk was originally constructed in the early 1970’s and initially sold ice creams, cold drinks, confectionery and chips to beachgoers, before expanding into a café/restaurant venue with a liquor licence in circa 2000. The building currently has an internal net lettable area of approximately 170m2 plus an alfresco deck area of approximately 85m2.

An additional external store area is to be constructed in early 2020 and will be approximately 32m2.

The tenancy enjoys a stunning, absolute beachfront location with expansive ocean views. Fitout

The premises will be provided as is and the Lessees shall be responsible for fitout works, obtaining approvals and licences. Indicative Lease

An indicative lease will be prepared by the Lessor’s Solicitors and will be made available to those parties who are invited to submit during the next stage being the Request for Tender (RFT) stage.


The Offering The opportunity exists for successful hospitality operators to lease space and create a landmark beachfront establishment.

The Town anticipates the tenancy will be open for breakfast. The Town is very conscious of the family focus of Floreat Beach, and the food and beverage operation must fit seamlessly into that environment and benefit the many stakeholders, including neighbours and beach users.

The Process Introduction

In this, the first stage of the process, the Town is seeking Expressions of Interest (EOI) from suitably qualified operators. This first stage will enable the Town to better understand and align the proposed offering to the market.

Subject to the quality and content of the information received from Respondents, the Town envisages that a short list of Respondents may be established and a Request for Tender (RFT) issued early in the 2020 calendar year.

The Town does not guarantee to proceed further than the EOI process and the timeframe is indicative only. Any outcome from the EOI process will be subject to Council approval.

Your Submission will be evaluated using information provided in your EOI and on your response to the Selection Criteria.

The following evaluation methodology will be used in respect of this EOI:

(a) submissions are checked for completeness and compliance. Submissions that do not contain all information requested (e.g. completed Submission Form and Attachments) may be excluded from evaluation;

(b) submissions are assessed against the Selection Criteria;

(c) the most suitable Respondents may be short-listed and may also be required to clarify the Submission and/or make a presentation.

Rejection of Submissions

A Submission will be rejected without consideration of its merits in the event that:

(a) it is not submitted before the Deadline; or

(b) it is not submitted at the place specified in the EOI; or

(c) it may be rejected if it fails to comply with any other requirements of the EOI.

Late Submissions

Submissions received:

(a) after 2 pm on 14 November 2019; or

(b) in a place other than that stipulated in this Expression of Interest;

will not be accepted for evaluation.


Disclosure of Contract Information and Documents

Documents and other information relevant to the contract may be disclosed when required by law under the Freedom of Information Act 1992 or under a Court order.

Canvassing of Elected Members

If a Respondent, whether personally or by an agent, canvasses any of the Town’s Councillors or Officers with a view to influencing the acceptance of any Respondent, then regardless of such canvassing having any influence on the acceptance of such Submission, the Town may at its discretion omit the Respondent from consideration. Contents of Submission As described previously, the EOI process will allow the Town to shortlist respondents who best meet the criteria set out in this document then to progress to formal tender for the tenancy lease. It is important that Respondents provide sufficient quality within their response which will maximise their opportunity to be considered further. The Town does not require any submission to include architectural concepts, sketches or plans specifically developed for this site. Respondents may include images of reference sites that they have previously operated if they feel that they add merit to their proposal. The Respondents must develop their response along three main areas: 1. Offer 2. Experience and Capability 3. Concept Essential Criteria To be considered for assessment, Respondents must provide ASIC extracts of company records for the company proposed to undertake the lease. Where new companies are proposed to undertake the lease, proposed company directors and previous company experience shall be provided in sufficient detail to allow the Town to undertake due diligence in this regard. Offer This section allows the Town to understand the counter party it will be potentially engaging with and the potential financial returns from this project. The following information is required in each response: Full Name and Address of the respondent and all intended directors of the company proposed to

undertake the lease; Legal Representative; Estimate of Net Rent (annualised rate converted to a per square metre rate) (Exclusive of GST and

Outgoings); Initial Term of Lease Period sought: (years); Desired Option Period to renew lease: (years and number of options); Special Conditions preferred to be included in the agreement (if any); and Proposed management and operation structure for the tenancy.


GST is applicable to this dealing. Lessees will pay GST in addition to the price nominated and Lessor will provide a Tax Invoice. We direct prospective Lessees to seek independent tax advice on this matter in advance of submitting an offer. Experience and Capability This section allows the Town to determine if there is a suitable match between the Respondents experience and the proposed concept they wish to undertake. The following information is required in each response: Previous Operator History:- what hospitality or retail businesses has the respondent previously

operated, for how long and what was the size (seats or square metres) of these business(es); Current Operator History: what hospitality or retail businesses does the respondent currently

operate, how long has the Respondent been operating these businesses and what is the size (seats or square metres) of these businesses;

Reasons why Respondents have ceased operating prior establishments; Evidence that Respondents track record matches the concept proposed; and Evidence of financial capacity to undertake the necessary fit out and initial operation of the concept. Concept This section allows the Town to determine Respondent offers which best align to its vision for this venue. The Town has a vision that this venue will be a destination suited to a wide range of people, with a focus on a 'family friendly' environment. It’s expected the commercial offering matches this vision through the creation of a quality hospitality venue suited to an oceanfront and foreshore environment. It does not envisage facilities such as bottle shops, large bars, nightclubs and the like catering for late night / itinerant visitation. Similarly, large scale 'fast food' takeaway chain outlets are not a preferred option. Operators are asked to address these matters within their response highlighting such information as type of offering, target market, level of fitout, including an indication as to cost of the Lessee’s proposed fitout. The Town also has an objective to develop environmentally sustainable outcomes. Respondents need to describe what environment friendly technologies or operations are proposed to work with the Town in achieving this objective.


The Town also has a responsibility regarding liquor licensing arrangements to ensure that local residents' amenity is not unduly disrupted. Respondents are to consider this in developing their proposed concept and operating patterns. If a Respondent is proposing a licensed facility, sufficient description of the proposed operation, including hours of opening and conditions for serving of alcohol and how they will limit their impact upon local residents will need to be included in the response.

Assessment of Expressions of Interest A compliant EOI is one that (a) is received by the Town in the manner and time set out in this document and (b) meets the essential criteria described above and evaluated accordingly against the weighting listed below. The Town of Cambridge has set out the criteria by which compliant EOI will be then assessed and those deemed suitable (at the Town's discretion) being invited to Tender. These criteria are: 1. Offer 2. Experience and Capability 3. Concept Offer - Weighting 25% Preferred rent meeting the Town's commercial objectives. Initial Term of Lease Period sought. Desired Option Period to renew lease. Special Conditions preferred to be included in the agreement. Proposed management and operation structure for the tenancy. Length of tenure preferred (including initial term and options listed separately). Experience and Capability - Weighting 50% "Fit" between previous and current operations conducted and the proposed operation that an

EOI is being shown. Tenure in previous operations and reasons for discontinuing operations. Evidence that the Respondents track record matches the concept proposed. Evidence of financial capacity to undertake the necessary fit out and initial operations of the

concepts. Concept - Weighting 25% Proposed opening hours; Liquor licensing arrangements (if applicable); The proposed quality and value of the fit out; Expectations of the operator of conditions that the Town would need to fulfil; The style of offering and how it would fit within the location, in terms of not disturbing the

current balance between the environment, local residents, the surf club and other beach users; and

What green technology will be incorporated in the design of the proposed operation.


Disclaimer Disclaimer for Expression of Interest Document

This Expression of Interest (“EOI”) has been prepared by Agora Commercial (WA) Pty Ltd ACN: 600 034 179 as Trustee for the Agora Unit Trust trading as ACTON Commercial ABN 49 397 996 445 (ACTON Commercial) and is prepared on the basis of information provided to ACTON Commercial in connection with the relevant transaction. Any statement or opinion made by ACTON Commercial in connection with the transaction contemplated in the IM is not based on any actual or implied knowledge or consideration of the investment objectives, financial situation, legal or taxation position or any other particular needs or requirements of the recipients of this IM. All parties must make their own independent assessment and investigation including without limitation, seeking professional advice and must determine its interest in proceeding upon the basis of such independent assessment, investigation and appraisal. Any statement or opinion of ACTON Commercial whether express or implied is not, nor should be construed as a recommendation by ACTON Commercial or any of its officers, agents or employees to participate in the transaction and, to that extent, no reliance will be placed on ACTON Commercial or its associates. ACTON Commercial and its associates do not warrant (expressly or impliedly) that information contained in this IM is complete, true and correct and not misleading or not likely to be misleading or deceptive. ACTON Commercial and its associates are not responsible and will not under any circumstances be liable (whether at law, in equity, under statute or otherwise) for any statement made or anything contained in or arising out of the information including, without limitation, any errors, misrepresentation or omissions. ACTON Commercial disclaims all responsibility for any loss or damage caused by reliance by any person on this IM or any representation, warranty or statement made by or on behalf of ACTON Commercial and its associates. This IM is confidential and is for the sole use of persons directly provided with it by ACTON Commercial and is not be to reproduced, copied or sent to any other person without the written consent of ACTON Commercial. The use by, or reliance upon this document by any other person is not authorised by ACTON Commercial and without limitation to the above disclaimers, ACTON Commercial is not liable for any loss arising from such unauthorised use or reliance.

General

The information set out in this document has been prepared using information derived from a variety of external sources. ACTON Commercial does not warrant the accuracy of any of the information and does not accept any legal liability or responsibility for any injury, loss or damage incurred by the use of, or reliance on, or interpretation of the information contained herein.


Further Details Further information can be directed through the Town’s Hospitality Leasing Consultant: Enzo Evangelista Associate – Advisory & Consultancy ACTON Commercial T: 08 9468 7721 M: 0419 867 806 E: [email protected] ACTON Commercial ABN 49 397 996 445 Level 1, 187 Stirling Highway NEDLANDS WA 6008


APPENXDIX 1 – BUILDING PLAN