q1 shareholder activities 1 update 2019 – 2020 · obtain all necessary approvals strategic...

1 investLogan Q1 Shareholder Activities Update 2019 – 2020

Q1 Shareholder Activities Update 2019 – 2020

ContentsPropert Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Community Housing in Marsden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

96-98 York Street, Beenleigh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Other Development Project Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Transparency and Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Other Financial Activites Undertaken by investLogan . . . . . . . . . . . . . . . . . . . . . . . . .9

Shareholder Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Shareholder Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Shareholder Corporate Representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Council Officer Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

investLogan Q1 Shareholder Activities Update 2019 – 2020 3

Property DevelopmentinvestLogan has been progressing several development opportunities across the City of Logan.

Community Housing in MarsdenAbout this projectThe Community Housing Project in Marsden will deliver two, three-bedroom dwellings that can be used as National Disability Insurance Scheme (NDIS) housing and will also provide facilities for a Supported Independent Living Provider to be present on site .The dwellings will be designed and constructed to the High Physical Support Specialty Disability Accommodation (SDA) Design Category, which is designed to incorporate a high level of physical access provision for people with significant physical impairment and requiring very high levels of support . Current statusinvestLogan is working with the development partners on the design of the dwellings and construction is scheduled to commence in early 2020 with completion anticipated for mid-2020 .Social and community dividendsThe Community Housing Project in Marsden will provide a permanent, purpose-built home for six Logan residents .Australia’s community housing crisis is a result of decades of inadequate investment and there is a current 650,000 dwelling shortfall . Statistics from the Community Housing Industry Association forecast Australia to have a deficit of 1 million community homes within 20 years .

investLogan is actively responding to that demand locally by creating community homes that support the tenants, not just physically, but by allowing them to feel connected to the local community which will drive broader social and economic benefits.The development partnersCompass Housing has been appointed to operate and manage the housing project, alongside BlueCHP who will conduct the design, construction and certification. Compass Housing has 30 years’ experience in the provision of secure and affordable housing for low to moderate income households and the delivery of innovative housing products for disadvantaged people . Compass Housing currently manages more than 6,400 properties across Queensland and New South Wales, including 130 Specialist Disability Accommodation dwellings and is contracted to manage a further280 SDA dwellings .BlueCHP are presently designing and delivering nearly 70 NDIS Group Homes .


96-98 York Street, BeenleighAbout this projectBeenleigh is set for a $40m economic and jobs boom with the proposed mixed-use development at 96-98 York Street . The York will be a new seven-storey commercial office building, combining premium work space with study or home office space (SOHO) opportunities and pedestrian access to John Lane that may include new pavements, lighting, public art and WiFi .The York will comprise more than 4,600 sqm of commercial space, comprising 156 sqm of retail, 452 sqm of SOHO and 4,003 sqm of office, as well as two levels of underground car parking with 10 short term car parks for public use .The first new major commercial office building to be constructed in Beenleigh in the last decade, the project is expected to bring 140 new full-time jobs and 100 construction jobs to the area .

Current statusThe York has sought Queensland Government approval to extend a small part of its basement carpark underneath John Lane and ‘winter gardens’ over York Street and John Lane . The application process included a public notification period for the basement carpark underneath John Lane, which welcomed submissions from the public . The Queensland Government’s public notification period has now closed, and submissions are being assessed . The project is currently seeking early and pre-application input and advice from Logan City Council prior to lodgement of any formal applications for their review .The detailed design of the building is progressing, and commencement of works is due to start on site in late 2019 . The project team is committed to keeping the community informed throughout the planning, development and construction process .

Figure 1: Preliminary concept image of the proposed development at 96 – 98 York Street, Beenleigh


Social and community dividendsThe anticipated social and community benefits that arise from the development include:

An estimated $250,000, to be allocated to the John Lane facelift between John Street and George Street, with new amenity which may include public art and smart technology, including WIFI .

Integrating 10 short-term publicly accessible car parking sites in the development at an estimated $250,000 .

The John Lane facelift will activate the Lane and substantially improve casual surveillance opportunities of the during hours of operation .

This ideal employment location benefits from walking access (500m) to Beenleigh’s recreation heart, Dauth Park, easy access (550m) to Beenleigh Train Station and provision of end-of-trip facilities .Economic benefitsThis development is estimated to create a $40m economic and jobs boom from 2019 on the back of investLogan’s investment . The development is estimated to:

The development partnersinvestLogan, in partnership with Alder Developments are committed to delivering an innovative new destination that will reinvigorate Beenleigh . Alder Developments, alongside sister company Alder Constructions, are an agile development and construction business, which has recently completed the $5 .5 million redevelopment at the Beenleigh Aquatic Centre in Alamein Street .

100construction jobs

140 new full-time jobs once the redevelopment is complete

$4.1m of direct benefits and $10.6 of indirect benefitsgenerated during the construction phase

$16.5m of direct benefits and $8.5m of indirect benefits generated during the operational phase

Source: Urbis


Other Development Project UpdateinvestLogan has identified interest in a number of Council land holdings as opportunities for acquisition and development . The following table sets out the current status of each as of 30 September 2019 .

PROJECT ACTIONEXPECTED RESULT

SHORT-TERM 2019-2020 CURRENT STATUS

Bardon Road, Berrinba

Finalise leasingObtain all necessary approvalsStrategic development partner announcedCommence construction

Construction underway

The Board has agreed to have second right of refusal on this land at the request of the Shareholder and based on ongoing negotiations between the Shareholder and a third party to deliver jobs for Logan residents .

Wayne Goss Drive, Berrinba

Finalise leasingObtain all necessary approvalsStrategic development partner announcedCommence construction

Construction underway

investLogan has negotiated an acquisition contract with the Shareholder .Several, small industrial tenancies are the preferred development outcome .Market engagement is continuing with potential tenants/purchasers .Tenders are being finalised to inform final commercial feasibility modelling.

Chetwynd Street, Loganholme

Development strategy endorsedFinalise leasingObtain all necessary approvalsStrategic development partner announced

Development approvals secured

Detailed site feasibility is underway to inform a development strategy . Market engagement has commenced with potential tenants .

Gritl Court, Kingston

Development strategy endorsedObtain all necessary approvalsStrategic development partner announced


Detailed site feasibility is underway to inform a development strategy . Early contractor engagement has commenced to inform development costs .

Lovell Street, Slacks Creek

Development strategy endorsedObtain all necessary approvalsStrategic development partner announced


investLogan is continuing negotiations with the Shareholder regarding acquisition .

Park Ridge Road, Park Ridge

Business case finalisedEOI releasedMarket operator identifiedObtain necessary approvals

Submission to the Shareholder to endorse collaboration approachDevelopment approvals secured and ready to commence detailed design

InvestLogan is awaiting a formal response to the submission made to the Shareholder .


Transparency and AccountabilityinvestLogan endeavours to maintain transparency and accountability.

All investLogan’s Governance documents were reviewed to ensure that the information contained in each document is still correct, accurately reflects the practices of investLogan and ensures they remain compliant with relevant legislation .investLogan is committed to transparency and accountability ensuring all our stakeholders have confidence in the way we manage our business. This has been demonstrated by publicly releasing the following documents and policies:

Audit Charter; Board Charter; Complaint Policy; Constitution; Delegations Policy;

Directors Conflict of Interest Policy; Entertainment Policy; Finance and Audit Policy; Fraud and Corruption Policy; Gifts and Benefits Policy; Conflict of Interest Guidelines; Privacy Policy; Procurement Policy; Prohibited Donations Policy; Recruitment Policy; Renumeration Policy; and Workplace Health and Safety Policy .


FinanceinvestLogan strives to continue improving its financial position.

The investLogan financial position: Good equity and cash balances; Strong liquidity with a current ratio of 3 .8 times

(benchmark 1 .5 times); Growing asset base; Focus on cost and cash management; and Dependent on property acquisition and development

commencing .

Highlights

Cost and cash management

3.8 current ratio Growing asset base

$1.81m in cash at bank


Other Financial Activities Undertaken by investLogan investLogan’s other financial activities include:

Entering into a contract for the purchase of 21-23 Brandon Street, Marsden, from Council;

Entering into a contract for the purchase of 12-14 Main Street and 10 Kent Street, Beenleigh, from a third-party vendor;

Obtaining agreement from Council to purchase two properties, 96-98 York Street, Beenleigh, and 180-186 Wayne Goss Drive, Berrinba;

Securing further equity capital from Council; Completing a five-year forecast of integrated

profit and loss, balance sheet and cash flow with modelling capabilities; and

Receiving an unmodified audit opinion from the Queensland Audit Office in respect of the audited annual financial statements for the year ended 30 June 2019 .


Shareholder EngagementShareholder MeetingsinvestLogan continues to acknowledge the importance of keeping the Shareholder informed with individual catch ups where necessary and quarterly presentations on the general strategic direction of investLogan and specific matters.

Shareholder Corporate RepresentativeCouncil’s Corporate Representative, Logan City Council’s Acting Chief Executive Officer is provided with all Board papers and minutes and invited to all Board meetings . A regular two week catch up remains planned between the Corporate Representative and the investLogan Chief Executive Officer and undertaken on an as-needed basis .

Council Officer MeetingsinvestLogan understands the important role the Logan City Council officers play in the success of our business. Regular engagement is an integral part of working together achieve the Shareholder’s vision . As such, regular engagement continues through correspondence, meetings and individual catch ups .


PO Box 1003 Springwood Qld 4127 Australiainvestlogan.com.au

q1 shareholder activities 1 update 2019 – 2020 · obtain all necessary approvals strategic...

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