AMENDED 16.11.16 JSA VALUATION EVIDENCE ZHENG $4,560,000 · • UCPR 2005 Part 31, Division 2,...

VALUATION REPORT

Compulsory Acquisition Lots 63 & 64 DP4612

269 Parramatta Road, Haberfield

As at 18 December 2015

Land and Environment Court Proceedings No.16/154352

Under Instruction From

Anthony Perkins Partner

Project Lawyers Pty Ltd Level 21

133 Castlereagh Street Sydney NSW 2000

Matter

D W Zheng v Roads and Maritime Services

Prepared by John Sanidas B.Comm AAPI CPV

Valuation Director NSW Valuer No.3818

C/- JSA Retail Valuers & Property Consultants Pty Ltd

5/8 Water Street Sans Souci NSW 2219

9 583 9671 0418 18 18 21

PO Box 42 Sans Souci NSW 2219

Dated 16 November 2016

Dan Wei Zheng v RMS 269 Parramatta Road, Haberfield 16 November 2016 2 of 67


Contents Page

1.00 GLOSSARY 5

2.00 SUMMARY OF ASSESSMENT 5

3.00 REPORT SUMMARY 5 3.01 Background 5 3.02 Instructions Defining the Scope of this Report 6 3.03 Public Purpose 6 3.04 Acknowledgement 6 3.05 Facts Matters & Assumptions 7 3.06 Information Source 7 3.07 Acquiring Authority 7 3.08 Former Owner 7 3.09 The Valuer General’s Determination 8 3.10 Date of Resumption and Valuation 8 3.11 Date of Inspection 8

4.00 BASIS OF CLAIM 8 4.01 Basis Of Claim – Land Acquisition (Just Terms Compensation) Act 1991 8 4.02 Pecuniary Interest Declaration 9

5.00 LOCATION 10 5.01 Physical Location 10

6.00 PROPERTY DETAILS 11 6.01 Title Details 11 6.02 Lot Description 13 6.03 Site Characteristics – Lot 63 DP 4612 13 6.04 Site Characteristics – Lot 64 DP 4612 14 6.05 Site Contamination 15

7.00 BUILDING DESCRIPTION 16 7.01 Construction 16 7.02 Building Services 16

8.00 ACCOMMODATION 17 8.01 Gross Lettable Area (GLA) 20 8.02 Permitted Use 21

9.00 BUILDING CONDITION AND UTILITY 22

10.00 LEASE 22

11.00 PARRMATTA ROAD MARKET OVERVIEW 22

12.00 PLANNING CONTROLS 23 12.01 Highest & Best Use 23

13.00 VALUATION PRINCIPLES 24

14.00 VALUATION METHODOLOGY 25 14.01 Basis of Valuation 25 14.02 Adopted Approach 25

15.00 DIRECT COMPARISON APPROACH 25 15.01 Adjustment Factors 26 15.02 Time Adjustment 26


15.03 Market Sales Evidence 30 15.04 Analysis of Sales Evidence 33

16.00 APPLIED SALES ANALYSIS TO DETERMINE THE MARKET VALUE OF THE LAND 34

17.00 VALUATION RATIONALE 34

18.00 RMS SALES EVIDENCE 34

19.00 INVESTMENT INCOME CAPITALISATION APPROACH 36 19.01 Market Rental Evidence “As Is” 36 19.02 Adopted Yield or Capitalisation Rate 39

20.00 MARKET VALUATION CONCLUSIONS 46

21.00 VALUATION 47

22.00 TERMS AND CONDITIONS 48 22.01 General Terms and Conditions 48

ANNEXURES

Tab A - Letter of Instruction

Tab B - Government Gazette

Tab C - John Sanidas CV

Tab D - Schedule 7 Expert Witness Code of Conduct

Tab E - Deposited Plan


1.00 GLOSSARY The Just Terms Act:

The Land Acquisition (Just Terms Compensation) Act 1991 (NSW)

The Acquiring Authority: Roads & Maritime Services

The Council: Ashfield Council

Date of Assessment: 18 December 2015

Date of Resumption: 18 December 2015

The Owner of the Land: D W Zheng

The Land: Lots 63 and 64 in Deposited Plan 4512 A total area of 1,353.8 square metres

2.00 SUMMARY OF ASSESSMENT I have had regard to the provisions of the Just Terms Act. I have assessed the following compensation for all heads of claim except for Disturbance in relation to the compulsory acquisition of the Land at: $4,560,000 (FOUR MILLION FIVE HUNDRED & SIXTY THOUSAND DOLLARS) Apportioned as follows: Section 55(a) Market Value ……………………………………………….……………..$4,560,000 Section 55(b) Special Value ................................................................................................. Nil Section 55(c) Severance ...................................................................................................... Nil Section 55(d) Disturbance .............................................................................. To be Assessed Section 55(e) Solatium ......................................................................................................... Nil Section 55(f) Increase or decrease in the value of other land ...............................................Nil

3.00 REPORT SUMMARY 3.01 Background The subject proceedings were commenced on 17 February 2016. On the 18th December 2015 the RMS compulsorily acquired the whole of the land described as Lots 63 and 64 in Deposited Plan 4612, having a land area of 1,353.80 square metres and known as 269 Parramatta Road, Haberfield, NSW, 2045 (the Land). The lots comprising the Land are all contiguous Lots.


The Acquisition Notice was published in the NSW Gazette on 18 December 2015 (Date of Acquisition).

3.02 Instructions Defining the Scope of this Report I was instructed by Project Lawyers, on behalf of the former owner to prepare a valuation report advising on the market value of the land in accordance with the provisions of the Land Acquisition (Just Terms Compensation) Act 1991. I have prepared my report based on the Australian Property Institute (API) and the Property Institute of New Zealand (PINZ) Australia and New Zealand Valuation and Property Standards (January 2012, 7th edition). A copy of my Letter of Instruction is provided at Tab A.

3.03 Public Purpose The Acquisition Notice identifies the Land was acquired for the purposes of the “Roads Act 1993”. I have sourced the WestConnex website which shows the subject property is affected by the M4 East (Homebush Bay Drive to Parramatta Road) and City West Link. The M4 East will extend the existing M4 Motorway with two new 5.5 kilometre tunnels, three lanes in each direction, from Homebush to Haberfield. The extension will reduce the bottleneck at the end of the M4, saving travel time for motorists and removing cars from local streets. It will provide a bypass of Parramatta Road and a connection to the City West Link. The M4 East connects to work already underway on Stage 1, the widening of the existing M4 Motorway to four lanes in each direction from Church Street, Parramatta to Homebush Bay Drive, Homebush. Key features of the M4 East: • Twin tunnels providing three lanes in each direction with capacity to carry more than 67,700 vehicles per day; • Connections to the M4 East at Concord Road and improved access to the existing M4 at Homebush Bay Drive will

increase reliability for through traffic; • Surface road improvements for local residents at Patterson St, Concord and Wattle Street, Haberfield, including new,

wider footpaths and street scaping; • Connections to Parramatta Road, east of Bland Street, Ashfield and to City West Link (Dobroyd Parade), east of

Ramsay Street; • Provision for Stage 3 M4 - MS Link ramps on Wattle Street; • Due to open to traffic in 2019.

3.04 Acknowledgement I have read Part 31 of Division 2 of Uniform Civil Procedure Rules 2005 and Schedule 7 of the Uniform Civil Procedure Rules 2005. I understand my obligations to the Court and agree to abide by the rules in Part 31 and Schedule 7 (attached at Tab D).


3.05 Facts Matters & Assumptions The facts and assumptions upon which this report proceeds are set out in the body of this report. In arriving at my opinions, I have relied on my knowledge and experience as an expert qualified valuer over a period of 20 years. I have set out my qualifications and experience in my CV, which is attached as Tab C. 3.06 Information Source In coming to my opinion, I have been provided with and considered the following documents:

• Letter of Instruction From Project Lawyers dated 26 September 2016

• Class 3 Application, dated 17 February 2016

• Valuation Report by Walsh & Monaghan (VG), dated 18 December 2015

• Client Affidavit of Danielle Zheng, dated 3 August 2016

• Statement of Evidence of David Haskew, dated 19 September 2016

• Joint Town Planning Expert Report, dated 23 September 2016

• Annexure 2 Class 3 Usual Directions at First Directions Hearing

• LEC Joint Expert Report Policy

• LEC Conference of Expert Witnesses Policy

• UCPR 2005 Part 31, Division 2, Subdivision 2 – Expert Witnesses Generally

• UCPR 2005 Schedule 7, Expert Witness Code of Conduct

• Government Gazette on 18tth December 2015 at page 4184

• Title Searches

• Deposited Plans

3.07 Acquiring Authority Roads and Maritime Services

3.08 Former Owner Dan Wei Zheng


3.09 The Valuer General’s Determination The Valuer General has determined compensation in the amount of $3,635,000 for market value and $210,711 for disturbance. Total compensation sum $3,845,711.

3.10 Date of Resumption and Valuation

18 December 2015 3.11 Date of Inspection 18 March 2016

4.00 BASIS OF CLAIM 4.01 Basis Of Claim – Land Acquisition (Just Terms Compensation) Act 1991 The Just Terms Act provides a statutory entitlement to compensation upon the acquisition of land. Being a compulsory acquisition for a public purpose this claim is therefore required to be assessed under the Act.

Part 3 Division 4 of the Just Terms Act sets out those matters to be considered in determining the amount of compensation. Some of the key provisions of this division are set out as follows:

Section 54 The amount of compensation to which a person is entitled under this part is such amount as, having regard to all

relevant matters under this part, will justly compensate the person for the acquisition of the land. The relevant matters to be considered in determining amount of compensation comprise:

Section 55 In determining the amount of compensation to which a person is entitled, regard must be had to the following matters only (as assessed in accordance with this Division): a) the market value of the land on the date of its acquisition;

b) any special value of the land to the person on the date of its acquisition;

c) any loss attributable to severance; d) any loss attributable to disturbance;

e) solatium; and


f) any increase or decrease in the value of any other land of the person at the date of acquisition which adjoins or is severed from the Acquired Land by reason of the carrying out of, or the proposal to carry out, the public purpose for which the land was acquired.

4.02 Pecuniary Interest Declaration I advise that I am authorised under the relevant laws of NSW to practice as a Valuer. I have had relevant continuous experience in the valuation of property similar to the Land. I confirm that I do not have a pecuniary interest that could conflict with the proper valuation of the Land. I advise that this position will remain unchanged for the duration of these proceedings and apply to both the Applicant and Respondent.

This executive summary must be read in context of the full valuation report attached. All comments, terms and conditions contained in the attached full report relate directly to this executive summary.


5.00 LOCATION

5.01 Physical Location The Land is situated on the northern side of Parramatta Road, on the north eastern corner of Wolseley Street. Dual vehicular and pedestrian access is provided from Wolseley Street. The Land is 100 metres west from signalised traffic intersection of Wattle Road & Frederick Street and Parramatta Road or three properties west of that intersection. The Land lies within a commercial and retail strip of Parramatta Road that benefits from particularly high volumes of traffic. Situated 100 metres west from what was First Choice Liquor Haberfield on the same side of the Street. The Bunnings Warehouse Haberfield store is 180 metres diagonally opposite the Land. Haberfield is a suburb in the Inner West of Sydney. Haberfield is located 9 kilometres west of the Sydney central business district in the local government area of the Municipality of Ashfield. Location Map


Source: Google Maps

6.00 PROPERTY DETAILS 6.01 Title Details Prior to acquisition, the Land was in the ownership of Dan Wei Zheng. The Land is described as all that piece or parcel of land situated at Haberfield in the Local Government Area of Ashfield, Parish of Concord, County of Cumberland being the land in Lot 63 & 64 DP4612 as detailed in the following title searches.


Land and Property Information Division

ABN: 84 104 377 806

GPO BOX 15

Sydney NSW 2001

DX 17 SYDNEY Telephone: 1300 052 637

TITLE SEARCHTitle Reference: 9390-205

LAND AND PROPERTY INFORMATION NEW SOUTH WALES - TITLE SEARCH ------------------------------------------------------------

FOLIO: AUTO CONSOL 9390-205 ------

SEARCH DATE TIME EDITION NO DATE ----------- ---- ---------- ---- 28/4/2016 8:37 PM 1 24/5/2000

LAND ---- LAND DESCRIBED IN SCHEDULE OF PARCELS LOCAL GOVERNMENT AREA ASHFIELD PARISH OF CONCORD COUNTY OF CUMBERLAND TITLE DIAGRAM DP4612

FIRST SCHEDULE -------------- ROADS AND MARTIME SERVICES (RA AK100525)

SECOND SCHEDULE (1 NOTIFICATION) --------------- * 1 AK100525 LAND IS REQUIRED FOR ROAD PURPOSES

NOTATIONS --------- NOTE: THE CERTIFICATE OF TITLE FOR THIS FOLIO OF THE REGISTER DOES NOT INCLUDE SECURITY FEATURES INCLUDED ON COMPUTERISED CERTIFICATES OF TITLE ISSUED FROM 4TH JANUARY, 2004. IT IS RECOMMENDED THAT STRINGENT PROCESSES ARE ADOPTED IN VERIFYING THE IDENTITY OF THE PERSON(S) CLAIMING A RIGHT TO DEAL WITH THE LAND COMPRISED IN THIS FOLIO. UNREGISTERED DEALINGS: NIL

SCHEDULE OF PARCELS ------------------- LOTS 63-64 IN DP4612.

*** END OF SEARCH ***

PRINTED ON 28/4/2016

* ANY ENTRIES PRECEDED BY AN ASTERISK DO NOT APPEAR ON THE CURRENT EDITION OF THE CERTIFICATE OF TITLE.WARNING: THE INFORMATION APPEARING UNDER NOTATIONS HAS NOT BEEN FORMALLY RECORDED IN THE REGISTER.

1


6.02 Lot Description

Description Deposited Plan 4612 Area m2 (Lot 63) 269 Parramatta Road, Haberfield

676.64

(Lot 64) 269 Parramatta Road, Haberfield

676.64 Total Area 1,353.2

6.03 Site Characteristics – Lot 63 DP 4612

Site Characteristics – Lot 63 DP 4612 (Inside lot) Land Area: 676.64 square metre Frontage: Parramatta Road: 15.24 metres Boundaries: Northern: Rear 15.24 metres Eastern: 44.36 metres

Western: 44.36 metres

Floor Space Ratio: The Land is subject to 1.5:1 Potential Floor: 1,014.96 square metres Space Area: Height Limit: The Land is subject to a 10-metre height limit Deposited Plan: The Deposited Plan shows a total site area of approximately 676.64 m². I have adopted the

area shown in the deposited plan for the purposes of calculating the site area and the potential floor space area.

Flooding: The site is not considered to be at risk of flooding. Site Characteristics: An inside lot with no driveway access from Parramatta Road. Former service station site in

good condition with vehicular and pedestrian access from Wolseley Street. Improvements: Comprised a disused service station site which has been converted to a purpose built retail

showroom warehouse complex selling marble and granite kitchen and vanity bench tops as well as garden statues, lawn ornaments and water features. The improvements, comprised an open plan retail showroom, reception area, 2 storerooms, male and female toilets to the rear of the premises. An attached purpose built warehouse/storage unit, with 5.5 metre internal clearance, suitable for fork-cliff use was built to the north eastern boundary. The room stored multiple slabs of marble and granite. The Land had a loading dock area with good access and hardstand area for additional stock display. A main overhead canopy provided further retail display area fronting Parramatta Road. This lot however, does not have vehicular or pedestrian access but accommodates a large portion of the main built improvements referred to herein.


6.04 Site Characteristics – Lot 64 DP 4612

Site Characteristics – Lot 64 DP 4612 (Corner lot) Land Area: 676.64 square metre Frontage: Parramatta Road: 15.24 metres Boundaries: Northern: Rear 15.24 metres Eastern: 44.36 metres

Western: 44.36 metres Floor Space Ratio Limit: 1.5:1 Potential Floor: 1,014.96 square metres Space Area: Height Limit: The site is subject to a 10-metre height limit Deposited Plan: The Deposited Plan shows a total site area of approximately 676.64 m². I have adopted the

area shown in the deposited plan for the purposes of calculating the site area and the potential floor space area.

Flooding: The site is not considered to be at risk of flooding. Site Characteristics: An outside corner lot with driveway access from Wolseley Street, off Parramatta Road.

Former service station site.


Improvements: Comprised a disused service station site which has been converted to a purpose built retail

showroom warehouse complex selling marble and granite kitchen and vanity bench tops as well as garden statues, lawn ornaments and water features. The improvements, comprised an open plan retail showroom, reception area, 2 storerooms, male and female toilets to the rear of the premises. An attached purpose built warehouse/storage unit, with 5.5 metre internal clearance, suitable for fork-cliff use was built to the north eastern boundary. The room stored multiple slabs of marble and granite. The Land had a loading dock area with good access and hardstand area for additional stock display. A main overhead canopy provided further retail display area fronting Parramatta Road. This lot however, does have vehicular or pedestrian. The lot however, predominately comprised handstand access circulation area with two drive way points from Wolseley Street allowing vehicular and pedestrian access.

6.05 Site Contamination I have assumed that there are no surface or subsurface problems including, but not limited to, toxic or hazardous waste, building material hazards (e.g. asbestos), in or on the property that may adversely affect its potential use and/or its marketability for sale.


7.00 BUILDING DESCRIPTION The improvements comprised, an open plan retail showroom, reception area, administration area, 2 store rooms, male and female toilets to the rear of the premises, an attached, warehouse/storage unit, with 5.5 metre internal clearance to the north eastern boundary, with an attached secondary canopy. Including a loading dock area, with good access and a hardstand area for on site car parking for 8 cars. A main overhead canopy provided further retail display area, fronting Parramatta Road. Dual vehicular and pedestrian access to the Land, was available from Wolseley Street.

7.01 Construction

Floors

− Slab on ground with tiled floor coverings

External Walls

− Face brick and block work

Internal Walls

− Rendered painted masonry walls and stud frame

Doors and Windows

− Aluminium sliding doors / windows

Roof

− Flat metal deck roof

7.02 Building Services Amenities: Male and female amenities are provided to the ground floor


8.00 ACCOMMODATION

Corner Wolseley Street and Parramatta Road Driveway access from Wolseley Street Drive access No. 2 from Wolseley Street Commercial exposure to main traffic hubs


Warehouse & Amenities


Showroom display area no.1 Showroom display area no. 2 Product hardstand area Entry to retail showroom Shop front with attached overhead canopy


8.01 Gross Lettable Area (GLA)

I have not been provided with a formal survey or building plan. As part of my preparation of this report, I took on-site building measurements during my inspection of the Land. These measurements showed 544 square metres of gross lettable area (GLA) as detailed below. I have confirmed my measurements with Six Maps, which supports my GLA measurement of 544 square metres. I have since compared this to measurements referenced in other reports. I observed in the Lunney Watt Report dated 18 June 2015 by Angelo Konidaris, the GLA was recorded as 505 square metres, including 165 square metre of the main canopy area. I observed in the Statewide Valuation Report dated 16 August 2015, by Aristides Vasiliou for the Applicant, the GLA was identified as 560 square metres. The VG’s report noted a GLA of 512 square metres including the main awning of 149 square metres. For an abundance of caution given the discrepancies, for the purposes of this valuation, I have adopted 540 square metres as GLA including the awning of 158 square metres.

I reserve the right to amend my valuation in the event that a formal survey of areas determines lettable areas that differ from those adopted herein. The description of the area is detailed below.

Description of Lettable Area per m² Per m²

Main Retail Showroom as modified by DA approval 221

Attached high clearance warehouse as approved 126

Main structural canopy

158

Smaller attached Canopy

35

Total Improvement area 540

Surrounding hardstand loading dock area with provision of 8 car parking spaces 813.2

Total Area 1,353.20


8.02 Permitted Use There is no evidence at the date of acquisition to suggest that the use of the Land was contrary to law. Below are details provided to me by the Applicant regarding the use and the approval for additions and alterations carried to the Land. Consent No. 197/00A Date of Determination: 18 October 2000 Approval Officer: Michelle Forwood

Change of use from garden centre to tile display and finished stone products display showroom; • Alterations and additions to the existing store buildings; • Internal alterations to office and administration areas; • Provision of eight car parking spaces.


9.00 BUILDING CONDITION AND UTILITY I estimate the original built improvements were constructed circa 1970’s and overall are considered to be in reasonable condition for their age having regard to the building upgrade over time on floor wall and ceiling finishes The improvements were subject to a development application that saw additions and alterations made over years post the 2000 development consent. The positioning of improvements, on the site maximises the site’s use for the display of retail granite and ornament products, which includes on site loading dock and customer car park. Overall the improvements remain well suited to the retail showroom use. Alternative occupiers of such accommodation could include other showroom users, such as bathroom, plumbing or car audio type retailers (subject to Council approval). The building could be adapted for alternate tyre outlet centre, subject to approval. Investigations with Council have not revealed any notices, which are currently issued against the property. Expert opinion has not been sought in respect to the building structure or the plant and equipment, however our limited enquiries have not revealed any major defects. I have assumed that the property complies with the appropriate statutory, building and fire safety regulations. I have also assumed that there is no timber infestation, asbestos or other defect and have made no investigations for them nor have we undertaken a structural survey or tested the building services.

10.00 LEASE I have not been provided with any rental lease agreement between the occupant, Dawa Stone Pty Ltd and the registered proprietor. I have assumed an equitable lease existed between the Applicant and the occupant, which was a related family entity. I have not been able to assess that party’s rent to assess if the rent if any, being paid, was a market rent. I understand the occupant on site is a relative of the registered proprietor and maybe occupying the Land based on a license agreement. Any internal agreement may or may not reflect a market rent. In determining a market rent, I have relied on my own market rental evidence to assess what marker rent would have applied to the Land.

11.00 PARRMATTA ROAD MARKET OVERVIEW As at the date of acquisition, the area is well serviced by an extensive road network including arterial roads such as Parramatta Road, Homebush Bay Drive and the M4 Motorway, which provide efficient access to parts of the Sydney metropolitan area and a link to other major roads, however all are high volume flow roads during most periods of the day. Parramatta Road features a diverse range of properties including freestanding buildings, showroom and car yard dealerships, all of various sizes, ages, conditions and utility, together with retail and fast food developments. Parramatta Road is dominated by automotive retail property which is predominantly characterised by sites with high ratios of open vehicle display area to total site area and, in my experience, they subsequently tend to trade on tight yields. My investigations of the market and enquiries made with local commercial agents cognisant with the area indicate that the current demand for commercial accommodation remains very strong especially from owner occupiers, and property investors. Given the established nature of the business and the long history of the Land the Land would appeal to the investment market segment and owner occupier market. The stone and garden outlet operating from the site appeared to be performing well based on my inspection of the Land. The Land enjoyed on site customer car park with dual site ingress/egress from Wolseley Street.


Given the purpose of this report, I have disregarded the perceived potential future impact of the Westconnex project in assessing the Market Value of the Land.

12.00 PLANNING CONTROLS I have been provided with and considered a copy of the Statement of Evidence of expert town planner Mr David Haskew, dated 19 September 2016. I have relied upon the conclusions in that report for the purposes of determining the planning opportunities and constraints relating to the Land. I have also been provided and considered the joint planning report as prepared by Mr Haskew and Mr Rowan, the town planner, for the Respondent. The planning report agree on the following points which I have relied on:-

a) The subject Land was zoned under Ashfield LEP 2013 (‘LEP’) to Zone B6 –Enterprise Corridor.

b) The Land was subject to two principal development standards under the LEP, being a 1.5:1 FSR (‘floor space ratio’) and a 10m building height limit.

c) The Land comprised a site area of 1353.28m2, the maximum gross floor area permitted in compliance with the LEP development standard is 2029.9m2.

d) Land generally in Zone B6 along Parramatta Road, required redevelopment sites in the B6 zone to Parramatta Road to have a frontage width of 25m (except for alterations and additions to existing buildings) (Part C21, clause 3.2 Control 1). The control further states that variation may be considered for corner sites that have side street vehicular access.

e) The extent of floor space achieved in any development in the B6 zone would be determined by the nature of accommodation proposed, and its location on the land.

f) The floor space could be located below ground to maximise the FSR potential of the subject land without adding to building bulk.

g) Individual lots comprising the subject land could not be redeveloped for B6 purposes in isolation.

h) The subject site had a frontage to Parramatta Road in excess of the minimum requirement for 25m to enable its redevelopment for B6 permissible land uses.

i) There is more risk to achieving development consent for a proposal that did not comply with the

development standards compared to a development that does comply. 12.01 Highest & Best Use

In my opinion the highest and best use of the Land is the commercial redevelopment potential of the Land. This is consistent with the Applicant’s affidavit, that at some future point the Land was to be rezoned and possibly amalgamated with adjoining owner (to the east) for future redevelopment. In this regard, the site improvements become increasing irrelevant, in light of potential redevelopment.


In my opinion, in valuing the Land based on the highest and best use potentials, the best use, must reflect its potential economic cash flow and the legal probability of achieving that potential economic cash flow. In my experience purchasers, often consider how much to pay for a piece of land with the view to repay the purchase price within a certain time frame. This is based on their own level of financial capability. So purchasers are careful not to over pay, and vendors are careful not to undersell. Often the auspices of an auction campaign will ensure market value, where parties can compete freely to buy land on an equal footing. My sales referred to herein are such sales.

In determining the market value of the Land, it is necessary to identify the highest and best use of the Land ignoring the public purpose. Where it is debated that the Land has a greater value for a different use, from its existing use, the following criterion should be considered:

(a) Is the best use a legal use, within the planning and building regulations;

(b) Is the best use, within the realm of probability, which must be likely;

(c) Is the best use speculative, conjectural, unrealistic or improbable;

(d) The best use must be of a kind to come within the imagination of a hypothetical purchaser who

appreciates and understands all the problems involved in a change of use but is nonetheless confident that the problems can be overcome or solved; and

(e) The best use can be carried out within a reasonably short time. In my opinion, the highest and best use of the Land is the commercial redevelopment of the Land or those uses permitted in the B6 Enterprise Corridor zone. For example, under a B6 zone a commercial showroom development is permissible including hotel development, or a hospital as detailed in the planner’s joint report.

13.00 VALUATION PRINCIPLES I have considered the valuation principles and methodology, which should be applied in determining the amount of compensation for the Land, based on the Just Terms Act. The term “market value” is defined in s 56 (1) of the Just Terms Act, as meaning: ”… the amount that would have been paid for the land if it had been sold at that time by a willing but not anxious seller to a willing but not anxious buyer, disregarding (for the purpose of determining the amount that would have been paid).

a) any increase or decrease in the value of the land caused by the carrying out of, or the proposal to carry out, the public purpose for which the land was acquired; and

b) any increase in the value of the land caused by the carrying out by the authority of the State, before the land is acquired of improvements for the public purpose for which the land is to be acquired; and

c) any increase in the value of the land caused by its use in a manner or for a purpose contrary to law.


The common sense approach is to consider how a hypothetical purchaser would have informed itself as to the elements of value or risk. This being the formation of price adjustment in respect of land it sought to acquire. The advice sought may have included enquiries on town planning and environmental concerns, development consent guidelines, statutory or otherwise binding the Land, at the date of acquisition. This follows the advice the hypothetical purchaser would have received as at the date of valuation. The effect of that advice on the market value it would have been prepared to pay.

14.00 VALUATION METHODOLOGY In determining the market value of the Land, I have adopted two valuation approaches.

14.01 Basis of Valuation 1. Direct Comparison Approach

In relation to the appropriate valuation methodology and approach, comparable sales evidence, is the widely accepted method of determining the market value of the Land, for the purpose of the Just Terms Act.

The use of directly comparable market sales evidence is the preferred basis of assessment wherein all hypothetical purchaser assumptions, both positive and negative assumptions, are subsumed within the sale price. The consideration sum is then analysed, accordingly and adjustments made for any outlier sales. In this method, the sales evidence adopted, should be as proximate as possible to the Land to avoid significant or a large number of adjustments.

2. Investment Income Capitalisation Approach

The key approach to this method is that the adopted capitalisation rate is derived from the notional and passing yields indicated by investment sales evidence investments. The yield derived from comparable sales evidence subsumes to reflect any expectation of future growth in income and capital value.

I reiterate that the capitalisation approach is considered a secondary check method only and the primary approach remains as my Direct Comparison Approach.

14.02 Adopted Approach I have adopted the direct comparison approach as the principle valuation method. As a valuation check method I have adopted the investment capitalisation approach as the Land comprised improvements in good order.

15.00 DIRECT COMPARISON APPROACH The application of the comparable market sales evidence must have regard to the particular characteristics of the Land, as discussed earlier, in my report. I note, not all land has the same degree of advantage and disadvantage. So particular regard must be had to the circumstances of the Land and its positive and negative attribute. I have been careful to consider the degree, and number of adjustment factors, required to reflect the attributes of the Land. I have considered the underlying value of the Land using the direct market sales evidence approach. This approach compares the Land with other genuinely comparable land sales analysed on a rate per square metre of land area and also on a rate per square metre FSR.


In carrying out my investigations for this report, I have identified sales evidence close to the Land in Ashfield on the southern side of Parramatta Road and Haberfield, on the northern side of Parramatta Road. Generally, within the high-profile Bunnings intersection, along Parramatta Road & the Wattle Street/Frederick Street intersections. This is, in my opinion, the epicenter of the highest level of traffic in the area. In my opinion, my evidence sets the market parameters by which the value of the Land should be relied on. I have assumed that the purchasers is respect of each of the comparison sales were in a position to obtain independent legal and planning advice and were aware of all the advantages and disadvantages of the Land. Therefore the assessment of market value must be addressed by reference to the considerations of the ordinary prudent purchaser and what is reasonable from its position, having regard to ordinary business consideration of that person or persons.

15.01 Adjustment Factors To allow for the distinguishing features of the Land, I have relied on the following adjustment factors.

(a) Time 1.5%; (for market movement).

I have adopted a monthly rate 1.5% per month as a capital gain. I have based the rate on the resale of 536 Parramatta Road Ashfield, being proximate, with the Land. The reason why I have adopted this figure is because it is the mid point between .99% per month (lower range) based on the resale between the first and second sale and 1.89% (upper range) based on the resale between second and third sale. I have explained in detail below my calculation for time adjustment. I have relied on the resale of 2 properties. Each property resold 3 times. The other property I have relied on is 245 Parramatta Road Ashfield, being proximate, with the Land.

(b) Site configuration (corner location) and standalone development 15%; and (c) Location and site branding opportunity 15%.

In the present case, the superior location relative to the Wattle Street intersection and both the Parramatta Road and City Link traffic convergence, distinguishes the Land, from the other evidence. The other sales evidence are further a field from the Land. The other sales lack the same degree of site branding and access advantages of the Land due to the location.

15.02 Time Adjustment The sale at 536 Parramatta Road Ashfield is a property located on the southern side of Parramatta Road. It is across the road from the Land. It resold three times between 2008 and 2015 ranging from $825,000 to $1,755,000 based on RP data records.


Sale & Resale No.1 Sale Price Zone Sale Date GLA m2 Site Area m2 536 Parramatta Road, Ashfield 536 Parramatta Road, Ashfield 536 Parramatta Road, Ashfield

$1,755,000 $1,430,000 $825,000

B6 B6 B6

7 Sept 2015 6 Sept 2014 7 July 2008

410 410 410

440 440 440

Description: A basic detached dated single storey brick and metal clad showroom/factory warehouse on the corner of Page Avenue. Includes rear roller door access to workshop. Located opposite the subject property. Building area 410sqm. Comprising showroom/warehouse of 290sqm approx. with workshop/garage of 120sqm includes mezzanine storage. This sale equates to Sale No.1 $3,989m² of Site Area (Improved). Monthly Uplift 1.89% Sale No. 2. $3,250m² of Site Area (Improved). Monthly Uplift 1.00% Sale No. 3 $1,875m² of Site Area (Improved). Sale No.1 Capital Value $4,280 per m² GLA Sale No.2 Capital Value $3,487 per m² GLA Sale No.3 Capital Value $2,012 per m² GLA Comparison to Subject: Over all inferior to the subject property. Smaller site and building area compared with the subject property. Sets the lower limits of Site Value Rate applicable to the subject property given differing economies of scale and utility.


le & Resale No.2 Sale Price Zone Sale Date GLA m2 Site Area m2

Sale 1. 245 Parramatta Road, Ashfield Sale 2. 245 Parramatta Road, Ashfield Sale 3. 245 Parramatta Road, Ashfield

$7,436,890 $3,040,000 $700,000

B6 B6 B6

16 Dec 2015 3 June 2009 30 April 2003

700 700 700

2,024 2,024 2,024

Description: A detached single storey brick and metal roofed commercial complex of 700sqm on the corner of Wattle Road with hardstand area for customer car park. This sale equates to Sale No.1 $3,674m² of Site Area (Improved). Monthly Uplift 1.84% Sale No. 2. $1,502 m² of Site Area (Improved). Monthly Uplift 4.57% Sale No. 2. $345 m² of Site Area (Improved). Sale No.1 Capital Value $10,642 per m² GLA Sale No.2 Capital Value $4,343 per m² GLA Sale No.3 Capital Value $1,000 per m² GLA I have not had regard to the third sale as it comprised a sale to RMS and I have not reviewed a contract for sale to determine what, if any proportion of the sale price included disturbance compensation. Comparison to Subject: Similar location. Superior corner site. Smaller site and building area compared with the subject property. Sets the lower limits of Site Value Rate applicable to the subject property given differing economies of scale and utility. Capital gain between the first and second sale is 144.63%/78.48 months = 1.84% per month gain. The Capital gain between the first and second sale is 144.63%/78.48 months = 1.84% per month gain.


MARKET MOVEMENT Time Adjustment Calculations

536 Parramatta Road Ashfield 2014/2015 Jade Motor Cycles

Sale 1 Sale 2 No. Of No. Of No. Of Start Date End Date Days Years Months

6/09/14 7/09/15 366 1.00 12.00

Sale 1 Sale 2 Capital Gain % Increase over time Rate Per Month

$1,430,000 $1,755,000 $325,000 22.73% 1.89%

536 Parramatta Road Ashfield 2008/2014 Jade Motor Cycles

Sale 1 Sale 2 No. Of No. Of No. Of

Start Date End Date Days Years Months

7/07/08 6/09/14 2,252 6.17 74.04


$825,000 $1,430,000 $605,000 73.33% 0.99%

245 Parramatta Road Haberfield (RMS Acquisition) Choice Liquor Store Sale 1 Sale 2 No. Of No. Of No. Of

Start Date End Date Days Years Months

3/06/09 16/12/15 2,387 6.54 78.48


$3,040,000 $7,436,890 $4,396,890 144.63% 1.84%


245 Parramatta Road Haberfield Choice Liquor Store

Sale 1 Sale 2 Start Date End Date No. Of No. Years No. Months

Days 365 12

30/04/03 3/06/09 2,226 6.10 73.18

Sale 1 Sale 2 Sale Diff % Inc. over time Rate Per Month

$700,000 $3,040,000 $2,340,000 334.29% 4.57% Time Adjustment Conclusion I have adopted the mid point of 1.5%. The reason why I have adopted this figure is because it is the mid point between .99% per month (lower range) based on the first and second sale and 1.89% (upper range) based on the exchange dates of the second and third sale. The resale of 245 & 536 Parramatta Road Ashfield is proximate, with the same zoning. The sales subsume the same market conditions that would apply to the Land.

15.03 Market Sales Evidence I have considered the following transactions which have occurred in the immediate area as my primary evidence. I have relied on the same zoning and location, including site area to draw equivalence to the Land, where possible. The available sales reflect a range of land values between $1,560 per square metre overall to $2,513 per square metre FSR as set out in the following table.




15.04 Analysis of Sales Evidence From these transactions, I have concluded an underlying land value of $1,900 per square metre FSR. The market sales evidence close to the Land in Ashfield being sales 1-6 are directly comparable to the Land. Sales 7, 8 and 9 represent indirect but relevant evidence. RMS sales represent secondary evidence and have not been relied on, as key evidence. These are identified later in this report. The two key distinguishing features of the Land is the high volume of work bound, slow moving traffic, heading into work from say Homebush, east bound, seeking to access Sydney’s City west CBD link, 200 metres north east of the Land, resulting in branding advantage, and the corner advantage. I have carefully analysed the sales evidence, to reflect the underlying land values. Based on the above, I have assessed the market value of the Land at $4,560,000 as set out in the following schedule. Valuation Schedule

Lot Land Area $m2 FSR 500 Plus Corner Adjusted

Plus Location Adjusted FSR Land Value Land Value

m2 m2 inside lot Premium Rate FSR Premium Rate FSR Rate Overall $m2

Lot 64 676.64 $1,900 15.00% $2,185 10.00% $2,404 1.5 $3,605 2,439,456.36

Lot 65 676.64 $1,900 0.00% $1,900 10.00% $2,090 1.5 $3,138 2,123,356.40

1,353.28 $4,562,813


16.00 APPLIED SALES ANALYSIS TO DETERMINE THE MARKET VALUE OF THE LAND

Sales Analysis Applied to the Market Value Assessment of the Land

17.00 VALUATION RATIONALE My valuation rationale, in this case, is reflective of the type of end buyers, hypothetically, that would have shown interest to the Land. The market participants, in my opinion, would potentially have comprised, property investors, owner occupiers, developers, builders and specialised end users, for example suppliers of serviced apartment or student accommodation and or private day care, hospital related land users. Because the asset, under review, is not subject to a formal lease, it is appropriate to consider the value that would be applicable as a redevelopment site as being the highest and best use. For example, on a recent sale at 113 Dobroyd Avenue Haberfield, the land was acquired by a group of specialist doctors for redevelopment as a private day surgery hospital and medical centre. Those purchasers bid against other buyers within different market sectors, investors and developers, as reported to me by the selling agent. There, the medical sector, out bid other competing sectors, paying the highest price for land which when analysed, showed an FSR rate of over $2,000/m2. That property, without Parramatta road exposure, shared a very similar land profile to the Land. On this basis, in my opinion, any end user of the land would have regard to the maximum permissible floor space area that is achievable for the piece of land, and will pay a corresponding unit value, in return for that potential unit entitlement.

18.00 RMS SALES EVIDENCE I have not relied on the RMS sales evidence below as my primary evidence. However, I have relied on the RMS sales as secondary sales evidence. I have analysed the sales on a Site Area (Improved) basis which show rates vary between $3,140 /m² to $3,896 /m² Site Area (Improved) basis. This supports my determined market value based on both the direct comparable sales approach and the income investment capitalisation approach.


Sale Address Sale Price Sale Date Site Area m² FSR $/ m²

1 245 Parramatta Rd Haberfield $7,436,890 16/12/15 2,024 $2,450 Outside lot

2 152 Parramatta Rd Ashfield $3,532,761 17/12/15 929 $1,900 Inside lot

3 170 Parramatta Rd Ashfield $3,684,781 25/11/15 1,043 $1,766 Inside lot

Sale No.1

245 Parramatta Road Haberfield NSW 2045 Sale Price: $7,436,890 Sale Date: 16 Dec 2015 Zoning: Enterprise Corridor Area: 2,024m2 Owners' name: ROADS AND MARITIME SERVICES Sale equates to: $3,674 /m² Site Area (Improved)

Choice Liquor Sale No.2

152 Parramatta Road Ashfield NSW 2131 Sale Price: $3,532,761 Sale Date: 17 Dec 2015 Zoning: Enterprise Corridor Area: 929m2 Owners' name: ROADS AND MARITIME SERVICES Sale equates to: $3,802 /m² Site Area (Improved)

Sale No.3

170 Parramatta Road Ashfield NSW 2131 Sale Price: $3,684,781 Sale Date: 25 Nov 2015 Zoning: Enterprise Corridor Area: 1,043m2 Owners' name: ROADS AND MARITIME SERVICES Sale equates to: $3,533/m² Site Area (Improved)


19.00 INVESTMENT INCOME CAPITALISATION APPROACH As a check method, I have adopted the investment income capitalisation approach. This is based on the net market rental income of the Land at $234,696 and then capitalised at 5.5%. This shows a capitalised present value of $4,275,000. This approach generally supports the principal valuation method, based on the market rental and yield evidence, outlined below. 19.01 Market Rental Evidence “As Is” It is necessary to assist the Court with 4 key pieces of rental evidence to show why I have adopted my net rate per sqm of Site Area (Improved). Firstly, the Land comprises three key components. Firstly there was a large (updated) retail showroom area, an attached high clearance warehouse unit, and open level corner hardstand area with a main overhead awning with signage attached, fronting Parramatta Road. Dual vehicular and pedestrian access was available from Wolseley Street with an 800m2 hardstand area for customer carparking and loading dock provision. The Land and its site improvements afforded multiple and varied uses, including a car yard and showroom facility.

Lease No.1 Initial Gross Rent Zone Lease Date GLA m2 Site Area m2

150 Parramatta Road, Ashfield $104,292 per annum gross B6 Undisclosed 175 556.4

Description: Cars on the Park Long term tenant on monthly holdover provisions. A corner site. Good exposure to west bound traffic. Showroom and office building of approximately 175m². Substantially smaller site area. This rental equates to Site Area (Improved) $187 per m² gross. Comparison to Subject:

I have adopted a higher annual rate given the significantly smaller site area and inferior site improvements, which otherwise supports my adopted rental rate of $200/m2.


Lease No.2 Initial Gross Rent Zone Lease Date GLA m2 Site Area m2

163-165 Parramatta Road, Haberfield (Metro Petrol) $345,600 B6 25 -Oct-

16 400 1,144

Description: A detached service station workshop property with attached convenience store. Returning $288,000 per annum net. This rental equates to Site Rate (Improved) $/m²: $252 per m² net after allowing 20% for outgoings based on $288,000 per annum net commencement rent. Market reviews fixed 4% annual increases. Comparison to Subject: Post dated rental. Smaller site area. Dual street access. Inferior section of Parramatta Road with less vehicular traffic. Similar building area and site improvements Superior use, in part. I have made a downward adjustment of 28% to this gross rental to reflect a net rental value of $173 per m² of Site Area (Improved) to be applied to the Land or $200 per m² gross.

Lease No.3 Dealing No. AD769342 Date Initial Rent Term GLA m² Site Area m²

Premises 167 Parramatta Road Haberfield 1 January 2008 $298,000 5 years 1,300 I,637.7

Description: Comprises a basic warehouse showroom complex selling new and second hand commercial kitchen/restaurant equipment. Secondary access from Rogers Avenue is available. Improvements comprise a metal clad roof and hebal block work wall construction with several modest additions and alterations. Building area is reported by RP data as 1,300sqm. Supply of pre-owned restaurant and catering equipment. The rental achieved in the first transaction is also supported by the Metro Petrol lease. I have assessed a gross annual rent of $357,600 per annum assuming 20% outgoings to be applied to the net rent. I.e 298,000+59,600=Gross rent of $357,600. Rent Reviews: Fixed for term Outgoings: Payable by Tenant Options: 2X5 year options This rental equates to Site Rate (Improved) $/m²: $182m² p.a net or $218 p.a gross GLA: $229m² p.a net Comparison to Subject: I have made a downward adjustment of 32% to the gross annual rent to reflect the larger physical attributes of the Land. This supports a net rental value of $173 per m² of Site Area (Improved) to be applied to the Land.


Lease No.4 Dealing No. AJ7498 Date Initial Rent Term GLA m² Site Area m² 32-34 Parramatta Road, Croydon Dealing No.AJ7498

20 August 2014 $120,000 5 years 230 846

Description: A basic caryard site with smaller site area compared with the Land. Includes a 39 metre frontage to Parramatta Road with an open hardstand car display area. Includes an open plan office/showroom with rear workshop, with side access from Alfred street. Leased To JMIE Australia Pty Ltd Expires: 19/8/2019. Rent reviews: One-twelfth of the new yearly rent or 8.3% increase Outgoings: Payable by Tenant Options: 1X 5 year term This rental equates to Site Rate (Improved) $/m²: $141 m² p.a net GLA: $521m² p.a net 2014 Gross Annual Rent: $144,000 (i.e $120,000+20% outgoings) equates to $170 m² p.a gross of Site Area (Improved) basis 2015 Gross Annual Rent $160,000 (i.e $144,000+.083% increase) equates to $190 m² p.a gross of Site Area (Improved) basis Comparison to Subject: A much smaller site, which could not accommodate a head office style tyre centre. Significantly inferior accommodation. No vehicle or pedestrian access available from Parramatta Road. Comments: I have adopted a similar gross rate to support a net rental value of $173 per m² of Site Area (Improved).


Rental Summary I have tabled the following leasing evidence below: Premises Date Net Annual

Rent Site Area Site Area

(Improved) $/m2

GLA GLA $/m2

1 150 Parramatta Road Haberfield Undisclosed $84,000 556 151 750 112 2 163-165 Parramatta Road, Haberfield Current $288,000 1144 251 600 480

3 167 Parramatta Road Haberfield 1-Jan-08 $298,000 I,637.7 182 1,300 229 4 32-34 Parramatta Road, Croydon 20-Aug-14 $120,000 846 142 230 522

Market Rental Conclusions

When I analysed the leasing evidence above, the results show market rates range from $142/m² to $251/m² net based on Site Area (Improved) and between, $112 per m² to $522 per m² net based on (GLA). The rates vary due to differences in the quality of vehicular access, on site car parking, location/exposure to traffic, site and building area. I consider an appropriate market rent for the Land to be $173/m² p.a. net Site Area (Improved) and $440/m² p.a. net GLA. In my opinion, the Land has an inherent location advantage based on the long standing history of the Land as a retail showroom site. As such the Land enjoyed a historical use and permit advantage, and in my opinion, a hypothetical tenant would have had regard to this when considering the level of rent payable for the Land. In my opinion, the market rent would have been adopted as a minimum at $173 per m² net across the total 1,353.2m² Site Area (Improved), which equates to $19,558 per month ($234,696 per annum net). Or $200 per m² gross across the total 1,353.2m² Site Area (Improved), which equates to $22,553 per month ($270,640 per annum gross).

Adopted Market Rent Land Review Date Market Net Rent Building Area m2 GLA $/m2 Site Area m2 Site Rate $/m2

Retail Showroom

18 Dec 2015 $234,696 540 $434 1,353,2 $173

19.02 Adopted Yield or Capitalisation Rate I have identified the below sales as being relevant to the determination of the notional capitalisation rate that should be adopted in respect of the Land in my check valuation methodology.


Yield Evidence

Sale No.1 Sale Price Zone Sale Date GLA m² Site Area m² 57-61 Parramatta Road, Haberfield $2,220,000 B6 27 Nov 2015 210 740

Description: An irregular shaped corner allotment. Vehicular access is available from Haberfield Road. Main built improvements comprises a 175/m2 split level showroom/office complex with a 35m2 work shop to the lower ground. Total GLA 210m2. Includes, an uneven gradient sloping to Parramatta Road. Frontage of 23 metres to Parramatta Road with the potential of 25 on site cars. No vehicular access from Parramatta Road is permitted. Poor line of site. On the market for rent $102,000 per annum gross. Agent advised 2015 lease of 85,000 net + outgoings. Agent Kristian Morris. This sale equates to Site Area (Improved) $3,000 per m² Capital Value of GLA $10,571 per m² Yield of 3.86% net. Years Purchase 26.3 years Comparison to Subject: Sets the lower limit of the capitalisation rate in the area. I have adopted a higher yield to reflect the generally higher yields in the area.

Sale No. 2 Sale Date Sale Price Zoning GLA m2 Site Area m2 502-506 Parramatta Rd & 164 Fredrick Street Ashfield 9 February 2016 $4,030,000 B6 nil 1,414

Description: A corner site comprising (2) lots, diagonally opposite approximately 150 south east of the Land. Sold without development approval. Short term Income being derived from signage and ground rent totaling a net income of $163,280 per annum (exc GST) Lessor paying 100% outgoings. This sale equates to Yield of 4.05% net. Years Purchase 24.69 years Comments: Kristian Morris letting agent advised me that he has achieved $100 a square metre of land for storage related use. Totalling $144,100 per annum. In addition to this income is $60,000 per annum for signage income from Law Partners totalling $204,100 gross per annum. I have allowed 20% for outgoings ($40,820), which equates to a net annual rent of $163,280 per annum. This equates to yield of 4.05% net per annum i.e $163,280/$4,030,000X100. This sale equates to Site Area (Improved) $2,797 per m² over both lots or Site Area (Improved) $3,897 per m² for the Parramatta Road lot. Site Area (Improved) $3,347 per m² on average of both lots basis Comparison to Subject: Return as holding income pending development. I have adopted a higher yield.


Sale No.3 Sale Price Zone Sale Date GLA m2 Site Area m2

244, 244A & 244B Parramatta Road Ashfield $4,568,888 B6 07-Jul-15 421 1,389

Description: A dated office showroom complex trading as MTV bathroom centre. Comprises first floor residential accommodation. Corner Bland Road. Tenancy Schedule shows MTV pays $116,000 net per annum + $82,650 gross from 5 X 1bedroom flats. Sold at 4.3% net. Exchanged Contract from Oxford Commercial. Sale now subject to an RMS acquisition process. This sale equates to Site Area (Improved) $3,289 per m² Capital Value of GLA $10,852 Yield of 4.3% net. Years Purchase 23.25 years Comparison to Subject: Dated sale. Slightly superior site area and FSR 2:1. Adjacent to pedestrian bridge. I have adopted a higher yield.

Sale No.4 Sale Price Zone Sale Date GLA m2 Site Area m2 163-165 Parramatta Road, Haberfield $4,800,000 B6 25 -Oct-16 400 1,144

Description: A detached service station workshop property with attached convenience shop. Returning $288,000 per annum net or $252 per m² of Site Area (Improved). This sale equates to Site Area (Improved) $4,195 per m² Capital Value of GLA $12,000 per m² Yield of 6% net. Years Purchase 16.67 years Comparison to Subject: Post dated sale. Smaller site area. Dual street access. Inferior section of Parramatta Road with less vehicular traffic passing. Smaller building area. I have adopted a lower yield to reflect the larger number of compressed yields in the area.


Sale No. 5 Sale Date Sale Price Zoning GLA m2 Site Area m2 97-99 Majors Bay Road, Concord 19 May 2015 $5,310,000 B2 700 497

Description: A refurbished mixed use retail and residential part 2 and 3 storey complex with a drive thru BWS liquor store. Total building area is approximately 700m2 plus basement area and includes a ground floor retail tenancy occupied by BWS - Beer Wine and Spirits and two large 174m2 residential units with private courtyard. The building also enjoys basement level and drive through facility with rear lane access to Majors Lane. Sold subject to a new five (5) year lease to November 2020 with a reported net income of $243,687.00 per annum plus GST. (Includes residential tenancies). The bottle shop lease provides for 3% annual rental increases and 80% of outgoings reimbursed. This sale equates to Yield of 4.59% net Years Purchase 21.1 years Site Area (Improved) $10,684 per m² Capital Value of GLA $7,586 per m² Comparison: Sets the lower limit of capitalisation rate. I have adopted a higher rate to reflect the non multinational tenant of the Land.

Sale No. 6 Sale Date Sale Price Zoning GLA m2 Site Area m2 6/1042 Great Western Hwy Minchinbury 14 April, 2015 $2,825,000 B6 600 1,429

Description: A detached single storey retail building with parking for 16 cars. Occupied by Repco a multinational tenant. Having 5 a year lease to REPCO from December 2014 with options till December 2024. Net income of $168,151 per annum (exc GST) with lessee paying 100% outgoings. Located in Blacktown City, 35 kilometres from Sydney Central Business District. Near Bunnings, KFC and 7-Eleven within retail hub. Comparison: Significantly inferior market demographic, further removed from Sydney’s thriving Inner west commercial market. This sale equates to Yield of 5.95% net Years Purchase 16.8 years. Site Area (Improved) $1,977 per m² Capital Value of GLA $4,708 per m² Comparison: Sale sets the upper limit of the yield range, reflecting proximity from the CBD.


Sale No.7 Sale Date Sale Price Zoning GLA m2 Site Area m2 198 Parramatta Road, Camperdown Aug 2014 $3,650,000 Zoned IN2 500 1,106

Description: A specialised 500 square metre 7-Eleven service station on the corner of Pyrmont Bridge Road. Zoned IN2 Light Industrial. Sold at auction with 15-year lease from May 2012 at passing base rental of $189,280 p.a. plus GST (owner responsible for Land Tax assessed at $16,868 p.a. for year 2014). Estimated net rent on single holding basis: $172,412 p.a. net plus GST. Subject to 4% Annual increases. This sale equates to Site Area (Improved) $3,300 per m² Capital Value of GLA $7,300 per m² Yield of 4.72% net. Years Purchase: 21.18 years Comparison: Yields have compressed since this sale. Lower yield, reflects multinational tenancy. I have adopted a higher rate to reflect the non multinational tenant of the Land.

Yield Conclusion I have summarised the following yield evidenced below which shows the evidence ranging from 3.83%-6% net yield. No. Property Date Price Yield Net Rent

1. 57-61 Parramatta Rd, Haberfield 27-Nov-15 $2,220,000 3.83% $85,000 Car yard

2. 502 Parramatta Rd & 164 Fredrick Street Ashfield

9-Feb-16 $4,030,000 4.05% $163,280 Vacant lot

3. 244-244a & 244b Parramatta Rd, Ashfield 7-Jul-15 $4,568,888 4.35% $198,650 3 x 2 storey shops & residences

4. 163-165 Parramatta Road Haberfield 25-Oct-16 $4,800,000 6.00% $288,000 Service Station

5. 97-99 Majors Bay Rd, Concord 19-May-15 $5,310,000 4.59% $243,687 BWS multinational tenant

6. 6/1042 Great Western Hwy, Minchinbury 14-Apr-15 $2,825,000 5.95% $168,151 Repco multinational tenancy

7. 198 Parramatta Rd, Camperdown Aug-14 $3,650,000 4.72% $172,412 Service station investment sale


After considering the above transactions I have arrived at my adopted capitalisation rate or yield of 5.5%. This rate is reflective of the yield in the area at large. I have listed below some key market determinants:

• Distance from Sydney’s commercial business district (CBD); • Size and location of the site; • Certainty of cash flow; • Long standing and established automotive precinct with exposure to iconic intersection; • Good improvement to site area ratio; • Dual access from Parramatta Road; • Location within a well-established automotive precinct; • Lot size and affordability; • Low investment yields achieved in the local and surrounding area; • Level of comparability to available sales and rental evidence; and • Current market conditions.

In my opinion, if the Land were offered for sale a hypothetical purchaser would have had regard to the range of yields as evidenced above. The lowest yield was achieved at 3.83% per annum net with the sale of 57-61 Parramatta Road Haberfield, which was also purchased by a car dealer but leased to car dealership. The highest yields were achieved at 5.95% per annum net with sale of 6/1042 Great Western Highway Minchinbury and 6% for 163-165 Parramatta Road Haberfield. An RMS acquisition at 245 Parramatta Road Haberfield showed a yield 3.5%. Because I am not aware of the break up of compensation between the freehold and disturbance settlement sums, I have not relied on this sale as primary yield evidence unless there is some certainty on the freehold value. However, I have adopted a yield range between 5.25%-5.75%, which shows a years purchase of between 19 and 17.39 years respectively. For the purposes of my Investment Income Capitalisation Approach I have adopted a yield of 5.5% net per annum showing a years purchase of 18 years.


My Calculations Based on Market Rent @ 5.5% yield: -

Valuation Analysis

MARKET CAPITALISATION APPROACH

Area M2 $/sqm Annual Gross Rent

Site Area Improved 1,353.20 $200 $270,640

1,353.20 $270,640

$192,371.00

Council Rates $9,249.41

Water Rates $1,385.46

Land Tax $22,896.14

Insurance $2,412.99

Total Cost $35,944.00

Over all site area m2 $26.56

$154,845.27

Net rental income for capitalisation purposes $234,696.00

Net Rent Site Area m2 $173

Net Rent of GLA m2 $434

Capitalisation Sensitivity Analysis Adopt Mid Point

Adopt Net Yield 5.25% 5.50% 5.75%

$4,470,400 $4,267,200 $4,081,670

Capital value adopt $4,275,000

I note that under this owner occupier approach, capital value deductions for vacancy downtime, agency & marketing fees and incentives are not made, as an owner occupier does not incur such costs. I have not factored these costs into the purchase price.


20.00 MARKET VALUATION CONCLUSIONS

My conclusions on the market value of the Land as at the date of acquisition are as set out below. Valuation Conclusions

Valuation Approach Valuation Figure

Direct Comparison Approach – Per Square meter of Land $4,560,000

Direct Comparison Approach – FSR $4,560,000

Investment Income Capitalisation (Check Method) $4,275,000

Adopted Market Value $4,560,000

My adopted value of $4,560,000 reflects the following:

Direct Comparison - Site Area (Improved) $3,370 per m²

Direct Comparison - FSR $2,250 per m²

Notional Yield (Check Method) Based on Net Market Rent ($234,696) 5.50%


21.00 VALUATION I have assessed the following compensation for all heads of claim except Disturbance, in relation to the compulsory acquisition of the Land based on the provisions of the Just Terms Act at: $4,560,000 (FOUR MILLION FIVE HUNDRED & SIXTY THOUSAND DOLLARS) Apportioned as follows: Section 55(a) Market Value ……………………………………………….……………..$4,560,000 Section 55(b) Special Value ................................................................................................. Nil Section 55(c) Severance ...................................................................................................... Nil Section 55(d) Disturbance .............................................................................. To be Assessed Section 55(e) Solatium ......................................................................................................... Nil Section 55(f) Increase or decrease in the value of other land ...............................................Nil This assessment is GST exclusive This report is to be regarded as confidential to the party to whom it is addressed and is intended for the use of these parties only and for no other use. Consequently and in accordance with current practice, no responsibility is accepted to any third party who may use or rely on the whole or any part of its contents. Before the Report or any part of it is reproduced or referred to in any document, circular or statement, our written approval as to the form and context of such publication must be obtained. 1 The assumption that the figure herein is exclusive of Goods and Services Tax; 2 Good and marketable title, free of any encumbrances; 3 Subject to existing planning controls; 4 The comments contained herein in; 5 The terms and conditions contained herein.


22.00 TERMS AND CONDITIONS

22.01 General Terms and Conditions In these Terms and Conditions: "the Client" shall mean: - D W Zheng a) "Valuation" shall include a valuation or feasibility study, made or given in relation to any freehold or leasehold

property, proposed development, business, fixtures, fittings or other personality; and "Valuation Services", shall include any oral or written advice, opinion, recommendation or statement communicated to the Client consequent upon or incidental to the request for a valuation.

b) This Valuation and all Valuation Services are provided by (JSA) subject only to these Terms and Conditions. c) This Valuation and all Valuation Services are provided by JSA solely for the use of the Client. JSA does not and

shall not assume any responsibility to any person other than the client for any reason whatsoever including, without limiting the generality of the foregoing, for breach of contract, negligence (including, negligent mis-statement) or wilful act or default of itself or others by reason of or arising out of the provision of this Valuation or Valuation Services and notwithstanding that any damages have been suffered or incurred by that person as a result of the provision of this Valuation or those Services to the Client or the use of either of them (or any part of either of them) by the Client for any purpose whatsoever.

d) The Client agrees that neither the whole nor any part of this Valuation or the substance of any Valuation Services

may be communicated to any third party (whether by way of inclusion in a document, circular, statement or otherwise) without first obtaining the written consent of (JSA) Neither the whole or any part of this report or any reference to it may be included in any published document, circular or statement nor published in any way without the Valuer's written approval of the form and context in which it may appear. Notwithstanding the foregoing, the Client agrees that in the event that it does communicate to a third party the whole or any part of this Valuation or the Valuation Services it shall also communicate to that third party the terms of Clause 3 hereof and further agrees to indemnify JSA in the event of any failure so to do.

e) Notwithstanding any other provision hereof, JSA shall in any event be discharged from all liability whatsoever in

respect of this Valuation or the Valuation Services unless suit is brought within three 3 months from the date upon which this Valuation or such Services were provided to the Client.

f) Every right, immunity, exemption and limitation in these Terms and Conditions available or applicable to JSA

Valuers shall also be available and shall extend to: -

(i) every servant or agent of JSA; (ii) all persons who are or might be vicariously liable for acts or omissions of any person falling within (a)

hereof and for the purposes of this clause JSA is or shall be acting as an agent or trustee on behalf of and for the benefit of all such persons and each of such persons shall to this extent be deemed to be a party to this contract.

g) No servant or agent of JSA or any other person has any power to waive or vary any of these terms and conditions

unless such waiver or variation is in writing and signed by an executive officer of JSA. h) Each right, immunity, exemption and limitation or liability in these terms and conditions shall continue to have its

full force and effect in all circumstances notwithstanding any breach of contract of the Terms and Conditions hereof by JSA or any person entitled to the benefit of such Terms and Conditions.


i) The Client agrees that if any provision or any part of a provision hereof is unenforceable for any reason

whatsoever, such unenforceability shall not affect any other part of such provision or any other provision hereof.

j) This valuation is current as at the date of valuation only. The value assessed herein may change significantly and unexpectedly over a relatively short period (including as a result of general market movements or factors specific to the particular property). We do not accept liability for losses arising from such subsequent changes in value. Without limiting the generality of the above comment we do not assume any responsibility or accept any liability where this valuation is relied upon after the expiration of three months from the date of valuation.

k) The Client acknowledges and recognises that the Valuer is not expert in identifying environmental hazards and compliance requirements affecting properties. The Valuer has endeavoured to identify all matters of environmental concern and the effect they might have on the value of the property. However, the Valuer will not be held liable nor responsible for his failure to identify all such matters of environmental concern and the impact which any environmental related issue has on the property and its value including loss arising from site contamination; or the non-compliance with any environmental laws; or costs associated with the clean up of a property in which an environmental hazard has been recognised, including action by the relevant Environmental Protection Authority to recover clean up costs pursuant to the relevant Environmental Protection Act.

l) The above sales or leasing evidence has been obtained from reliable sources including RP Data (Sales data produced from the NSW Land & Property Information Department) & Commercial Property Monitor. We have also, where possible, had discussions with Estate Agents to undertake a process of verification of the data. Should it be revealed that any of the sales or leasing information stated herein, upon which we have relied, is incorrect or misleading, we reserve the right to reconsider our opinion of Market Value as determined herein.

m) Where sales data has been obtained from RP Data, we have considered that to be the most current sales data

available. However sales, which have occurred during the course of the last three months, or sales, which have been the subject of deferred settlement terms, may not necessarily appear immediately on the Land Titles Office records. Accordingly with this type of transaction, we rely on separate enquiries to attempt to obtain all available sales data.

n) In certain instances it has not been possible for us to inspect sale and lease evidence properties internally, however

they have been externally inspected for purposes of carrying out our valuation. o) Where there is a paucity of directly comparable sales and leasing evidence in a locality, it is necessary for us to

either consider other comparable localities and/or to consider sales and leasing evidence which is dated in the immediate area to gain an understanding of the historical sales and leasing value base for the area.

Finally, Client acknowledges that to the extent that written instructions have been received for the purposes of preparing this Valuation and the Valuation Services, it has been assumed that a full and frank disclosure of all relevant information has been made.


Tab - A

Letter of Instruction





Tab - B

Government Gazette





Tab - C

John Sanidas CV


JOHN SANIDAS 5/8 Water Street Sans Souci NSW 2219 Reply Post PO Box 42 Sans Souci NSW 2219 H: (02) 9 583 9671 M: 04 18 18 18 21 E: [email protected] Education & Qualifications Bachelor of Commerce (Land Econ.) Graduated May 1995 University Of Western Sydney NSW Australian Property Institute Associate Member (API) Registered Full Member 2000 Certified Practicing Valuer (CPV) Certificate Number 1478 NSW AAPI Certified Development Practitioner (CDP) NSW Valuers Registration Number 3818 Registered 1995 Department of Fair Trading Expiry 18 April 2017 NSW Real Estate & Auctioneers Advance Certificate Course Completed 1992 Ultimo Technical College, Sydney Real Estate Practice License No.13195 Expiry 24 August 2017

Justice Of The Peace Registered 1990 Registration Number 146413 Expiry Date: 21 June 2017 Profile Senior Valuer

JSA Advisory

1995 to Present:


Background John is a senior commercial property and specialist CBD retail valuer with over 21 years experience in the valuation profession. He delivers valuation assessments in all property categories including Sydney’s central business districts, shopping malls and neighborhood centres. John is a key advisor on the Land Acquisition (Just Terms Compensation) Act of valuation compensation matters and disturbance issues, arising from the extinguishment of property rights, by an Acquiring Authority. He has acted for both the Applicant and Respondent in complex compulsory acquisition matters. John also has dispute resolution experience in public transport infrastructure projects in Sydney’s western corridor and the developing Barangaroo site. He has resolved property rights issues between competing government agencies. John is also specialist retail valuer for The NSW Civil and Administrative Tribunal (NCAT) for Class 1 Sydney CBD real estate since 2007. John has settled large rental disputes in Sydney’s super prime retail precinct along Pitt Street Mall. John was appointed as a senior property consultant to Transport for NSW and the Barangaroo Delivery Authority (BDA) to resolve complex property disputes. His clients include government agencies, large corporates, property developers and private individuals. John holds a Bachelor of Commerce in Land Economics from the University of Western Sydney and has been an Associate of the API for over 15 years. Professional Experience

Corporate Real Estate Advisor

J Sanidas Advisory (JSA) - Consulting Valuers & Transaction Managers

1995 to Present: John has undertaken a variety of valuation work including Class 3 appeal compensation matters, commercial valuations, retail rental assessments, development advisory work and transaction management roles. John specialises in single expert rental determinations for The NSW Civil and Administrative Tribunal (NCAT) for Class 1 Sydney CBD real estate. He also specialises in the delivery of gross realisation values on major projects zoned, B8 Metropolitan Centre, R4 high density residential, B4 mixed use and B6 Enterprise Corridor for serviced apartment unit development. John also reviews master plans and land subdivision proposals in Sydney’s new urban growth centres. John has settled a number of costly and emotive RMS compulsory land acquisition matters in Sydney’s Leppington Austral South West precinct and Sydney’s Westconnex. Barangaroo Delivery Authority (BDA) January 2014 – July 2014: John was engaged as a senior consultant, to delivery high level advice on land use feasibility options, within Sydney's Barangaroo and Millers Point precinct. Including the delivery of a strategy and discussion paper for internal stakeholders regarding the acquisition and disposal of government assets, along Hickson Road.

Transport for NSW (TFNSW) October 2013 – April 2014: John was engaged as a senior consultant to deliver acquisition and resolution advice in Class 3 proceedings before the Land & Environment Court on a number of high profile cases. John also assisted in resolving delivery issues with Wynyard Walk Project at senior management level between competing interests and authorities. John provided strategic advice to lawyers, consultants and senior counsel in matters involving s.34 conciliatory conferences and the preparation of calderbank offers to settle matters on behalf of Applicant and government. John also prepared ministerial briefing notes (BN), significant issue papers (SIP), for internal stakeholders on compensation matters involving public infrastructure projects.


Megaw & Hogg National Valuers 2008 – 2011: John’s firm was engaged as consulting valuers to carry out a broad range of valuation work. This included valuations of freehold and strata office warehouses, strip retail shops, Hi tech retail showrooms and small community shopping centres in Sydney’s metropolitan area for mortgage purposes. John has a sound understanding of primary and secondary valuation methodologies, including valuation analysis, application and rationale, based on relevant sales and rental evidence.

Commonwealth Bank of Australia Elite CBA/Valex Residential Property Valuer 2008 – 2011: John’s firm was appointed as an Elite CBA/Valex panel valuer for Megaw & Hogg National Valuers. He undertook residential property valuation in the $5,000,000 to $20,000,000 market segment for private bankers forming CBA's Private Bank Business Unit. Assessments covered property predominately in Sydney's CBD, eastern suburbs, inner west and lower north shore. St George and Sutherland Valuers MANSON GROUP 2005 - 2008: John specialised in the valuation & acquisition of key development sites in Sydney’s metropolitan area on behalf of the Manson Group of Companies. John was instrumental in the end to end development cycle of a number of developments within the St George, inner city and eastern suburbs market. John was responsible for the site selection, valuation analysis, construction costing/funding, coordinating multi-disciplinary design teams, planners, architects and engineers, responsible for local government submissions for section 96 applications. As well as, reporting to internal and external stakeholders on the financial performance on a number of projects. Over ten, major development projects were successfully completed in budget and in time. Having a combined end value, of over one hundred million dollars. John also built a low rise mixed use residential water front development along Sydney's Georges River. The project comprised, one thousand five hundred square metres of building area, over five levels and included, five high end residential strata units and one retail shop (known as Blackwater Italian Restaurant) with a basement car park and a roof top terrace. This added another dimension to John’s broad property development experience in acquisitions and valuation metrics. Gunning Commercial: Commercial Valuer 2001- 2005: Part of St George Council’s land use urban renewal policy John assisted the Director Malcolm Gunning in providing strategic advice to Hurstville and Rockdale City Council on the residual land value of Council’s unzoned car park sites. The end values of sites, were calculated based on certain development assumptions including changes to zoning, height and floor space ratio controls. Hypothetical gross realisation values exceeded fifty million dollars. Site proposals varied between 50 to 150 unit dwellings. John gained a strong appreciation of town planning controls, financing, building costing, as well as understanding, product volume and design specification.

Richardson and Wrench Sans Souci 1988 – 2000: John was a Company Director and Licensee of Richardson and Wrench Sans Souci & Sandringham a family operated business that was later acquired by Ray White. John achieved numerous awards for best regional sales office and salesperson with revenue from capital transactions exceeding $700,000,000 during the period. John also had an interest in the company’s property development business, specialising in villa and townhouse development in south Sydney.


Independent Coursework

1. Review of the Land Acquisition (Just Terms) Compensation Act 1991 2. Review of the Retail Leases Act 1993 3. Estate Master Land Feasibility Development Program 4. Review of the Environmental Planning & Assessment Act 1979 5. Conveyancing Act 1919

Projects Wynyard Walk • Barangaroo North Headland Precinct • North Strathfield Rail Under Pass • Rental Reviews Sydney Pyrmont Fish Market • NSW Administrative Decisions Tribunal - Retail Market Rental Determinations in Sydney's – prime retail market segment Land Use Reviews in Sydney's North West & South West Growth Centres

Recent Clients & Jobs Price Waterhouse Coopers: Aqualand Australia purchase (West Ryde Putt Putt) 659-661

Victoria Road & 4-6 Wharf Street, Melrose Park (1,500 unit development). A joint private ruling for the Taxation Commissioner

William Buck Chartered Accountants: Business Valuation Reports. Retail advice & valuation critique of 122 Pitt Street Sydney The Vault Hotel

NSW Administrative Decisions Tribunal: 138 Pitt Street Sydney: Wittners Shoe Store (Single Expert

Retail Determination: Transport for NSW: 20 Sussex Street (Sussex Hotel) & 36-38 Clarence Street

Sydney. Dispute Resolution Advice. Barangaroo Delivery Authority: 1-3 Munn Reserve (Universal Records) & 23-25 Hickson Road

Universal Pictures) Formerly Dalgety Wool Sheds. Acquisition and disposal advice.

Skills & Expertise

Retail Investment Advisory, Property Law, Highest & Best Use Land Development, Urban Planning, Commercial Real Estate, Market Research, DCF Valuation, Business Valuation, Compulsory Land Acquisition and Compensation Appeal Claims (L&E Court), Valuer General Determination, Property Acquisition & Disposal, Strategic Planning, Specialist Retail City Valuer, Residual Land Valuation Assessments, Prestige Residential Valuations, Real Estate Due Diligence Real Estate Dispute Resolution.


Tab - D

Schedule 7 Expert Witness Code Of Conduct


Schedule 7 Expert witness code of conduct

1 Application of code

(Rule 31.23)

This code of conduct applies to any expert witness engaged or appointed:

(a) to provide an expert’s report for use as evidence in proceedings or proposed proceedings, or

(b) to give opinion evidence in proceedings or proposed proceedings.

2 General duty to the court

(1) An expert witness has an overriding duty to assist the court impartially on matters relevant to the expert witness’s area of expertise.

(2) An expert witness’s paramount duty is to the court and not to any party to the proceedings (including the person retaining the expert witness).

(3) An expert witness is not an advocate for a party.

3 Duty to comply with court’s directions

An expert witness must abide by any direction of the court.

4 Duty to work co-operatively with other expert witnesses

An expert witness, when complying with any direction of the court to confer with another expert witness or to prepare a parties’ expert’s report with another expert witness in relation to any issue:

(a) must exercise his or her independent, professional judgment in relation to that issue, and

(b) must endeavour to reach agreement with the other expert witness on that issue, and

(c) must not act on any instruction or request to withhold or avoid agreement with the other expert witness.

5 Experts’ reports

(1) An expert’s report must (in the body of the report or in an annexure to it) include the following:

(a) the expert’s qualifications as an expert on the issue the subject of the report,

(b) the facts, and assumptions of fact, on which the opinions in the report are based (a letter of instructions may be annexed),


(c) the expert’s reasons for each opinion expressed,

(d) if applicable, that a particular issue falls outside the expert’s field of expertise,

(e) any literature or other materials utilised in support of the opinions,

(f) any examinations, tests or other investigations on which the expert has relied, including details of the qualifications of the person who carried them out,

(g) in the case of a report that is lengthy or complex, a brief summary of the report (to be located at the beginning of the report).

(2) If an expert witness who prepares an expert’s report believes that it may be incomplete or inaccurate without some qualification, the qualification must be stated in the report.

(3) If an expert witness considers that his or her opinion is not a concluded opinion because of insufficient research or insufficient data or for any other reason, this must be stated when the opinion is expressed.

(4) If an expert witness changes his or her opinion on a material matter after providing an expert’s report to the party engaging him or her (or that party’s legal representative), the expert witness must forthwith provide the engaging party (or that party’s legal representative) with a supplementary report to that effect containing such of the information referred to in subclause (1) as is appropriate.

6 Experts’ conference

(1) Without limiting clause 3, an expert witness must abide by any direction of the court:

(a) to confer with any other expert witness, or

(b) to endeavour to reach agreement on any matters in issue, or

(c) to prepare a joint report, specifying matters agreed and matters not agreed and reasons for any disagreement, or

(d) to base any joint report on specified facts or assumptions of fact.

(2) An expert witness must exercise his or her independent, professional judgment in relation to such a conference and joint report, and must not act on any instruction or request to withhold or avoid agreement.


Tab - E

Deposited Plan


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AMENDED 16.11.16 JSA VALUATION EVIDENCE ZHENG $4,560,000 · • UCPR 2005 Part 31, Division 2,...

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