APARTMENT AUCTIONwww.ramada-auction.com.au

APARTMENT SALESwww.ramadainvest.com.au

ACCOMMODATIONwww.ramadaherveybay.com.au

BAR AND GRILLwww.smokeyjoescafe.com.au

627 Char l ton Esp lanade, Hervey Bay

H E R V E Y B A Y

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IMPORTANT NOTICE AND DISCLAIMERWhile all information in this Information Kit has been carefully prepared and

is believed to be correct, no warranty or responsibility is given by thevendor, Affinity Property Group Pty Ltd or Angel Resort Management Ltd, or

its directors or employees or agents as to the accuracy thereof.Prospective purchasers rely on their own inspections, enquiries and

investigations on all aspects and all material provided in this Information Kit.Information contained herein is subject to change without notice. Rate and

Return Analyses as well as Investment Analyses are indicative only andinterested parties should make their own investigations, consult their

financial advisers and reach their own conclusions.Be advised that the Sales Contract will be the binding document.

Contents

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7

Overv iew

The Va lue Equat ion

Apar tments

H E R V E Y B A Y

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R A M A D A H E R V E Y B A Y

E N E R G Y E N T E R TA I N M E N T E L E G A N C E

C A F E

Adding Value to Hotels Around the World

Overv iewKEY STATISTICS FOR HERVEY BAY AND FRASER COAST

Ramada Hervey Bay has arrived … many reasons for you to invest:

• One of the fastest growing Australian cities by population • Latest year experienced a 4.5% population growth • Average annual capital growth of 8.20% • Baby Boomer capital of Australia• Only 300 kms north of Brisbane – an easy 3.5 hour drive• Major infrastructure development planned • $2.6billion worth of confirmed projects – retail, solar farms, hospitals, infrastructure & more • 100,000 tourists per month – 1.2 million visitor nights per year - 2.7 million visitors to the Fraser Coast • Natures wonderland – ecotourism capital of Australia • Sydney and Brisbane to Hervey Bay direct flights • Extremely affordable holidays or lifestyle

Ramada Hervey Bay and Smokey Joe’s Café – Bar and Grill - is without peer on the Fraser Coast, the perfect luxury launch pad for your Fraser Coast holiday experience!

But most importantly for investment – forecasts over $200 per week cash flow positive at a 65% occupancy. Importantly, a compound return of funds invested at a conservative 75% borrowing of over 20% per annum compound (taking into account tax benefits, revenue and a conservative capital growth).

“… the Fraser Coast will build a reputation as Australia’s premier nature-based and aquatic playground … acclaimed for the sustainable management and development of its natural attractions and assets ….”

KEY MARKET DRIVERS

Hervey Bay’s projected growth rate is more than double the Queensland average up to 2026, by which time there will be 99,000 residents living in Hervey Bay City. The Australia on the Move report, published by demographer Bernard Salt of KPMG, predicts Hervey Bay’s growth in new dwellings over the next 25 years will be the second highest in Australia, with only Mandurah in Western Australia ranked higher.

This staggering growth in the region is due to many factors. Hervey Bay has long been recognised as one of the key focal centres of the sea change phenomenon, which is attracting retirees and baby boomers as residents. In Salt’s Population Growth Report 2007, Hervey Bay ranked No.1 nationally among the 70 largest cities in Australia for percentage growth in population (5.5%), (2009 / 2010 still running at 4.5%).

Matusik Property Insights says, “Hervey Bay looks set for considerable growth in the near future. It has regained its popularity as a tourist spot and is popular with residents in the Sea Change age group. Hervey Bay is also affordable by current standards.”

KEY FACTS

• Located right at the marina, for which is proposed an $800 million marina upgrade, Ramada Hervey Bay is the first internationally branded apartment hotel and resort in Hervey Bay and with its ideal location has the opportunity to capitalise on the market. Branded hotels which embrace an active marketing campaign historically optimise occupancy and room rate.

• The Fraser Coast region of which Hervey Bay is the gateway and hub boasts the world heritage Fraser Island, whale watching, Lady Elliott Island and many other natural attractions. With over 2.7 million visitors per annum to the Fraser Coast the region has a substantial contribution to the states tourism and a sound base on which Ramada Hervey Bay can establish its occupancy figures.

• While Hervey Bay has matured substantially over recent years it is still a maturing market and this in itself offers sound capital growth and return prospects. A benefit of Hervey Bay tourism is that it has a number of seasons focused around whale watching, Christmas, the reef, Easter and Fraser Island due to its all year round weather and raft of attractions. The upgraded airport with direct flights from Sydney and Brisbane has benefited Hervey Bay tourism considerably.

• There is an established net work of local tour operators to optimise visitor experience which is important to grow a tourism market.

• Being the regional centre for the newly established Fraser Coast, Hervey Bay has a strong and growing corporate and business traveller market. Ramada Hervey Bay with its dual key studio rooms has the opportunity to capitalise on that market. Only one other apartment hotel in Hervey Bay offers dual key apartments to any extent.

• The management and marketing team of Ramada Hervey Bay have a real focus on occupancy and revenue optimisation for the apartment investor for this specific property. We see this as a real plus for investors – the power of the brand combined with property specific marketing. They have a focused market campaign nationally with Ramada Worldwide promoting the market internationally.

• The dual key apartments and all facilities are very well appointed and finished. The 22 Pool Apartments (44 rooms) with the 42 metre resort pool, heated pool and spa offers an ideal family holiday. Excluding the managers apartment the residual 23 Sea Apartments (47 rooms) are ideal for the corporate market. A good mix of apartments exist to optimise and cater to all markets.

• Investment – as will be detailed in the Investment Equation the Ramada Hervey Bay apartments are an ideal cash flow positive investment.

• Total tourism to the Fraser Coast Region is 2.7 million visitors per year. There is 1.2 million visitor nights to Hervey Bay of which 500,000 are accommodated in hotels, apartments and motels. The average occupancy of Hervey Bay accommodation ranges from 55% to 60%. For Ramada Hervey Bay at 60% occupancy it is 20,000 room nights. At 75% occupancy it is 25,000 room nights, an additional 5,000 room nights or 1% of the market. The Ramada Hervey Bay management team target strategies to increase the occupancy to 75% plus.

BRANDING AND MANAGEMENT TO DRIVE RETURNS

Operating returns and capital growth are driven by branding and marketing. Ramada Hervey Bay is the first international hotel and resort brand in Hervey Bay. Combining the Ramada global marketing program with the Ramada Hervey Bay national marketing program is a recipe to optimise returns and capital growth. The ‘branding machine’ of Ramada Hervey Bay adds substantially to both the short and long term value equation.

Also recently launched at Ramada Hervey Bay is the brand new Smokey Joe’s Café – Bar and Grill. Internationally recognised. Of key consideration here is that this themed live music venue has created a real point of difference for guests and locals alike.

Already many of the accommodation wholesalers are promoting that visitors to Hervey Bay must stay at Ramada Hervey Bay to not only enjoy the wonderful accommodation standard but also participate in the Smokey Joe’s Café dining and entertainment experience.

PROPERTY INVESTMENT ANALYSES (PIA’S)

Key to investment is returns as returns underpin capital growth. For analysis purposes only, with a range of $325,000 to $365,000 for the apartments, the average purchase price of a dual key apartment is $345,000 - a reduction from the list price average of $420,000 – some 20%. A complete ‘must read’ analysis of ‘the numbers’ has also been undertaken and is fully outlined in the document titled ‘The Numbers and Property Investment Analyses – Fact Review’.

KEY INVESTMENT INDICES ARE AS FOLLOW

Adopting a $90,000 taxable income with the excellent depreciation benefits available, based on a 75% loan and 25% equity contribution, the Ramada Hervey Bay investment forecasts a weekly cash flow positive return of over $200 per week at 65% occupancy. At a 55% occupancy it is over $130 per week cash flow positive. Importantly, the rental is underwritten by a 7% Rental Guarantee so a purchaser has peace of mind as to the base level.

With a 100% loan (for instance using your home or investment property as equity to borrow) at 65% occupancy the investment forecasts over $120 per week cash flow positive and at 55% over $50 per week cash flow positive.

The Va lue Equat ionRamada Hervey Bay, located right at the marina in Hervey Bay, compromises 46 apartments - 44 dual key apartments, a triple key apartment and a 2 bed room managers apartment in Stage 1. So essentially there are 91 rooms available for guests.

The dual key apartments offer maximum flexibility and opportunity to optimise investor returns as each apartment comprises a fully self contained one bedroom kitchen dining and lounge as well as a studio bedroom with each able to be let to guests separately.

Stage 2 will be a further 26 dual key apartments and 2 triple key apartments. Once Stage 2 is complete Ramada Hervey Bay will be a 149 room hotel and resort.

THE VALUE EQUATION

KEY VALUE EQUATION PARAMETERS

For analysis purposes only, based on the price per apartment ranging from $335,000 for 107 sq metres in the Sea Apartments to $350,000 for 122 sq metres in the Pool Apartments, offers exceptional value. These values equate to a per sq metre of $2,869 to $3,131 which is real value for a dual key apartment. Brisbane, Sydney and Melbourne per square metre are generally well above $5,000 per square metre with the Ramada Hervey Bay prices offering underlying opportunity for both capital growth and operating returns. Especially when Hervey Bay is one of the fastest growing areas in Australia.

What should be of particular note is that the new Wyndham Hervey Bay Resort is proposed to commence construction in 2012. While this development will not be completed until 2013 / 2014, their two bedroom apartments (which are smaller in size) start at $565,500 (some $200,000 more), which makes the Ramada Hervey Bay apartments outstanding value. It should be noted that substantial presales have already been obtained by the developer of Wyndham Hervey Bay Resort.

A return analysis on capital invested (not taking into account any of the deprecation or other benefits) is as follows:

Rental Guarantee Underwrite, Costs Warranty and Security BondA special feature of the investment is that the returns are underwritten with a 7% per annum rental guarantee for 2 years with a $15,000 security bond. This provides excellent investment security. Further, there is a Costs Warranty backed by the security deposit that for 2 years the costs guarantee whereby for 2 years it is warranty the costs of body corporate, rates and owner costs will not exceed $10,000 as detailed in the Property Investment Analyses.

All Options – Permanent RentFor apartment purchasers who desire a permanent rental a rental analysis has been undertaken by Hervey Bay rental agents who are familiar with the property – namely Remax Hervey Bay and Boutique Realty. As the 2 bedroom apartments are dual key the suite can be rented permanently or the whole 2 bedroom apartment rented permanently.

Their rental appraisal figures are as follows –

Remax Hervey Bay 3 Month 12 Month Boutique Realty 1-3 Month 3 Month +

1 Bedroom Suite $335 per week $315 per week 1 Bedroom Suite $375 per week $325 per week

2 Bedroom Apartment $435 per week $415 per week 2 Bedroom Apartment $450 per week $400 per week

Forecast Occupancy Range 55% 65% 75% 85%

Net Revenue to Apartment Owner $18,590 $23,970 $29,350 $34,730

Average Purchase Price of Dual Key $345,000 $345,000 $345,000 $345,000

Purchase Costs $15,000 $15,000 $15,000 $15,000

Average Dual Key Investment $360,000 $360,000 $360,000 $360,000

Return on Investment % Before Tax Benefits 5.2% 6.7% 8.2% 9.6%

CAPITAL GROWTH - NO RESTRICTIONS – OPTIMAL FLEXIBILITY

The Property Investors Association Australia (PIAA) rated Ramada Hervey Bay investment with a 4 Star rating – the highest investment rating available. Their report is available on the web site.

With the growth of the Fraser Coast and Hervey Bay, the adjacent $800 million upgrade of the marina, the Wyndham Hervey Bay Resort two bedroom apartments start price at $565,500, and importantly the considerably reduced apartment price underpins the opportunity for strong capital growth a reason valuation for the Ramada Hervey Bay Apartment was 10% higher than the current sales price.

A comprehensive ‘compound rate of return’ analysis has been undertaken which clearly shows that with the structured taxation benefits and the revenue streams, even with conservative capital growth, the investment return on $90,000 of equity contributed exceeds 20% per annum compound making this an truly exceptional investment.

Ramada Hervey Bay has no restrictions on purchasers adding to the value equation. As well as the opportunity to optimise returns through Ramada Hervey Bay a purchaser can live in their apartment, rent it out themselves, or rent through another agent. Furthermore, a purchaser may elect to live in their 1 one bedroom apartment and put the studio in the Ramada letting pool. Complete flexibility adding to the value equation.

THE DUAL KEY – THE DOUBLE INCOME SCENARIO – HOW IT WORKS

As indicated previously while an apartment purchaser is purchasing a 2 bedroom apartment the opportunity to dual let to different parties offers revenue optimisation. The power of having double income potential is substantial on returns. At peak season times both from a rate and an occupancy perspective it is dual keys that come into their own. When approaching 90% or 100% occupancy and demand high the opportunity to let the 1 bedder separately from the studio to unrelated parties enables the revenue stream to be maximised. Further, the dual key offers optimum flexibility in pricing as a studio can be priced very competitively and still offer a very sound rate of return.

DUAL KEY REVENUE ANALYSIS – ESTIMATES

While analyses for 55% to 85% occupancy have been undertaken Ramada Hervey Bay consider an achievable target by 2012 to be 65% to 75% occupancy considering the branding and market programs adopted. On that basis in excess of 6% rate of return on apartment purchase price is targeted. (See diagram of Typical Dual Key at back page)

One Bedroom Suite

Beautifully tiled floors and modern de’cor offer guests the perfect retreat from a great day out exploring the natural wonders of the Fraser Coast. Rooms are equipped with highspeed internet so you can surf and net and stay connected, telephone access allows you to call a friend and tell them all about your memorable getaway, and movie buffs can sit back and be entertained by the latest flick on our in-house movies.

Studio Room

Carpeted floors lead out onto stylishly furnished balconies with great internal views of the showcase pool or expansive views of the marina. Relax in a king-sized bed, which can also be converted to two singles, and catch the latest flick on our an in-house movie. Surf the net or give someone a call and tell them about your holiday at one of the most spectacular natural settings in Australia.

H E R V E Y B A Y

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Experience the Ramada difference

With a wonderful location at Ramada in the Hervey Bay marina precinct the brand new Smokey Joe's Cafe will provide an ever-changing array of live entertainment at Ramada never before offered in Hervey Bay, as well as a delightful atmosphere to wine and dine in a fun filled elegant atmosphere.

Typical Dual Key Apartment