Invest in the resources BOOM!! Chinchilla Qld. In the Heart of The Surat Basin. Helping you to find the Perfect Investment Balance

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1 Invest in the resources BOOM!! Chinchilla Qld In the Heart of The Surat Basin Helping you to find the Perfect Investment Balance

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3 Why the Surat Basin Unlike the Bowen Basin, which centres primarily just on coal, vacancy rates dropped to zero, rents soared and property investors achieved massive capital gains. The Surat Basin will be home to a variety of resource projects, this translates to great security for investors, as the regions is not dependent on just one industry and many of these projects have very long anticipated life spans ( at least years with forecasters predicting 250 years ). Dan Molloy, CEO Real Estate Institute of Qld

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5 Planning assures Region s future Investors in the Surat Basin are buying into not just a great investment phase but into a region that s being developed to ensure its communities prosper even after the current resources boom ends which is likely to be many decades away. We don t want to be just a mining town, we want to be a proper town. Located 166km west of Toowoomba, Chinchilla is without a doubt one of the Surat Basin s towns that has changed the most, with the population continuing to grow. As at 2010 the estimated population of the Surat Basin was 207,497 and is projected to grow to 301,909 by Mark Fitzgerald, CEO Chinchilla Commerce & Industry

6 Population Growth of 42,000 supporting the resources sector.

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8 Solar Dawn Project REGIONAL Queensland will be home to one of the biggest solar-gas power plants in the world under a $1.2 billion investment that will create hundreds of jobs. The Solar Dawn project will use new Australian-pioneered technology and transform Chinchilla and the western downs into the nation's mixed-energy capital. Building a case to support renewable energy and her carbon pollution tax, Prime Minister Julia Gillard said the abundant Queensland sun could help power the region and keep the environment clean. "We will protect Australian jobs at the same time as we create new ones," she said. For Ms Gillard it proves her carbon tax will create green jobs and drive innovation. The construction of the station - about 300km west of Brisbane - is a joint project between the Federal and State governments and an energy consortium led by AREVA Solar. Ms Gillard announced $464 million for the project while Premier Anna Bligh chipped in $75 million.. Construction will start in a year after the carbon tax starts - and is to be completed two years later. It will create up to 300 new jobs, indirectly support up to 1000 jobs and will abate about 500,000 tonnes of emissions a year. The energy from the 250-megawatt solar thermal gas hybrid power plant will be bought by an energy retailer and feed back into the electricity grid. Eighty-five per cent of the power generated will be emissions free.

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13 Helping you to find the Perfect Investment Balance

14 Origin Energy Limited Press Release Origin Energy Limited announced yesterday that the Board of Australia Pacific LNG has approved a Final Investment Decision on the first phase of a two train CSG to LNG project in Queensland. Key points include: US$14 billion for the first phase, US$20 billion capital cost for a full two-train development Australia's largest single LNG contract to commence shipments in 2015 Origin Energy Managing Director, Mr Grant King said, "Today's announcement initiating the Australia Pacific LNG project's first phase is a transformational event in Origin's history and marks the commencement of one of the country's largest LNG export projects. The Australia Pacific LNG project will generate significant benefits at regional, state and national levels. The project currently employs 1,600 people both directly and indirectly and will create 6,000 construction jobs and 1,000 jobs during the ongoing operation of the project. With significant employment needs, Australia Pacific LNG will be working to increase local skills capacity via apprenticeships, scholarships and vocational training. The project also expects to make a considerable contribution to regional economies and will contribute significant annual royalties to the State of Queensland. "Development of the Australia Pacific LNG project will bring many benefits to regional communities, Queensland and Australia through the creation of direct and indirect jobs, and investment in local goods and services," Mr King said. This is massive news for Chinchilla and surrounding areas with so many employment opportunities, contracts to be awarded and benefits to the local economy. From a real estate perspective it is expected that a project of this stature will greatly increase demand for property rentals and accommodation in general. Mr Grant King - Origin Energy Managing Director

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17 Helping you to find the Perfect Investment Balance

18 Development Location Cnr Lloyd Rd & Price St

19 Estate Plan Helping you to find the Perfect Investment Balance

20 Typical Facades Classic Plantation

21 Typical Facades Coastal Urban Helping you to find the Perfect Investment Balance

22 Typical Floor Plans

23 Typical Floor Plans

24 Potential for Investment The level of cash flow on completion, capital growth forecast of 12-15% for the next 12 months ( API magazine ) makes this an excellent opportunity. With rents of $650-pw on 100% borrowings at 7% these will return $60-pw ( after tax at 30c marginal rate ). With rents of $750-pw on 100% borrowings at 7% these will return $126-pw ( after tax at 30c marginal rate ). With rents of $850-pw on 100% borrowings at 7% these will return $190-pw ( after tax at 30c marginal rate ). Given the level of rents in other regional mining areas of Qld, these figures are not out of the equation, only time will tell how far they rise. Anything over $550-pw in rent is cash positive, this level is already being achieved in Chinchilla and the property is the best part of 12 months away.

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26 Current Rentals Available

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31 Matusik Property Insights Report A recently completed report from Matusik Property Insights about the Chinchilla area provided the following key points: The Surat Basin has over 40 major infrastructure reports underway, committed or proposed: at a value of $140 billion The Surat Basin is not dependent on one industry or commodity, with coal, gas, power generation, solar energy, coal seam gas, water projects, rail infrastructure, farming and supporting businesses all present in the area The annual growth in median house prices in Chinchilla has averaged a staggering 16% per annum over the last 10 years. Vacant land sales in Chinchilla over the same period has averaged an incredible 22% per annum The most recent independent research reported a 1.3% vacancy rate for Chinchilla a vacancy rate under 4% indicates a market is undersupplied with rental accommodation Chinchilla offers a purchase price cost-competitiveness not found in many other regional areas Rental yields in major cities are modest to say the least, comparing poorly to towns such as Chinchilla. With companies, workers and families continuing to move to the area rents are on the increase creating a market providing great investor returns and capital growth.

32 What Happens when these come to town?

33 Helping you to find the Perfect Investment Balance

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35 Something for You to Think About... The majority of Australians will retire with an income of $14,900-

36 Tony Freese Mob Margaret Jones Mob Suite 1, 616 Ruthven Street, Toowoomba Qld 4350 Ph. (07) Fax. (07) or Helping you to find the Perfect Investment Balance