queensland investment opportunities

Proper�es & Pathways Pty Ltd www.proper�esandpathways.com.au 1

INFORMATION MEMORANDUM Pathway Four Syndicate

Information Memorandum

Properties & Pathways Pty Ltd invites you to invest in:

1 EDEN STREET, MINYAMA, QUEENSLAND

Well established, high performing retail centre on great lease covenants

Estimated 9.0% net return to investors in the first year

Fantastic tenancy mix, including 4 national retailers:

Snooze, Whitworths, Carpet Call & Mr Toys Toyworld

Weighted Average Lease Expiry (WALE) of 5.2 years

100% occupancy since 1988 (the property hasn’t had a vacancy in 27 years)

Dominant corner site with three street frontages

Brilliant exposure with 52,000 vehicles passing daily (department of main roads, QLD)

Diversification of risk with 5 rental income streams

Located in one of the regions strongest retail growth corridors

Proper�es & Pathways Pty Ltd

A: 2 Chidley Road, City Beach, WA 6015

T: (08) 9285 0396

F: (08) 9285 0397

E: alan@dogge�.net.au

E: cal@dogge�.net.au

ABN 18 321 741 809

AFSL 438152 Date of issue: March 2015



INVESTMENT OBJECTIVE & STRATEGY

The Pathway Four Unit Trust (‘the Syndicate’) is providing investors with an opportunity to acquire a well located retail/

bulky-goods property offering a long term income stream, robust capital growth with secure lease covenants.

The investment strategy for this property is to implement an efficient maintenance program to prolong the useful life and

condi�on of the property with a long term view of passive rent collec�on. Furthermore, we will work closely with the

tenants to extend their tenure and proac�vely maintain the WALE of the investment and the strength of the lease

covenants. Due to the rela�ve age of the building, there is poten�al for a value-add refurbishment which would typically go

hand-in-hand with a substan�al increase in the WALE (based on the renewal of current tenancies). I.e. a possible investment

strategy would be to approach each tenant in the 4th year of their term and offer them to exercise their op�on or commit to

a longer lease, subject to us (the Landlord) doing a substan�al refurbishment to the exterior and facade of the building.

Naturally, we could also approach the banks for the requisite finance to achieve this objec�ve. Please note, any investment

strategy is subject to change, with such change dependant on (but not limited to) the available opportuni�es,

development poten�al, tenant composi�on, lease structure, risk analysis, access to finance and the general economic

climate over the life of the asset.

Please also note: This is a long-term investment strategy and due to the structure of the syndicate it may have a limited

secondary market making it rela�vely illiquid when compared to other financial products and/or alterna�ve investments.

REASONS WHY THIS PROPERTY IS IDEAL FOR INVESTMENT

A�rac�ve return from a well located property with fantas�c exposure

Strong lease covenants from 4 na�onal tenants and 1 state-wide trader

Secure leasing history with 100% occupancy since incep�on of the building in 1988

Strategic tenancy mix for diversifica�on of rental risk

Robust rental pla�orm with over 85% of income derived from na�onal tenants

Long Weighted Average Lease Expiry (‘WALE’) of over 5.2 years

Strategic layout, posi�on and loca�on to service the surrounding catchment & area

Prolific site with well-sized tenancies crea�ng high demand from retailers

Please see summary video at the following link: HTTPS://VIMEO.COM/116610497

Please refer to page 9 for Disclaimer, Risk Factors & Other Important no�ces.



THE PROPERTY

1 Eden Street, Minyama is a stand alone single level retail showroom of 3,212 sqm divided into 5 individual tenancies and

situated on 5,838 sqm of land. The property has 3 street frontages and 64 open car bays to compliment a well performing

retail/bulky-goods centre fron�ng the prime 4-6 lane arterial road of Nicklin Way. This large, modern, retail showroom sits

alongside other bulky good retailers in a dense, established retail precinct in a prominent, high-profile loca�on.

The Gross Le�able Area (GLA) of the property is 3,212sq.m (approx.), comprising an excellent tenant mix, outlined below:

Snooze - with over 70 stores across Australia and who are part of the well-known Steinhoff group;

Barra Jacks - with 2 QLD stores and who have traded at the centre since 2009;

Carpet Call - Australia’s largest independent flooring retailer with over 70 stores across Australia and who have traded

along Nicklin Hwy since 1992;

Whitworths Nau�cal World - Australia's largest marine accessories retailer with 16 stores across Australia and who

have traded at the centre since 2000; and

Mr Toys Toyworld - Australia‘s largest retail chain of specialist toy stores with 24 stores over Queensland, 141 stores

across Australia and who have been there since incep�on of the building.

The centre provides convenient in-front car parking and a favourable bay/le�able area ra�o with all tenancies facing into the

car park making it convenient for pedestrian and vehicles alike. The site is also strategically posi�oned to offer easy and di-

rect truck access for delivery of goods to each retailer.

The Centre was built in 1988 and has been well maintained. Nonetheless, the building will require pro-ac�ve maintenance

throughout our ownership tenure (which we have taken into account in our investment strategy outlined on page 2).



TENANCY SCHEDULE

1 Eden Street, Minyama tenancy schedule:

BANK GUARANTEES

Snooze (Mul�well P/L): 3 months bank guarantee (currently $61,635) plus franchisee / personal guarantees

Barra Jacks (G & J Clarke): 4 months bank guarantee (currently $42,504)

Carpet Call (Blondec P/L): Franchisee / personal guarantee

Whitworths (Nau�cal P/L): 3 months bank guarantee (currently $10,521)

Mr Toys Toyworld (Cen P/L): Franchisee / personal guarantee

LOCATION

The subject property fron�ng Nicklin Way is located within the established commercial and residen�al precinct of Minyama

on the Sunshine Coast, located approximately 1 hour and 15 minutes from Brisbane CBD.

Nicklin Way has evolved into a mix of commercial office and retail establishments with a concentra�on of car yards, bulky

retail, medical and strip retail along approx. 13 kilometres from Caloundra in the South through to Minyama in the North.

Nicklin Way is a 4-6 lane, dual carriage road boas�ng an average of 52,000 vehicles passing per day, making it one of the

Sunshine Coast’s best known arterial roads which acts as the primary connec�on between Caloundra to the South and

Maroochydore to the North (Source: Department of Main Roads, Queensland).

Tenant Area (sq.m) Term Op�on Start Date Expiry Net Rent Escala�ons

Snooze (Mul�well Pty Ltd)

930 5 5 + 5 01/05/2014 30/04/2019 $ 224,130 CPI

Barra Jacks (Geoffrey & Jennifer Clarke)

483 5 5 30/06/2014 29/06/2019 $ 115,920 CPI

Carpet Call (Blondec Pty Ltd)

334 7 5 20/03/2014 19/03/2021 $ 82,474 5%

Whitworths (Nau�cal World Pty Ltd)

466 5 5 + 5 25/02/2014 24/02/2019 $ 116,567 4%

Mr Toys Toyworld (Cen Pty Ltd)

999 7 5 + 5 + 5 01/01/2015 31/12/2022 $ 242,267 3.5%

Totals 3,212 $ 781,358



MANAGEMENT & STRUCTURE

Proper�es & Pathways Pty Ltd (‘the syndicator’) is the licensee, holding AFSL 438152.

Directors: Alan Dogge�

Cal Dogge�

Proper�es & Pathways Pty Ltd is also the trustee company which will be responsible for the asset and syndicate

management, including, but not limited to:

Finalisa�on of lease nego�a�ons & renewals;

Re-financing and finance terms;

All dealings with financial ins�tu�ons;

Quarterly distribu�ons;

Development poten�al and feasibility;

Overall capital works and property maintenance;

Acquisi�on and/or sale of the property;

Various other management items; and

Will appoint a leading commercial real estate company to manage the property, including collec�on of rent,

payment of outgoings and the day to day management.

Pathway Four Unit Trust: issues units assigning ownership en�tlement. Unit holders are governed by the Unit Trust

Deed which regulates the opera�on, distribu�on, administra�on, transfer of units and other general legali�es of the

unit holders, both individually and collec�vely.

FINANCE & VALUATION POLICY

Proper�es & Pathways Pty Ltd has appointed Structured Property Finance to nego�ate acceptable commercial terms for the

loan facility. From preliminary discussions, the banks have indicated finance on the following terms:

Loan amount equal to 60% of the purchase price;

Fixed loan term of 3 to 5 years;

Interest will be paid from the net rental income of the property;

Loan will be in the name of Proper�es & Pathways Pty Ltd a� the Pathway Four Unit Trust;

Non-recourse loan i.e. the lender will secure the loan against the land and buildings only and not individual investors;

In effect, the investors are NOT required to provide guarantee over the property;

Security – A first ranking mortgage to be registered over the land; and

An�cipated fixed interest rate at se�lement between 3.75% and 4.00% pa.


intends to re-value the property

prior to the expira�on of the

finance facility or when the trustee

believes there has been a material

change to the value of the

property.



THE INVESTMENT—ACQUISITION

Any surplus remaining post se�lement will accumulate as reserve fund to offset any unforseen expenditure.

SENSITIVITY ANALYSIS

Due to the high demand for this asset we have factored in a ‘premium’ on purchase price. Through lengthy discussions with

valuers and professionals in the area, we understand there is a high demand for the level of security and risk diversifica�on

which this asset offers. As such, we will likely compete with 4 or 5 other buyers which means our terms have to be a�rac�ve

for the seller AND we need to factor in room to move on the purchase price. From a preliminary indica�ve valua�on we

confirm the asset value is between approx. $9.75million and $10.1million (reflec�ng a return of between 7.75% - 7.50%).

However, in our calcula�ons (above and below) you will no�ce we have assumed a purchase price of $10.1million which

reflects a 7.5% return on purchase price. We have based our assump�ons and calcula�ons on this but must make it very

clear we would be willing to purchase this asset at up to $10.44mil which reflects a 7.25% return on purchase price. Please

note, the sensi�vity analysis below, showing the NET return to each investor based on the different purchase prices (ranging

from $9.75mil—$10.4mil).

Please note, whilst we firmly believe we can purchase the asset at $10.1mil, you must sa�sfy yourself of such investor return

(as shown above), based on a purchase price of anywhere up to $10.44mil as the case may warrant.

Purchase Price (PP) $10,100,000

Es�mated Costs: Stamp Duty & Transfer $592,000

Se�lement & Legal Costs $15,000

Due Diligence Costs $15,000

Loan Establishment Fee (0.5% of mortgage) $30,250

Valua�on $10,000

Establishment Fee (1.65% of PP) $166,500

Total $11,037,750

$6,050,000

Equity required to be raised (approx.) $5,000,000

Less: Mortgage at 60% of Purchase Price (approx.)

AFSL Compliance Costs $9,000

Reserve Fund $100,000

YR 1 YR 2 YR 3 YR 4 YR 5

Purchase price $10,400,000 8.66% 9.05% 9.45% 9.87% 10.30%

Purchase price $10,100,000 9.00% 9.40% 9.82% 10.25% 10.70%

Purchase price $9,975,000 9.34% 9.76% 10.18% 10.62% 11.08%



INCOME & RETURN

Cash distribu�ons to investors as a percentage return on equity invested (assuming cash investment) is forecast to be:

* As this is a mul� tenanted property it is prudent to allow a vacancy factor in the event of a tenant vaca�ng and a resultant reduc�on in income. We have assumed a vacancy factor for a property of this nature to be approx. 7.0% - 8.0% of the net rent.

Investors will receive income distribu�ons quarterly in arrears. Please note, these figures do not account for the

deprecia�on/amor�za�on of the property and the associated tax benefits of this expense which improves the a�er tax posi�on

of the cash distribu�ons.

PURCHASING ENTITY & APPLICATIONS

The property is purchased by Proper�es & Pathways Pty Ltd as trustee for The Pathway Four Unit Trust. Units in the unit trust

must be purchased by investors who would like to take part in the syndicate. Please refer to the Unit Trust Deed (available

upon request) which outlines more comprehensively the way in which the syndicate operates.

Should you wish to par�cipate in the Pathway Four Syndicate please no�fy us and we will direct you through your applica�on

which will require comple�on of the following documents and disclosures (majority of which are Australian legisla�ve

requirements to protect each investor):

Comple�ng the a�ached ‘Investor Details’ in the name of your inves�ng en�ty and supply full iden�fica�on (Passport

or Australian Driver’s License) of the responsible individual/s for that en�ty;

Signing the ‘Unit Trust Deed’ in the name of your inves�ng en�ty;

Comple�ng and signing the a�ached ‘Applica�on for Units’ in the name of your inves�ng en�ty;

Cer�fying you are a ‘wholesale’ investor by ge�ng your accountant to complete an Accountant’s Cer�ficate in the

a�ached format. (Please disregard if you have already supplied this within the last 2 years for previous syndica�ons);

Please note: If you do not qualify for the ‘wholesale’ criteria as defined in the a�ached, please contact us immediately.

Email and/or mail the abovenamed a�achments to the email address below or mail address on the front cover of this

Informa�on Memorandum.

Applica�on for units will not be accepted un�l funds have been received, either by cheque, or via deposit into the following

A�orney ‘s Trust Account: Account Name: Stephen Josland Barrister & Solicitor - Trust Account Bank: ANZ Bank BSB: 016 460 Account No: 4981 31998 Please note, these funds may only be withdrawn through authority by the transferring a�orney in order to effect se�lement.

If you require assistance in comple�ng any of the required forms or have any queries, please contact either:

Alan Dogge�: mob: 0402 327 776 email: alan@dogge�.net.au

Cal Dogge�: mob: 0439 886 931 email: cal@dogge�.net.au

YR 1 YR 2 YR 3 YR 4 YR 5

Current Annual Return (fully let) at

$10,100,000 purchaser price 9.00% 9.40% 9.82% 10.25% 10.70%

Return (with 7.5% vacancy allowance)* 8.15% 8.52% 8.90% 9.30% 9.71%



NICKLIN WAY

Major arterial road servicing 52,000 vehicles per day, connec�ng

Caloundra in the South to Maroochydore in the North.

KAWANA SHOPPING WORLD, Including the following MAJOR retailers:

Convenience: Big W, BWS, Liquorland, Australia Post, Chemist, Pharmacy, Optometrist

Supermarkets: Coles, Woolworths & ALDI plus major banks (ANZ, Commonwealth, NAB, Suncorp etc.)

Food outlets and retailer: JB Hi-Fi, Dick Smith, EB Games plus Grill’d, KFC, McDonalds, Subway, Coffee Club etc.

1 EDEN STREET, MINYAMA



DISCLAIMER

Whilst this document includes informa�on about Proper�es & Pathways Pty Ltd (P&P), the nature of the investment, the Property and

other ma�ers, it is not exhaus�ve in its contents and should not be considered as such.

All projec�ons and forecasts in this document are for illustra�ve purposes only using those sources as described. They are based on the

opinions of, and the assump�ons and qualifica�ons made by the directors of P&P as at the date of this document. Actual results may be

materially affected by changes in economic and other circumstances.

Any reliance placed upon the accuracy of projec�ons, forecasts and other informa�on provided in this document, and the appropriateness

of opinions, assump�ons and qualifica�ons used, is a ma�er for your own commercial judgment. No representa�on or warranty is made

that any projec�ons, forecasts, values, assump�ons or es�mates contained in this document can or will be achieved.

Notwithstanding that par�es other than P&P are named in this document, none of those other par�es were involved in the prepara�on or

issue of this document and therefore, none of those other par�es has any responsibility for its contents.

P&P and its directors, officers, employees, advisers and representa�ves:

a. give no warranty and make no representa�on in respect of the contents of this document; and

b. accept no responsibility for the accuracy, reliability or completeness of the informa�on provided in this document.

ACKNOWLEDGMENT OF RISK

The Applicants acknowledge that:

a. they are aware of the risks of property investment;

b. they have made their own assessment of the Trust’s proposed investment property;

c. they view the Trust as a long term investment;

d. there is only a limited secondary market for the sale of their Units;

e. the purpose of the Informa�on Memorandum is to provide details in rela�on to the Trust’s proposed investment property and is

not a disclosure document pursuant to the provisions of the Corpora�ons Act;

f. any advice that may have been provided by the Trustees pursuant to the Informa�on Memorandum or otherwise is general

financial product advice only in rela�on to the Trust’s proposed investment property;

g. the Trustees have relied on the acknowledgements of the Applicants that they are sophis�cated, wholesale investors and that the

financial product or financial service is not deemed to be provided to them as retail clients and specifically that the Trustees have

not given any personal advice or been provided with or taken into account any Applicants’ objec�ves, financial situa�on or needs;

h. any representa�on made by the Trustees was made in good faith but they have not relied upon any representa�on as an

inducement to acquire their interests in the Trust’s proposed investment property.

The financial projec�ons in this Informa�on Memorandum have been prepared using various assump�ons which have been made based

on the best es�mates of the Directors and their advisors. Investors should appreciate that many factors (including, but not limited to, loss

of tenant, interest rate fluctua�ons, market condi�ons, projected returns, regulatory changes, illiquid investment, environmental risk,

leasing risk, valua�on risk, unexpected capital expenditure and destruc�on of buildings) which affect these projec�ons are outside the

Trustee’s control and cannot be foreseen. Accordingly the actual results may differ from those projected. The projected results demon-

strate the expected return of the Trust before tax and other non-cash deduc�ons are taken into account.

PRIVACY STATEMENT

By applying to invest in the Syndicate, you are providing personal informa�on to P&P. The Privacy Act 1988 (Cwth) regulates the way P&P

collects, uses, disposes, keeps secure and gives people access to their personal informa�on.

P&P is commi�ed to respec�ng the privacy of your personal informa�on. P&P has adopted a privacy policy, which states how P&P

manages personal informa�on. You can obtain a copy of that policy by wri�ng to us.

P&P collects, holds and uses personal informa�on in order to process your applica�on, and if your applica�on is successful, administer your

holding in the Syndicate.

CONFIDENTIALITY

This Memorandum (and the informa�on contained in it) is confiden�al. It is not intended for and should not be distributed to any other

person. By receipt of the Memorandum, the Recipient agrees that it will not transmit, reproduce or make available the Memorandum (or

any informa�on contained in it) to anyone other than its professional advisers, without the prior wri�en consent of P&P. Any such

disclosure to the advisers of the Recipient must be on a confiden�al basis, for the purposes only of assessing the informa�on contained in

it as adviser to the Recipient.

ANTI MONEY LAUNDERING AND COUNTER TERRORISM ACT

If you are a new investor with P&P, before we can accept your applica�on it will be necessary to provide cer�fied photographic

iden�fica�on of your iden�ty. This is a legisla�ve requirement. If you are making an applica�on as a company, Trust or Superannua�on

Fund we will require details of the registra�on of the en�ty and cer�fied photographic iden�fica�on of at least one of the directors if a

company or details of the Trustee and beneficiaries of the Trust and cer�fied photographic iden�fica�on of the Trustee. Further details of

the requirements can be obtained from P&P.

CONFLICTS OF INTEREST

The Directors and staff of P&P or members of their families or en��es which they control or have an interest in may also invest in the Unit

Trust. They may also indirectly benefit from any management fees charged in rela�on to the management of the Trust.



INVESTOR DETAILS

PURCHASING ENTITY

Purchasing En�ty Name: ________________________________________________________

Address of Purchasing En�ty: ________________________________________________________

TFN of Purchasing En�ty: ________________________________________________________ (N/A for non-resident investors)

ABN of Purchasing En�ty: ________________________________________________________ (N/A for non-resident investors)

Associated Individuals of Purchasing En�ty: _____________________________________________

______________________________________________________

Address of Associated Individuals: _____________________________________________________

______________________________________________________

(Please provide a copy of Iden�fica�on for the associated individuals)

INVESTMENT

Amount Invested ($): ______________________________________________________

ACCOUNT DETAILS OF INVESTING ENTITY (for receipt of quarterly distribu�ons)

Account Name: ______________________________________________________

BSB: ______________________________________________________

Account Number: ______________________________________________________

AUTHORISATION & ACKNOWLEDGEMENT

Signature: ______________________________________________________

Posi�on: ______________________________________________________

Name: ______________________________________________________

Date: ______________________________________________________



APPLICATION FOR UNITS

I/WE __________________________________________________________________________________ (“Applicant”)

Hereby apply for ____________________ ordinary class Unit(s) of one dollar each par value in The Pathway Four Unit Trust

(“Trust”) and hereby tender a cheque for $___________________________ being the subscrip�on moneys in rela�on to

such units.

AND I/WE hereby agree and undertake to be bound by the terms of the Trust Deed crea�ng the Trust (“Deed”) as varied or

supplemented from �me to �me and, make the following acknowledgements:

1. Acknowledgment of No Disclosure Provided

The Applicants (or their associated en��es) acknowledge that they are sophis�cated, wholesale investors for the purposes of sec�on 708(8) of the Corpora�ons Act and that notwithstanding sec�on 761G(7) of the Corpora�ons Act, the financial product or financial service provided to the Applicants is not deemed to be provided to the Appli-cants as retail clients, in that they each have:

a. invested in the Trust a minimum amount of $500,000.00; or

b. net assets of at least $2.5 million; or

c. had a gross income for the two years prior to entering into the Deed of at least $250,000.00 for each such financial year; and

d. provided to the Trustee a cer�ficate cer�fying as correct either of the ma�ers referred to in (b) or (c) above, such cer�ficate having been provided by a qualified accountant as defined in the Corpora�ons Act and dated no more than 24 months prior to entering into the Deed.

2. Acknowledgment of Risk

The Applicants acknowledge that:

a. they are aware of the risks of property investment;

b. they have made their own assessment of the Trust’s proposed investment property;

c. they view the Trust as a long term investment;

d. there is only a limited secondary market for the sale of their Units;

e. the purpose of the Informa�on Memorandum, if one has been provided, is to provide details in rela�on to the Trust’s proposed investment property and the Trust and it is not a disclosure document pursuant to the provisions of the Corpora�ons Act;

f. any advice that may have been provided by the Trustees pursuant to the Informa�on Memorandum or otherwise is general financial product advice only in rela�on to the Trust’s proposed investment property;

g. the Trustees have relied on the acknowledgements of the Applicants pursuant to clause 1 above that they are sophis�cated, wholesale investors and that the financial product or financial service is not deemed to be provided to them as retail clients and specifically that the Trustees have not given any personal advice or been provided with or taken into account any Applicants’ objec�ves, financial situa�on or needs; and

h. any representa�on made by the Trustees was made in good faith but they have not relied upon any representa�on as an inducement to acquire their interests in the Trust’s proposed investment property.



3. Acknowledgment of AML / CTF Iden�fica�on Requirements

The Applicants acknowledge and cer�fy that they have provided to the Trustee the proof of iden�fica�on required

by the Trustee and that all documents so provided are true and correct. 4. Acknowledgment of Privacy Policy The Applicants acknowledge that by applying to invest in the Trust they are providing personal informa�on to the

Trustee. The Privacy Act regulates the way in which the Trustee collects, uses, keeps secure and gives people access to their personal informa�on. The Trustee is bound by the Na�onal Privacy Principles and will collect and store personal informa�on from Applicants in a safe and secure manner. Personal informa�on of Applicants will be used to process each applica�on and, if such applica�on is successful, to administer and report on each Applicant’s holding of Units and the progress of the Trust’s ac�vi�es. Personal informa�on of Applicants may also be provided to other persons to enable the Trustee to provide services to the Applicants (for example, service providers, consultants and advisors) or to persons that Applicants authorise to act on their behalves in rela�on to their investment (for example, the financial advisors, accountants or lawyers of Applicants). The Trustees may also disclose personal informa�on of Applicants to others as permi�ed under the law. Applicants personal informa�on will be added to a mailing list of the Trustee and used for future marke�ng of investment opportuni�es promoted by the Trustee

DATED this ______________________ day of _____________________ 20 ___________________ SIGNED by the said Applicant(s) Individual(s) ______________________________________ ______________________________________ Company ______________________________________ Director ______________________________________ Director/Secretary



ACCOUNTANT’S LETTERHEAD

Date

A�en�on: Mr. C Dogge�

Director


2 Chidley Road,

City Beach, WA, 6015

I am qualified to provide this statement as a qualified accountant in accordance with the provisions of the Corpora�ons Act.

(Name of client) is a client of mine / this prac�ce and I am in a posi�on to cer�fy the following:

1. (Name of client or par�cipa�ng en�ty) has assets of at least $2.5 million; or

2. Has had an income of at least $250,000 pa over the past two years; or

3. Controls a company or trust which meets the requirements of either clauses 1 or 2.

Yours sincerely

Name of Accountant

(Qualifica�ons)

ACCOUNTANT’S CERTIFICATE

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