Chinchilla Qld Invest in the resources BOOM !! - In the Heart of The Surat Basin

Invest in the resources BOOM !!

              Chinchilla Qld

       In the Heart of The Surat Basin

                 Helping you to find the Perfect Investment Balance

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 20 – 50 years with forecasters
predicting 250 years ).

     Dan Molloy, CEO Real Estate Institute of Qld

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 2031.

                   Mark Fitzgerald, CEO Chinchilla Commerce & Industry

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

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 2013 - 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.

Helping you to find the Perfect Investment Balance

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

Helping you to find the Perfect Investment Balance

Development Location

Cnr Lloyd Rd & Price St

Estate Plan

     Helping you to find the Perfect Investment Balance

Typical Facades

Classic

               Plantation

Typical Facades

            Coastal

                                              Urban

Helping you to find the Perfect Investment Balance

Typical Floor Plans

Typical Floor Plans

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.

Current Rentals Available

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.

What Happens when these come to town?

Helping you to find the Perfect Investment Balance

Something for You to Think About...

The majority of Australians will retire with an income of $14,900-

Tony Freese                             Margaret Jones
         Mob. 0432 326 622                          Mob. 0431 775 581

        Suite 1, 616 Ruthven Street, Toowoomba Qld 4350
              Ph. (07) 4630 3817     Fax. (07) 4630 3820
tony.freese@harcourts.com.au or     margaret.jones@harcourts.com.au
                  www.margarettony.harcourts.com.au

                                   Helping you to find the Perfect Investment Balance