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

1

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)

2

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

occupancy 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.

9

Ascot Village

10

Caloundra Central

11

Gladstone City Central

12

• 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

Development Summary

13

Toowoomba Central Plaza

14

Cairns Central Plaza

15

Rockhampton Winter Garden Central

16

Robina Central Plaza

17

Lindsay Leeser

July 2012

Accor’s Apartment Network in

Australia & New Zealand

19

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

20

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

on 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

22

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)

23

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

owner 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

on 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

32