REPOSITORIO DE TEMAS DE TRABAJO DE GRADO

Based on the above, we make the following comments in relation to the potential viability of a strata office development on the subject site:

 The Highest and Best Use of the site is not for redevelopment into strata office accommodation. The Highest and Best use is more than likely to be wholesale redevelopment into high density residential uses. However, within a large scale residential scheme, noting that the site is positioned amongst a popular strata office location, it is likely that some small level of strata development could be complimentary to a larger residential project.

 Some inclusion of strata office accommodation may also provide added amenity and increase the viability of any on site retail components.

 Notwithstanding the above comments, strata office would be substantially more economically viable than large format.

 The strata development market is a supply led market. Longer term supply to the market has largely been speculative. However, as supply is added, it appears that it has been readily absorbed into the market. The strong competition from residential development has potentially created an under supply of strata office accommodation into the market over the last 3-4 years. While supply has potentially been below trend, it is very easy for developers to add substantial supply relatively quickly. The timing of delivery of competition is therefore critical.

 There continues to be a broadening in demand for good quality, purpose built strata office facilities in near city suburban locations and with good access and transport options. The subject sites location would be considered appropriate for some inclusion of strata development.

 The purchaser market is dominated by owner occupiers, suggesting that the there is a strong personal component to the purchase decision, not dissimilar to the emotional impact in purchase of residential property. As such, design and perceptions of quality are critical in strata office

development.

 The scale of any inclusion of strata office to the broader development should be in keeping with other large projects with which the subject site will compete. All other things being equal a similar ratio of office to residential could be applied to the subject development as that shown in other developments. However, other high density residential developments arguably occupy superior locations with

superior access provisions, particularly for pedestrians and private vehicles. As such, the scale of the inclusion of strata into the proposed development could be reduced. In addition, the economic returns from the inclusion of strata office are expected to be substantially lower than the development of residential uses which are generally considered to be the highest and best uses for the site.

Disclaimer

This report is dated February 2015 and incorporates information and events up to that date only and excludes any information arising, or event occurring, after that date which may affect the validity of Urbis Pty Ltd’s (Urbis) opinion in this report. Urbis prepared this report on the instructions, and for the benefit only, of Urbis (Instructing Party) for the purpose of Purpose (Purpose) and not for any other purpose or use. To the extent permitted by applicable law, Urbis expressly disclaims all liability, whether direct or indirect, to the Instructing Party which relies or purports to rely on this report for any purpose other than the Purpose, and to any other person which relies or purports to rely on this report for any purpose whatsoever (including the Purpose).

In preparing this report, Urbis was required to make judgements which may be affected by unforeseen future events, the likelihood and effects of which are not capable of precise assessment.

All surveys, forecasts, projections and recommendations contained in or associated with this report are made in good faith and on the basis of information supplied to Urbis at the date of this report, and upon which Urbis relied. Achievement of the projections and budgets set out in this report will depend, among other things, on the actions of others over which Urbis has no control.

In preparing this report, Urbis may rely on or refer to documents in a language other than English, which Urbis may arrange to be translated. Urbis is not responsible for the accuracy or completeness of such translations and disclaims any liability for any statement or opinion made in this report being inaccurate or incomplete arising from such translations.

Whilst Urbis has made all reasonable inquiries it believes necessary in preparing this report, it is not responsible for determining the completeness or accuracy of information provided to it. Urbis (including its officers and personnel) is not liable for any errors or omissions, including in information provided by the Instructing Party or another person or upon which Urbis relies, provided that such errors or omissions are not made by Urbis recklessly or in bad faith.

This report has been prepared with due care and diligence by Urbis and the statements and opinions given by Urbis in this report are given in good faith and in the reasonable belief that they are correct and not misleading, subject to the limitations above.

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