property partners

Property Services for Investors

PARTNERS PROPERTYA division of Market Line Partners Pty Ltd ACN 130 585 509

222A/757 BOURKE STREET, DOCKLANDS 3008 P| 03 8770 2182 F | 03 8770 2111

W | www.partnerservices.com.au E | [email protected]

Introducing Partners Property Pty Ltd

Partners Property is a joint venture between the Partners Group and Victoria’s largest group of property valuers and advisors, Opteon Victoria. It has been established with the purpose of helping our clients make better property decisions. Our team of around 100 API Valuers and Advisors are trained in providing due diligence, reducing risk and providing greater certainty for people making decisions to buy or sell property.

We will work with you, your accountant and advisor to provide access to direct property investments and syndication opportunities. We take the same partnership approach to business that provides the foundation to the Partners Group.

If you already own property we can help with ways to minimise property risk, maximise return, help cash flow and if appropriate strategize through any future property development and investment opportunities.

Just like you may see our team of advisors or your accountant we are more than happy to sit down with you and discuss anything property related. If you would like to arrange a meeting or express your interest in any of the opportunities or services attached please email me:[email protected].

Yours Sincerely,

Telephone: 03 8508 7800, Fax: 03 9500 1386, Mobile (0408) 305 073

Introducing Opteon Victoria

Opteon Victoria combines the resources and expertise of two of the largest independent property valuation and advisory firms in Australia; Landlink and Market Line. Each has more than 17 years of experience across the Residential, Commercial & Retail, Industrial, Rural, Advisory and Local Government property sectors and is a founding member of the Opteon Property Group, Australia’s largest national alliance of property valuers and advisors.

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V I C T O R I AVA L U E R S & P R O P E R T Y A D V I S O R S

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Residential Valuations With over 60 valuers specialising in the residential property valuations for a range of purposes, Partners Property is the largest independent residential property valuation firm in Victoria. Our Valuers are dedicated to specific regions enabling them to expertly assess every detail of the property and its market segment, producing accurate and impartial reports. Partners Property is approved to the residential panels of the leading banks and financial institutions in Australia.

ServicesOur range of Residential Valuations Include:• Current Market Value Assessments• Banking and Finance Valuations• Body Corporate Valuations• Family Law Valuations• Portfolio Valuations• Pre-Purchase Valuations• Pre-Sale Valuations• Rental Reviews and Lease Consultancy• Estate/Probate Valuations

Features / Benefits The features and benefits of engaging Partners Property include:• Professionally Recognised – on Residential Panels for all major Banks /

Financial Institutions• API Certified Practicing Valuers – our guarantee of quality and expertise• PI Insurance backed services – low risk• We know your property - expertise across a huge range of property types

and uses• We are where you are –offices across Melbourne, Victoria and via Opteon,

Australia. Case StudyA self-employed plumber, wanted to build an investment property portfolio. After consulting his accountant and financial planner, decided he’d try the commercial sector. He identified a property that appealed to him but having limited knowledge of the commercial property market obtained a pre-purchase valuation from Partners Property. The valuation stacked up so Craig arranged finance, set his price limit and was subsequently the successful bidder at auction.

Residential Valuations

Contact Partners Property222A/757 BOURKE STREET, DOCKLANDS 3008 P| 03 8770 2182 F | 03 8770 2111W | www.partnerservices.com.au E | [email protected]

Commercial & Industrial Valuations Partners Property’s Commercial & Industrial Division performs property valuations and property advice services for Commercial, Industrial and Retail properties across a wide range of market sectors. Home to over 20 API Certified Valuers, some with over 30 years of specialist experience across diverse property types, Partners Property’s Commercial & Industrial Division is a recognised and approved provider to all of the leading banks and financial institutions in Australia.

ServicesOur extensive range of Commercial & Industrial services includes:• Banking and Finance Valuations • Market Value Assessments • Acquisition and disposal advice • Matrimonial and family court valuations • Dispute resolution (arbitrations and determinations) • Resumption and compensation assessments • Litigation (expert witness reports) • Rating objections (water/council and land tax) • Balance sheet and financial reporting (including asset valuations to AASB 116) • Rental review sand lease consultation • Replacement insurance assessments • Project feasibly analysis

Features / Benefits • Professionally Recognised – on all major C&I Panels for Banks and Financial Institutions• API Certified Practicing Valuers – our guarantee of quality and expertise• PI Insurance backed services – low risk• We know your property - expertise across a huge range of property types and uses• We are where you are –offices across Melbourne, Victoria and Australia.

Case Study The tenant of an industrial property wanted to invest in the property he leased but was concerned that the vendor had unrealistic expectations of value. He engaged Partners Property to conduct a valuation and using this, reached agreement with the vendor and selling agent at market value, also confident that the price would support the level of bank finance he required.

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Tax Depreciation Schedules The majority of property investors are missing out on eligible tax deduction claims. Property tax allowance provides an opportunity for the owners of income producing properties to reduce their taxable income, improve their cash flow and increase their rate of return. We specialise in the preparation of supporting Capital Allowance (Depreciation) schedules that you and your accountant can use to successfully claim these eligible deductions. With every Tax Depreciation Schedule quality checked by our Quantity Surveyors, you can be assured of maximising your eligible tax deduction.

Services Other services offered by our Quantity Surveyors: • Capital Allowance (Tax Depreciation) Schedules • Sinking fund reports• Building budget and cost plans• Construction and project planning• Insurance replacement assessments• Construction project & progress reports for owners, banks & financial institutions• Schedule of dilapidation• Asset register reporting Features / Benefits • All services backed by our qualified Quantity Surveyors• Tax Office compliant reporting• Expertise in a wide range of property types – We can assess any property type• Australia-wide coverage - We can assess all of your properties, no matter where

Case Study 1A client purchased a new $480,000 unit in 2007 but had not been claiming any depreciation. Using our Schedule, he was able to claim two years of depreciation without a variation to his tax return. This resulted in a claim of over $18,000 and a tax refund of up to 8,000 in his first tax year. Case Study 2 A client, building a new $1.8M factory with substantial office fit-out, requested we prepare a Tax Depreciation Schedule for the property. In the first year our client was able to claim over $30,000 worth of depreciation on the building and a further amount, over $70,000, on the fit-out.

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Insurance Valuations Research shows that many property owners fall within the category of being under insured. It is essential to make certain the level of insurance is adequate to effectively repair or replace existing buildings in the event of a catastrophic event. The purpose of a reinstatement cost assessment or insurance valuation is to assist the owner of a property to obtain quotations for insurance on their property. In respect of strata developments, Owners Corporations are responsible for obtaining insurance cover. A principal obligation of these managers is to ensure that appropriate building replacement insurance is current and adequate to cover the costs of repair or replacement in order to protect the interests of all property owners. To ascertain appropriate insurance levels, our specialist Insurance Valuers can provide a professional report upon which you can rely when purchasing your insurance. Services Our services include Insurance Valuations to cover:• Buildings, fixtures and fittings• Plant & Machinery and Mobile Equipment• Total facsimile reconstruction of the property “as new”

Features / Benefits • Professionally recognised API Valuers and Quantity Surveyors – your assurance• Minimising your loss - Accurate, comprehensive assessment includes: • Removal of any remains and debris • Upgrading of the building to meet current Building Regulations. • Cost of professional fees. Eg: architects, planners, project managers, designers • Council charges • Use of identical construction materials • Inclusion of identical building services (such as lifts, fire equipment etc) • Allowances for cost escalation.

Case StudyA Property Manager engaged us to carry out insurance valuations on a portfolio of properties for their owners. The detailed breakdown of the reports, compared to those used for finance valuations, enabled a clear understanding and the subsequent negotiation of competitive insurance premiums, by taking into account the type of policy that was required to ensure each of the contributing components, eg: council fees and demolition, was adequately covered.

Insurance Valuations


Property Development In theory when someone buys a new property, a margin above the cost to produce this asset is ‘earnt’ by the developer.

The size of the margin differs enormously. As you can imagine the margin is influenced by a large number of factors: the original purchase price of the property, construction costs, holding costs (development timing), loan to value ratio, selling rate and gross realization prices are all key components that will influence the success of a development for the developer. It is important to have a handle on all of these issues prior to undertaking the investment.

The benefits however of participating in a successful property development include some of the below points:• Retail cost. If you intend to keep one or more of the properties you develop you do not have

to pay developers margin, agents commission, marketing costs etc, normally associated with buying a property from someone else. This lower cost represents a higher investment yield because rents one would charge are obviously still at market.

• Profits. If you decide to sell the properties developed the profit obviously depends on the success of the project.

• Tax benefits of depreciation. Features / BenefitsDepending on the nature of the development there are sophisticated cash flow models (DCF) that we use to analyze a project. It is the role of a property advisor to confirm the assumptions of the model and to ensure the projections include all relevant factors. We can then identify the key risks so that the investor can then make an informed judgment about the investment. We are in a privileged position that has enabled us to look at hundreds of development projects of varying in our role as property valuers. Some of these are assessed from a risk perspective on behalf of the major lenders, and we often complete due diligence in an advisory capacity. We also have investment opportunities presented to our group. The net result is an understanding of property development that can be very empowering to you or your clients.

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Property Syndication Property syndication enables investors to own part of a high quality, investment grade property.

We prefer a structure that enables investors to own units within a single offering. They can then choose to invest in a specific asset or not. The investment is not subject to the liquidity issues that has fuelled the difficulties and volatility of much of the listed and unlisted property trust market.

In our model the investors are offered a completely transparent and mostly fixed term investment in a single asset.

The advantages of property syndication include:

• Units at a price level that enables more investors to maintain the asset balance of their investment portfolio compared to the purchase of an entire property.

• Higher grade of tenant, and security of lease/income

• Non recourse finance within syndicate/trust

• Professional management that does not burden the investor

• Less buyer competition because of the volume of money often enables properties to be purchased at a higher investment yield

• To take advantage of the current opportunities presented as a result of current lending policy.

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Other Services Residential ValuationsWith over 60 valuers specialising in the residential property valuations for a range of purposes, Partners Property is the largest independent residential property valuation firm in Victoria. Our Valuers are dedicated to specific regions enabling them to expertly assess every detail of the property and its market segment, producing accurate and impartial reports. Partners Property is approved to the residential panels of the leading banks and financial institutions in Australia.

Business ValuationsPartners Property specialises in the valuation of small to medium enterprises (SME’s). Partners Property complements its core business valuation activities with advice on strategic and operational issues as they affect the value and saleability of a business. With over 30 years experience in the valuing, management and financial analysis of businesses, Partners Property is well positioned to advise on a range of industry sectors for SME’s.

Essential Safety Measures (Victoria)Essential Safety Measures (ESMs) are the life & fire safety systems required in commercial, industrial & public buildings to ensure the safety of occupants in the event of a fire or emergency. The Building Act 1993 (Victoria) and Building Regulations 2006 require that the owners of every commercial, industrial, retail, public and multi-tenanted residential building must have an Annual Essential Safety Measures Report (AESMR) prepared and available for review. Partners Property can conduct ESM audits and prepare the necessary documents and reports to ensure your property complies.

AASB Asset ValuationsThe Corporations Act 2001 requires that corporations keep AASB116 compliant records as to the valuation of their property, plant and equipment assets, for financial reporting purposes. Revaluations must be frequent enough to ensure that the carrying amount does not differ materially from fair value at the reporting date. Partners Property can conduct these valuations.

AdvisoryCompulsory acquisition and litigation – Acquiring authorities frequently put valuations under the microscope and test them in the courts. It is important to have figures from an expert Valuer that will stand up to the closest scrutiny. Partners Property has successfully acted for a number of land owners affected by significant infrastructure projects such as Eastlink and the Craigieburn by-pass

Rural ValuationsResourced with recognised leading Rural Valuers of their disciplines in Australia, our Rural Division specialises in viticulture, equine, dairy, egg & poultry production, grazing, cropping, prestige lifestyle and general agricultural valuations and advisory, throughout Victoria and Interstate.

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