KING ST UNIT TRUST

Opportunity and Returns

WHY PEOPLE CHOOSE PEAK EQUITIES

Communication and Information

Contents

OFFER DETAILS

KEY ATTRIBUTES

PROPERTY DETAILS

LOCATION HIGHLIGHTS -

CABOOLTURE

DEMOGRAPHICS

TENANCY SCHEDULE

TENANT DETAILS

FINANCIAL SUMMARY &

INCOME FORECASTS

MANAGER’S ENTITLEMENTS

PEAK PROFESSIONALS

RISK FACTORS

ADDITIONAL INFORMATION

APPLICATION FOR UNITS

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Offer Details

1. The Trust - Peak Equities Pty Ltd is Trustee of the KING STREET UNIT TRUST, established on

15 January 2018. The principal activity of the Trust will be the acquisition of the investment property at 33 King St, Caboolture, Queensland.

2. Due Diligence - Peak Equities Pty Ltd (the Trustee) is engaged in its detailed Due Diligence investigation and analysis of the property. Subject to the satisfactory outcome of that process, an unconditional contract is expected to be signed in the second half of February, with settlement scheduled for 31st March 2018.

3. Purchase Price - The purchase price has been agreed at $16,600,000, subject to our satisfactory Due Diligence enquiries.

4. Term of the Syndicate – It is expected that the property will be held for a period of between

5 and 7 years. The Trustee has discretion to sell the property at any time, if it considers that it is in the interest of Unitholders to do so.

5. Liquidity - The Unitholders Deed governing the operation of the Trust provides investors with a guaranteed right to exit the investment at full market value at any time after the 5th anniversary of the establishment of the Trust.

6. Forecast Distribution Rate - The Trustee proposes to make monthly cash income distributions at the rate of 8.80% per annum to Investors.

7. Funding – Peak Equities has received indications of interest from 3 banks to provide mortgage funding on favourable terms - non-recourse lending to 60% of the contract price. The Trustee expects to raise approximately

$8.8 million from investors.

8. Applications for Units - Each Investor may apply for between 200 and 800 Ordinary Units of $1,000 each in the capital of the Trust (Investment Value $200,000 to $800,000). Applications may only be made on the Application Form attached to this Information Memorandum.

9. Offer Period - The offer will remain open until full subscription has been achieved. The Trustee has complete discretion as to the number of Units (if any) to be allocated to each Applicant.

10.20% Deposit Payable - Investors must lodge a deposit equal to 20% of the value of their total investment accompanying their Application.

Deposits funds should be paid directly into the solicitor’s trust account. (see Application Form for details).

11.Balance Payment - The remaining 80% subscription price will be payable during March 2018, within 7 days of written request from the Trustee. Unit certificates will be issued by the Trustee upon receipt of the balance payment by each investor.

12.Offer Limited to Wholesale Investors - The Offer is available exclusively to Sophisticated Investors as defined in the Corporations Act.

13.Trust Documents - Prior to confirming their investment, intending Unitholders will be provided with a copy of the Trust Deed and the Unitholders’ Deed of the KING STREET UNIT TRUST, and will be required to sign a Deed of Accession, agreeing to be bound by the terms of those documents.

Moreton Bay Regional Council

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DEVELOPMENT APPROVALS

IN PAST TWO FINANCIAL YEARS

Tenancy Schedule

Tenant

Unitywater

Department of Child Safety

DEHP & DNRM

Flourish Australia

(Richmond PRA)

Stronger Smarter Institute

Vacant

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* Our forecasts allow for a 12-month letting up period.

Category

Establishment Fee

Description

The Manager charges an initial fee calculated as a percentage of the Acquisition Cost of the investment property, including stamp duties and other statutory transaction costs.

Entitlements

4% of Acquisition Cost

Risk Factors

Intending Investors should be aware of the following

risks associated with an investment in the Trust and are advised to seek independent advice before committing to an investment in the Trust.

Investment Risk

Whilst the revenue forecasts provided in this Information Memorandum have been carefully formulated based on current market conditions and reasonable assessment of future conditions, unforeseen or uncontrollable circumstances may arise during the term of the Trust which adversely affect the projected income streams and/or future capital values. There is no guarantee the financial forecasts in this IM will be achieved. There

are a number of risk factors which could impact on the projected income, the tax effectiveness of any distributions, and the return of capital or capital growth.

An investment of this nature carries a certain level of commercial risk, and the performance of the Trust may be affected by a number of factors, many of which are outside the control of the Manager. Some of the significant risks and the way the Manager aims to manage those risks are set out in the sections below. Please note the Manager cannot eliminate all risks and cannot promise that the way it manages them will always be successful.

Liquidity Risk

Units in the Trust will be illiquid for a period of five years, and during that time they may not be readily saleable.

The Manager has no obligation to purchase or redeem Units during the first 5 years of the life of the Syndicate. There is no established secondary market for Units and transfers may only be affected in accordance with the Trust Deed and the Unitholders Deed.

Property Risks

Property investment by its nature involves risk, and an investment in the Trust is no different. The Manager cannot guarantee the occupancy rate of the property, nor the income available for distribution to investors. Neither can the Manager warrant that the eventual sale of the property will generate capital gains to the investors.

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Insurance risks

The Manager will insure the Property for full replacement value. However, the circumstances of a particular

loss or the specific provisions of the insurance policy may preclude a claim being accepted by the insurer. Additionally, there is a risk that the insurance money received may not be adequate to compensate the Trust.

Forecasting risks

The Manager does not guarantee the indicated earnings and rate of distribution set out in this IM. Investors should make their own reasonable enquiries and form an independent opinion of the future performance

of the Trust. The forecast financial information has been derived from financial models which have been developed by the Manager. There is a risk that the models may not be accurate as a result of one or more incorrect assumptions. Assumptions are generally only a best estimate at a point in time.

Borrowing risks

It is intended to partially fund the purchase of the property with debt. Whilst an indicative offer has been obtained there is no guarantee the debt funding will ultimately be made available by the bank. The Manager will be required to meet various conditions before the funding can be drawn down. If the debt funding is not provided the Manager will need to seek an alternative lender and/ or raise additional equity

Debt funding will be secured against the Property, with no recourse to investors. A default under the terms of the loan may lead to the financier exercising its security and selling the Property for a price lower than that which might have been achieved in normal circumstances. This may have a negative impact on the performance of the Trust and potentially a loss of investors’ capital.

Interest rate risk

The Trust will be exposed to interest rate movements between the date of this document and the date at which the bank loan is drawn down. Whilst the bank loan will be advanced at fixed interest rates during the first 3-year term, rates may have increased at the time of extending or refinancing debt facility. Increases in interest rates could have the effect of reducing the availability or increasing the cost of finance for the Trust.

General Economic Risks

These relate to the overall risk of a broad range of investments. The returns on all commercial investments are affected by various economic factors including changes in interest rates, exchange rates, inflation and the general state of the economy.

Regulation and Taxation risks

Changes in Federal and/or State government policy

or legislation, may adversely affect the Trust or Investors. The effects of tax may vary depending on the status

of Investors, and may also affect the accessibility of income, the deductibility of expenses, and the treatment

of Trust income or impose additional expenses on the Fund. Investors should seek independent taxation advice in relation to this investment.

Additional Information

MATERIAL CONTRACTS

The following is a summary of documents that are material to the Fund and its activities. This section only contains a summary, which means that all the provisions of each material document are not fully described. Copies of material documents (subject to excluding confidential commercial terms) may be requested from Peak Equities Pty Ltd. (Peak)

1. Purchase Contract

Peak Equities Pty Ltd and the Vendors of the property will execute a Purchase Contract subject to the completion of satisfactory Due Diligence.

2. The Trust Deed

The KING STREET UNIT TRUST was created 15th January 2018, with Peak Equities Pty Ltd as trustee and Initial Unitholders being TP & N Borsky as trustees for the T&N Borsky Superannuation Fund, holding 200 Special CG Units and Arrabri Nominees Pty Ltd, as trustee for the Borsky Family Trust holding 200 Founder Units. The entitlements of the special classes of Units are as follows:

Founder Units are issued at $1.00 each. Following the allotment of Ordinary Units, Founder Unitholders are entitled, in aggregate, to receive 2.0% of all distributions of income and capital of the Trust.

Special CG Units are issued at $1.00 each. The Special CG Unitholders are entitled, in aggregate, to receive 20% of the value of capital gains available to Unitholders following the sale of the Property. They do not have voting rights and have no entitlement to share in distributions of either the income or the capital of the Trust.

3. The Unitholders Deed

The Unitholders Deed was executed by the Trustee and the Initial Unitholders on 17th January 2018. The Unitholders Deed should be read in conjunction with the Trust Deed, and sets out the rights and obligations of Unitholders and the Trustee. New Unitholders (Trust investors) will be required to execute a Deed of Accession, whereby they agree to be bound by the terms of the Trust Deed and the Unitholders Deed. The Deed of Accession and a copy of the Unitholders Deed will be provided to intending Unitholders prior to the confirmation of their investment.

4. The Management Deed

The Trustee has appointed Peak Equities Management Pty Ltd (PEM) to manage the affairs of the Trust, including the negotiation of purchase terms the trust property; the conduct of all due diligence activities; day-to-day management of the property; attendance to all Unitholder communications; trust accounting; compliance with all statutory obligations and requirements; and the eventual sale of the trust property. Details of the Manager’s remuneration are set out in the body of this Investment Memorandum. Details of the Manager’s rights and responsibilities are set out

in the Management Deed dated 17th January 2018, incorporated as a Schedule to the Unitholders Deed of the same date.

DISCLOSURE OF INTERESTS

Investors are made aware that the Directors and other officers of Peak Equities Pty Ltd are directors, shareholders and beneficiaries in the below listed entities which are the subject of commercial relationships with the Trust:

1.Peak Equities Management Pty Ltd (Manager of the Trust, acting as trustee for the PE Unit Trust). PEM is associated with Tom Borsky, a director of Peak Equities Pty Ltd.

2.Arrabri Nominees Pty Ltd (initial holder of Founder Units as trustee for the Borsky Family Trust). Arrabri Nominees Pty Ltd is associated with Tom Borsky, a director of Peak Equities Pty Ltd

3.TP&N Borsky (holders of Special CG Units as trustees for the T&N Borsky Superannuation Fund).

4.TTS (Safety) Pty Ltd (intended holder of Founder Units and Special CG Units acting as trustee for the D Borsky Family Trust). TTS (Safety) Pty Ltd is associated with David Borsky, a director of Peak Equities Pty Ltd.

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5.Killila Property Group Pty Ltd (intended holder of Founder Units and Special CG Units as trustee for the Killila Discretionary Trust). Killila Property Group is associated with Mr James Weaver, a director of Peak Equities Pty Ltd.

6.DJMBar Pty Ltd acting as trustee for the DJMBar Trust. Mr Dan Magree is a member of the Peak Equities Advisory Board and is a Responsible Officer pursuant to the Peak Equities Pty Ltd AFS Licence. DJMBar receives consulting fees from Peak Equities Management Pty Ltd.

ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF) requires entities such as Peak Equities Pty Ltd to maintain a program that identifies, mitigates and manages money laundering and terrorism financing risks associated with its business.

In this regard, the Trustee may require investors to provide additional information for identification and verification purposes. Please note that the Trustee may not accept an Application to invest in the Fund until it is satisfied that the identity of the Investor has been verified in accordance with the requirements of the AML/CTF.

If you do not provide a completed Application Form, this may delay the processing of your Application or result in your Application being returned.

PRIVACY PROVISIONS

Peak Equities Pty Ltd is committed to the protection of your personal information in accordance with the Australian Privacy Principles set out in the Privacy Act 1988.

All personal information held by Peak Equities will be governed by Peak’s most recent Privacy Policy. This Privacy Policy applies to the collection, use and disclosure of personal information. Peak collects your personal information for the purpose of providing its property acquisition and funds management services. The information will not be made available to third parties other than required by our privacy policy and applicable law and to service providers necessary for us to conduct our business activities. If we cannot collect personal information from you, we may not be able to perform the activities listed above.

The personal information collected from you on the Application Form is used to evaluate your Application for Units in this Trust as well as to issue Units, service your needs as a Unitholder and administer the Trust. This includes information that Peak Equities Pty Ltd must pass on to Peak Equities Management Pty Ltd, and other service providers. The personal information you provide is kept for record keeping purposes. If you do not provide the necessary personal information, your Application may not be processed. Once personal information is no longer needed for the Trust and Peak’s records, it is destroyed or de-identified. Your personal information may be disclosed overseas.

Unitholders have a right to access the information about them held by Peak and to correct any errors as set out in our Privacy Policy. Please advise us of any information that appears inaccurate or incomplete (especially your address and correct investing entity name). You can call Peak on +61 (03) 9863 8380 or write to Peak at the address listed below to access the information held about you held by Peak. If you have any complaint in relation to the manner in which your information has been handled, please contact us.

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As well as reporting to you on your investment, Peak or PEM may use your contact details to let you know about future investment opportunities offered by Peak. If you prefer not to receive these communications, please telephone or write to Peak.

If obliged to do so by law, Peak will pass on your personal information to other parties such as the Australian Taxation Office and other regulatory bodies, strictly in accordance with legal requirements.

COMPLAINTS AND CONTACTING US

Peak Equities Pty Ltd seeks to resolve potential and actual complaints over the management of the Trust to the satisfaction of Unitholders. If a Unitholder wishes to discuss any aspect of the management of the Trust or wishes to lodge a formal complaint, they may do so in writing, by email or by telephone at:

Peak Equities Pty Ltd

Suite 942, 1 Queens Road

Melbourne VIC 3004

Telephone: 03 9863 8380

Email: info@peakequities.com.au

The company will promptly acknowledge any complaint received from a Unitholder, investigate it, and decide in a timely manner any action that needs to be taken.