Frankston City - Open for Business | 2014-15 Investment Prospectus

FRANKSTON C I T Y OPEN FOR BUSINESS.

investfrankston.com

Peninsula on the Bay

Clyde Street Mall

OPEN

10 levels Residential apartments Active street frontage 86 jobs created

$25M redevelopment Quest Apartments Serviced Offices Retail/Hospitality 230 jobs created Generating $64M per annum

APPROVED

Generating $18M per annum

OPEN

UNDER CONSTRUCTION

$49.7M development

UNDER CONSTRUCTION

$81M development

265 jobs created

$18.5M development

281 jobs created

Generating $54.4M per annum

Generating $40.7M per annum

ECONOMIC GROWTH AND INVESTMENT FRANKSTON 2013-2015 Jobs: 2,016 Economic Output: $405M per annum Wages and Salaries: $133M per annum

Frankston Hospital Stage 3

TAFE Trade Training Centre

200M+ reasons to develop in FRANKSTON Ongoing Benefit

Peninsula Aquatic Recreation Centre

Gross Regional Product: ďƒĄ4.6% * Maximum economic benefit generated using REMPLAN economic modelling.

446-450 Nepean Highway

Airio Apartments

APPROVED

$80M development

$45M redevelopment

14 levels Residential Apartments Gymnasium Hospitality 35 jobs created

11 level offices Active street frontage 2010 jobs created Generating $643M per annum

APPROVED

South East Water HQ 2015 UNDER CONSTRUCTION $80M development Offices, Retail and Hospitality 1189 jobs created Generating $238M per annum

Generating $8M per annum

Frankston Park Function Centre UNDER CONSTRUCTION $3M redevelopment Generating $3.6M per annum

Frankston Yacht Club UNDER CONSTRUCTION $10M Redevelopment 33 jobs created Generating $4.5M per annum

Frankston Private Hospital Extension APPROVED $40M redevelopment

With over $200 million worth of major construction projects currently underway in Frankston, now is the time to invest in Melbourne’s premier bayside capital.

An employment hub for the south east growth corridor

Health sector leads the way for huge growth

Frankston City is positioned to become the corporate employment destination for the south east growth corridor, with the corridor’s population expected to exceed 550,000 by 2031 – growing rapidly at a rate of 3.5% per annum. The Frankston city centre has the capacity to provide significant white-collar employment opportunities, coupled with the many lifestyle benefits that the area boasts.

Frankston City’s health industry is set to take-off with one in every four jobs expected to be in the health sector by 2016.

Population growth of people aged over 65 in the Frankston and Mornington Peninsula region is forecast to grow by 20% in the ten years from 2011 to 2021. The health sector will service 62,000 people aged over 65 by 2021 and over 72,000 by 2031.

South East Growth Corridor

Melbourne 45 mins Monash Freeway

Melbourne

Regional Employment Centre for South East Growth Corridor and Port of Hastings EastLink

Dandenong 20 mins Dandenong

Mordialloc 20 mins

Cranbourne 20 mins

Mornington 20 mins

practitioners alone has grown 70% faster than

Train

population growth.

South East Growth Corridor Predicted Population Growth 2013-2031

550,000

500,000

Somerville 15 mins Peninsula Port of Port of Link Hastings Hastings

Stony Point

22 mins

the Federal Government on growth in the health sector indicated that demand for general

Major Highway (including EastLink and Peninsula Link)

600,000

Frankston FRANKSTON

A recent study commissioned by Council and

Announcements of upgrades to Frankston City’s two private hospitals, totalling nearly $100 million in construction, in addition to the $81 million upgrade to Frankston Hospital (public), have consolidated the city’s role as the region’s health hub. Frankston City’s status as a Health and Education Precinct has now been formally designated by the State Government in the recently adopted Plan Melbourne – Metropolitan Planning Strategy.

With demand for health services outstripping supply, there are more gaps emerging in the local health offering. In particular, there is increasing demand for specialists to open practices in Frankston City.

450,000

400,000

350,000

300,000 2013

2016

2021

2026

2031

The government and commerce hub for the Port of Hastings When fully operational, the Port of Hastings will generate $1 billion per annum and thousands of jobs in the region.

Frankston City is strategically positioning itself as the government and commerce hub to service the Port of Hastings, given its proximity, lifestyle attributes and Metropolitan Activity Centre status.

According to GHD Consulting, the Port of Hastings will create an additional 5,700 jobs in the south east region of Melbourne by the mid-2030’s, with 15,200 additional jobs by the early 2050’s.

Located just 22km away from the Port of Hastings, Frankston City is perfectly placed to accommodate commercial enterprises related to port activities.

Firms that process import/export documentation and customs brokers will need an administrative base in the region, which Frankston City is perfectly placed to provide. Several government agencies will also look to co-locate within the region.

New industries for the south east region of Melbourne are likely to come from the manufacturing and logistics and transport sectors – empty container parks, intermodal (rail) operations and equipment repair and maintenance.

Unlike other industrial regions across Melbourne,

Carrum Down/Seaford industrial precinct: • 40% of Frankston City’s gross revenue

Frankston City’s agile non-

• 22% of Frankston City’s employment

automotive manufacturing

• 57% of Frankston City’s regional exports

sector has grown by 32%

Growth from 2006-2011:

in gross revenue since 2006, offsetting losses in the automotive sector.

Total job growth: 1,356 Total growth in gross revenue: $405M Source: Australian Bureau of Statistics, 2006 and 2011 Census. Data collated using REMPLAN economic modelling.

An agile industrial sector continues to underpin the local economy Frankston City’s manufacturing sector is making a natural transition toward niche markets.

The Carrum Downs industrial precinct is located alongside the EastLink motorway with excellent connections across Melbourne and the Mornington Peninsula.

The industrial precinct in Carrum Downs has an ideal combination of commercial enterprises, high-tech manufacturing, scientific and technical services. The area generates well over $2 billion per annum and nearly 5,000 jobs – making it Frankston City’s economic heartland.

Primed for bayside apartment development ''In terms of affordability, it's hard to find anywhere in Melbourne that offers as nice an area to live in, with that sort of amenity, at that price point.” Mike McCarthy, Chief Executive - Barry Plant (domain.com.au)

Listed in Australia’s Hottest 50 Investment Destinations (Your Investment Property)

“Highest capital growth was experienced in the Bayside/Frankston region at 7.3% over the last year…”

Daniel Cashen, Associate Director Knight Frank Real Estate on median unit prices in Melbourne (Property Observer)

“Frankston is one of the outer-ring suburbs that has the best potential for investors.” Margaret Lomas, Founder Destiny Financial Solutions (MyWealth.com)

Frankston City has long been recognised for its beachside beauty and lifestyle. It is now better connected than ever to Melbourne and the Mornington Peninsula.

Attracting attention from investors and home buyers, Frankston City has experienced steady growth in population and property prices. As one of Melbourne’s last affordable bayside options, now is the ideal time to invest in apartment development.

In recent years Frankston City has generated significant building activity with close to 1,500 building applications a year and 11 new dwelling applications lodged per week. Last year alone, over $1.3 billion worth of residential sales were recorded in Frankston City.

Median property prices Frankston City 2003 - 2014 $400,000

$350,000

$300,000

$250,000

With recently approved major apartment developments in the city centre, Council is already in talks with several other developers who recognise this is Frankston City’s time to shine.

House Unit

$200,000

$150,000 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Investment opportunities Frankston city centre Frankston’s rising unit prices and beautiful bayside location are driving the emergence of a market for high quality apartments.

Favourable planning provisions coupled with growing market demand have driven a number of major planning applications for residential apartments in the city centre. Investors have opted to incorporate mixed uses in these developments by introducing retail and/ or office space in lower levels to further activate the streets. The upper levels boast boutique, high quality apartments that take advantage of the beautiful views.

This trend will only increase in the future given the city centre is poised for growth, with great connectivity to major arterial roads, walking distance to Victoria’s cleanest beach, public transport hub and a cluster of retail and restaurants at your doorstep.

Ebdale Precinct The Ebdale Precinct, conveniently located close to the city centre, enjoys great connectivity linked with Nepean Highway and Dandenong Road West as well as the opportunity for beautiful panoramic views of the beach.

Current planning policies have seen medium density development taking shape in the area, with three to four storey apartments being approved and developed.

A designated health and

Strong demand for new office space

education precinct

Frankston City is more than just a beautiful bayside capital. It boasts over 36,000 local jobs, almost 10,000 local businesses, a Gross Regional Product (GRP) of $4.6 billion and in 2013 alone the City produced $1.8 billion worth of exports. As Frankston City emerges to become a bayside business hub, the time is right to make it your corporate destination.

Frankston City has a growing health and education cluster with Frankston Hospital (public), Frankston Private Hospital, Monash University Peninsula Campus and Chisholm all co-located within one kilometre. In addition, a range of other health and allied providers operate around these facilities. The area has been formally recognised as a Health and Education Precinct in the recently adopted Plan Melbourne – Metropolitan Planning Strategy.

The strategic direction of the Victorian Government is to improve access to these services and diversify uses around these precincts.

In 2015, Frankston City will have its most significant development in decades – South East Water’s new headquarters, located alongside Kananook Creek in the city centre. With over 700 new jobs directly injected into the city centre as a result of the development, economic modelling suggests that South East Water’s arrival will generate as many as 489 additional jobs through its supply-chain and consumption.

With limited supply of quality office

Locally, Council’s objective is to strengthen this regional hub with the following key strategies:

stock, there are opportunities for new

• Encourage additional health services in locations that provide strong synergies with the Frankston Hospital

retrofitting of commercial spaces for

• Encourage the expansion of tertiary education institutions • Develop stronger synergies between tertiary education institutions, the health sector and local businesses.

office facilities, refurbishments and office use.

A recent audit by Council revealed that A and B grade offices in the Frankston city centre benefit from a high occupancy rate of 91.3%. The move of South East Water to Frankston is expected to generate a 12.6% jump in demand for office space from 2015 in the city centre.

Plan Melbourne In 2014, Plan Melbourne – Metropolitan Planning Strategy, was released by the Victorian Government.

Outlining the vision for Melbourne’s future growth to the year 2050, it sets the framework for future infrastructure, services and major projects.

Recognised as one of ten Metropolitan Activity Centre (MAC), Frankston City also now enjoys Health and Education Precinct status.

Situated in the southern subregion of Melbourne, Frankston City’s catchment area has the highest

population at 1.16 million, which is estimated to have the fastest growth by 2050. Serving as a MAC, government investments will look to enhance Frankston City in providing a diverse range of jobs, activities and housing.

Connected like never before Frankston City has never been better connected to all parts of Melbourne and the Mornington Peninsula. Investment in major arterials - including EastLink and Peninsula Link - continues to generate significant commercial development opportunity along adjoining precincts.

Melbourne

“The dramatically reduced compound freight and delivery times have boosted business efficiency and profits right along the corridor bordering these roadways. Proposed upgrades to sections of the Western Port Highway and the development of Port of Hastings will further enhance the

Port Phillip Bay

Opteon Property Advisors

Western Port Hig hway

attractiveness of the area to business investment.”

Frankston

Complementing the significant infrastructure investment, Frankston City’s location boasts unrivalled access to internationally renowned wineries, golf courses and restaurants throughout the region.

V/Line Train

“The benefit of investing in transport infrastructure to relieve economic bottlenecks is demonstrated daily by the reliability and travel time savings delivered to many thousands of motorists since the opening of EastLink.” ConnectEast

AUSTRALIA

VICTORIA Melbourne

Bass Strait

Western Port Bay

1

Frankston Waterfront Less than 5mins

4

Golf Courses Less than 10mins

7

Wineries 22mins

Victoria’s cleanest, friendliest and most popular beach

Access to the finest Sandbelt Courses in Australia

Internationally renowned Mornington Peninsula wineries

2

Bayside Shopping Centre Less than 5mins

3

Monash University & Chisholm TAFE Less than 5mins World Class Tertiary Education

5

Dandenong Industrial District 15mins

Port of Hastings 22mins

Melbourne’s logistics and manufacturing hub

6

8

Melbourne CBD 45mins

9

Melbourne International Airport 60mins

Melbourne’s sixth largest regional shopping centre

Melbourne’s second Port

Access to a great education Frankston City is superbly served by education facilities for families, tertiary students, businesses and those seeking further education for career development and lifelong learning.

There are 44 public and private schools and a range of high quality options for pre-school learning. The much sought-after Frankston High School is one of the state’s high demand zoned schools. Located nearby are top independent schools, Woodleigh School, Toorak College, The Peninsula School, Bayside Christian College and Flinders Christian Community College.

Monash, one of Australia’s top ‘group of eight’ universities, has its Peninsula Campus near the heart of Frankston. The campus has around 4,000 students undertaking study in the areas of business, education and health. It is co-located with Frankston Hospital and other health facilities, offering placement and career opportunities to its students.

Chisholm is one of the largest providers of vocational education and training in Victoria, and has specialised facilities in six regional centres including Frankston (its second largest campus). The campus has over 11,000 students enrolled in courses including health and wellbeing, building and construction, hair and beauty, hospitality, art and design and vocational education.

An enviable lifestyle Frankston City delivers a lifestyle choice that other corporate hubs around Melbourne cannot offer.

With superb beaches, magnificent parks and gardens, Sandbelt golf courses and a new state-of-the-art aquatic centre, Frankston City offers the full lifestyle package.

Frankston City, part of the internationally renowned Mornington Peninsula tourism region, is also just minutes away from an abundance of world-class wineries.

Arts and culture is right at home in Frankston City, with the superb McClelland Sculpture Park + Gallery, and Frankston Arts Centre.

For those that love to shop, Frankston boasts the largest shopping centre on the Mornington Peninsula. The city and surrounds is also a family-friendly base for major events and festivals focused on local food, wine and lifestyle and showcasing international sporting competitions.

Priority Planning Frankston City is officially open for business Frankston City Council has introduced an innovative new process to facilitate developments in the city centre. It can also apply to other developments across the municipality that are deemed to demonstrate significant economic benefit.

Priority Planning, which streamlines the application process, is achieved through high quality project management, ironing out any major issues during the pre-application phase and dealing with external processes promptly.

Several major developments have been approved in less than 60 days, including an 11-level office tower at 446450 Nepean Highway, while many simple applications such as signage and shop front improvement works have been approved in less than 14 days.

The delivery of prompt

Recent prioritised major applications.

processes to prospective

Streamlined

developers sends a strong

446-450 Nepean

message that Frankston

Highway, Frankston –

City is open for business.

apartments and retail

11-level office tower, space on ground floor.

Approved in 58 days

ALL APPLICATION IN THE FRANKSTON CITY CENTRE & APPLICATIONS DEMONSTRATING SIGNIFICANT ECONOMIC BENEFIT FAST-TRACKED

STREAMLINED

MINOR APPLICATIONS Fast-Track Process - Further information not required

Our track record Average processing days for delegated planning decisions 120

- N otification not required - E xternal referrals not required

MODERATE APPLICATIONS Stream 1 Process - Stream 1 captures all moderate application that are not classifies as minor or major - Applicable to all applications that do not fit the criteria for Stream 2 or Fast Tracked

80

40

MAJOR APPLICATIONS Stream 2 Process

0 2009/10 2010/11 2011/12 2012/13 2013/14

- A pplications without officer delegation - A pplication for development of three or more storeys - A pplications with a development cost of $5 million or more

Fast-Tracked

Streamlined

Evocca College – 4-level tertiary and vocational education centre.

Approved in 19 days

411 Nepean Highway, Frankston – 4-level aged care facility, offices and training facility.

Approved in 55 days

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