Cairns QLD Lot 21, Cairns Central Plaza 58-62 …...Introduction Burgess Rawson are delighted to...

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Cairns QLD Lot 21, Cairns Central Plaza 58-62 McLeod Street (Cnr Aplin Street)

Information Memorandum

Auction 11am AEDT Tuesday 11 September 2018 Doltone House Hyde Park, 181 Elizabeth Street, Sydney

Table of Contents

Introduction 4

Investment Features 6

Location 10

Property Details 12

Lease Details 14

Outgoings 14

Tenant Profile 15

Method of Sale 16

Interstate Bidding 16

Terms of Sale 16

Contact 16

Property Management 17

Disclaimer 18

GST Disclaimer 18

Appendices Annexure A Title Documents Annexure B Floor Layout Plan Annexure C Lease Schedule & Premises Plan Annexure D Sub-Lease schedule & Shared area plan Annexure E Sub-Leases Property

Aplin

Stre

et

Abbott Street

Esplanade

Burgess Rawson 32 Information Memorandum - 58-62 McLeod Street, Cairns

Introduction

Burgess Rawson are delighted to offer for sale The Cairns Fertility Centre and Central Day Hospital at Level 4, Cairns Central Plaza, 58-62 McLeod Street, Cairns Queensland. This property will be offered for sale by way of auction on Tuesday 11 September, 11am AEDT at the Doltone House Hyde Park, 181 Elizabeth Street, Sydney.

Burgess Rawson

Since being established in 1975, our Sales, Leasing, Property Management, Valuation and Advisory services fulfil the complete and ongoing needs of our clients. Burgess Rawson has a network of offices throughout Australia and extensive regional partnerships with local property specialists, giving unmatched depth and reach in all commercial property market sectors.

At every stage of ownership, our clients benefit from our specialist knowledge, experience, market insights and advice. Our strong market position, plus our targeted and effective marketing campaigns through a highly qualified database, generates maximum exposure for properties.

Burgess Rawson’s iconic Portfolio Auctions are held in Melbourne and Sydney bringing together a diverse range of national commercial and investment grade properties.

Our renowned auction program, together with a large pool of eager, qualified investors continues to generate premium results. With eight, two day Investment Portfolio Auction events held each year, Burgess Rawson are the leaders in the selling of quality property investments.

Based on our knowledge and experience, Burgess Rawson are confident in recommending the property as an outstanding investment opportunity.


Investment Features

• High yielding whole floor CBD investment in Cairns Central Plaza

• 10 year lease from February 2015 plus two 5 year options to 2035

• Modern medical accommodation including two operating theatres

• Net lettable area of 950 sqm plus 15 exclusive use car spaces

• High likelihood of long tenure with tenant’s extensive investment in fit-out and specialist medical equipment

• One of Australia’s fastest growing regions with circa 150,000 population

• Established fertility clinic operating since 2009

• Opposite Cairns Central Shopping Centre with 180 stores, largest centre in NQ

• Cairns: medical hub of North Queensland

• Tenant pays all usual outgoings (incl. Land Tax), as per lease

• Next rent review in February 2019

• Circa 8.5% net yield anticipated

• Net Income: $541,600 pa + GST

Pat Kelly 0412 244 456 [email protected]

Simon Staddon 0413 640 851 [email protected]

LocationLevel 4 58-62 McLeod Street, Cairns QLD

Lettable Area950 sqm

ZoningCity Centre (2060)

Lease DetailsTen (10) Year Lease plus Two (2) Year Options from February 2015

Net Income$541,600 pa + GST

Method of SaleAuction 11am Tuesday 11 September 2018 Doltone House Hyde Park, 181 Elizabeth Street, Sydney


The Cairns Fertility Centre & Central Day Hospital occupy the entire Level 4 of the Cairns Central Plaza Development. The location allows easy access and parking being opposite the largest shopping centre in North Queensland.”

Pat Kelly Director/Principal


Location

The second largest city in Northern Queensland, Cairns is a vibrant tropical city and is strategically located as a world-class tourism and commercial hub. The Cairns region is located on the doorstep of emerging Asia, is one of the most developed cities in the tropics and is well connected with the rest of Queensland and Australia.

The Region

As of 2016, the Cairns region was home to an estimated 285,000 people and is expected to gain a further 100,000 residents over the next 20 years.

With easy access through Cairns International Airport, the multi-use Cairns seaport and road and rail links to major Australian cities, the region offers unmatched connectivity in Northern Australia.

Direct connections to major Australian capital cities and international services to China, Singapore, Japan, New Zealand, Hong Kong, Bali and Papua New Guinea open the door to lucrative commercial opportunities and provide a competitive advantage to capitalise on the rapidly-expanding Asian economies and China’s burgeoning tourism market.

Cairns proximity to Asia-Pacific markets creates exciting opportunities for tourism development, investment, trade and business.

As the international gateway to two of the world’s great natural

wonders – the Great Barrier Reef and World Heritage Listed Wet Tropics Rainforest – Cairns is renowned worldwide as a premier tourist destination. With more than 5,400 direct international flights annually, visitors to the region average 50,000 people per night.

The introduction of new direct flights by China Southern Airlines and Hainan Airlines in December 2017 further expands the opportunities for Chinese visitors to fly directly from mainland China to Cairns and experience its tropical paradise.

Significant planned investment in the tourism industry including new accommodation and large scale refurbishments and upgrades to regional infrastructure such as Cairns International Airport and Cairns Port are also expected. There is $8 billion of confirmed major projects in the pipeline.

Cairns Gross Regional Product is estimated at $8.41 billion which represents 2.7% of the States GSP. The largest industry is Health Care and Social Assitance.

Port Douglas

Cairns

Rockhampton

Gladstone

Noosa

Brisbane

Bundaberg

Hamilton Island

Mackay

Townsville


Property Description

A strata title whole floor unit set within a development known as Cairns Central Plaza. This overall complex, built-in 2008 is a 13 storey mixed used development, occupies the north-eastern corner of the Aplin and McLeod Street intersection, set within the Cairns CBD.

Cairns Central Plaza presents a mix of retail and commercial accommodation to the four storey podium which includes secure car parking. The ground floor also encompasses a common entry foyer with formal reception which services the 46 apartments set to Levels 5 to 12. The building format presents a central core with dual lift banks servicing every level, fire stairs and service cabinets aswell as separate male and female amenities and tea room facilities to the podium levels.

The subject property encompasses the entire floor plate of the fourth floor presenting a Net Lettable Area (NLA) of 950 square metres and is leased to the Cairns Fertility Centre. The accommodation presently includes a formal reception with various administration offices and boardrooms, seven medical consult rooms serviced by a smaller patient admission area which includes patient change facilities and recovery ward and discharge lounge. The balance of the accommodation includes a number of

laboratories and specialised work areas with staffroom, storage and separate male and female amenities. The fitout is highly specified for the current medical use. A schedule of equipment is attached as Appendix E.

The centre offers a wide range of advanced fertility treatments in a private setting and provides treatments following comprehensive preliminary testing.

The Cairns Central Day Hospital is located within the Cairns Fertility Centre. The CCDH is licensed and is an accredited facility with two Operating Theatres with state of the art technology. CCDH undertakes Fertility-related procedures, Gynecology, Plastic & Reconstruction surgery as well as general surgery. Several interstate & local surgeons operate on a regular basis at CCDH.

Body Corporate

The unit entitlement for Lot 21 is 26.71% and therefore the Body Corporate Rules cannot be changed without the owner’s agreement. This includes clause 16 which gives Lot 21 exclusive use as a Fertility Clinic and Medical day surgery facility.

Address: Lvel 4, Cairns Central Plaza 58-62 McLeod Street (Cnr Aplin Street)

Title Details: Lot 21 on SP213529

Zoning: City Centre

Local Authority: Cairns Regional Council

Property Details Head Lease DetailsLessee: Cairns Fertility Centre Pty Ltd (ACN 124 220 293)

Lettable Area: 950 sqm plus 15 exclusive car spaces, balcony and 3 (three) storage units

Lease Term: 10 (Ten) Years commenced 22 February 2015

Lease Expiry: 21st February 2025

Options: 2 (Two) x 5 (Five) Year options to 2035

Annual Reviews: Annual CPI increases

Market Reviews: Commencement of year 5 (Five) and option periods with ratchet clause provisions

Outgoings: All paid by lessee incl. council rates, water rates, land tax (single holding) insurance and strata levies

Guarantee: 3 (Three) months rent plus GST

Permitted Use: Clinic, medical day surgery facility

Net Rent: $541,600 per annum + GST

Please note that the above information is intended as a summary of the lease agreement supplied and has been represented as accurately as possible. We recommend prospective purchasers make their own enquiries to gain a thorough understanding of the provisions of the lease contained within in the Sale Contract.

Sub-Lease DetailsLessee: Far North Day Hospital Pty Ltd (ACN 621 691 941)

Lettable Area: 597 sqm - Being that part of the fourth floor on the land shown as lease B, E & F (484sqm) plus 50% of lease C being 113sqm (refer Appendix D)

Lease Term: Six (6) Years, Six (6) Months and Twenty-Two (22) Days Commenced 30th July 2018

Lease Expiry: 20th February 2025

Options: 2 (Two) x 5 (Five) Year options

Rent Reviews: Annual CPI increases

Outgoings: 66.66% of total outgoings as paid by sub-lessee

Net Rent: $208,950 per annum + GST


Please note that the above information is intended as a summary of the lease agreement supplied and has been represented as accurately as possible. We recommend prospective purchasers make their own enquiries to gain a thorough understanding of the provisions of the lease contained within in the Sale Contract.

Tenant Profile

Cairns Fertility Centre (CFC) is a world class reproductive specialist clinic located in tropical North Queensland.

CFC amalgamates the traditions and standards of PIVET Medical Centre, Western Australia’s leading fertility clinic with the latest achievements in the field worldwide.

CFC provides a wide range of gynecological services, in addition to our main focus on infertility management of female and male.

The founders of CFC are widely acknowledged in research and development of reproductive medicine, publishing in a number of prestigious journals.

Since opening, CFC has had more than 150 infants born in North Queensland from various fertility treatments.

The Cairns Central Day Hospital provides the highest level of care meeting the National Standards for Quality and Health Management, while currently providing day surgery services. The hospital is Licensed by the Queensland Department of Health as a Private Day Hospital Facility. The Hospital is currently used by ten surgeons.


Sale Process Property Management

Burgess Rawson is not only a market leader in investment sales; we are also regarded as highly professional property managers. With an Australia-wide management portfolio of well in excess of $2billion, we are able to equally manage property whether it is CBD, metropolitan or regionally located.

• More than Rental Collection - care for your property and investment. Professional property management enhances and secures your tenant relationship, provides property accounting (including tax invoicing/GST/BAS) reports and maximises rental.

• Achieve $ savings - through our buying power and access to the best providers: insurance brokers, maintenance contractors etc. We have the contacts and long standing relationships to be at your disposal.

• Improve your cash flow - Apart from ensuring regular rental increases are enacted to maximum sustainable levels, a professional property manager reviews council rating values, as well as accessing the best taxation depreciation assessment to improve your after income tax bottom line. We aim to add more to your overall capital value.

• Not missing a beat - With our daily contact in the market, we hear about new developments, tenants on the move etc. Whether this information helps protect your investment or leads to further opportunities, we have our ears to the ground.

• Problem solvers - Owning property has never been more complicated, and highly regulated. We are fully conversant with the Retail Tenancies Act, Town Planning and Occupational Health and Safety Regulations. We can anticipate and prevent problems.

• Experience and involvement - Our professional property managers offer a wide range of expertise. Time in the profession, and continuous improvement and involvement in

the property sector is an intellectual pursuit. We can provide a pool of such experience to individual clients in a way we believe self-managed property owners cannot.

• Value for money - free yourself up to concentrate on the returns of your investments, rather than the daily issues which can arise from your property. The small cost involved in professional management is money well spent. We have the resources to service your needs.

To discuss your particular property management’s needs, please contact either your Burgess Rawson selling agent or Katie Goodall today.

Katie Goodall Director - Asset Management 0498 498 188 [email protected]

InspectionsInspections can be arranged by prior appointment.

Terms of SaleThe contract will be on the basis of:

• 10% deposit to be paid on exchange of contracts

• Settlement time frames are at the discretion of the vendor

Interstate BiddingBy prior arrangement interstate bidding is available at Burgess Rawson’s interstate offices.

Contracts and LeasesContract for Sale and Lease are available for the property.

Purchasing EntityIf you are buying in a Company, Trust structure or for your Self-Managed Super Fund, please discuss and resolve the name and structure with your solicitor or accountant. This is to ensure you sign the contract in the name of the correct purchasing entity. If successful at the auction you will be required to sign the contract on the day of auction, you may also need to supply the auctioneer with an authority from the Purchasing Entity authorising you to sign the contract on the day of auction.

Method of Sale

For sale by way of Auction 11am Tuesday 11 September 2018

Doltone House Hyde Park, 181 Elizabeth Street, Sydney

Burgess Rawson Brisbane Level 24, 324 Queen Street BRISBANE QLD 4001

Pat Kelly 0412 244 456 [email protected]

Burgess Rawson Sydney Level 18, 15 Castlereagh Street SYDNEY NSW 2000

Simon Staddon 0413 640 851 [email protected]


DisclaimerThe information contained in the report/information memorandum has been prepared in good faith and due care by the Vendor, Burgess Rawson. Any projections contained in the report therefore, represent best estimates only and may be based on assumptions.

The information contained herein is supplied without any representation as to its truth or accuracy. All interested parties should make their own enquiries to satisfy themselves in all aspects and obtain their own independent advice in order to verify any of the information. All stated dimensions and areas are approximate.

The vendor does not represent or warrant the accuracy of any information contained in this document. Subject to any statutory limitation on its ability to do so, the vendor disclaims all liability under any cause of action, including negligence, for any loss arising from reliance on this document.

Specifically, we make the following disclosures:

• All areas, measurements, boundaries, car space numbers, rents are approximate only and subject to final confirmation;

• The indicative depreciation schedule has been provided by Napier & Blakeley and is an estimate only and cannot be used for tax purposes.

The information contained in this document is provided as a guide and an aid to further investigation by potential purchasers. Prospective purchasers should seek legal, financial and other appropriate expert advice in order the verify the accuracy of the information presented in this document

GST Disclaimer

Burgess Rawson advises that the financial information in this report relating to income, outgoings and the like is provided without reference to the possible impact of GST, if any. Purchasers should make their own assessment of the impact of GST on the investments and the returns derived there from after obtaining expert professional advice.

Retail Leases Act 2003 – Tenant outgoings

Prospective buyers should note that the recovery of outgoings from a tenant is subject to the application of and proper compliance with the Retail Leases Act 2003 (Vic). The Act applies to leases of retail premises in Victoria. If the Act applies, certain outgoings, such as land tax and some maintenance costs, cannot be recovered from the tenant. If the Act applies, other outgoings, such as management fees, can only be recovered from the tenant if the Act has been complied with.

18 Information Memorandum - 58-62 McLeod Street, Cairns

Annexure A - Title Document

Annexure B - Floor Layout Plan

Annexure C - Lease Schedule & Premises Plan

QUEENSLAND TITLES REGISTRY Land Tille Act 1994, Land Act 1994 and Water Act 2000

LEASE/SUB LEASE FORM 7 Version 6 Page 1 of 28

I Dealing Number

II II I 11 11 I OFFICE USE ONL vPrivacy Statement Collection of information from lhis form is aulhorised by legislation and is used to maintain publicly searchable records For more informalion see lhe Department's website.

1. Lessor Lodger (Name, address, E-mail & phone number) CAIRNS FERTILITY CENTRE PTY LTD A.C.N 124 220 293

2. Lot on Plan Description LOT 21 ON SP 213629

Title Reference 50768488

Lodger Code

3. Lessee Given names Surname/Company name and number (include tenancy If more than one)

4. Interest being leasedFEE SIMPLE

5. Description of premises being leased

FAR NORTH DAY HOSPITAL PTY L TO A.C.N 621 691 941

LEASE B, LEASE E AND LEASE F BEING PART OF THE FOURTH FLOOR OF A BUILDING SITUATED ON THE LAND IDENTIFIED IN ITEM 2 AND AS SHOWN ON THE PLAN IN ANNEXURE A.

6. Term of Lease Commencement date/event: Expiry date: 20/02/2025 Options: 2 x 5 Years

8. Grant/Execution

7. Rental/ConsiderationSEE ATTACHED SCHEDULED

The Lessor leases the premises described in item 5 to the Lessee for the term staled in item 6 subject to the covenants and c onditions contained in:- the attached schedule;

Witnessing officer must be aware of his/her obllgatlons under section 162 of the Land Title Act 1994

WITNESS NOT REQUIRED

Witnessing Officer (Witnessing officer must be in accordance wilh Schedule 1 of Land TIiie Act 1994 eg Legal Practitioner. JP. C Dec)

9. Acceptance

�.

CAIRNS FERTILITY CENTRE PTY LTD

d A.C.N 124 220 293

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�

-�·-· ..... �

..................... DIRECTOR

.................................. DIRECTOR/SECRETARY ./

Execution Date · Lessor's Signature

The lessee accepts the lease and acknowledges the amount payable or o ther c

WITNESS NOT REQUIRED

Witnessing Officer (Witnessing officer must be in accordance wilh Schedule 1 of Land TIiie Act 1994 eg Legal PracUtloner, JP, C Dec)

L Doc ID 560959563M

22 Information Memorandum - 58-62 McLeod Street, Cairns

I 2. ,£, \'( .

I .................. ....................... DIRECTOR/SECRETARY

Execution Date Lessee's Signature

J 017-8276-7031/1 IAUSTRALIA

Annexure D - Sub-Lease Schedule and Shared Areas plan

QUEENSLAND TITLES REGISTRY

Land Title Act 1994, Land Act 1994 and Water Act 2000

SCHEDULE Form 20 Version 2

Page 25 of 28

Title Reference 50768488

Annexure C - Sub-Lessor's Property

Clinical Equipment

Ambu Catheter

Unisonic Machine

Steriliser Melag 1

Steriliser Melag 1

- eriliser Melag 2

Steriliser Melag 2

Probe - Gamma

Probe Surgical Power unit

Difficult Intubation Trolley,

wheeled, 6 drawer trolley

Paediatric Anaesthetic Trolley,


AIRTRAQ Guided Video Intubation

Wifi Camera

Nurse Call Console

Acute Recovery Room Trolley,


l)efibrillator-basic

ECG

Monitor - Patient

Monitor - Patient

Monitor - Patient

Monitor - Patient

Resuscitation Trolley, wheeled

Alpha Pendant

Anaesthesia Monitor

Anaesthesia Parameter Monitor

Anaesthetic Machine

L Doc ID 560959563/v1

Quantity Type/Model

1 Unk

1 ST40MH

1 Cliniclav 25

1 Cliniclav 25 Printer

1 Cliniclav 25 Printer

1 Cliniclav 25

1 Gammasonic

1 Gammasonic

1 Armstrong Medical

1 Armstrong Medical

1 Code A-360

1 Console MC4110/ETH

1 Armstrong Medical

1 R Series Plus

1 CP200

1 Dash 2500

1 Dash 2500

1 GE B20

1 GE B20 CO2 module

1 Lifeline

1 Maquet

1 S/5AM

1 Datax Ohmeda Hemodyn

1 GE Aespire 7100

Purchase

Agent

Unk

Unisonics

Melag

Melag

Melag

Melag

Gammasonic

Gammasonic

Unk

Unk

TELFEX

SES Security

Unk

ZOLL

Welch Allyn

Serial No.

Unk

113

0925-C1026

0925-C1026

0925-C1034

0925-C1034

173

PC250909

N/A

N/A

G 02404

9307724

AF09D007571

20008182

GE Healthcare SC09369809WA

GE Healthcare SCG09369807WA

GE Healthcare SGF16391336WA

GE Healthcare 8511793

Unk

MAQUET Ph: AR010001

GE Healthcare 6547392

Datax

Oh med a 6546370

GE AMX09350454WA

Location

Anaesthetic Storage

CSSD

CSSD Sterile Area

CSSD Sterile Area

CSSD Sterile Area

CSSD Sterile Area

DON Office

DON Office

Pre-Op Holding Bay

Pre-Op Holding Bay

Recovery Desk Area

Recovery Desk Area

Recovery Stage 1

Recovery Stage 1

Recovery Stage 1

Recovery Stage 1

Recovery Stage 1

Recovery Stage 1

Recovery Stage 1

Recovery Stage 2

Theatre 1

Theatre 1

Theatre 1

Theatre 1

J 017-8275-7031/1/AUSTRALIA

Annexure E - Sub-Leases Property

Cairns QLD Lot 21, Cairns Central Plaza 58-62 …...Introduction Burgess Rawson are delighted to...

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