MT BARKER BAPTIST CHURCH

DRAFT - INFORMATION MEMORANDUM

SALE OF 13-17 VICTORIA RD, MT BARKER

1 INTRODUCTION Mt Barker Baptist Church has occupied the 13-17 Victoria Rd site since approximately the mid-1990s, but now is in the early planning stages of a new project, which involves moving to a site in the Newenham Estate, Mt Barker. In order to provide capital for the new project, it intends to sell its current site, and which it has now put on the market. This information memorandum is prepared to inform prospective purchasers of some key issues associated with the sale, in order to achieve the vision of the church for the new site. 2 BOLLEN RD PROJECT The new project involves, in partnership with Kings Baptist Grammar at Wynn Vale, construction of a new R-12 school (in stages), and an adjacent Community Centre at a site on Bollen Rd, Mt Barker. The current timing of construction would see the new school opening in February 2022, with the community centre opening in either second half of 2021, or the first half of 2022. It is intended that the Men’s Shed operation at the rear of the site, an integral part of the church ministry, will also move to the new site, but possibly to a different part of the Newenham Estate. 3 CONTINUING USE

The church therefore requires the continuing use of the current property until they can move into the newly constructed community centre, either sometime in the last half of 2021 or more conservatively, in the first half of 2022.

The move of the Men’s Shed is not necessarily tied to the move of the main church activities, and thus may be different, potentially earlier, sometime in 2021.

The church therefore requires certainty of continuing use of the whole property until we are able to move. We are prepared to contemplate a number of methods or instruments to achieve this, such as:

- Sale with a leaseback arrangement - Sale with deferred settlement terms - Option Agreement combined with sale under one of the two methods above

Thus, any purchase offer should address this need, and provide details of the continuing use arrangements that are proposed. Therefore, provision should be made for flexibility regarding an end date to enable the church to move from 13-17 Victoria Rd when the Community Centre is ready for occupancy.

4 GST

The church has received advice that the GST margin scheme may apply to the sale. The sale is proposed to be on an ex GST basis, with GST the obligation of the purchaser. The church has on file a Year 2000 valuation advising a market value of 13-17 Victoria Rd of $960,000.

5 DEVELOPMENT OPPORTUNITY

The only other information that the church can provide is it did have some initial discussions with the District Council of Mt Barker regarding the subdivision opportunity of the site. Whilst the residential zone only allows residential lots of 600 square metres, clause 19 (below) does provide for smaller lot sizes and dwellings assuming they are adjacent a community facility.

Therefore, there is merit to retaining the church building as a church or community centre as a circa 4,000sqm parcel that could serve a capacity of 150-200 people. There is also interest from other churches for such a facility that could be sold separately. This type of solution could enable a greater return for a developer for a rear parcel of 13-17 Victoria Rd of circa 8,000 square metres if the church was carved off and sold separately. Considering the depot land is being sold by the District Council of Mt Barker at the same time, this does offer an alternative pathway for a developer just looking to realise a residential development and not interested investing in the church facilities already on the site. They could then explore purchase of the depot land of circa 6,500 sqm and combine that with circa 8,000 sqm of the church’s land to realise a 14,500 residential development.

6 OTHER

A draft commercial contract has been created, however it is planned that a commercial agreement will be required for any contract negotiated for the purchase of 13-17 Victoria Rd. It is proposed that costs are shared equally with the successful tender party.

Finally, the heart behind the move to a new site is to build a community centre that can be used by the local community. The church understands that this is a commercial sale, where a developer will also need to realise their profit. The church welcomes any approach from interested parties in how a win-win approach could achieve a better outcome for all parties, which subsequently enables a greater investment back into the community. This could even include a joint venture approach, however please note the church is not interested in developing the site.