Lease of 2.5 hectares of freehold land (1.9% of Club land) to a retirement living operator will deliver:

• $22.127 million (inc GST) as an upfront payment, payable upon DA approval

• ongoing annual income

• areconfiguredandimproved Green Nine

• 40% more water for irrigation.

• JLL projects total income for the Club over 40-year period to be approximately $76 million

It will achieve Club objectives:

• securesignificantupfrontfundingandrecurring income over 60-year period tomaintainfirstrate36holegolfcourse

• restorefinancialpositionfollowing2011floodrepairs

• enable attraction of new members

• givetheClubthefinancialabilityto consider repairs to Clubhouse function rooms, back of house, kitchen and locker rooms

• protect the Club as a community greenspace and amenity.

Securing the Club’s future

Aura Holdings will:

• deliver approximately 220 retirement living apartments in four buildings of fivestoreys

• build in two stages

• meetsignificantneedinthelocalcommunity to age in place - local residents and club members.

The proposal means:

• 36holeswillbeprovidedandmaintained

• Green Nine dam will be expanded to provide 40% more water for irrigation

• overall course standard will be improved through increased maintenance and new design.

417094_IGC_AURA_CONCEPT DESIGN | SEPTEMBER 2017 17

AERIAL PERSPECTIVE

Artist impression only

Proposed development with enlarged water storage dam

Project Overview

The proposed site for the Aura Holdings retirement village.

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The Club was approached by a retirement living operator seeking an opportunity adjacent to the golf course.

As a result of those discussions, the Club sought broader expressions of interest through a tender process.

JLL provided independent advice and reviewedthefinancialoffers,andBDOreviewed the proposals from a taxation perspective.

The Club has selected a quality operator who will totally fund the project.

Noconflictsofinterestorpersonalpecuniary interests exist and members will not be out-of-pocket for the development application process.

Consultation

• The Club is now seeking feedback from members, neighbours and the broader community

• If feedback is positive, the proposal will be put to the vote of the club members at an Extraordinary General Meeting in late November 2017

• Information session feedback will also be included in any project application toBrisbaneCityCouncil,shouldtheproposal advance to that stage.

The Process

Inadditiontoasignificantup-frontpayment,aleaseholdarrangementwilldelivera long-term income stream to fund a course upgrade and improve the Club’s balance sheet.

Aura’s offer is:

• an upfront payment of $22.127 million (inc GST), payable upon DA approval

• annuity payment of 10% of its deferred management fees, paid annually

• residents will also pay a $10 per week, per unit levy to the Club to contribute to on-course landscaping in the retirement village precinct

• a 60 lease with the Club holding an option to extend for an additional 60 years

• JLL projects total income for the Club over a 40-year period to be approximately $76 million.

It is important to note the annual Deferred Management Fee (DMF) payment will increase overtime as the village evolves over a 60-year period.

Aura’s Offer

The new Green Nine

TheproposednewconfigurationuseslandtothewestoftheGreenNine(theoldRed2hole).

The Club will appoint an internationally prominent golf course architect to lead the design of new vastly improved, visually stunning holes 5 to 9.

Benefitsinclude:

• 36holeswillbemaintained

• better use of the elevations available

• newandbeautifulfloraaspartofeach new hole

• more interesting holes for all standards of player

• replacement of the original (and 40 year old) "push up" greens

• new high quality fairways replacing the 40 year old "tight" grass fairways

• green surfaces similar in quality and standard to those on the Gold Nine

• redesign completed as an early stage of work.

The Club proposes to lease our own freehold land adjacent to existing waterreservoirnearMeiersRoad.

The Club was formed in 1926 when members bought land that is now home to the St Lucia Golf Course.

The Club acquired the land freehold when it swapped its St Lucia Course withBrisbaneCityin1985.

MuchofthesitewasaformerBrisbaneCityCouncildumpuntilthe1980sandhas been transformed by the Club.

The Site

TheproposedretirementvillagefromMeiersRoad.

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Aura proposes a registered retirement villagewith1,2,3and4bedroomapartments.

The project does not include aged care.

The village would include a health and wellness precinct with a pool, gym, allied health and medical suites, a hairdresser, beautician and masseuse.

Facilities for the residents will include:• cinema• library• business centre• billiards room• private dining room• outdoor barbeque and entertaining area• community garden.

It is expected resident access to Club facilities will boost usage and income to the Club.

Retirement Living proposal

A view of the entrance to the retirement village.

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A view from the inside of the apartments.

The Club has selected this site to minimise visibility from the surrounding community.

Leading architect Cox Architects has been selected to produce a design thatreflectsthepremiumqualityofourneighbourhood.

The design is responsive to our neighbours:

• 100 metre buffer to nearest home• no overshadowing or overlooking• significantlandscaping.

Existing neighbours on elevated land to the north of the retirement village location will retain their current outlook.

Views

View of the retirement village from golf course park land, near the rear of Carnoustie Court homes.

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Retirementlivingislikelytohaveminimalimpactontrafficintheprecinct.Aura’sretirementvillagesaverage1.3residents per apartment who generally avoid travelling in peak hour.

Researchshowsresidentsinretirementvillages make an average of 2 trips per unit per day. This contrasts with 6 trips per unit per day for residential apartments.

In addition, Aura proposes to operate a village bus service for residents and provide a car pool to encourage residents to reduce their use of private cars.

Internal cart paths will allow residents direct access to the Club.

All car parking will be in the building basements.

Roadimprovements,includingkerbingand channelling, are expected to be required.

Traffic

Trafficmovementsandvehicleaccessfortheproposedsite.

Improvements to the course will include asignificantenlargementoftheexistingwater storage pond.

This will be an asset for course maintenance, local wildlife and visual amenity.

Landscaping, gardens, and potentially featurerockwallswilladdsignificantlyto the visual amenity of the area.

Water Views

An enlarged lake will add 40 percent more water for irrigation.

The existing lake.

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Aurawillinvestinsignificantlandscapingandbeautificationworksto provide a visual buffer for both its residents and golfers.

This will assist in screening the facility from the course and from existing neighbours.

Residentsoftheretirementvillagewill pay to contribute to on-course landscaping maintenance, starting at approximately $100,000 per annum, plus annual CPI increases.

Landscaping

Aurawillinvestinadditionalcourselandscapingforthebenefitofresidentsandgolfers.

The Club acknowledges that previous proposals have failed to win acceptance of the community and members.

Key points of difference with Mirvac’s 2006 proposal include:

Previous proposals

Aerial view of proposed retirement village.

• about 220 retirement living units not 285residentialapartments,whichmeanssignificantlylesstrafficimpact

• leasehold of Club land not freehold sale

• annual lease payments ensuring a lasting legacy

• significantcourseimprovementstoGreen Nine will be undertaken prior to the completion of the village

• improved water storage to underpin long term course quality

•BrisbaneCityCouncilpolicynowsupports retirement living on privately owned sports and recreation land

• existing Indooroopilly residents can age in their neighbourhood

• improved amenity from increased water views.

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The Club remains in debt

Thecourseunderwaterafterthe2011Brisbanefloods.

Inthewakeofthe2011floods,theClub’s cash reserves were wiped out anddebtpeakedat$3.3million.

This was due to course recovery works and an extended period of closure.

ByMaynextyearClubdebtisexpected to be reduced to $1.2 million.

While the Club has managed to reduce its debt, it has made no strategic or significantinvestmentinthepastsevenyears.

The Club also has no cash reserve or sinking fund to recover from another setback.