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Yuhu Group Australia / 2 3 / Corporate Update 2017-2018

Content

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08 09

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CEO’s Message

In the Community

Corporate Profile

Key Assets

Yuhu’s Founder

Development Projects

Chairman’s Message

Our Leaders

Our Company

Our Portfolio

Our Corporate Responsibility

Fisheries and Agriculture

Greeting / Content

It’s an exciting time for Yuhu Group as we actively grow and diversify our business. We are firmly committed to Australia and determined to make a positive impact. In recent times, we have been extremely active on the investment front and we are moving ahead with our development projects. One of our guiding principles is to build better communities for people. We are firm believers in urban renewal featuring the smartest of leading-edge design and high-quality construction standards. We are always exploring new opportunities and never standing still.

Moving Ahead

Corporate Update 2017-2018 5 /

Having entered a very exciting growth phase, the coming years will be full of activity for Yuhu Group Australia.

After laying some solid foundations from which to grow the business, following our establishment in 2012, we are now looking to go to another level.

In recent times, for example, we have bolstered our investment portfolio through the acquisition of several prime commercial properties. The completion of these agreements will see the value of our portfolio exceed AUD $800 million.

The centre pieces include:

1. Eastwood and Glenwood suburban shopping centres.

2. Pymble Corporate Centre and Northbridge commercial centre on Sydney’s upper north shore.

3. Berry 20, a major office building in central North Sydney.

4. The prime Miller Street site of our first major residential development in North Sydney.

5. We have also entered into an agreement to acquire the outstanding Bakehouse Quarter precinct in Sydney’s inner west.

Our strategic focus is on those assets that will deliver capital growth as well as solid cash-flow over the longer period through commercial and retail tenancy.

In particular, we are targeting larger-scale assets which have the added benefit of future mixed-use development potential, including a combination of residential, retail and commercial. This approach makes sense to us as opposed to a specific residential focus that presents the ongoing challenge of having to identify suitable sites, typically with limited cash-flow opportunity.

Our vision to transform the Eastwood Shopping Centre, one of the group’s earliest acquisitions, into a vibrant new master-planned community illustrates our strategic investment approach.

We certainly intend to remain active in the market with a view to further growing our portfolio over the coming years as we also contemplate the management of investment funds linked to our assets.

Beyond our investment and development activities, at Yuhu we have also instilled a strong sense of social responsibility and we seek to lead by example.

We are very proud of the support we are able to provide to a range of outstanding community groups such as the Children’s Medical Research Institute at Westmead. We intend to build on this track record.

I am also passionate about promoting cultural diversity and greater understanding and take my community leadership role in this respect very seriously. We are for example delighted to support events like Sydney’s Chinese New Year celebrations. At Yuhu we are pleased with the progress we are making in Australia, but we also have a long journey.

XIANGMO HUANGChairman, Yuhu Group

Chairman’s Message

XIANGMO HUANGChairman, Yuhu Group

Our Leaders / Chairman’s MessageOur Leaders

Our Leaders

Yuhu Group Australia / 4


I am pleased to report that Yuhu Group has taken significant strides forward over the past 12 months and is exceptionally well-placed for the years ahead.

Our balance sheet is strong and our commercial investments are delivering solid returns; major projects are progressing on time and we remain in the market for quality assets with future development potential.

In the first half of 2017, Yuhu Group acquired new commercial assets at Pymble and Northbridge both on the sought-after upper north shore of Sydney.

We also entered into a AUD $380 million agreement to acquire the iconic Bakehouse Quarter precinct in the inner west, which we see as an outstanding long-term investment with future development upside. We intend to continue the growth of our property portfolio over the next 12 months and will be highly-selective of the assets we target in order to maintain the quality of our portfolio.

On the development front, construction has commenced on our first major residential project, The Miller in North Sydney. It will set a new benchmark in the area for sophisticated urban living in close proximity to all conveniences and just 50 metres from the proposed new metro station.

We are also excited by the anticipated final approval for our development application for the Eastwood town centre in Sydney’s north west. This master-planned community will feature a choice of living options cleverly linked to retail and commercial conveniences.

The Eastwood project would represent more than AUD $400 million of capital investment on completion and serve as a prime example of urban renewal.

The Yuhu team has proven adroit in identifying quality investment opportunities that meet both our short and longer-term objectives. We look to the future with confidence and optimism as a result.

ERIC ROOZENDAALCEO, Yuhu Group Australia

CEO’s Message

ERIC ROOZENDAALCEO, Yuhu Group Australia

Our Company

Our Leaders / CEO’s Message Our Company

7 / Corporate Update 2017-2018


As a rapidly growing property development and investment company, Yuhu Group Australia remains fundamentally committed to fostering growth and building better communities.

Based in North Sydney, NSW, Yuhu is a private company that was founded in 2012 by renowned entrepreneur, Mr Xiangmo Huang. Under the leadership of Mr Huang as company chairman and CEO Eric Roozendaal, a former treasurer of NSW, Yuhu is active across property and asset identification and acquisition, through to property management, development and sales.

In a relatively short period, Yuhu Group Australia has built the foundations of an impressive investment portfolio containing high quality property assets in and around Sydney. The company’s longer-term investment strategy centres on targeting prime assets with both solid income streams through commercial and retail tenancy as well as future development upside.

Over the next five years, Yuhu will continue to actively identify additional investment opportunities that fit this strategy, while at the same time advancing mixed-use development projects.

The company’s decision to enter a more active investment growth phase was evident in the first half of 2017, when it made more than AUD $500 million in new investment commitments. This included entering into a AUD$380 million agreement to acquire the Bakehouse Quarter retail and commercial precinct in Sydney’s inner west. At the time it was described as the largest prospective transaction of its type so far in NSW that year.

Late 2016 also marked an important milestone for Yuhu in Australia with construction commencing on its first major development, The Miller residential tower in central North Sydney. The company also owns and operates two suburban shopping centres north-west of the Sydney CBD at Eastwood and Glenwood and notable office buildings in North Sydney and other prime north shore locations, including more recent acquisitions at Pymble and Northbridge.

In 2017, Yuhu was also eagerly awaiting final assessment of its development application for the transformation of Eastwood town centre into a vibrant new residential, commercial and retail precinct. This would represent more than AUD $400 million of capital investment.

The company also continues to explore investment opportunities in agriculture and fisheries. Yuhu has made initial investments centred on fisheries in Tasmania and South Australia with a value of over AUD $30 million.

Proudly, Yuhu Group Australia has also demonstrated a strong commitment to philanthropy and in supporting a range of community events and initiatives.As evidenced by our commitment to growth, Yuhu is a company that is extremely optimistic about the future.

Corporate Profile

Mr Huang is well-known in both Australia and China for his philanthropy and community leadership.

Yuhu Group Australia founder Mr Xiangmo Huang and his family migrated to Sydney in 2011 because of the quality of life advantages and new investment opportunities on offer.

In his native China, Mr Huang established the Shenzhen Yuhu Investment Development Company Limited in 2001, a private company specialising in property development. The Yuhu name comes from the small town in Guangdong Province in which he was born.

The company earned a reputation for constructing quality villas and high-rise apartments and later extended its investments to agriculture, logistics and clean energy. Prior to starting his own businesses, Mr Huang held senior positions with a major railway construction company and studied economics and history. In 2015 he was appointed as an Adjunct Professor at the University of Technology Sydney (UTS) in recognition of his outstanding achievements as a business leader and contributor to international relations and community welfare.

Yuhu’s Founder

Yuhu Office InteriorYuhu’s headquarters, North Sydney, NSW

Our Company / Corporate Profile Our Company / Yuhu’s Founder

XIANGMO HUANGChairman Yuhu Group

Yuhu Group Australia Corporate Update 2017-2018/ 10 11 /

Our Portfolio

Our Portfolio

2011

- 2

017

Yuh

u’s

Ass

ets

Ma

pSy

dne

y A

ustr

alia

Eastwood Shopping Centre

& Town Centre Redevelopment

Pymble Corporate Centre

Glenwood Village Shopping Centre

Brookvale

Chatswood

North Sydney

Sydney

Maroubra

Ashfield

SydneyAirport

Parramatta

Blacktown

MacquariePark

Northbridge Commercial Centre P14

P15

P19

P18P26

M1

A38

A3

M1A36

A3

A22

M4

M5

M2

P22

P16

The Miller

Berry 20

P12Bakehouse Quarter Retail & Commercial

Bankstown

A34TasmaniaHobart

Hai Loong Seafood Export Pty LtdYuhu Tasmania Fisheries

Sou

the

rn O

ce

an

Tasm

an

Sea


Our Portfolio / Key Assets Our Portfolio / Key Assets

sqm

Site Area NLA Parking

60,505 40,549 929Yuhu Group Australia made news in July 2017 with confirmation it had entered into a AUD $380 million call option agreement to acquire the iconic Bakehouse Quarter at North Strathfield in Sydney’s inner west.

This major commercial and retail precinct is spread over more than six hectares on the former site of the historic Arnott’s factory and warehouse. It is uniquely located near two railway stations as well as the new Westconnex Motorway.The Bakehouse Quarter would form a significant part of Yuhu’s medium to longer term investment strategy of acquiring high quality assets with existing cash flow income streams through strong retail and commercial tenancy, combined with future development upside.

Planning for the Future

A future master-planning process could provide scope to develop the type of contemporary hub or town centre that reflects the company’s corporate values of seamlessly building better communities. The option agreement is exercisable at the discretion of Yuhu Group and settlement of the Bakehouse Quarter is targeted between July and October 2018.

Bakehouse Quarter Retail & Commercial

sqm spaces

North Strathfield, NSWLocation

Our Portfolio / Key Assets


Key AssetsInvesting in Tomorrow

We take an extremely meticulous approach regarding the assets we choose to add to our investment portfolio. We target high quality properties with solid yields and good prospects for future capital growth. Those with mixed-use development upside particularly appeal. These characteristics are evident in all the assets we have

acquired to date which include community shopping centres, office buildings and other mixes of commercial and retail properties in prime Sydney locations. A growing interest in agricultural and fisheries assets adds diversity to our investment approach.



Northbridge is a three-level office and retail building in a prestigious lower north shore location, less than 7 km from the Sydney CBD. Acquired as a going concern with medical service providers among its key tenants, the asset is complemented by the adjoining Northbridge Plaza shopping centre. As a longer-term investment, Northbridge also has potential mixed-use development that will cater for residential apartments and retail in what is a dynamic area.

Northbridge Commercial Centre

Acquired (Settled)

June sqm sqm

Land Size NLA

2017 1,794 2,542

Sailors Bay Road, Northbridge, NSWLocation

sqm sqm spaces

Office Retail Parking

2,100 441 55

2017

3

Acquired (Settled)

Building Qty

Feburary sqm sqm

Land Size

Office (Tenants)

NLA

Retail (Tenants) Parking

10,600

50

14,329

3 590Pymble Corporate Centre is a significant commercial landholding, on Sydney’s sought-after, upper north shore. Yuhu Group was pleased to officially add this high-quality asset to its growing portfolio in early 2017. We see Pymble as a suburb with a very bright future and this acquisition represents a strategic investment in that future.

Pymble Corporate Centre

Bridge Street, Pymble, NSWLocation

spaces

Our Portfolio / Key Assets Our Portfolio / Key Assets



15Levels Tenants Parking

20 110Berry 20, is a fully leased commercial property in a blue-chip central North Sydney location. It is close to both the bustling Greenwood Plaza shopping centre and North Sydney train station. With several recent upgrades, the building features an impressive foyer, including a newly refurbished café/restaurant. There is excellent natural light and expansive harbour and district views from the upper levels.

The Yuhu Group sees this North Sydney acquisition as a sound investment which forms part of an ambitious, long-term growth strategy.

sqm sqm

Land Size GLA

1,391 9,723Berry 20

Berry Street, North Sydney, NSW Location


spaces



Glenwood Village Shopping Centre

Glenwood Village Shopping Centre represents Yuhu Group’s first major investment in Australia. This conveniently located, neighbourhood shopping precinct, underwent modernisation in 2013, improving its ambience and parking facilities. Situated about 40km north west of the Sydney CBD, in the Blacktown local government area, the centre is anchored by a Woolworths supermarket, a mix of specialty shops and an ATM.

Acquired

Supermarket

July sqm sqm

spaces

Land Size

Specialty Shops

GLA

Parking

2011

1

8,690

9

3,192

400

Glenwood Park Drive, Glenwood, NSWLocation


2013

Eastwood Shopping Centre with its strong retail and commercial mix has been a vital part of the vibrant Eastwood community since 1976. Since acquiring the centre, Yuhu Group has re-leased previously vacant retail spaces and carried out major refurbishment works. The upgrades have given the centre a new look and energy today, while a major redevelopment remains our vision for the future.

Office (Tenants)

Acquired

October sqm sqm

spaces

Land Size

Retail (Tenants)

GLA

Parking

42

12,755

47

12,667

427

Eastwood Shopping Centre

Rowe Street, Eastwood, NSWLocation

21 / Corporate Update 2017-2018Yuhu Group Australia / 20

Improve Life,Foster Growth.

Our Portfolio / Development Projects

Our major development projects are at the heart of our vision for urban renewal. We are confident that The Miller in North Sydney will set a new benchmark for quality, inner city living in the area.And when we talk about smart design and clever use of space, the development plans for our Eastwood Shopping Centre illustrate the standards we set. This project will come to symbolise the Yuhu commitment to building better communities; to improving people’s lives and fostering growth.

We know it all starts with excellent design and that’s why we place high priority on only working with leading architects and designers.


Creating Better Places


Disclaimer Artist’s Impression


The Miller will set a new standard for high quality, urban living, in one of North Sydney’s finest locations.

The project was designed by world-renowned architects PTW, the designers of Beijing’s iconic Water Cube aquatic centre and Barangaroo’s Alexander building.The architecture is defined by a sophisticated sculptural composition which sees the handsome 21-level residential tower levitated over an alfresco plaza with a show-piece modulated podium and landscaped parapet. The Miller is crowned by a stunning rooftop deck and garden space where residents will be able to take in panoramic views of

Sydney Harbour to the south. A north-facing common roof terrace on the top level will feature bbq facilities, seating and outdoor dining areas.

The building plaza will be a vibrant place for socialising and will offer retail tenancy, including quality café and dining experiences. The Miller offers a wide-street, leafy boulevard setting, just 600 metres from North Sydney train station and three kilometres from the Sydney CBD. It is also surrounded by some of Sydney’s best schools. The project is scheduled for completion in the first half of 2019.

sqm

sqm

sqm

sqm spaces

AU$ March

Land Size

Architect

PTW Architects

Residential

Location

Miller Street, North Sydney, NSW

Proposal

21-level residential tower

GFA

Builder

Richard Crookes Constructions

Serviced Apt. & Retail Parking

Construction Estimate Completion Target

Project Manager

Savills Project Management

Residential Apt. Serviced Apt.

2,485

13,571

19,548

5,977 119

109 million 2019

169 100

The Miller - North Sydney

Development Projects


Corporate Update 2017-2018 25 // 24 Yuhu Group Australia

Our Portfolio / Development Projects Our Portfolio / Development ProjectsD

iscla

ime

r Artist’s Im

pre

ssion

The

Mill

er

Corporate Update 2017-2018



Disclaimer Artist’s Impression

Building a stronger and more vibrant community is the central focus of Yuhu Group Australia’s Eastwood Town Centre transformation plan. The mixed-use redevelopment proposal thoughtfully combines contemporary residential living with the convenience of a dynamic retail shopping and commercial services precinct.

Outstanding architecture and the clever use of space will be hallmarks of the project.Designers HDR have delivered on a brief to seamlessly connect public spaces and other features of the town centre to provide both convenience and that all-important single sense of community throughout.

Central to this thriving new community will be a sought-after residential component with a choice mix of living options. The project will also feature layered retail and commercial spaces, an ultra-modern shopping promenade and unique hanging garden.

Residents will have easy access to a wide variety of retail and commercial conveniences and ample underground car parking will service this new community. The Eastwood project in total would represent more than AUD $400 million of capital investment.

Economic DividendThe major upside of Yuhu Group’s investments and project development is the economic dividend they provide to both NSW and beyond.

To provide an indication of the job-creating potential of our projects, it is estimated that the Eastwood development alone would create 1,000 jobs during the construction phase and more than 1,500 after completion. New residents attracted to projects such as Eastwood and The Miller also help strengthen local economies.

sqm

sqm

sqm

sqm

spaces

sqm sqm sqm

AU$

Land Size

Residential

Apartments

Location

Rowe Street, Eastwood, NSW

Proposal

7 buildings up to 13 floors, including residential, retail and commercial.

GFA

Retail

Parking

Construction Estimate

Commercial Medical Centre Gymnasium

Architect

HDR

12,755

39,115

443

53,848

11,103

1,110

300 million

2,597 687 346

Eastwood Town CentreRedevelopment


Yuhu Group Australia / 28 Corporate Update 2017-2018 29 /

Fisheries and Agriculture

Our Portfolio / Fisheries and Agriculture Our Portfolio / Fisheries and Agriculture

Australia has developed an enviable global reputation as a trusted supplier of premium agricultural produce and seafood. These sectors have a very bright future as demand for high quality, safe and clean food and protein continues to grow across the Asia Pacific region with its rapidly rising middle class. In 2014, we established Yuhu Agriculture Investments Pty Ltd to help capture some of this exciting potential. We are actively pursuing strategic investment opportunities and can also leverage our professional network to assist international investors identify and realise new opportunities.

Seafood IndustryYuhu has identified the Australian seafood industry as one with strong continuing growth prospects. Demand is high for a range of products, including lobsters, abalone and oysters to name a few and overseas consumers are prepared to pay a premium for high quality items.

Yuhu has made initial investments centred on fisheries in Tasmania and South Australia with a value of over AUD $30 million. Our existing assets include licences and quota as well as processing facilities and we are also engaged in wholesale trade.

Our strategy centres on creating vertical supply chains connected to end customers in China and other markets and we are actively seeking large-scale investment opportunities in various parts of Australia.

New OpportunitiesNew investment in Australian agriculture provides a chance to not only capture the benefits of current opportunities but to help ensure the sector has the requisite scale, and capacity to meet lucrative future demand. Yuhu Agriculture Investments actively examines opportunities which either have a proven track-record of sustainability, strong productivity and profitability or the potential to deliver these outcomes through targeted investment and better practices.

As well as fisheries, we continue to explore opportunities in other areas of agriculture, including dairy, meat, value - added crops and plantations. The aggregation of smaller assets to create more viable, larger-scale operations is an area of possible focus.

Investment Services As a strategic investor, Yuhu has established a strong network in Australia that we can leverage to assist other international investors and prospective partners.

We have relationships across government, academia, trade associations, agricultural companies and farmers, industry bodies and key professional services such as banking and finance, accounting, legal and advisory services and real estate sales and marketing.

As a result, Yuhu can assist with:

1. Asset Identification.2. Investment Planning and Financing.3. Asset Acquisition, Development and Management.

Export and Trade Yuhu is continually looking for innovative new ways to diversify its business and is dedicated to promoting the export and sale of Australian products to China and beyond.

Since 2017, Yuhu Agriculture has been working with Shenzhen Duty Free Group to develop an integrated cross-border trading system for the sale of Australian products in mainland China, Hong Kong and potentially other markets. Our objective is to create a streamlined process to provide consumers with access to premium quality Australian food products. This will incorporate online retailing as well as sales through actual stores.

Our involvement extends from product selection, sales and marketing, through to transport and logistics management and we are actively working in various parts of China, including North China, Shanghai district and Eastern China. Our partners within agriculture distribution channels, include supermarkets, wholesale markets, duty free stores and so-called ‘mummy-baby’ stores.

In a major step, Yuhu is currently in the process of sourcing a variety of high quality Australian products for export and sale.

Why Us?

01.

02.

03.

As a partner, Yuhu offers broad knowledge of the Australian agricultural market, legislation and regulatory issues and expertise with business transactions and asset management.

An ability to source experienced and results-driven management teams as partners or sub-contractors for agricultural businesses.

Skilful and bilingual communication to overcome cultural and professional barriers.

Corporate Update 2017-2018

Corporate Update 2017-2018 31 /




In the Community

Our Corporate Responsibility / In the Community

1. The Australia China Relations Institute (ACRI), ‘Prime Ministers Series’, Paul Keating in conversation with Kerry O’Brien

2. Researchers from the Children’s Medical Research Institute (CMRI)

3. Embryology Unit Deputy Director and Head Patrick Tam at CMRI

4. The Australia-China Institute for Arts and Culture (ACIAC) exhibition ‘Invisible but Visible’

5. Bear Cottage provides wonderful support for children

02

04

05

03

01


Our Corporate Responsibility / In the Community

Yuhu Group Australia is firmly committed to playing a leadership role in supporting worthy causes aimed at building stronger communities – a core value instilled by company founder Mr Xiangmo Huang.

Since 2012, Yuhu Group has contributed more than AUD $6.5 million to a diverse range of outstanding programs and charities in areas such as medical research, education, culture and the arts, and social welfare.

The company, for example, proudly supports Sydney’s renowned Children’s Medical Research Institute (CMRI), as well as the wonderful Bear Cottage in Manly - the only children’s hospice in NSW.

Yuhu Group is a major backer of the CMRI Research Excellence Foundation with Mr Huang its chairman. The Foundation was established in 2016 to raise funds to support and promote leading research into childhood cancer, epilepsy and genetic diseases.

Meritorious Research

In May 2017, the Foundation held its second annual awards event which saw funds awarded to those who are conducting meritorious research or related activities on behalf of the Children’s Medical Research Institute.

Meanwhile, Bear Cottage recently reported, that as a result of Yuhu’s funding support, it has been able to increase its all-important volunteer base by 35 per cent; employ a part-time volunteer manager; start a Home Crisis

Support program, as well as run regular volunteer training workshops and hold an annual Bear Cottage Volunteer Thank You Day.

Yuhu Group was also instrumental in establishing both the Australia-China Relations Institute (ACRI) at University of Technology Sydney (UTS) and the Australia China Institute of Arts and Culture at Western Sydney University, having provided significant funding to both. This support reflects Mr Huang’s keen interest in both academia and the promotion of stronger Australia-China relations and deeper mutual understanding.

Yuhu has also been pleased to assist several other community organisations, for example in Eastwood, where the company has a major presence with its shopping centre, it has assisted Eastwood Public School with computer equipment; St Kevin’s Catholic School, with library upgrades; Eastwood Chinese Senior Citizens Club, with hall rental and to run classes; Eastwood Uniting Church, with office resources and Christian Community Aid, with administration costs.

In 2016, Yuhu Group also donated to important charities such as Movember and CEO Sleepout.

Prior to operating in Australia, Yuhu contributed more than AUD $80 million to community projects and charities in China and was recognised among the top 10 charitable enterprises of Shenzhen.

In the Community

Yuhu Group is proud to support Bear Cottage

Strong Social Conscience

Yuhu Group is extremely proud of the outstanding community work that is being carried out by the diverse range of groups and organisations it supports. Doing what we can to make a contribution is a reflection of the strong social conscience embedded in our company. We understand that building better and stronger communities means so much more than developing properties – it is also about supporting people.

Our Corporate Responsibility / Community Contribution

Proud Contribution

The ‘Between Village and the Metropolis’ exhibition at ACIAC


02 8668 [email protected]

www.yuhugoup.com.au

The information contained in this documentation is for general information purposes only. We endeavour to keep the information up to date and correct, but the document is provided solely on the basis that users will be responsible for making their own assessment of the facts discussed herein and are advised to verify all relevant representations, statements and information. The company accepts no liability for any damage caused by reliance of this documentation.

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Level 15, 201 Miller Street, North Sydney, NSW 2060, Australia

Disclaimer

Epilogue / Contact and Disclaimer

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