CBRE BUILDING CONSULTANCY

255-257 Gympie Road, Kedron QLD

TECHNICAL DUE DILIGENCE REPORT

255-257 GYMPIE ROAD

KEDRON QLD 4031

Reliant Party: Augusta Funds Management

Date: December 2018

Ref: MID 17224859

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CONTENTS
1. EXECUTIVE SUMMARY .................................................................... 2
2. SYNOPSIS ...................................................................................... 3
3. RELIANCE & REPORTING................................................................. 4
4. BUILDING DESCRIPTION ................................................................ 5
5. COMMENTS & RECOMMENDATIONS ............................................. 9
6. CAPITAL EXPENDITURE REPORT .................................................... 19
7. AIRCONDITIONING LIST & COST ESTIMATES................................ 24
8. REALSERVE SITE PLAN ................................................................... 25
9. QUALIFICATIONS & EXCLUSIONS ................................................ 26
10. TERMS & CONDITIONS ................................................................ 27

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1. EXECUTIVE SUMMARY
The property is a mixed-use asset with multiple buildings of various ages across the site totalling 4,679m².
Condition ranges from good to poor across each building as the original dates of construction, together with
subsequent extensions and alterations, determines overall condition.

ELEMENT COMMENTS / RECOMMENDATIONS CONDITION

Structure  Good visual condition with no significant issues identified. Good

 The roof covering the C&K Building A1/3 is in poor condition and is
recommended for lifecycle replacement. Access is also unsafe and should be Poor
upgraded. The remaining roof areas appear fair to good.
Fabric
 Facades appear in fair condition with no major concerns noted.
 Internal elements appear in fair condition generally although there are new Fair
fitouts which are very good and older fitouts which are tired.
External  No significant capital expenditure is anticipated. Good
 The rooftop package units on C&K Building A1/3 are in poor condition and
Mechanical recommended for lifecycle replacement. Further lifecycle replacement is Poor
expected in the long term.
Electrical  Good visual condition, however the MSB should be budgeted for an upgrade. Good
Fire/Hyd  No significant concerns noted. Good
 The lift is from the original construction is recommended for a major overhaul
Lifts Fair
in the short-term for control gear, safety gear and compliance.

FINANCIAL SUMMARY
Short Term Medium Term Long Term
Immediate Total
(1-2 years) (3-5 years) (6-10 years)
1.0 STRUCTURE $ - $ 4,000 $ 8,000 $ 8,000 $ 20,000
2.0 BUILDING FABRIC $ 25,000 $ 447,000 $ 406,000 $ 460,000 $ 1,338,000
3.0 EXTERNAL AREA $ - $ 41,000 $ 15,000 $ 20,000 $ 76,000
4.0 MECHANICAL SERVICES $ - $ 211,200 $ - $ 84,000 $ 295,200
5.0 ELECTRICAL SERVICES $ 5,000 $ - $ 24,000 $ - $ 29,000
6.0 FIRE SERVICES $ - $ - $ - $ - $ -
7.0 HYDRAULICS SERVICES $ - $ - $ 10,000 $ 20,000 $ 30,000
8.0 VERTICAL TRANSPORTION $ - $ 60,000 $ - $ - $ 60,000
TOTALS $ 30,000 $ 763,200 $ 463,000 $ 592,000 $ 1,848,200
TIMELINE ELEMENTAL

STRUCTURE
$700,000
CAP
BUILDING FABRIC
$600,000
$500,000 R&M
EXTERNAL AREA
$400,000
MECHANICAL SERVICES
$300,000
$200,000 ELECTRICAL SERVICES
$100,000
FIRE SERVICES
$0
Immediate Short Term Medium Term Long Term HYDRAULICS SERVICES
(within 1 year) (1-2 years) (3-5 years) (6-10 years)
VERTICAL TRANSPORTION

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2. SYNOPSIS
2.1 INSTRUCTIONS

Instructions:  Written instructions received from:

- Augusta Funds Management Limited dated 21st November 2018.
 Instruction established from proposal issued 20th November 2018.

Assessment  Technical Due Diligence review of:

Request: - 255-257 Gympie Road, Kedron QLD

Reliant Party  Augusta Funds Management Limited.

CBRE Reference:  Z:\1. Jobs\4. QLD\4031 - Kedron\Gympie Road, 255-257\TDD - November 2018

Scope of service:  Structure.

 Building Fabric (roofs, facades & interior).
 External Areas.
 Building Services (Mechanical, Electrical, Fire, Hydraulic, Vertical Transport).
 10 Year Capital Expenditure (CAPEX) Forecast.

2.2 CRITICAL ASSUMPTIONS

Information  This report contains information which is derived from other sources. Unless otherwise
specifically instructed by you and/or stated in the report, we have not independently
Supplied
verified that information, nor adopted it as our own, or accepted its reliability.
by Others
 The Reliant Party accepts the risk that if any of the unverified information/advice provided
by others and referred to in this report is incorrect, then this may influence our review.
 Pertinent documentation relied upon in the preparation of this report have been
referenced within the main body of the report.

Changed  If the Reliant Party becomes aware of any material changes to the property and/or that
information supplied to us is incorrect, then this report must not be relied upon before first
Information
consulting CBRE (A) Pty Ltd (CBRE) to provide a review of the updated information.

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3. RELIANCE & REPORTING
3.1 RELIANCE & LIABILITY

Reliance:  This assessment is strictly and only for the use of the Reliant Party and for the Purpose
specifically stated in Synopsis/Instructions.

Transmission:  Only an original report received by the Reliant Party directly from CBRE without any
third-party intervention can be relied upon.

Restricted:  No responsibility is accepted or assumed to any third party who may use or rely overall
or any part of the content of this assessment.

Copyright:  Neither the whole nor any part of the content of this report may be published in any
document, statement, circular or otherwise by any party other than CBRE, nor in any
communication with any third party, without the prior written approval from CBRE, and
subject to any conditions determined by CBRE, including the form and context in which it
is to appear.

3.2 REPORTING

Industry Practice:  Our review has been undertaken in line with the RICS best practice guidance note on
Technical Due Diligence of Commercial & Industrial Property in Australia.

Inspection:  The inspection was carried out on 23rd November 2018.

 As part of the survey we viewed roofs and facades from ground level or other safe
vantage points, the principle base building plant rooms and back of house areas and a
reflective sample of tenanted space.
 There was no access onto the Dulux building, Childcare Centre, 257 Gympie Road, or
lower C&K roof areas.

Orientation:  References to the left- and right-hand side assume the reader is facing the element in
question.

Weather:  The weather at the time of inspection was dry and sunny.

Limitations:  Refer to the Attachments for our standard reporting Exclusions & Qualifications and
Terms & Conditions.

Prepared by:  Stewart Cavin MRICS | Pacific Director

M +61 437 464 831 | [email protected]

Reviewed by:  Alastair Cardon MRICS | Director

M +61 432 052 082 | [email protected]

 www.cbre.com.au

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4. BUILDING DESCRIPTION
4.1 GENERAL

Use:  Mixed use comprising of commercial office, retail, and childcare.

Configuration: There are two properties with multiple buildings further described as follows:

255 Gympie Road

 2-storey commercial office at the south end of the site.
 Part 2-storey retail building to the north end of the site.
 2-storey childcare centre in the southeast of the site.
 A small storage shed and secure carport are also provided.

257 Gympie Road

 Located in the southwest corner is a separate lot comprising a 2-storey commercial
office/retail building.

Age:  The following has been extracted from the Napier & Blakeley TDD Report:

 Refer to the RealServe plan attached to this report for Building reference numbers.

Floor Area:  Total: 4,579m² NLA

Legal description:  255 Gympie – Lot 3 on RP91138

 257 Gympie – Lot 1 on SP288094

Site area:  8,909m² combined.

Surrounds:  A mixture of residential and commercial properties.

Comments:  Certificates of Classification have been provided for most of the tenancy fitouts.
 The base building Certificate of Classification dated 18th September 1990. This is
understood to be for the 2-storey C&K building (including the C&K and Inegia
tenancies).

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4.2 BUILDING ELEMENTS

Substructure  The substructures were fully concealed at the time of inspection; however they are
understood to comprise of strip and pad footings together with a slab on ground.
 Ground bearing reinforced concrete slabs are understood to be conventionally
reinforced.
 No structural as-built documentation was provided to comment on structural elements
beyond the observations made on site.

Superstructure  There are a variety of construction types for each building, however they generally
comprise of the following.
 Building A1/3 (C&K) is predominantly a reinforced concrete framed structure
incorporating perimeter edge beams and band-beams between column locations. A
steel framed structure is provided above 1st floor slab level.
 Building B (Dulux) appears to be a composite structure comprising of reinforced
concrete framing elements and loadbearing masonry.
 Building C (Childcare Centre) incorporates two original Queensland heritage buildings
(Queenslanders) into a new development. The Queenslanders are timber framed whilst
the new development below incorporates timber framing, steel framing, and
loadbearing masonry.
 Building A2 (Plan Build) appears to be a composite structure comprising of reinforced
concrete framing elements and loadbearing masonry.

Roof  All buildings have profiled metal roof sheeting laid to fall to a mixture of valley, eaves
and box guttering. The sheeting is a mixture of profiles.
 There was no access to any roof void to confirm the presence of sisalation and/or safety
mesh below roof sheeting.
 Steel frame canopies are provided along the Gympie Street frontages and also to other
building areas internally within the site.
 Roof access to Building A1/3 is via an access hatch accessed from the rear stairwell.
There are no walkways or anchor points provided, however there are plant platforms
which house various plant and equipment.
 Building A2 includes a rear patio roof area which appears to be concrete paving tiles
over a screen with a membrane under.
 There is no physical roof access to the other buildings.

Facades  Façade treatments vary across the site, but include the following:
- Shop front window systems to ground floor areas and retail space,
- Window wall systems,
- Rendered and painted masonry,
- Painted brickwork,
- Weatherboards to the Queenslanders,
- Metal plant screens, and
- Fibre cement sheet lining which is painted.

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 Glazing fronting Gympie Road is secondary glazed to improve acoustics.
 Windows and entry doors are mostly shopfront systems being single glazed in
aluminium frames.
 The remaining doors are timber within metal frames.
 Roller shutter doors are provided to Building B.

Interiors  Internal elements are commensurate with the use of the space and as expected for the
grade of asset. These are broadly outlined as follows.
 Ceilings – predominantly suspended ceiling systems throughout all buildings comprising
either suspended ceiling tiles or flush painted plasterboard.
 Walls – predominantly painted plasterboard or rendered masonry walls. There are
glazed partitions to some office areas and other tenant finishes.
 Amenities are finished with floor and wall tiling and virtuous china fittings generally.
 Kitchens and kitchenettes are tenant fitout items therefore excluded.
 Base building doors are predominantly timber door sets in metal frames.
 There are no common areas internally.

Externals  The external areas comprise mainly of asphalt carparking with concrete kerbing and
linemarking for bays provided.
 Crossovers from the main roads are reinforced concrete and the new Childcare Centre
is also of concrete construction.
 Small nature strips / soft landscaping exists in select locations.
 Fencing is provided in a number of areas:
- The childcare centre is fully fenced with timber paling fencing to the front and a
panelled fence system to the rear.
- The north boundary includes metal cyclone fencing and timber palings.
- Metal tubular fencing is provided around the childcare centre carpark.
 There is an external blockwork store room along the northern boundary of the site (no
access was available to inspect internally).
 A secure carport is provided which is steel framed and has roller door access along the
front elevation.
 There are retaining structures which separate Building A1/3 and Building C; these
comprise of masonry construction.

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4.3 BUILDING SERVICES

Mechanical:  Split system air-conditioning units serving specific office areas.

 Toilet exhaust is via ceiling and wall mounted grilles with ductwork to roof or wall
mounted exhaust fans.
 Roof top package units are installed in all buildings.

Electrical:  Power to the all buildings is via Low voltage cable connections to the pad mounted
transformer.
 The Main Switch Board for each site is in the car park area near C&K.
 Lighting is switched surface recessed fluorescent tube type fittings throughout. Office
lights are a combination of fluorescent tube fittings and LED downlights.
 Emergency & Exit lighting comprise a single point system. Exit lights are provided with
Running Man symbols complying with current provisions of AS2293.
 External lighting comprises wall mounted halogen flood lights.
 Main building telephone distributor is in the office back of house with twisted pair cable
/ KRONE jumpable pair modules.
 Tenant installed security systems are installed including alarm systems and CCTV.
 Access control keypads are installed to the main entrance at the main entry doors each
office.

Fire:  Smoke detectors installed throughout the buildings at main entry point and fire exists
which appear to be in line with AS1668.
 Portable fire extinguishers are located throughout to suit base building and tenancy fit
out accordingly. Extinguishers are 4.5kg ABE dry powder type and have been tested
and tagged with the last test date as September 2018.
 Fire hose reels are installed at locations near fire exits.

Hydraulics:  Incoming water main supplies are fitted with control valves and water meters located at
the front of the site on Gympie Road.
 Hot water provided by electric storage units fitted with Thermostatic regulating mixing
valves.
 Sanitary fixtures and fittings within the amenities are with dual flush cisterns.
 Sewer is discharged into the authority sewer mains and storm water drainage into the
authority mains.

Lifts:  One hydraulic passenger lift Is installed.

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5. COMMENTS & RECOMMENDATIONS
5.1 BUILDING ELEMENTS

General  As the Childcare Centre development is new it is recommended to seek assignment of

the all current warranties so that the purchasing entity can have reliance should issues
arise in the future.

Substructure  No significant cracking or movement was noted to superstructure elements to suggest

possible foundation problems.

Superstructure  Based on those areas viewed, no significant movement was observed in the
superstructure load bearing elements which generally appear in sound condition.
 It is recommended that the structural elements including structural frames, retaining
walls and exterior concrete elements be inspected biennially.

Roofs  The roof over the main Building A1/3 (C&K) is in poor condition:
- The roof has recently been covered with a liquid applied paint product acting as
a membrane. It is understood the product is Dulux Metalshield.
- There has evidently been a history of water ingress and rust is clearly visible
from Nearmap imagery prior to the application; previous repairs have been
carried out.
- Poor flashing details are noted throughout where service penetrations do not
have a drypan flashing as required; they are relying completely on the sealant
around the penetration.
- There are numerous dents and other imperfections and no walkways are
present which would increase damage from foot traffic.
- The paint application is considered to be a very short-term temporary solution
and will likely lead to further problems. This is particularly true for the ridge
scribe break which has now been sealed and will prevent moisture from
escaping. Corrosion to this area will now accelerate.
- Lifecycle replacement is recommended to be budgeted for the short term.
- The plant platforms are in poor condition with significant corrosion noted.
Treatment and repairs are recommended.
 The roof mounted AC units have had a metal clad enclosure constructed around the
ductwork. It is understood to have been constructed to manage leaking ductwork,
however this only hides a ductwork issue with is continuing to worsen. It is
recommended these be removed as part of the AC replacement works (refer to the
Mechanical section below).
 There are a number of isolated roof leaks which require investigation and repair.
 Note: roof access is near the roof edge and is highly unsafe. There are also areas of
plant and equipment adjacent to the roof edge without any side protection. It is
recommended that roof access be upgraded including the installation of walkways to air
conditioning units.
 The balance of the roof areas appear in fair to good condition; increased R&M should
be budgeted for as the roof areas age.

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 Building A2 (Planbuild) is recommended to be budgeted for lifecycle replacement in the
long term.
 The rear patio to Building A2 appears in poor condition, however there is no evidence
of major water ingress into the office space below. Repairs have also been carried out
as there is a section of roof which has been secured off from access. It is recommended
that this area be monitored and an allowance for lifecycle replacement has been made
in the CAPEX.

Facades  Façade elements generally appear in fair condition throughout with no major concerns
noted.
 Gaskets are typically dislodging from the window frames to Building A1/3. These
should be reinstated to ensure the integrity of the glazing is intact and prevent water
entry.
 Aluminium Composite Panels (ACPs) were noted as building signage installed to a
number of facades. The core colour appears to be black which suggests that the
material is a polyethylene (PE) product which is banned in a number of states in
Australia. However, as the signage does not extend above two storeys the legislation
does not apply. Furthermore, the signage is tenant fitout and therefore the tenants could
potentially be instructed to remove if required.
 Cyclical redecoration will be needed throughout the reporting period
 Building A2 (Planbuild) includes timber decking to the front and side elevations at 1st
floor. The decking requires an overhaul and treatment.
 Minor water ingress/staining was noted to the awnings which should be repaired.

Interior  Internal elements range from very good (new) to tired and dated (where older fitouts
exist).
 Lifecycle replacement of certain fabric elements may be required for the reporting
period (ie ceilings, internal painting, carpet, etc). This may also include amenities some
of which appear tired and dated. An allowance has been for refurbishing these
elements within the reporting period, however the works are typically subject to the
timing of tenants’ lease expiries and make good obligations.
 No allowance has been made for tenants’ fitouts.

Externals  External areas were noted to be generally in good condition throughout.

 Ongoing maintenance of finishes and landscaped areas will be required as part of
OPEX.
 The retaining wall to the east of the C&K training centre has lateral movement which
has occurred. The wall is bulging and should be stabilised; it cannot be confirmed from
the inspection that the movement has ceased.
 Adjacent to the above, the concrete path has subsided creating a trip hazard. The trip
hazard should be eliminated and the subsidence repaired.
 It is recommended to allow for repairs to the asphalt surfacing as the areas age over the
term.

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5.2 BUILDING SERVICES

Mechanical:  There are hail-damaged rooftop package AC units serving Building A1/3 (C&K) which
are in poor condition and recommended for lifecycle replacement.
 The platforms housing the roof top package units are rust effected as noted in the Roof
section above.
 The AC package unit in the paint retailer “DULUX” has reached the end of if working
life cycle and is regularly failing. It is recommended for lifecycle replacement.
 Refer to the air-conditioning schedule attached in the Appendices for a full list of air-
conditioning assets provided by the vendor. We have included our cost estimates and
estimated lifecycle against each item.

Electrical:  The main electrical switchboard is original, and allowance should be made for a
technology upgrade in the medium term and the completion of a single line diagram
displayed in a weather proof frame adjacent to the board Immediately
 The exit lighting appears in good condition generally however some areas require new
exit lighting where the old style fittings exist.
 The remaining electrical infrastructure is considered to be in good visual condition with
no significant issues to note.

Fire:  Statutory maintenance appears to be up to date with maintenance tags noted as being
current. However, no maintenance records were sighted.
 It is understood the Annual Occupier’s Statement is dated 17th July 2017 to 16th July
2018 with no critical defects noted. However, the statement has not been sighted.

Hydraulics:  No issues were reported with hydraulic/storm water infrastructure.

 No issues reported with the sewerage system.
 An allowance has been made for replacement of gas-fired and electrical hot water units
in the long term.

Lift:  The lift is from the original construction and the original lift company no longer
manufactures OEM parts. As such the lift will require a major overhaul in the short to
medium term for control gear.

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5.3 STRUCTURE/FABRIC PHOTOGRAPHS

Building A1/3 Unsafe roof access Building A1/3 Poor condition of roof

Building A1/3 Inadequate flashings Building A1/3 Capping scribe break sealed

Building B roof Building A1/3 roof – AC enclosure

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C&K tenancy – ceiling tiles have been replaced. Typical window gasket dislodgement

C&K internal amenities. Typical internal tenancy

Back of house Dulux Building A2 facade

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Minor subsidence to concrete path Bulge to retaining wall

Concrete frame to Building A1/3 Building A1/3 façade

Original Queenslander Childcare Centre facade

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Typical retaining walls Asphalt driveways

Timber decking to Building A2 Building A2 – rear patio roof

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5.4 BUILDING SERVICES PHOTOGRAPHS

Main Switch board Electrical distribution board

Site transformer Lighting control panel

Internal Lighting - typical Office lighting - typical

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Roof mounted condenser Hail damaged condenser

Hail damaged condenser Package unit serving CK training room

Split AC systems Roof mounted condensers

Lift control panel Lift internal controls

Lift lobby Lift internal display

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FHR typical FE typical label

Annual testing certificate Fire test documentation

Wash / shower Amenities WC

Air supply register Gas fired water heaters

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6. CAPITAL EXPENDITURE REPORT
Our cost estimates associated with due diligence are generally concerned with capital expenditure (CAPEX)
forecasts, normally reflecting a 10-year planning period. Hence, these estimates are indicative only and are
provided as an “order of magnitude cost allowance” for specifically identified works. Items of work are often
not fully described or detailed reflecting the high-level nature of the assessment, the amount of information
available, a reasonable course of action, and the purpose for which they are prepared. We will consider and
review any pre-existing CAPEX records or budgets, where they are made available.

Our CAPEX forecast also includes deferred repairs and maintenance (R&M) items which ought to have been
carried out or should be planned for as a preventive measure. Routine repairs, maintenance and typical
operational costs associated with the normal occupation and management of the asset are excluded unless
otherwise stated.

Our costs are a present-day estimate for undertaking the works as a stand-alone project and do not include
the following (unless otherwise stated):

 preliminaries, builder’s margins, overheads or contingencies;

 negotiated, staged or other special forms of contract;
 approval, consents or compliance orders;
 costs associated with the further investigations;
 professional/consultant fees for further investigation and testing, the design, documentation and the
management of rectification works, or any resulting change in the scope of rectification works;
 costs associated with the relocation, temporary accommodation, disruption to business or loss of
profit of the building owner or tenants;
 work outside site boundaries;
 work outside normal business hours;
 goods and services tax (GST); and
 future escalation.
Our cost estimates have been assessed based on their likelihood (i.e. how likely is it that it will occur) and
consequence (what is the impact if the event does occur). These two values are combined to give an overall
‘risk rating’ which as per the table below:

Likelihood Consequence

Insignificant Minor Moderate Major Catastrophic

Almost Certain Low Moderate High Very High Very High

Likely Low Moderate Moderate High Very High

Possible Low Low Moderate High High

Unlikely Insignificant Low Moderate Moderate High

Rare Insignificant Insignificant Low Moderate High

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CAPITAL EXPENDITURE (CAPEX) FORECAST

SUMMARY OF COSTS

SUMMARY BY ELEMENT
Immediate Short Term Medium Term Long Term
Total
(within 1 year) (1-2 Years) (3-5 Years) (6-10 Years)
STRUCTURE $ - $ 4,000 $ 8,000 $ 8,000 $ 20,000
BUILDING FABRIC $ 25,000 $ 447,000 $ 406,000 $ 460,000 $ 1,338,000
EXTERNAL AREA $ - $ 41,000 $ 15,000 $ 20,000 $ 76,000
MECHANICAL SERVICES $ - $ 211,200 $ - $ 84,000 $ 295,200
ELECTRICAL SERVICES $ 5,000 $ - $ 24,000 $ - $ 29,000
FIRE SERVICES $ - $ - $ - $ - $ -
HYDRAULICS SERVICES $ - $ - $ 10,000 $ 20,000 $ 30,000
VERTICAL TRANSPORTION $ - $ 60,000 $ - $ - $ 60,000

TOTAL $ 30,000 $ 763,200 $ 463,000 $ 592,000 $ 1,848,200

SUMMARY BY WORK TYPE

Immediate Short Term Medium Term Long Term
Total
(within 1 year) (1-2 Years) (3-5 Years) (6-10 Years)
R&M $ 5,000 $ 117,000 $ 49,000 $ 44,000 $ 215,000
CAP $ 25,000 $ 646,200 $ 414,000 $ 548,000 $ 1,633,200

TOTAL $ 30,000 $ 763,200 $ 463,000 $ 592,000 $ 1,848,200

SUMMARY BY RISK RATING

Immediate Short Term Medium Term Long Term
Total
(within 1 year) (1-2 Years) (3-5 Years) (6-10 Years)
VERY HIGH $ - $ - $ - $ - $ -
HIGH $ 25,000 $ - $ - $ - $ 25,000
MODERATE $ 5,000 $ 609,000 $ 75,000 $ 156,000 $ 845,000
LOW $ - $ 154,200 $ 388,000 $ 436,000 $ 978,200
INSIGNIFICANT $ - $ - $ - $ - $ -

TOTAL $ 30,000 $ 763,200 $ 463,000 $ 592,000 $ 1,848,200

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CAPITAL EXPENDITURE (CAPEX) FORECAST
Work Short Term Medium Term Long Term
Item Element / Description / Location Suggested Remedy RISK Immediate Total
Type (1-2 Years) (3-5 Years) (6-10 Years)

1 STRUCTURE
1.1 Structure generally. Inspect structure biennially. R&M Low $ - $ 4,000 $ 8,000 $ 8,000 $ 20,000
2 BUILDING FABRIC
2.1 ROOF
Upgrade unsafe roof access with adequate ladder,
2.1.1 Roof Access - C&K Building. CAP High $ 25,000 $ - $ - $ - $ 25,000
side protection, etc.
2.1.2 Roof Access - C&K Building. Treat corrosion to access walkways & platforms. R&M Moderate $ - $ 10,000 $ - $ - $ 10,000
Poor condition and application of paint system will
C&K Building - main upper roof (dated
2.1.3 lead to further problems. Recommend lifecycle CAP Moderate $ - $ 285,000 $ - $ - $ 285,000
1990).
replacement.
C&K Building - metal clad enclosures to AC Poor quality enclosures. Remove and make good as
2.1.4 CAP Moderate $ - $ 10,000 $ - $ - $ 10,000
equipment. part of AC works below.
Investigate and repair water ingress to corner and
2.1.5 C&K Building - northeast corner, upper floor. R&M Low $ - $ 10,000 $ - $ - $ 10,000
tree litter/debris blowing in from external areas.
2.1.6 C&K Building - lower roof areas. Fair condition; recommend increased R&M. R&M Moderate $ - $ 4,000 $ 6,000 $ 6,000 $ 16,000
C&K Building Traning Centre - northeast Investigate and repair water ingress visible through
2.1.7 R&M Low $ - $ 10,000 $ - $ - $ 10,000
corner, ground floor. ceiling tiles.
No direct access, however they appear in fair
2.1.8 255 Gympie Rd - main roof. condition. Recommend lifecycle replacement be CAP Moderate $ - $ - $ - $ 40,000 $ 40,000
budgeted for.
2.1.9 255 Gympie Rd - rear sunshade over deck. Lifecycle replacement CAP Low $ - $ - $ - $ 9,000 $ 9,000
No major water ingress or issues
reported/identified. The areas are aged; long term
2.1.10 255 Gympie Rd - rear paved BBQ Area. CAP Moderate $ - $ - $ - $ 45,000 $ 45,000
lifecycle replacement of membrane & pavers should
be budgeted for.
No access however no major issues reported or
identified. Appears to have been replaced at some
2.1.11 Dulux/Orica - main roof stage. Allow for increased R&M including R&M Moderate $ - $ 5,000 $ 5,000 $ 5,000 $ 15,000
addressing minor water ingress along front
elevation (upper floor).
Understood to be mostly new; no major Capex
2.1.12 Childcare Centre - roof. $ - $ - $ - $ - $ -
anticipated.
Appears in fair condition; no major Capex
2.1.13 Carport roof. $ - $ - $ - $ - $ -
anticipated.
2.2 FACADES
Gaskets are typically dislodging from window
2.2.1 C&K Building. R&M Low $ - $ 10,000 $ - $ - $ 10,000
frames. Allow to reinstate/replace.
Appears to be polyethylene Aluminium Composite
Panel material, however low risk as signage could
2.2.2 Tenant signage fixed to fascia's throughout. $ - $ - $ - $ - $ -
be considered to be exempt from recent legislation
changes.

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CAPITAL EXPENDITURE (CAPEX) FORECAST
Work Short Term Medium Term Long Term
Item Element / Description / Location Suggested Remedy RISK Immediate Total
Type (1-2 Years) (3-5 Years) (6-10 Years)

Monitor very minor water seepage through

2.2.3 Childcare Centre - under croft parking. $ - $ - $ - $ - $ -
blockwork walls. Incl at Item 1.1
255 Gympie Road - upper floor timber Fair condition. Allow for overhauling timber and
2.2.4 R&M low $ - $ 8,000 $ - $ - $ 8,000
decking. treatment of decking.
2.2.5 External painted elements. Cyclical painting. CAP Moderate $ - $ - $ 30,000 $ 50,000 $ 80,000
2.2.6 Facades throughout. Minor cracking and movement to be repaired. R&M Low $ - $ 5,000 $ 10,000 $ - $ 15,000
The older units are aged (some of which may be
2.2.7 Windows & Doors throughout. R&M Low $ - $ - $ 5,000 $ 5,000 $ 10,000
inoperable). Allow for repairs/overhaul.
Minor water ingress/staining noted, particularly to
2.2.8 Awnings. R&M Moderate $ - $ 10,000 $ - $ - $ 10,000
Gympie Rd frontages. Budget for repairs.
2.3 INTERIOR
Condition ranges from fair to very good. No
2.3.1 Internal tenanted space. allowance made for refurbishment of tenanted $ - $ - $ - $ - $ -
space.
Mixture or old and new; condition ranges from very
good to dated. Allow for reburbishing older
2.3.2 Base building kitchens/amenities throughout. CAP Low $ - $ - $ 100,000 $ 100,000 $ 200,000
amenities (excluding childcare centre and new C&K
extension).
Allow for replacing ceilings, floor finishes, internal
2.3.3 Internal fabric elements throughout. CAP Low $ - $ 80,000 $ 200,000 $ 200,000 $ 480,000
painting, etc.
2.3.4 C&K training centre - external amenities. Upgrade/refurbishment. CAP Low $ - $ - $ 50,000 $ - $ 50,000
3 EXTERNAL AREA
Mostly appear in good condition; monitor condition
3.1 Retaining wall elements throughout. $ - $ - $ - $ - $ -
(incl with Item 1.1).
Lateral movement noted. Stabilising works would be
Retaining wall to the east of C&K training
3.2 required if movement is dormant. Monitor R&M Moderate $ - $ 20,000 $ - $ - $ 20,000
centre.
movement and allow a provisional sum for repair.
Further investigate subsidence to concrete steps.
Concrete path between C&K office and
3.3 Allow provisional sum for repairs incl removing trip R&M Low $ - $ 10,000 $ - $ - $ 10,000
training buildings.
hazards.
C&K building - ground floor extension - new Good condition; allow for future treatment of
3.4 R&M Low $ - $ - $ - $ 10,000 $ 10,000
deck. timberwork.
Timber paling fence along northern
3.5 Repair palings which are dislodging. R&M Low $ - $ 1,000 $ - $ - $ 1,000
boundary.
Fair condition however cracking and movement is
3.6 Concrete cross overs R&M Low $ - $ - $ 5,000 $ - $ 5,000
evident. Future repairs should be budgeted for.
Fair condition; allow for future repairs/partial
3.7 Asphalt driveways/carparking. R&M Moderate $ - $ 10,000 $ 10,000 $ 10,000 $ 30,000
replacement.
Concrete carparking adjacent childcare
3.8 Good condition; no major Capex anticipated. $ - $ - $ - $ - $ -
centre.
Childcare Centre - concrete slab to undercroft Minor settlement of slab adjacent tto wall; monitor
3.9 $ - $ - $ - $ - $ -
parking. (incl in Item 1.1).

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CAPITAL EXPENDITURE (CAPEX) FORECAST
Work Short Term Medium Term Long Term
Item Element / Description / Location Suggested Remedy RISK Immediate Total
Type (1-2 Years) (3-5 Years) (6-10 Years)

3.10 Blue exterior storage shed. No access. $ - $ - $ - $ - $ -

4 MECHANICAL SERVICES
4.1 C&K - main AC systems. Lifecycle replacement for units 6 and 9-12. CAP Moderate $ - $ 168,000 $ - $ - $ 168,000
4.2 Dulux/Orica - AC system. Lifecycle replacement for unit 28. CAP Moderate $ - $ 27,000 $ - $ - $ 27,000
4.3 Rooftop package units - various Lifecycle replacement for units 13-18. CAP Low $ - $ - $ - $ 84,000 $ 84,000
4.4 Rooftop spilt ducted system. Lifecycle replacement for unit 19. CAP Low $ - $ 16,200 $ - $ - $ 16,200
5 ELECTRICAL SERVICES
Allow for a technology upgrade in the medium
5.1 Main Electrical switchboard CAP Moderate $ - $ - $ 24,000 $ - $ 24,000
term.
Provide a single line diagram displayed in a
5.2 Single Line diagram. weather proof frame adjacent to the board R&M Moderate $ 3,000 $ - $ - $ - $ 3,000
Immediately
There are some areas that require new exit lighting
5.3 EXIT Lighting R&M Moderate $ 2,000 $ - $ - $ - $ 2,000
where deficient.
6 FIRE SERVICES
No major capex anticipated - continue with statutory
6.1 AS1851 $ - $ - $ - $ - $ -
maintenance.
7 HYDRAULICS SERVICES
Allow for replacement of Gas fired and electrical
7.1 Hot Water units CAP Low $ - $ - $ 10,000 $ 20,000 $ 30,000
Hot water units in the medium and long term
8 VERTICAL TRANSPORTION
The lift is from the original construction and as the
original lift company no longer manufactures OEM
8.1 Passenger lift - hydraulic parts. As such the lift is recommended for a major CAP Moderate $ - $ 60,000 $ - $ - $ 60,000
overhaul in the short to medium term for control
gear, safety gear and compliancy.

TOTAL $30,000 $763,200 $463,000 $592,000 $1,848,200

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7. AIRCONDITIONING LIST & COST ESTIMATES
CBRE CBRE
CBRE estimated estimated
Unit Landlords Replacement Year Installed replacement cost of cost of
No Brand Model Capacity (Kw) Unit Location Area Serviced Estimate (approx) extimate replacement replacement
C&K Office and Kitchen and Replacement next 5
1 APAC Unsure 100 Roof Ground Floor Training rooms Ground Floor years 2004 2024 $70,000
Gympie Rd End of C&K office Replacement next 5
2 LG Unsure 25.5 Roof Ground Floor Ground Floor years 2003 2024 $20,400
SRA-73C-
3 Actron 0200 17 Roof Ground Floor Ingenia Office Lowest Level 10 + years 2014 2034 $15,300
4 Actron WRC-200AS 2.6 Roof Ground Floor Ingenia Server 10 + years 2014 2034 $2,080
SRA-260C- Ingenia Kitchen and Mid Level
5 Actron 0300 25 Roof Ground Floor Office 10 + years 2014 2034 $22,500
6 Hitachi RUA-30HS 75 Roof 1st Floor Ingenia Office ground Floor Replacement next 5-7 2003 2019 $52,500
TAC-18CHSA-
7 TCL Z14 5 Carpark Undercroft Ingenia Comms Room 10 + years 2014 2034 $3,000
8 Fujitsu AOT36RCF3L 10.5 Carpark Undercroft Ingenia Board Room 10 + years 2008 2028 $6,300
9 Hitachi RUA-30HS 75 Roof 1st Floor C&K Office 1st Floor Replacement next 5-7 2004 2019 $52,500
10 Hitachi RUA-15HS 30 Roof 1st Floor C&K Office 1st Floor Gympie Rd Replacement next 5 -7 2004 2019 $27,000
11 Email Unsure 20 Roof 1st Floor C&K Kitchen Replacement next 5 2003 2019 $18,000
12 Email Unsure 20 Roof 1st Floor C&K Office area southern wall Replacement next 5 2003 2019 $18,000
13 Hitachi RAC-70YHA2 7 Roof 1st Floor C&K Server Room 10 + years 2014 2029 $4,200
TAC-24CHSA-
14 TCL BY4 7 Roof 1st Floor C&K Server Room 10 + years 2014 2029 $4,200
15 Actron SRA173C 16 Roof 1st Floor C&K Office payroll 10 + years 2014 2029 $9,600
16 Actron SRA630C 60 Roof 1st Floor C&K Office Main Area 10 + years 2014 2029 $36,000

17 Actron SRA260-0300 25 Roof 1st Floor C&K Office Legal and CEO Area 10 + years 2014 2026 $15,000
18 Actron SRA260C 25 Plant Room deck Planbuild Downstairs 10 + years 2015 2027 $15,000
19 Mitsubishi Unsure 18 Plant room Deck Planbuild Upstairs 10 + years 2003 2019 $16,200
SRA173C- Front Office and reception area
20 Actron 200 17 Carpark Enclosure Childcare Centre 10 + years 2018 2033 $10,200
SRA-340C- Nothern Wing Babies Childcare
21 Actron 0200 34 Carpark Enclosure Centre 10 + years 2018 2033 $20,400
SRA-133C- Main Southern Wing Childcare
22 Actron 0200 13 Southern Plant Area Centre 10 + years 2018 2033 $7,800
SRA-133C- Main Southern Wing Childcare
23 Actron 0201 13 Southern Plant Area Centre 10 + years 2018 2033 $7,800
SRA203C-
24 Actron 0200 20 Southern Plant Area Kitchen area Childcare Centre 10 + years 2018 2033 $12,000
25 Actron WRC-26AS 2.5 Southern Plant Area Server Room Childcare cente 10 + years 2018 2033 $1,500
LVUM7286V
26 LG C 21 Rear Back of Shop Upstairs Office Accoras 8-10 + years 2007 2023 $18,900
LVUM7286V
27 LG C 21 Rear Back of Shop Upstairs Accorras Office 8-10 + years 2007 2023 $18,900
28 Hitachi RUA-15HS 30 Rear Back of Shop Dulux Balance 8-10 + years 2007 2019 $27,000
29 Hitachi RUA-10HS 20 Lower Level roof Dulux Front 8-10 + years 2007 2023 $18,000
Totals $211,200 $339,080

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8. REALSERVE SITE PLAN

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9. QUALIFICATIONS & EXCLUSIONS
Although we will undertake as thorough and detailed an inspection as possible, our investigation and report will
be subject to the following standard limitations.

 Parts of the building built in, covered up or otherwise made inaccessible during construction, alteration or
fitting out, have not been inspected. This generally relates to ceiling voids, wall cavities and service risers.
Therefore, we are unable to comment as to whether such elements are free from defect or infestation.
 Areas or building components that are covered up or permanently enclosed will not be inspected. Where risks
exist in this regard, we will point these out and recommend opening up of the structure or fabric where this is
merited to inspect such areas.
 We have not undertaken any work of a specific engineering nature, such as engineering calculations, structural
analysis, testing or measurements as the report reflects our interpretation of the condition of the building as
apparent from the inspection.
 Building services have been visually inspected where exposed to view only. No internal inspections have been
undertaken of plant, equipment and machinery or where services are covered up or hidden by the building
structural element or finishes. Building services have not been tested and no design calculations have been
undertaken. If it is though that a specific service or building element requires further testing or inspection, we
will advise of this requirement. Further fees may be chargeable for these services if the visual inspection
identifies areas of concern that require further intrusive investigation.
 The property has not been inspected specifically for termite infestation and we would only report on such if
termite evidence was apparent during our inspection.
 Where a variety of multiple areas exist (e.g. tenancies, units, rooms, etc.), a random selection and sample of
each area will be inspected and used for the basis for this report. Those areas inspected will be deemed to be
representative of the balance.
 We have not prepared an exhaustive list of those minor defects or imperfections thought not to have a material
bearing upon the proposed interest.
 This report is not a certification, a warranty or guarantee and has been scoped in accordance with the
instructions given and the time allowed.
 The scope of the report is described within the body of this proposal and disciplines not specifically mentioned
are excluded from this report.
 The report has been prepared for the benefit of the instructing entity only. This report is not to be reproduced,
in whole or in part, without the express written authorisation of CBRE. The report may not be relied upon by
any third party.
 No allowance has been made to provide vertical access equipment to allow for safe inspection of the roof. If
there is a requirement for vertical access equipment, the cost will be charged in addition to the agreed fee. A
15% surcharge will apply.
 In regard to the services portion of this report, we have assumed that the services associated with the existing
internal fit out are the tenant’s responsibility and as such are not to be included within our review.
 Within this report, unless otherwise stated, we have commented on the condition of the property at the time of
our inspection only, and we cannot guarantee that the property may be subject to damage or other adverse
event following our inspection.
 Our investigation and report does not waive or relieve the project design team or contractor from their statutory
and design obligations under their respective contracts.
 Where noted, timeframes relate to short-term (1-2 years), midterm (3-5 years) and long-term (6-10 years).

CBRE Building, Depreciation & Cost Consultancy

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10. TERMS & CONDITIONS
In this Attachment: Company, all obligations by the Company to the
Company means CBRE (A) Pty Limited ACN. Instructing Party cease to exist and, furthermore, all
intellectual property that the Company receives from the
GST and Tax Invoice have the meanings given to those Instructing Party prior to the engagement being
terms in A New Tax Systems (Goods and Services) Tax suspended becomes the property of the Company and,
1999 unless otherwise agreed, the Company shall be free to
1. Instructing Party’s Obligation to Assist use this information and value the property for any
other party.
The Instructing Party agrees to provide all reasonable
assistance to the Company to allow the Company to 4. Return of Document
complete this instruction including providing all relevant The Instructing Party agrees that the Company keep all
documents and/or information the Instructing Party papers and documents until the Agreed Fee and
knows or ought reasonably to know will so assist the disbursements have been paid.
Company, at its own cost and in a timely fashion,
including but not limited to: 5. Intellectual Property
- all information which the Company requests from Any pre-existing intellectual property, which is
time to time for the performance of the Services; recognised under any law, Copyright in any written
work, drawing, compilation, table, graph and similar
- reasonable access to the property/properties and to
works created by or on behalf of the Company belongs
the Instructing Party’s premises (if relevant) for the
to the Company.
purpose of providing the Services.
The Instructing Party warrants that such information is 6. Variation
complete and accurate. The Terms of Engagement may only be varied in writing
by mutual agreement of the parties.
2. Fees and Disbursements
The Company is entitled to be paid the Agreed Fee and 7. Privacy Act
the disbursements by the Instructing Party in Any personal information collected and held by the
consideration of the Company performing the Services. Company in the course of providing the Services will
The Company may invoice the Instructing Party for its only be used for purposes relating to the provision of
reasonable out of pocket expenses incurred by the services. More information about the manner in which
Company in the provision of the Services including the Company handles personal information is
travel, subsistence and document handling costs such described in its privacy policy.
as courier charges. 8. Assumptions and Reliance
The Instructing Party must pay each Tax Invoice issued The Instructing Party acknowledges that the Company:
to it by the Company within 14 days of the date that the (a) will not verify the accuracy or completeness of
Instructing Party issues the Tax Invoice. A late payment information or materials provided to the Company;
fee of 2% per month (or part thereof) for any overdue
amount may be charged by the Company. (b) the Services and any materials produced in the
course of providing the Services are for the benefit
All legal and debt recovery costs which the Company of the Instructing Party and may not be relied on by
may incur in recovering overdue account balances from any other party.
the Instructing Party will be fully recoverable from the
Instructing Party as and when incurred. 9. Indemnity

3. Suspension of Services The Instructing Party indemnifies the Company against

any liability, expense, loss, damage and cost in
The Company has the right to suspend its engagement connection with a breach of the warranty given to the
where the Instructing Party fails to pay any invoiced fees Company in paragraph 2.
and disbursements within the required time frame, by
giving the Instructing Party seven days’ notice in writing. 10.Termination
Should the engagement be suspended by the Either party may terminate the Terms of Engagement by
giving the other party at least 30 days’ notice.

CBRE Building, Depreciation & Cost Consultancy

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c) is confidential (except where required to be
11.Current
disclosed by law).
Any materials including reports prepared in the course
18.Limitation of Liability
of the Services are current at the date of the production
of the materials or date of report. The Company accepts no responsibility or liability
whatsoever for the Services unless full disclosure of all
12.GST information likely to affect the valuation has been
Unless otherwise stated, all amounts payable are made.
exclusive of GST. GST is payable by the Instructing Conditions, warranties or other rights for the Instructing
Party in addition to the Agreed Fee, disbursements and Party's benefit may be implied or given in respect of
any other moneys payable under the Terms of these terms and conditions by Competition and
Engagement and the GST is payable at the same time Consumer Act 2010 (CT), the Fair-Trading Act 1986
as the amounts under the Company’s Tax Invoice is (NZ) (as relevant) or other laws. Where it is not lawful
payable. or possible to exclude them, then those conditions,
13.Survival warranties or other laws apply but only to the extent
required by law.
Paragraphs 2 & 10 survive termination of the Terms of
All other implied conditions, warranties and rights
Engagement.
together with any implied by custom or other
14.Assignment circumstances are excluded.
The Instructing Party may not assign, novate, The Company limits its liability for breach of any
subcontract or transfer any part of this Terms of implied condition, warranty or right to the extent
Engagement. allowed by law. Subject to the qualifications in the
Competition and Consumer Act 2010 (CT) or in other
15.Application of clause
laws, the Company's liability for any breach of any such
This paragraph 16 does not exclude or modify any implied condition, warranty or right is limited in the
condition or warranty implied into this Agreement, or case of services supplied to one of the following as the
any liability imposed on the Company, by law Company may determine:
(including under the Trade Practices Act 1974 (CT)), if
- the supplying of the Services again; or
to do so would contravene the law or make any part of
this paragraph 16 void. - the payment of the cost of having the Services
supplied again.
16.Exclusion of implied conditions and warranties
Subject to the provisions of this clause and despite any
Subject to paragraph 16 the Company: implication arising from any other clauses of this
(a) excludes any condition or warranty implied into this agreement, the Company is not liable in contract or in
Terms of Engagement; and tort for or in respect of any direct or indirect loss or
(b) limits its liability for breach of any implied condition damage suffered by the Instructing Party or any other
or warranty that it cannot exclude to resupplying the person arising out of any breach or other act or
Services, or paying the cost of having those services omission in connection with its engagement, or for the
resupplied. acts or omissions, or any loss caused thereby, of the
environmental consultant or any other sub-contractors
17.Entirety of Terms of Engagement used in the course of providing the Services.
These Terms of Engagement: Indirect loss includes, without limitation, any financial
a) constitute the entire understanding and agreement loss or expense including where caused by loss of use
of the parties relating to the matters dealt within in; or of goodwill, loss of data or delay in the performance
of any obligation together with any expense incurred in
b) supersedes and extinguishes all prior agreements,
connection with that loss or in litigation or attempted
statements, representations and understandings
litigation of that loss.
whether verbal or written between us relating to
and the Services;

CBRE Building, Depreciation & Cost Consultancy

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CBRE Building, Depreciation & Cost Consultancy