Cordell Construction Monthly, Released July 2017

DATA FOR JUNE 2017

Cordell Construction Monthly

www.corelogic.com.au/cordell

Pipeline - Australia

4%

% 13

3%2%

20 %

52%

4 3%

21%

7%

10 %

8%

17 %

2,114

$26.5 billion

Number of Projects

Estimated Value

Civil Engineering

Commercial

Community

Apartments & Units

Industrial

Median Project Value Civil Engineering

$500,000

Commercial

$1,200,000

Community

$2,000,000

Apartments & Units

$1,200,000

Industrial

$1,069,000

Mining

$2,000,000

2 | Cordell Monthly Construction Update June 2017

Mining

Sheet 1

Pipeline - Location

Sheet 1 Cifer

APARTMENTS & UNITS

Apartments & Units

Civil Engineering

Mapkeeps basedAPARTMENTS on Longitude (generated) Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which & UNITS. and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps CIVIL ENGINEERING.

Sheet 1

Sheet 1

Cifer

COMMERCIAL

Commercial

Community

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Sheet 1

Sheet 1

Cifer

INDUSTRIAL

Industrial

Mining

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Cordell Monthly Construction Update June 2017 | 3

Moving into construction - Australia

3%

% 16

8%

54 %

14%

23 %

% 37

2%

8%

8%

6%

20%

948

$10.8 billion

Number of Projects

Estimated Value

Civil Engineering

Commercial

Community

Apartments & Units

Industrial

Median Project Value Civil Engineering

$750,000

Commercial

$1,314,000

Community

$1,000,000

Apartments & Units

$1,213,500

Industrial

$880,000

Mining

$1,000,000

4 | Cordell Monthly Construction Update June 2017

Mining

Moving into construction - Location Sheet 1

Sheet 1

Cifer

APARTMENTS & UNITS

Apartments & Units

Civil Engineering

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps APARTMENTS & UNITS. and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps CIVIL ENGINEERING. Map based Sheet 1 on Longitude (generated)

Sheet 1

Cifer

COMMERCIAL

Commercial

Community

Map Sheet based on1Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, Map which keeps based Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps COMMUNITY. Sheet 1 onCOMMERCIAL. Cifer

INDUSTRIAL

Industrial

Mining

Mapwhich based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps MINING. Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, keeps INDUSTRIAL.

Cordell Monthly Construction Update June 2017 | 5

New South Wales The NSW 2017-18 budget was handed down in June, outlining major expenditure in health, education and infrastructure.

The following are highlights of health funding allocation from the NSW government: Campbelltown Hospital will undergo a $632 million stage 2 upgrade, including expanded paediatric services, mental health services, surgical facilities and maternity beds. An extra $5 million has also been allocated for upgrading the car park.

The Prince of Wales Hospital will see its first upgrade in 20 years, with $720 million allocated for the construction of a new emergency department, expanding medical imaging, inpatient wards, operating theatres, rehabilitation and ambulatory services.

Nepean Hospital received $576 million for redevelopment of maternity and neonatal care, as well as emergency, surgical, inpatient and outpatient services.

Concord Hospital received $341.2 million, including a comprehensive care centre for defence force personnel and their families.

A new state-of-the-art $534 million regional Tweed Hospital will be built on a greenfields site.

An Expression of Interest (EOI) and site selection process will commence shortly.

Macksville and Mudgee Hospitals were also allocated $23 million and $8 million respectively.

Another big spend is on new and upgraded schools over the next 4 years to reflect unprecedented student growth in NSW. To cope with demand, there will be 27 projects including new schools, or major rebuilds of existing schools.

There are proposals for 16 new schools in Sydney growth areas such as Picton, Sydney Olympic Park, Canley Vale, Catherine Field, Marsden Park and Ryde.

New or major rebuilds of primary schools will include Kent Road in Marsfield, Schofields, Riverbank, Greystanes and Liverpool.

6 | Cordell Monthly Construction Update June 2017

The most rapid population growth is occurring in the metropolitan areas, however regional NSW will see a new high school built in Armidale, and a new multipurpose hall for James Fallon High School in Albury.

The schools will be delivered by the newly-formed School Infrastructure NSW, a delivery-focused unit within the Department of Education. The school upgrades and delivery budget allocation follows the $2.4 billion allocation in the 2016-17 Victorian government budget, as both east coast states adapt to rapid population growth and dense residential development.

Road and public transport funding includes $7.2 billion in government investment for the third stage of WestConnex, including the M4-M5 link, $4.9 billion across four years for Sydney Metro City and South West, $3.5 billion across four years for the Pacific Highway upgrade and $4.0 billion across four years for Sydney Metro Northwest.

Danish architect 3XN has been awarded the contract to design the redeveloped Sydney Fish Market following an expression of interest request. 3XN will lead a design consortium with BVN as executive architect, and Aspect studios as landscape architect.

Australian Capital Territory ACT investors have backed what could be Australia’s largest community solar project in Symonston.

The solar farm, to be organised by volunteers and developed by SolarShare, stretches over 2 hectares and will comprise 5,000 panels. The ACT government is undertaking a technical review before the final approval decision.

Tenders have been advertised for head contractor for a major upgrade of the Geoscience Australia building in Canberra. The $10 million upgrade, led by Geoscience Australia, aims to create a more flexible modern work place to replace the current fitout, which is nearly 20 years old.

Victoria Five experienced construction firms have been announced as competing for the Ballarat Line upgrade contract: John Holland, Laing O’Rourke, Lendlease, CPB Contractors and McConnell Dowell.

The $518 million line upgrade will duplicate 18 kilometres of single track between Deer Park West and Melton.

Extra passing loops will be installed, and new stabling facilities, station platforms and car parking will be built to accommodate growing communities along the line.

The Melbourne Metro Rail Authority will relocate existing stabling yards at Bacchus Marsh station to Maddingley instead of constructing new stabling at Melton and Rowsley. Site investigations including geotechnical drilling, service locating and ecological assessments will be carried out in the coming months and the contract is expected to be awarded later this year.

As a part of the $2.4 billion investment in Victorian schools, a bold vision for Footscray Learning Precinct in Melbourne’s inner west has been released. A further $10.6 million for the next stage of the project has been announced, which includes advanced master planning and designs for all sites, including a new secondary campus to be built in Seddon. This stage also includes the redevelopment of Gilmore College for Girls and Footscray City Primary School. The aim of the precinct is to link, expand and upgrade schools across Melbourne’s inner west and integrate learning at all levels, from early childhood to university, with a broader vision to provide for individual learning needs.

Work is underway to appoint a principal consultant for the Youth Justice Redevelopment Project. The Labor Government is providing $288 million for the new high security centre, which will include an intensive supervision unit, 224 beds for remand and sentenced clients and a mental health unit. As part of the project the government is also planning to consult with stakeholders with expertise across the youth justice system. The Youth Justice Redevelopment Project is scheduled to open in early 2021.

include $140 million for Townsville’s stadium and $200 million to expand the Capricornia Correctional Centre near Rockhampton.

The Queensland state budget outlines a $176 million upgrade to the Cairns Convention Centre. $1 million will be spent in 2017-18 to develop a business case. Subject to consideration of the business case, the project will include 3,000 square metres of new exhibition space and meeting rooms and major refurbishment of the existing centre. Schools, hospitals and police stations also feature strongly in the budget, including funding for a new high school in Fortitude Valley.

A development application has been submitted for 44100 Barry Parade in Fortitude Valley. The application is for two towers - one of 26 storeys and one of 37 storeys.

There are plans for 492 units and commercial spaces between the towers. The staged development is led by Land and Homes Group, and designed by RotheLowman Architects. It will include green vertical walls as well as sub-tropical landscaping throughout the ground floor, extending out from publicly accessible plazas.

Shaylor Group is pressing on with the Brisbane Quarter project, which comprises residential units, a hotel and office towers. Multiplex has been awarded the contract for the $180 million office tower, with construction expected to commence in June.

Tasmania Aurora Energy and Goldwind Australia are developing a $300 million wind farm at Cattle Hill in the Central Highlands near Lake Echo. This project will increase Tasmania’s wind generation by about 50%, create 150 jobs through construction and deliver enough clean energy to power 60,000-plus homes. Construction is due to commence in September 2017.

South Australia A number of early planning projects were highlighted in South Australia this month.

Works have commenced on the Avalon Airport Industrial Precinct. With a $1.5 million investment from the Regional Jobs and Infrastructure Fund, this will see the development of an initial 40 hectare site on the vacant north-west corner of the 340 hectare industrial precinct.

Horticultural company, Costa Group, announced a proposed $60 million expansion of their Monarto premises. The State Government has granted $1.8 million towards the expansion of the mushroom production facility, which they hope will commence construction during 2019.

A new base for the Cotton On Group’s distribution network in Australia will also be established within this development, with a new 35,000 square metre facility that will enable the retailer to better service its 747 Australian stores.

Smith Bay Deep Water Wharf Development has been declared as a major development by the state government. The wharf is sited on the north-coast of Kangaroo Island, 18 km north-west of Kingscote. It is to be developed as a multi-user, multi-cargo facility.

Queensland

AGL are planning to develop a 210 MW reciprocating engine power station alongside the Torrens Island Power Station. It will replace two of the four Torrens A turbines.

The four Torrens B turbines will continue to operate as normal.

The Cross River Rail project was the centrepiece of the state Queensland budget, with a funding allocation of $2.8 billion. Early works on the track are outlined for the end of this year. Other regional infrastructure projects

Cordell Monthly Construction Update June 2017 | 7

Inghams proposed to construct a $50 million feed mill, including warehousing, grains, meals and product silos at Murray Bridge.

Flinders University’s Urban Village Masterplan for its Bedford Park campus was announced in June. The proposal includes a hotel, shops, cafes and student accommodation. The University is in consultation with the state government, Marion and Mitcham councils, and will eventually approach private developers for investment. This project would link the Tonsley Innovation Precinct with Flinders main campus and the two hospitals at Bedford Park.

The college will then expand to cater for 2,000 students to year 12 by 2025. The school will address the significant population density challenges following growth in inner city suburbs, and will form part of the new precinct alongside housing, mixed use developments and the retention of the Subiaco Oval playing fields. The precinct will also include the Princess Margaret Hospital site and nearby Department of Housing land.

The Daw Park Repatriation General Hospital site acquisition has been pending for more than 12 months.

The project was originally awarded to RSL Life Care, who withdrew in October 2016. However, the state government announced the contract had been signed exclusively with ACH Group. Some of the consortium partners have pursued other options while ACH Group has purchased the site on its own.

Cox Architecture has announced they will be submitting a development application to the Development Assessment Commission for a 30 storey apartment building with retail and office tenancies. The site includes 187 Victoria Square in Adelaide. The site is currently a carpark.

Construction commenced of the Atura Hotel at the Adelaide Airport by Built. Tenders have also been called this month, for a walkway link to connect this hotel to the airport terminal.

The $30 million upgrade project of the Kangaroo Island Airport has commenced. Mossop Constructions are building a new terminal and supporting infrastructure.

The runway-works, taxiway and associated works was awarded to BMD Constructions.

Western Australia Construction has commenced on the final stage of the Beadon Creek Maritime facility upgrade at Onslow.

The $595,000 contract for road and drainage works was awarded to the Onslow based company, NTC Contracting, and will complete the five stages of the $2.5 million infrastructure upgrade. The upgrade will see the construction of a new turning circle, fuel access roads and completion of a drainage upgrade at the facility.

Construction is expected to commence on Charter Hall’s Raine Square in July 2017. Built Pty Ltd have been awarded the contract for the $150 million commercial development at 300 Murray Street Crawley. It will see the construction of a 12 storey hotel to include 176 hotel rooms, retail tenancy and club amenities.

A new inner city secondary school will be built alongside Subiaco Oval at Kitchener Park. The State Government will allocate $68 million for stage one of the school with construction expected to commence mid-2018. This will allow the school to open in 2020, for Year 7 students.

8 | Cordell Monthly Construction Update June 2017

Northern Territory The 2017 Northern Territory Budget focussed on infrastructure, community facilities and maintenance jobs across the state, as well as some agriculture investments.

Investment in remote and bush roads featured heavily in the budget in an attempt to seal dangerous roads, improve road safety and improve freight access. The road upgrades include: $39.5 million for the Barneson Boulevard link in Darwin; $31.25 million for Plenty Highway; $10 million for Tjukaruru Road upgrades in Alice Springs; $40.08 million for the Buntine Highway upgrade in Katherine; $78 million to continue upgrading the Arnhem Highway on the Adelaide River Floodplain; $25 million for the Tablelands Highway upgrade in Tennant Creek; $22.7 million to continue flood immunity improvement work at Port Keats Road; and, $12.5 million for roadwork at the Barkly Stock Route.

Substantial funding is allocated to tourism and cultural infrastructure. $100 million has been committed to rejuvenate Darwin’s CBD, $10 million for early works at the proposed luxury waterfront hotel in Darwin, $50 million for the new Darwin Art Museum and $2.3 million for a fossil museum in Alice Springs.

Community facilities will also be enhanced, with major funding allocations including: Completion of the Palmerston Regional Hospital ($49.1 million); Alice Springs Hospital upgrades ($20.38 million); A multi-story car park at Royal Darwin Hospital ($12 million); Nhulunbuy’s Gove District Hospital upgrades ($8.97 million); Construction of Palmerston Police Station ($26 million) and Katherine Fire Station ($8 million); Wadeye Police Station completion ($3.96 million); A new rugby league stadium at Warren Park ($25 million); and, A new indoor netball stadium at Marrara Sporting Complex ($10 million).

Funding for school facilities includes: $18 million for Darwin High School redevelopment and expansion;

Mining Developer Gascoyne Resources Limited has received all regulatory approvals for the Dalgaranga Gold Project in the Murchison Province, 70 km west of the Great Northern Highway between Cue and Mount Magnet.

The $86.2 million gold mine is made up of 2 open pits, a single stage pit at Golden Wings and a two-staged cutback of the existing Gilbeys pit.

The project includes a new processing plant with capacity for 2.5 metric tonnes per annum. Processing includes single stage crushing, and a single stage SAG milling flowsheet piece, including gravity gold recovery and intensive leaching, classification and absorption tanks, elution, electrowinning and smelting. Existing infrastructure will be used where possible and will be supplemented by new ancillary services.

The Carmichael Coal Project has received final investment decision approval. The $21.7 billion project

by Adani Mining encompasses 6 open pits and 5 underground mines with construction expected to commence in the third quarter of 2017.

$6 million for the Ludmilla Primary School Stage 1 redevelopment; $5.2 million to complete a multipurpose hall and emergency shelter at Ramingining School; and, $300,000 for every school in the Territory to upgrade school infrastructure.

Data Disclaimer In compiling this publication, RP Data Pty Ltd trading as CoreLogic has relied upon information supplied by a number of external sources. CoreLogic does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by subscribers, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information in this publication through any cause whatsoever and limits any liability it may have to the amount paid to CoreLogic for the supply of such information.

Aggregate value estimates and median project values are based on raw data from the Cordell Connect database. Data from Cordell Connect includes project values as advised by the project managers, or are estimates provided by Cordell researchers.

Cordell Monthly Construction Update June 2017 | 9

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