KING ST UNIT TRUST

INFORMATION MEMORANDUM

33 King St, Caboolture, Queensland

In the key Northern Growth Corridor between Brisbane and the Sunshine coast

JANUARY 2018

8.80% p.a. INCOME PAID MONTHLY

Chairman’s Message

Dear Investor,

We are pleased to present our most recent investment opportunity:

•A premium-quality building located in a significant growth corridor in SE Queensland.

•A strong and secure income stream underpinned by AAA government and semi-government tenants;

•Genuine prospects for capital growth over a holding period of 5-7 years;

Peak Equities’ current acquisition strategy focuses on assets in areas of strong population and economic growth. We believe that capital city housing and rental prices will continue to drive people outside city limits and that residential population growth leads directly to increased demand for retail and commercial assets.

Caboolture is located mid-way between central Brisbane and the Sunshine Coast to the north. Travel time to cover the 50 km from Brisbane is less than 40 minutes on the M1 Highway, and the city is serviced by a direct rail link from Brisbane. Over recent years, the northern suburbs have extended to a distance of around 30km from Brisbane CBD.

The town of Caboolture is the administrative centre of the Moreton Bay Regional Council, representing a population of greater than 425,000, or 20% of the total Queensland population outside metropolitan Brisbane. The property at 33 King Street is the dominant commercial asset in Caboolture, located in the heart of the Civic Centre. It houses the regional Water Authority as principal tenant and essential State Government departments.

The purchase price of this property enables us to conservatively accumulate significant cash reserves and at the same time provide for monthly cash distributions to Unitholders at the rate of 8.8% per annum.

We welcome your interest in this asset and invite you to contact any member of our team if you would like to discuss any aspect of this Information Memorandum.

Trusting that this acquisition marks the commencement of another year of financial success and prosperity for our investors.

Tom Borsky

Chairman and Managing Director

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Key Attributes – 33 King Street

Sitting in the heart of the Caboolture business precinct and servicing the region’s need for government accommodation, 33 King Street Caboolture is a campus-style 5,317sqm building with 82 on site secure basement car parks. The asset is underpinned by leases to Unitywater and the Queensland State Government, providing secure government covenants on long-term agreements.

THE INVESTMENT OFFERS

•5,317sqm of office accommodation over 5 levels

•4.1 Year (approx.) WALE by income

•Net income forecast to average 11.5% per annum over the life of the Syndicate

•Blue chip covenants in Unitywater and Queensland State Government occupying circa 80% of the building (by income)

•500 metres to Caboolture Train station, allowing ease of access for workers

•49 kilometres north of Brisbane CBD, 60 kilometres south of Sunshine Coast

•2.5 Star NABERS Rating

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Property Details

33 King Street

The building was constructed in 1995 and has been maintained in excellent order by the current owner, being the local Council. The Unitywater tenancy, covering 3 of the 5 floors was substantially upgraded in 2014 at the commencement of their 10-year lease term.

33 King Street’s characteristics have underpinned its success as a destination for high-calibre government tenants. The building’s unique floor plate offers excellent natural light from all areas and the property provides a campus-style layout with the ground floor opening out into an open forecourt used for a variety of community events.

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Location Highlights – Caboolture

Caboolture is located approximately 50 kilometres North of the Brisbane CBD and 60km South of the Sunshine Coast and is an urban centre within the Moreton Bay Region. The region forms the economic epicentre of the Northern Growth Corridor of South East Queensland with Caboolture set to be buoyed by significant population and employment growth.

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