Mackay Investor Report - Issue 03 - February

2020

INVESTOR REPORT FEBRUARY | ISSUE 03

THEWATERSOORALEA.COM.AU

It’s not just land...

It’s a lifestyle

PAGE OF CONTENTS

PAGE NO.

About The Waters Ooralea - Overview

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About The Waters Ooralea - Masterplan

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About The Waters Ooralea - Features

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On The Market - Land Selling

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Location Overview - Mackay

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Location Overview - The Waters Ooralea

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Market Overview - Mackay

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About The Waters Ooralea - Development Status

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About The Waters Ooralea - Development Photos

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ABOUT

The Waters Ooralea The Waters Ooralea is a 236 hectare Master-Planned Residential Community with frontage to Bruce Highway located at the southern approach to Mackay.

On completion, The Waters Ooralea will comprise approximately 2,500 Residences together with a Convenience Retail Precinct, Parks and Playgrounds, and direct access to approximately 1.5 kilometre frontage to Bakers Creek with approximately 25 hectares of creek-bank Parkland with recreational amenity including Picnic Shelters and Fishing Platforms. All less than nine kilometres from the Mackay CBD.

TOTAL LAND AREA

236 HECTARES

2,500 HOME SITES *Approx

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INVESTOR REPORT

THE WATERS OORALEA

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ABOUT

Why people love living here

It’s not just land...

It’s a lifestyle The Waters Ooralea is popular with homeowners, couples and growing families. Investors are also seeing the potential of the area.

The estate is only a three-minute drive to Paget’s Industrial Precinct, a ten minute drive to the Mackay CBD and close to the future Rosella Industrial Precinct. This provides plenty of opportunities for residents to find work that is close to home.

Residents enjoy living closer to work and being able to spend more quality time with family, taking advantage

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of the extensive open space and recreational areas at their doorstep.

“The balance of a healthy life is important. We strive for the best for a live, work and play balance.

Location is key,” “Majority of employment is located within 10 minutes from The Waters Ooralea Estate, this allows shorter commute times to and from work which in all, results to more time with your family.” - Val Baretta.

“ My favourite thing about The Waters Ooralea is how family orientated it is. The park, the creekbank, the fishing.

Everyone says hello to everyone and you always see kids outside playing. All in all it’s a great place to live! ”

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- Kristie

Happy Resident

INVESTOR REPORT

FAMILY FRIENDLY NEIGHBOURHOOD Relaxed, secure, family friendly neighbourhood with roadside pathways and well maintained landscaping and roads.

MULTIPLE PARKS AND PLAYGROUNDS Upon completion, there will be 4 parks and playgrounds within the development. There is currently one fully fenced park, playground and outdoor gym.

CONVENIENCE SHOPPING PRECINCT An area of approximately 3.2 hectares adjacent to the Bruce Highway is rezoned for future development of a Convenience Shopping Precinct.

OUTDOOR LIFESTYLE FEATURES 1.5km of water frontage with sea access will incorporate fishing platforms & walkways with approx 25 hectares of parkland, including a Melaleuca Nature Reserve.

THE WATERS OORALEA

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ON THE MARKET

LAND NOW SELLING Stage 3C, 3D and 5E comprises of 34 lots along Beachwood Circuit in The Waters Ooralea, with land from 450 m2 to 942 m2 in size.

These lots are in a prime location, close to the creek bank entry, parkland, Melaleuca forest and just down the road from the playground and outdoor gym, which is located on the corner of Fairway Drive and Beachwood Circuit.

Lots are selling now with affordable house and land packages available.

ALMOST SOLD OUT

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INVESTOR REPORT

LAND SELLING SOON Stage 4A will be completed and on the market in early 2020. This stage will have lots from 579m2 to 696m2 in size. This stage is located close to the Bruce Highway and the proposed Retail/Commercial site.

Register your interest in Stage 4 today.

35 LOTS COMING SOON

THE WATERS OORALEA

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LOCATION OVERVIEW

Mackay, Queensland The Mackay Region is on the eastern coast of Queensland, Australia. It is located about 970 kilometres (603 mi) north of Brisbane, on the Pioneer River. Mackay is nicknamed the sugar capital of Australia because its region produces more than a third of Australia’s sugar.

Mackay is widely recognised as the gateway to the Bowen Basin and Galilee Basin coal mining reserves of Central Queensland.

The Bowen Basin is currently the single largest coal reserve in Australia, with 34 operational coal mines extracting more than 100 million tonnes annually. While much of this is used in Australia, Japan and China are the largest export recipients. The Galilee Basin is a 247,000 square kilometre thermal coal basin. The Adani’s Carmichael project is the first to gain approval for the Galilee Basin, another six are proposed for the region.

The regional economy is driven by an innovative and productive business community from a number of key industry sectors, including:

MINING EQUIPMENT, TECHNOLOGY & SERVICES (METS)

TOURISM

CONSTRUCTION

AGRICULTURE

HEALTH AND ALLIED SERVICES

EDUCATION

Population Growth Forecast Strong population growth forecast, heading towards 170,000 over the coming decades. Queensland Government population projections, 2015 edition (medium series) were released in April 2016. Between 2016 and 2036, the population of the Mackay Region is projected to increase by 44,943 people.

The highest growth is projected for Ooralea– Bakers Creek (3.5%) which is projected to increase by approximately 4,956 people from 2016 to 2036.*

POPULATION

129,409 2019 estimated population in Mackay

FORECAST POPULATION *

171,313

*

Projected population growth of 44,943 people by 2036

3.5% HIGHEST GROWTH AREA: OORALEA - BAKERS CREEK

SOURCES: Populate source: POPULATION.net.au- Mackay 2019) | Forest Population Source: QLD Transport Ring Road Project Growth Projection for Bakers Creek: Queensland Government population projections 2015 edition; (medium series), by Statistical Area 2 (SA2), SA3 and SA4 Queensland, 2011 to 2036.

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INVESTOR REPORT

Current Infrastructure Projects Major infrastructure projects in the Mackay Region recently completed, under construction, or proposed include the following:

Mackay Waterfront Priority Development Area

Mackay Resource Centre of Excellence - $7 million

Qantas Pilot Academy

Mackay Ring Road - $565 Million

» Whitsunday Coast International Airport – $30 million

» Efficiency Project - $16 Million

» Mackay Port Development Project – $10 million

» Northern Beaches Central Shopping Centre expansion - $250 million

» Mackay Integrated Waste Management Project - $21 million

» Airlie Beach Main Street Revitalisation- $17 Million

» Energy Supply Mackay Northern Suburbs - $50 million

» Mackay Northern Beaches State High School - $40 Million

» Dalrymple Bay Coal Terminal Expansion – $1.1 billion

» Mackay Showgrounds Upgrade - $11 Million

» Hay Point Services Coal Terminal Expansion - $300 million

» Ooralea Racetrack Redevelopment - $8.10 Million

» Dent Island Golf Course Resort Project – $85 million

» Eton Range Realignment - $189 Million

» Port of Airlie Marina Development – $100 million

» Mackay Ring Road - $565 Million

» Mackay Bio-commodities Pilot Plant - $7 million

» Regional Sports Precinct - $20 Million

» Mackay Bypass (Replacement of Hospital Bridge) - $33.6 million

» Vines Creek Bridge - $28 Million

» Caneland Central Expansion - $220 million

» Catholic Secondary College

» Mackay Sports Stadium – $11 million

» Queens Park Revitalisation - 8.86 million

» Abbott Point Expansion - $845 million

(Mackay Waterfront PDA)

» Mackay Base Hospital Re-development - $405 million

» Rotary Lookout - $1.4m

» Forgan Bridge Duplication - $148 million

» Edmund Casey Drive extension - $2.9 million

» Bluewater Trail including Bluewater Lagoon - $44.7 million

» Proposed Rosella Industrial Hub - 150 hectares of land purchased

» Bluewater Quay - $12 million

» Olive Downs Metallurgical Coal Mine - $1 billion

» Transmission line from Nebo to the Pioneer Valley - $51 million

» Mackay Port Access Road - $70 million

» Mackay / Sarina Pipeline - $27 million

» Walkerston Bypass - $150 million

» Mackay Wastewater Recycling Project - $154 million

» Redevelopment of Mackay Showground - $4.61 Million

» Jilalan Rail Complex upgrade - $500 million

» Clarke Creek Wind Farm - $1 billion

» Evolution Paget Industrial Park - $200 million

» Tassal - North Queensland Prawn Farm Development - $85 million

» East Point integrated development - $150 million THE WATERS OORALEA

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LOCATION OVERVIEW

The Waters Ooralea The landholding for The Waters Ooralea Masterplanned Community is in excess of 236 hectares, and is bounded generally by Bruce Highway, Stockroute Road, Cowleys Road, and Bakers Creek.

This property is in very close proximity to the Paget Industrial Precinct with in excess of 22,000 employees. Approximately 9 kilometres from the Mackay CBD, approximately 5 kilometres from Mackay Airport and approximately 3 kilometres from Central Queensland University. There also 10 primary and secondary schools within 10 kilometres of The Waters Ooralea.

The property is immediately adjacent to the Bruce Highway route to the Mackay CBD and employment at the Hay Point/ Dalrymple Bay coal loading facilities, and at the southern junction of the Mackay Ring Road that will connect to the Peak Downs Highway route to employment at coal mines west of Mackay.

Aerial View of The Waters Ooralea Estate and surrounding amenities

10 schools within 10km 12

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3 mins to PAGET

10 mins to Mackay CBD INVESTOR REPORT

LOCATION HIGHLIGHTS Close proximity to the Paget Industrial Precinct with in excess of 22,000 employees Approximately 9 kilometres from the Mackay CBD

Approximately 5 kilometres from Mackay Airport

Approximately 3 kilometres from Central Queensland University Close proximity to the proposed Rosella Industrial Hub 10 schools within 10km

Paget Industrial Precinct Mackay’s largest industrial precinct, Paget is located only 3 km from The Waters Ooralea. The Paget Industrial Precinct is also known as the epicentre of mining, engineering and technical services in the Mackay region with businesses providing services to surrounding mining towns like Moranbah, Dysart and Clermont.

The Mining Equipment, Technology and Services (METS) resources, and the Agriculture industry sectors are thriving in Mackay with plenty of new job opportunities available close to The Waters Ooralea.

The State Government announced last year that they have purchased 150 hectares of land in Rosella to make sure that sufficient industrial land is available for a long-term job and investment growth. The planned industrial precinct in Rosella is a great initiative of the Mackay Regional Council to support the growing economy. Rosella is located approximately 3 km south of The Waters Ooralea.

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MARKET OVERVIEW

MACKAY AMONG TOP REGIONAL REAL ESTATE MARKETS

Mackay on the rise

Over the year ending June 2019, Mackay’s median house price growth of 1.5 per cent was the best of all major regional Queensland areas. Its volume of house sales also increased over the year.

Renewed activity in the resources sector is having a major positive impact on the housing market, with strong job growth predicted and a focus on mine projects employing locals rather than fly-in, fly-out workers. This is reflected in Mackay’s rental market, with median weekly rents for all dwelling types up over the year to June. *

Quarter Median Price $340,000*

Annual Median Price $340,000*

The property prices in Mackay are experiencing growth because of several reasons. One is the booming economy of the region. Mackay’s economic growth is the best among other regions in Queensland and Northern Australia. There’s a massive increase in employment brought by the turn-around in mining activity, particularly at the Bowen Basin, Australia’s largest coal deposits. Coal mining is the region’s biggest employer.

Mackay’s sugar, engineering resource, and agribusiness sectors are also growing, while the construction and tourism industries are gradually making significant contributions.

Second is the series of developments completed, or still under construction, throughout the entire region. The third reason for the increase in Mackay property prices is the numerous sustainable infrastructure projects under construction, or in the planning stages.

The excellent performance of Mackay’s detached house market is just the beginning. The region’s entire real estate industry is set to boom in the coming years and house prices are expected to increase even more.

That’s why now more than ever is the best time to invest in Mackay properties.

*CREDIT: REIQ Queensland Market Monitor | September 2019 | ISSUE 43 - Page 85

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Annual volume of sales 1,158 *

Rental Vacancy Rate *

5.4%

1.5%

Rental Yeild *

*Source: REIQ - Based on the previous 4 quarters median sale price change and the annual change.

Houses < 2400 m2

INVESTOR REPORT

57,699 Total number of working residents

Economy & Industry

Main employing industry: Professionals Machinery Operators

3.9%

UNEMPLOYMENT RATE *SOURCE: REIQ QUEENSLAND MARKET MONITOR • September 2019 | ISSUE 43

Technicians and Trades Workers Coal Industry (employs 10.6% of the workforce) SOURCE: 2016 ABS

House Market After several years of property price declines, the Mackay region’s market continues to show definitive signs of a resurgence. The median house price over the June quarter (2019) increased 1.5 per cent to $340,000 and Mackay is now considered to be in a rising market cycle. Mackay’s annual median house price in the year ending June (2019) also increased 1.5 per cent to $340,000.

The house price growth in Mackay, albeit modest in the grand scheme of things, comes after a lengthy period of little-to-no good news when it comes to property. Compared to every other major regional centre, it continues to be the best-performing market over the past year.

In the March quarter (2019), there were signs that the house market was stabilising. In the June quarter, there are a number of positive indications that the recovery is in full swing. The level of vendor discounting has fallen six per cent over the year, indicating improved buyer confidence. This renewed sentiment is reflected in an increase in stock on market in Mackay, showing sellers are more hopeful of a contract. Sales volumes have also increased over the past year, bucking the flatter trend seen in many other regional locations. *CREDIT: REIQ Queensland Market Monitor | September 2019 | ISSUE 43 - Page 85

Rental Market After a protracted period of soft rental prices and rising vacancy rates, demand is on the rise in Mackay.

According to local property managers, there are multiple viewings and applications on most properties.

Anecdotally, the steady influx into Mackay is mostly families moving to take advantage of the growing pool of mining sector jobs and an emerging boom in the construction industry.

Over the year ending June (2019), the median weekly rent for a three-bedroom house increased $20 to $350.Two-bedrooms units performed even better, with its median weekly rent up by an impressive $30 to $260.This increased demand from tenants is pushing up gross rental yields with investors now achieving 5.4 per cent for houses and 4.8 per cent for units.

*CREDIT: REIQ Queensland Market Monitor September 2019 | ISSUE 43 - Page 86

THE WATERS OORALEA

Mackay’s positive yearly result saw the region named as the best performer in Queensland for the period.

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The Waters Ooralea

Development Status The developer of The Waters Ooralea is currently undertaking all construction works through its in-house civil contracting division. Stage 3C, 3D and 5E civil works have been completed and the few remaining lots are selling now.

Development of Stage 4A is well advanced, with estimated completion during the second quarter of 2020.

To date, the following Lots have been developed: • Stage 1 – 66 Residential Lots • Stage 2 – 81 Residential Lots • Stage 3A – 19 Residential Lots • Stages 3B/5D – 18 Residential Lots • Stages 3C/3D/5E – 34 Residential Lots The following have Operational Works/Compliance Certificate approval: • Stages 4 and 5 – 102 Residential Lots The following require Operational Works/Compliance Certificate approval prior to development: • Stages 4C, 5F, and 6 to 8 – 176 Residential Lots

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INVESTOR REPORT

ESTATE FEATURES....

Stage 2 fully-fenced and secure Park of 5,000m² including playground, water fountain, pathways, outdoor exercise equipment, and picnic shelter and seating.

Direct access to approximately 1.5km of Bakers Creek frontage providing Recreational and Lifestyle Amenity

Picnic shelters and seating along the creek bank of Bakers Creek

Lawn and landscaping maintenance completed by the in-house maintenance team regularly

Seating with landscaping

Melaleuca forest in 25 hectare Creekbank Parkland and Open Space Precinct

Reef Water Quality Protection Plan â&#x20AC;&#x201C; Fish Causeway and Water Quality Monitoring Equipment

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Contact us

6 Beachwood Circuit, The Waters Ooralea PO Box 624, Mackay Q 4740 Phone:

07 4957 3020

Mobile:

0409 600 232

E-mail:

val@cougardevelopments.com.au

THEWATERSOORALEA.COM.AU

Disclaimer: All data presented in this document is based on data sourced from various data sources. Every effort has been made to ensure that the information in this document is accurate at the time of publication, however it is subject to change. The Waters Ooralea does not accept responsibility for the accuracy or completeness of the contents, and shall not be liable for any loss or damage that may be occasioned directly or indirectly through the use of, or reliance on, the contents of this publication.

ACN 626 283 047