www.dransfield.com.au 1 80% of lenders said they would lend to - - PowerPoint PPT Presentation

www.dransfield.com.au

• Experience includes acting as principals and advisors for a wide range of hotel and

resort assets

> City hotels and regional assets > Single and multi-site operations > Backpacker to 5 Star

• Wide range of complimentary specialist services

> Transaction management > Development > Strata Title > Asset management, operations & independent experts reports > AFS licensed > Operations

• Publish Hotel Futures – Long term Australian Hotel Forecasts

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www.dransfield.com.au

• 80% of lenders said they would lend to serviced apartments (2011 – 85%)
• An LVR of 60% or lower was required by 80% of lenders surveyed (2011 – 60%)
• Lenders will not typically lend to regional/suburban serviced apartments (same as 2011)
• 80% of respondents say tourist zoning affects lending decision (up from 64% in 2011)
• 50% indicated lending to a min. unit size of 50m2. No-one under 40sqm (60% in 2011)
• Only 40% of respondents would consider funding construction (up from 36% in 2011)
• Last 12 months all respondents believe attitude to lending has remained the same (2011 -

softened)

• Management structure more important than operator (same as 2011)

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Mint Melbourne St Kilda Rd A Property Management Case Study

Presented by Murray Boyte CEO Ariadne Australia to ANZPHIC 2012 – Serviced Apartment Summit New Build – Where? Why? How?

Mint Resorts & Apartments – Company Profile

StayMint Pty Ltd is a wholly owned subsidiary of Ariadne Australia, trading in the Australian market as Mint Resorts & Apartments. Mint Resorts & Apartments current portfolio includes properties in Brisbane, Melbourne and on the Gold Coast with future growth expected in “key locations”. High accommodation standards meet the most discerning travelers leisure and business needs. Mint Resort & Apartments engage with property developers on an end to end basis transitioning from building design and construction to opening and beyond.

Rhapsody Apartment Hotel Mint Melbourne St Kilda Rd... The Beginning

The developer of the project on 568 St Kilda Road, Melbourne - The Ubertas Group acquired the land in February 2008. Over an eighteen month period the Ubertas Group:

• Finalised the design of the building taking into account the market conditions and requirements of the

serviced apartment operator.

• Obtained final planning permit for the proposed development.
• Conducted significant marketing and sale activities for the project.
• Executed the finance facility agreement with their bank.
• Secured the required presales of the residential apartments, meeting the overall presales

requirements for the finance facility.

• Secured a lease commitment from the serviced apartment operator.

Construction commenced in November 2009. The building has 168 residential apartments, 145 serviced apartments, basement level car parking, a restaurant, a resident meeting room, a gym , laundry and associated amenities over 17 levels. There are also two separate lobbies – one for the residential apartments and one for the serviced apartments.

Rhapsody Apartment Hotel Mint Melbourne St Kilda Rd... The Beginning

The serviced apartments are located on five floors (levels 2 to 6) which are accessed by 2 dedicated lifts. The serviced apartments are a mix of studios and one bedroom apartments. Ariadne Australia secured a 20 year lease of the 145 serviced apartments and appointed Mint Resorts & Apartments to manage the serviced apartments. It was determined that the property would operate under a hotel style operation model with 24 hour Reception to service the corporate market segment. An experienced Property Manager was appointed six months prior to the commencement of operations. This ensured adequate timing for all the set up activities including, but not limited to:

• design and construction of the front of house reception
• implementation of branding and signage
• implementation of marketing activities (to major customers), the website and other initiatives
• appointment of staff, training and familiarisation with the building and its services
• implementation of operating systems
• procurement of supplies and services (electricity, phone systems, cleaners, etc)
• presentation of the rooms (coordination of the delivery of the furniture to the rooms and

final checks with the developer and builder to ensure the rooms were defect free)

Mint Melbourne St Kilda Rd... Delivering the Brand Promise

With a prime location secured, a Contract Consultant was appointed to design the FF & E consistent with the presentation of a Mint branded property and suitable for the corporate market segment. Expressions of Interest were accepted for the FF and E Design Contract and this was subsequently won by Resort Interiors who commenced the fit out in early 2011. The FF & E design brief was based on an emerging overseas trend - themed hotels - and this delivered a truly distinctive product designed around a music and dance theme. In September 2011 – 2 weeks earlier than planned, the property opened for business.

Mint Melbourne St Kilda Rd... Today and Beyond

After 10 months in operation the business has delivered a strong corporate base and an

• ccupancy level that is achieving regional averages and a fair market share.

Due to demand two bedroom apartments have now been added to the product mix - increasing the number of rooms available to 155. A Function and Conference facility is planned to open for business within the next month. Future portfolio growth will be based on the Mint Melbourne business model.

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Ascot Village

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Caloundra Central

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Gladstone City Central

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• 78 apartments
• 24 x 1 bedroom apartments
• 39 x 2 bedroom apartments
• 13 x 3 bedroom apartments
• 1 x 4 bedroom apartments
• 1 x managers unit
• 119 car parks
• 18m Swimming pool
• Dual street frontage & access
• Reception area
• Boardroom meeting facilities

De Developme pment nt Summary ary

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Toowoomba Central Plaza

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Cairns Central Plaza

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Rockhampton Winter Garden Central

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Robina Central Plaza

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Lindsay Leeser

July 2012

Accor’s Apartment Network in Australia & New Zealand

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Introducing Accor

Global Brands

Accor is the world's leading hotel operator

• Established 45 years ago in France
• More than 4,400 hotels and 530,000 rooms in 92

countries

• Over 180,000 employees globally
• Portfolio of complementary brands from luxury to

economy

• Market leader in Asia Pacific with more than 540

hotels and 100,000 rooms in 16 countries

• Market leader in the Pacific with over 240 hotels

and 32,000 rooms in Australia, New Zealand and Fiji

Regional Pacific Brands

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Acquisition of Mirvac Hotels & Resorts

The Mirvac acquisition will enable Accor to build upon Mirvac's experience in managing strata properties, providing the existing team with the support of the world's largest hotel operator

Accor Pacific Network by Property Type Post Acquisition

Accor completed its acquisition of Mirvac Hotels & Resorts

• n 22 May 2012
• The portfolio incorporates 43 hotels and 5,356 rooms across

Australia and New Zealand

• These new additions will help Accor balance our strength in

the midscale and economy sectors with an equally high profile in the upscale sector

• Accor will provide the properties with an international platform

with far greater scale and support

• The transaction includes 23 properties with apartment-style

accommodation

• The acquisition provides a platform to grow our apartment

network in Australia and New Zealand via MLR, management and franchise 240 Hotels 32,000 Rooms

(X% number of rooms)

21 Brisbane (2) Sydney (5) Melbourne (4)

Accor’s Apartment Network in Australia & New Zealand

Auckland (3) Pauanui Wanaka Nelson Bunker Bay Mandurah Perth Busselton Yulara Hobart Launceston Creswick Mount Buller Falls Creek Pinnacle Valley Bowral Kiama Central Coast Hunter Valley Casuarina Coolangatta Maroochydore Noosa Surfers Paradise (2) Port Douglas Palm Cove Cairns Magnetic Island Airlie Beach Bundaberg Hervey Bay Twin Waters

Other

Strong spread of apartment properties across major city and regional markets

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Apartment Operating Model in Australia & New Zealand

Diverse operating landscape with a balanced portfolio

Apartment Network by Operating Type Apartment Network by Brand

(X% number of rooms) (X% number of rooms)

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Apartment Network Growth Criteria

Accor will grow its apartment network in Australia and New Zealand via selective investment in MLR, management and franchise

1 - Location Prime position in key leisure and corporate locations 2 - Product Meets brand standards and consumer demand 3 - Win-Win-Win Structure provides sufficient returns to the developer, incoming

• wner and operator

4 - Complementary Complements existing network in terms of location and meeting the needs of our customer base

AIC MANAGEMENT CO.,LTD

AIC Management International

Jackie Gurr (Managing Director) Managing Director of AIC Management International operations. Ex-Macquarie Bank with in excess of 20 years in experience in the Banking and Finance sector - Jacqueline heads the structuring and financial aspects of all transaction and development

• activities. Responsible for the strategic direction of the company’s development projects and overseeing all project related capital

requirements, financial feasibilities and reporting. Other key responsibilities include setting and driving the group’s sales and marketing strategy, including all corporate communication, media and external stakeholder relationships. Jacqueline currently resides on the board of a number of private and public owned companies and has an extensive network of relationships in the South East Asian region. Gary McKinnon (General Director) General Director of AIC Management’s Vietnam operations. Gary has a diverse range of residential, commercial, retail and urban renewal project experience, Gary has resided in Vietnam and China for in excess of 22 years. Gary’s role within the company covers all facets of the company management and is responsible for ensuring the strategic direction of the company. In Vietnam, Gary has been the Project Director on projects with a commercial value in excess of 300 million dollars and retains specific experience in the coordination of large scale mixed use projects.

• Project management services for property, construction, infrastructure, technology and environment
• Project management and advisory services in electronic, communication & telecommunication infrastructure, navigational

system and information system

• Property development management and packaging, feasibility analysis and finance modeling, property fit-outs,

negotiation and design service

• Business performance improvement, change management, work place relation, risk management, workplace safety and

asset management services

• Team of 50 engineers and project managers and 150 staff in total across Vietnam

AIC Management has been operating in Vietnam for over 15 years, with current and completed projects totaling in excess of USD1 billion

Project Name & Location Name of Client Duration of the Service Start Date: Completion Date:

• Approx. Total Value of

the Project Description of Project CROWNE PLAZA COMPLEX Nha Trang City, Vietnam TD Corporation 2009 2011 USD$120 Million A 5-star hotel in a 29 storey hotel tower and 20 storey apartment towers with 301 guestroom and suites and 112 apartments in a total GFA of 77,000m². VIGLACERA EXECUTIVE RESIDENCES Hanoi City, Vietnam Viglacera Construction Company July 2010 USD$200 Million A mixed use development comprising of residential, hotel and commercial office complex. The project comprises of two 40/45 storey apartment blocks with a GFA of 200.000m². PANDORA CITY Tan Binh District, HCMC, Vietnam Tan Binh Foodstuff Export JSC 2010 2012 USD$30 Million A mixed use development comprising of 4-storey building with 16m commercial center and 45m building for hotel and serviced apartment. SU VAN HANH COMMERCIAL CENTRE District 10, HCMC, Vietnam Bac Binh Construction Investment Co., Ltd 2011 USD$40 Million A mixed use development comprising of commercial center and serviced apartment for 2 phases in a total land area of 16,922m². CONG HOA GARDEN Tan Binh District, HCMC, Vietnam Kinh Do Land Corporation 2009 USD$85 Million A mixed use facilities comprising of 140,000m² of office, retail, service apartment and residential facilities. INDOCHINA RIVERSIDE TOWER Danang City, Vietnam Indochina Riverside Towers Ltd. Mar 2008 2009 USD$50 Million The project site is approximately 3,652m² and for the construction of a mixed used development comprising of 12-storey office tower and a 24-storey residential

• apartment. The two towers sit on top of a 3-storey

commercial podium with one level of basement for underground parking. GOLDEN WESTLAKE EXECUTIVE RESIDENCES Hanoi City, Vietnam Ha Viet Tung Shing Co., Ltd 2008 Apr 2010 USD$80 Million A 75,000m² floor area consisting of 218 nos. serviced apartments and 20 residential villas comprising of twin high rise 27 storey tower.

AIC Management International

Project Name & Location Name of Client Duration of the Service Start Date: Completion Date:

• Approx. Total Value of

the Project Description of Project RUBYLAND APARTMENT Tan Phu District, HCMC, Vietnam Tan Hoang Thang Company 2007 2009 USD$20 Million The project comprises of 41,000m² gross floor areas consisting of 288 nos. apartments and other retail associated

• facilities. The project is being constructed consisting of a

bored pile foundation with structural framing designed to Vietnamese and British standard. HUNG VUONG PLAZA District 5, HCMC, Vietnam Hung Vuong Corporation 2008 2009 USD$50 Million The project comprises of 100,000m² gross floor area consisting of apartments, commercial, office and other retail associated facilities. The project is being completed in two

• phases. Phase 1 consists of all commercial facilities from

Level 1 to 9. Phase 2 consists of the remaining 2 33-storey residential towers. SHERATON HOTEL & SPA Nha Trang City, Vietnam East Ocean Real Estate & Tourist JSC-Dong Hai 2008 2010 USD$75 Million The project is a 5-star hotel, serviced apartment and spa facilities comprising of a 3,850m² land areas. The building is a 33-storey tall which has a GFA of 52,904m² with 263 guestrooms and 10 serviced apartments. AQUABA RESORT Phan Thiet City, Vietnam Aquaba Resort Co., Ltd 2008 Oct 2011 USD$40 Million The gross construction area of approximately 15,000m² comprising of 3 bedroom villa, 2 bedroom apartment and themed landscaped areas. HON TRE RESORT Nha Trang City, Vietnam Vincom Corporation Mar 2003 USD$45 Million A masterplan of 2 villages which comprise of zone C for building that includes seafood restaurant and a VIP villa. Zone B Hill that includes the hotel, nightclub and swimming pool. CARAVELLE HOTEL District 1, HCMC, Vietnam Lai Sun Development 1998 USD$56 Million The project comprises of 41,000m² gross floor areas of hotel consisting of 288 nos. apartments and other retail associated facilities.

AIC Management International

Peninsula project location

BRISBANE INTERNATIONAL & DOMESTIC AIRPORT

Redcliffe location

“Redcliffe is one of the best investment locations in Australia.”

Tim Lawless, RP Data Research Director

• Ideally located 15 minutes from the International Airport and 30 minutes from Brisbane CBD
• The Peninsula fronts the picturesque Moreton Bay which comprises of 365 islands

“One island for every day of the year”

• Moreton Island is the largest sand island in the world
• The popular Moreton Bay Marine Park also forms part of Moreton Bay
• Redcliffe is conveniently located to all the major theme parks in South East Queensland
• 1.2 million tourist including 370,000 day trippers visit the Redcliffe Peninsula each year

Key infrastructure upgrades

• AUD$2.12 billion Gateway Motorway – has improved connectivity to major centres including Brisbane

CBD, the airports and Sunshine Coast

• AUD$1.15 billion Moreton Bay Rail Link - will provide rail transport from Kipparing (approximately 8

minutes from the Peninsula International Hotel) to Brisbane’s CBD

• AUD$315 million Houghton Highway duplication
• AUD$20 million Redcliff Foreshore Rejuvination

The Peninsula will be the first 4 star international branded hotel

• n the Redcliffe Peninsula in a

prime waterfront position that will never be built out The 12 storey development has been designed to offer an attractive mix of hotel rooms and residential suites for guests Spectacular 180% views of Moreton Bay, Moreton Island and Brisbane with a beach and fresh saltwater lagoon right at its door

The Peninsula

Peninsula – Proposed development

Proposed Development

The project shall consist of: Ground Floor

• Hotel lobby
• Main reception
• Tavern (pub) featuring indoor & outdoor dining
• Restaurant featuring alfresco dining areas
• Coffee shop
• Back of house facilities

Mezzanine Level

• Conferencing / banqueting facilities
• Break out areas and pre-function area
• Meeting rooms
• Additional back of house administration areas

Rooms and Car parking

• 120 x Hotel rooms
• 40 x Apartments
• 150 x Basement car parking

Other key facilities

• Pool deck area
• Day Spa
• Gymnasium

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