DDR Sora

SORA DUE DILIGENCE REPORT February 2021 LOCATION 13 Hamilton St, Bentleigh, VIC 3204

Disclaimer The information in this document is not investment advice.

The information in this document has been published as an information service. The information contains general information and does not take into account any investor’s particular circumstances and needs. Each investor should consider whether the information is appropriate for his or her particular needs, financial situation and investment objectives.

While the information provided by Blue Wealth Property is believed to be accurate, Blue Wealth Property does not accept responsibility for any inaccuracy or any actions taken upon reliance of the information in this report.

No returns or performance is guaranteed. Any forecasts are dependent on the current market conditions and knowledge available at the time of producing this document.

Important Notices This information is subject to change without notice. Updated information can be obtained by contacting Blue Wealth Property on (02) 9743 0077 or their authorised Business Partners.

CONTENTS

CONTENTS Bentleigh

01

1.0 Sora

10

3.0 Bentleigh

10

3.1 Population & Demographics

03

2.0 Melbourne

11

3.2 Economics & Employment

04

2.1 Population & Demographics

12

3.3 Infrastructure Spending

05

2.2 Economics & Employment

13

3.4 Supply & Demand

07

2.3 Infrastructure Spending

08

2.4 Supply & Demand

14

4.0 Floorplate

15

5.0 Renders

19

6.0 Pitard Group

1.0 SORA

1.0 SORA Project Details • The Sora is located 13 kilometres

• The project represents an

Number of dwellings

southeast of Melbourne CBD,

opportunity to acquire a boutique

27 apartments

within the affluent suburb of

product within an emerging

Price ranges

Bentleigh

market

• Bentleigh is nestled among

• Price growth within the housing

the blue-chip suburbs of the

market has created a market

Melbourne

disparity between housing and

• Offering low vacancies with high rental incomes within an affluent suburb • The local area represents a tight rental market with huge growth potential for density stock

semi-detached dwellings • Produced by an experienced developer who has a strong record in the local market • An aesthetically appealing and

1 bedroom, 1 bathroom, 1 car space: from $550,000 2 bedroom, 2 bathroom, 1 car space: from $675,000

Size ranges 1 bedroom, 1 bathroom, 1 car space: 57sqm 2 bedroom, 2 bathroom, 1 car space: 72-83sqm

Project Status Completed

Estimated outgoings Council & Water Rates: $2000 p.a approx

well-designed project, giving ‘Sora’

Indicative Strata Levies: $1300-$2400 p.a approx

a point of difference in the local

Conditions of purchase

market

Holding Deposit: $1,000 Deposit on Exchange: 10% on exchange of contracts Deposit Type: Cash and Bank Guarantee (balance on completion)

1

1.0 SORA

Sora Bentleigh, Victoria

2

2.0 MELBOURNE

2.0 MELBOURNE Victoria

‘Melbourne was voted the world's most liveable city for seven years running' Melbourne is Australia’s second largest city and voted the world’s most liveable city for seven consecutive years by the Economist Intelligence Unit.

This comes down to a unique combination of diverse demographics, strong sports, entertainment and café culture and well-planned transport systems and infrastructure.

The Melbourne property market has a rare structure, with varying growth rates on product type (houses and apartments) and location making it difficult to place the city on the property clock. Broadly speaking, Melbourne’s housing market performed strongly between 2012 and 2017 – with only Sydney recording a higher growth rate.

The markets segmented nature means each region must be assessed on its individual merit. The division in the market exposes opportunities and the sub-markets best representing growth potential.

3

2.0 MELBOURNE

‘By 2031 Melbourne is

2.1

projected to overtake Sydney as Australia’s most populous city’

Population & Demographics As of August 2018, ABS reported

is based on the evolution of a

that the population of Greater

population’s age structure, gender

Melbourne reached 5 million

or living arrangements. The way we

residents. Melbourne has added

live provides policy makers with the

over 120,000 new residents each

information they need to plan for

year for the past three years – the

future demands for housing, land and

highest of any Australian city.

infrastructure.

With population growth like this, Melbourne needs to add 45,000 new dwellings per year, or nearly 1,000 per week. A record 18,000 Australians migrated to Victoria in 2017, largely because of housing affordability and job creation. Melbourne has been growing faster than Sydney over the past decade, according to the Australian Bureau of Statistics (ABS), and is set to become Australia’s most populous city by 2031. To accommodate for this growth, the city will require an additional 1.6 million dwellings.

The current household size of 2.7 people and the growing proportion of lone person households suggest that the dwellings required could be provided through apartment development. As at June 30th 2018, the lone person household and coupled families without children make up 49% of Greater Melbourne’s population. This means that half of Greater Melbourne’s households are well suited to apartment living. The number of lone person households is projected to grow 59% by 2031, the fastest of the varying household

Assessing the population structure

types. Strong house price growth in

and how this may change in the

Melbourne’s metropolitan areas is

future is critical to understanding

likely to strain affordability and result

where the demand for property

in an increase in demand for more

will come from. Government policy

affordable apartment dwellings.

4

2.0 MELBOURNE

2.2

Economics & Employment

Victoria

Gross state product

Percentage of Australian gross domestic product

$385.9 billion

23.6%

Melbourne has solidified its position

The Melbourne economy is

Over the last 5 years, Victoria has

as Australia’s strongest economic

continually shifting away from the

added more jobs than any other state.

performer, now boasting the

manufacturing based industries into

According to data from the federal

country’s highest contribution to

the less volatile professional services.

government, Victoria’s employment

the GDP. According to Commsec’s

This has been the most significant

base increased by 100,200 jobs in

quarter 4, 2018 State of States

change to Melbourne's economy.

the 12 months to 2018. This job

report it also recorded 3.3% annual

The evolution has allowed for a more

creation was dominated by full

GSP growth making it the nation’s

diversified base of employment-

time employment signifying the

top performer. A solid indicator

generating industries, which has

strength of the diversified economy.

for the strength of state economy

strengthened the resilience of the

In the five years between 2017 to

is the acceleration in retail trade.

city’s labour market to external

2022, federal statistics forecast

Over the past 12 months, retail

shocks and structural adjustment

Victorian employment to increase

trade has grown by almost 5%, in

pressures.

8.8% - outpacing that of the national

a performance outpacing all other states.

5

average.

2.0 MELBOURNE

Victoria’s gross state product grew by 3.3% over 2018, making it the country's top perfromer

6

2.0 MELBOURNE

2.3

Infrastructure Spending Melbourne has been nominated as the world’s most liveable city seven out of the last eight years. The Victorian Government maintains that the key to upholding this status rests upon infrastructural investment as a driver. To proactively plan for future needs, while implementing innovative visions the ‘Plan Melbourne’ vison was conceived. The plan that extends its vision through to 2050, is structured to design Melbourne’s housing, commercial and industrial development for future levels of need.

Sky Rail Project This multi billion project is aimed at easing traffic congestion throughout the whole of Greater Melbourne.

75 differing level train crossings are being removed and lifted over a 5 year construction timeframe.

The plan integrates over 112 future action plans to accommodate for future

Completion is expected to be finished

population, housing and employment needs. Major growth corridors in the

by 2022.

Southwest (Wyndham-Geelong), North (Hume) and Southeast (Dandenong) will ultimately be connected as a planned economic triangle. Major investments

Fishermans Bend Urban Renewal

include:

The largest urban renewal project in Australia, the precinct is located

West Gate Tunnel Project Construction on the project begins in 2018 and completion is anticipated for 2022. It involves widening the West Gate Tunnel enhancing connectivity from the south west of Melbourne into the CBD. The project is expected to create 6,000 jobs.

Metro Tunnel Rail Link The $10 billion project consists of two 9 kilometre train tunnels, including five underground stations from South Kensington to South Yarra. The construction will result in the employment of 3,500 people. Construction will began in 2018 and is forecast to be completed by 2020. On completion the project will service an extra 35,000 commuters during peak hour.

7

1 kilometre south west of the CBD. Over 250 hectares has been rezoned for residential, commercial and retail spaces in an attempt to expand the capital city zone. The area has potential to accommodate 40,000 jobs and 80,000 residents.

2.0 MELBOURNE

2.4

Supply & Demand The Melbourne property market

high-density dwellings tenanted

can be best described as segmented,

and occupied quickly. Melbourne

with discontinuity on a suburb by

had a vacancy rate of 2.9% as of

suburb basis. The result is, significant

August 2019, with 3% indicating a

variation in property market gauges

balanced market, as a result Greater

(supply, vacancy rates, time on

Melbourne is heavily undersupplied.

market, yields and the like) when a

With projected population increases

granular (suburb by suburb) approach

exceeding those of other capital

of analysis is taken.

cities, Melbourne is challenged

The strong performance in Melbourne’s housing market and strain on affordability is driving demand for townhomes and apartments. This coupled with strong population growth in Metro

with the task of ensuring long term strategies are applied that will allow supply to match demand sustainably.

Projections suggest that 1.6 million dwellings are required to keep up with population forecasts to 2031.

Melbourne has seen medium and

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3.0 BENTLEIGH

Bentleigh, Victoria

9

3.0 BENTLEIGH

3.0 BENTLEIGH 3.1 Population & Demographics Population growth

Median age

Average household size

21,000 new residents by 2036

39

2.7

City of Glen Eira is forecast to

39 years old an employed in white

There is a strong presence of couples

experience population growth of

collar occupation. Around 50% of the

without children (making up over

13.49% per cent to 180,626 by 2036,

local workforce are employed in

30.0% of local families) indicating the

equating to approximately 801 new

either a professional, or managerial

specific need for apartment supply,

dwellings per year. The LGA

role - indicating the strength of

particularly in an area where median

development guidelines restrict the

the local tenant pool. The average

house prices have performance

density of future development. This

household size of 2.7 indicates that

strongly over the last 5 year period.

will ensure demand is high for the

both one and two bedrooms are

The significant disparity between

existing homes and new dwellings

suited to the market demographic.

house and apartment prices will be a

which offer an affordable option for a down sizers demographic.

According to ABS data, over 26.6% of dwellings within Bentleigh are rented

According to the Australian Bureau

(a statistic higher than the Australian

of Statistics census data, Bentleigh

and Victorian state average)

has a population of 18,774 living in

highlighting the suitability of rental

7,585 dwellings with an average

tenure within the suburb.

household size of 2.7. The average resident is a

major driver for apartment demand.

Currently, median house prices are on average 131% more expensive than median unit prices. Continued strain on housing affordability will likely transition demand from housing stock to apartment dwellings over the long term.

10

3.0 BENTLEIGH

‘Median household incomes in Bentleigh are 30.0% higher than the Victorian state average’

3.2

Economics & Employment

11

Gross Regional Product

Industry Profile

Income Growth

$7.37 billion

White Collar

30%

The employment profile of Bentleigh

The size of Bentleigh’s labour force

is dominated by affluent white

during the census period was 8,406

collar workers. The average weekly

of which 2,760 were employed

household income is $1,848, a figure

part-time and 4,812 were full

30% higher than the Victorian

time workers. Within Bentleigh’s

median household income. The most

workforce, no industry makes up

common occupations in Bentleigh

more than 5% of total employment.

are reflective of a prosperous high

With the hospital industry employs

earning demographic. The most

the largest portion of residents

common occupations in the suburb

(4.3%) followed by Computer System

include Professionals, Managers and

Design and Related Services (3.3%)

Administrative workers – around

and Banking (2.6%). The diversity of

65% of the local workforce identified

the market’s employment base makes

as holding these occupation types as

it less susceptible to unemployment

of the 2016 census.

risks.

3.0 BENTLEIGH

3.3

Infrastructure Spending The Victorian Government continue to invest in strengthening the state’s infrastructure. Understanding the extent of the population growth that Melbourne is experiencing, it is critical that sufficient infrastructure is in place to accommodate for the demand of future residents. Numerous public and private infrastructure initiatives are being implemented throughout the Melbourne, particularly within City of Glen Eira. These initiatives include:

•

Monash Freeway – The second

•

Swim Centre redevelopment –

•

Monash Masterplan – Like cities

stage of construction on the

The $51 million redevelopment

and towns, our campuses need

Monash Freeway upgrade has

of Carnegie Swim Centre is an

to be planned. The Monash

begun, with the centre median of

important project that will boost

Masterplan provides a vision and

the corridor transformed into a

the local economy and provide

framework to guide the physical

work site. The $1.4 billion project

many jobs.

development of our campuses

received an additional $367.5

over the next twenty years.

million in September 2020.

12

3.0 BENTLEIGH

3.4

Supply & Demand

Vacancy Rate

Forecasted Dwellings

Estimated time on market

5.9%

8,833 by 2036

27 days

Vacancy rates are an excellent

Bentleigh's housing market has

The suburb possesses an even spread

measure of rental demand within

performed consistently over the last

of dwelling tenure, 44.4% are rented,

property markets. A balanced market

5 years, with current median house

26.2% are owned outright and 26.2%

is likely to present a vacancy rate of

price of $1.354million. This has been

are occupied with a mortgage. With

3% this allows for the natural vacation

credited to strong population

housing affordability increasing in

and uptake of rental properties.

growth and significant levels of

Bentleigh (median house price has

Generally, the north – western region

infrastructure spending creating

risen above $1.354million), there lies

of Melbourne has maintained low

demand for property. The strain

an opportunity in the market for

vacancy rates and is tightly held by

of affordability and rapidly rising

high – end rental tenure.

local residents. As of December 2020,

house prices has created a unique

Bentleigh possesses a vacancy rate of

investment opportunity for the

5.9 % which is due to COVID 19

apartment market, as residents

creating an oversupply in the area, in

continually opt for more affordable

early January 2020 vacancy rates

housing options.

where at 1.4%.

13

4.0 FLOORPLATE

4.0 FLOORPLATE N

HAMILTON STREET 14

5.0 RENDERS

5.0 RENDERS Sora, Bentleigh

Building Exterior Sora, Bentleigh

15

5.0 RENDERS

Bedroom Sora, Bentleigh

Bathroom Sora, Bentleigh

16

5.0 RENDERS

Kitchen Area Sora, Bentleigh

17

5.0 RENDERS

Living Area Sora, Bentleigh

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6.0 PITARD GROUP

6.0 PITARD GROUP Pitard Group has been built on our commitment to quality and innovation, and our team brings unmatched skill, vision and dedication to everything we do. By collaborating as one unit, we seek to create unique places that foster a greater sense of health and wellbeing for those who inhabit them.

Our expertise extends to all areas of acquisition, feasibility, design and development, construction, sales and property management.

We specialise in all facets of development, from land acquisition to construction, sales and property management. With a history spanning more than two decades, we have garnered a trusted reputation for our fastidious attention to detail, exceptional quality of products and deep community focus.

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6.0 PITARD GROUP

Matilda on Maude Pitard Group

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