Printed on: 100% recycled paper

Foreword 4

Introduction 6

Location and Accessibility 7

Heritage and Culture 8

River, Coast and Climate 9

Industry and Economy 10

Planning and Development 12

Testimonials 14

Fremantle’s Competitive Advantage 15

Projects 16

Market Snapshots 20

Residential Apartment 20

Office 22

Retail 24

Hotel 26

Fremantle - a place where the built environment retains its character, meets the functional demands of its people and accommodates growth

4

There is currently unprecedented investment and renewal underway in Fremantle with the combined level of private and public investment in the pipeline totalling more than $1 billioni including several civic, commercial, residential and retail developments. As part of this, the City of Fremantle has set ambitious targets for the development of new dwellings, commercial office and retail floor space within the city’s central area to be achieved over the next decade.

The development pipeline will see the delivery of a mix of civic, commercial, residential and retail projects spanning over the next 5-10 years. A boutique hotel was recently completed and the construction has commenced on the development of a 7 storey hotel complex that will house the international brand Hilton DoubleTree Hotels. A $60 million high density residential development is also expected to commence construction within the next 12 monthsii.

Freo as it is affectionately known possesses immense cultural and social capital and is well known to the majority of Western Australians as a place to visit. It has a thriving arts & creative community and is home to one of the oldest buildings in Western Australia. Fremantle’s character and the creative milieu it fosters are unsurpassed within Western Australia, drawing artists, tourists, and visitors from all over the world.

With levels of development and investment not seen since the America’s Cup, Fremantle is on the cusp of a major period of revitalisation that will reinforce its position as a place of great significance, being home to modern facilities and high-quality infrastructure. Amidst this high level of development activity, opportunities to secure strategic development sites exist so we invite you to be part of the Fremantle story and join us on this journey of unprecedented growth and revitalisation, as Fremantle continues to thrive as Perth’s second city.

Dr. Brad PettittMayorCity of Fremantle

Over the past five years Fremantle has worked hard to meet the needs of investors resulting in an enviable development pipeline that has positioned the city as a viable consideration for large scale commercial and residential development. You only have to look at the number and scale of development approvals within the city centre to realise that something big is poised to happen in our port city.

Chris Palandri President, Property Council of Australia WA

Fremantle holds a reputation as the most significant metropolitan centre outside of the Perth CBD. The renewed focus on investment taking place in the city centre will reposition Fremantle as the region’s second city with a vibrant cultural and economic heart.

Marion Fulker CEO, Committee for Perth and Project Manager, Future Freo

5

It is no secret that Western Australia’s economy has experienced huge growth on the back of a decade long mining boom. The Western Australian state economy has experienced an average growth rate of 4.9% per annum over a period of 10 years as compared to Australia’s growth rate of 2.5% in 2013-14. Western Australia is leading the nation forward when it comes to generating trade and investment opportunities. In 2014, WA’s Gross State Product rose by 5.5%. The State now contributes 17% of Australia’s total Gross Domestic Product (GDP) whilst being home to just 11% of the nation’s population. According to Deloitte Access Economics, GSP in WA is forecast to grow by an average of 3.2% p.a. over the next 5 years (2015-19).

As at December 2013, the population of Western Australia was 2.55 million. Greater Perth has now reached a population of 2 million and is expected to grow with WA’s population growth rate being forecast at 2.1% until 2017-18.

Western Australia’s significant resource development is forecast to continue for the foreseeable future, with the value of projects either underway or committed to begin construction in the next few years currently standing at $125 billioniii.

In the context of Western Australia’s thriving economy, Fremantle’s Gross Regional Product continues to move in line with the State’s GSP, suggesting that Fremantle is benefiting from WA’s continuing success. With a current focus on building an even more resilient economy Western Australia is looking to other opportunities such as agriculture, service industries and tourism. As the most visited destination in Western Australia outside of the Perth CBD, and host of WA’s busiest port, Fremantle is well placed to thrive as the Western Australian economy continues to diversify.

A true powerhouse of the nation -

WA remains one of Australia’s

best performing economies

6

Western Australia is well positioned to support the unprecedented growth currently occurring within the Asian region. With direct flights to China and the majority of South East Asia being within a 6 hour flight, Perth is Australia’s true gateway to Asia.

Fremantle’s geographical location provides exceptional advantage due to complete time zone alignment. Sitting within the GMT+8 time zone, which is the most populous in the world, Fremantle shares business hours with key cities including Beijing, Shanghai, Hong Kong, Kuala Lumpur and Singapore, allowing for total operational alignment between the two regions.

Fremantle is approximately 25 minutes from Perth. Perth’s domestic terminal services airlines that provide flights connecting directly to major Australian capital cities and Western Australia’s regional centres. The Perth Airport has direct flights to more than 15 countries including the important commerce and trade centres of Singapore, Kuala Lumpur, Guangzhou and Dubai. There are a large number of cargo companies operating in Perth that service domestic and international logistics requirements through the Perth Airport.

Perth is Asia’s most accessible Australian city

PERTH TO DUBAI

PERTH TO

SINGAPORE

PERTH TO JAKARTA

PERTH TO GUANGZHO

U

PERTH TO KUALA LUMPU

R

10 hrs 40 mins + Direct

5hrs 15 mins +

Direct

4 hrs 10 mins +

Direct

8 hrs 15 mins +

Direct

5 hrs 30 mins +

Direct

7

The traditional owners of the Walyalup area are the Wadjuk people, whose heritage dates back tens of thousands of years. Walyalup has several significant sites and features in many traditional stories.

Fremantle was established in the Walyalup area in 1829 at the time of European colonisation. The city’s early economy was driven by trade in wheat, meat and wool. By 1900 Fremantle’s infrastructure had grown to include the Fremantle Harbour, Fremantle Hospital, the Fremantle Markets, and the railway between the harbour and Perth. At this time the Western Australian gold rush period had began and Fremantle served as a gateway to people heading to the goldfields.

In the lead up to World War II the main industries in Fremantle were shipbuilding, soap boiling, saw milling, smelting, iron founding, furniture making, flour milling, brewing and animal skin tanning.

In the post-war period Fremantle’s suburban areas grew and the city underwent a period of consolidation. In 1987 Fremantle was thrust into the global spotlight when the city hosted the America’s Cup Defence event, held in Gage Roads offshore from Fremantle Harbour. The event saw a large public and private investment in the city and subsequent growth in retail and tourism sectors, leading to the vibrant and culturally rich Fremantle we know today. Fremantle is now the most visited destination in Western Australia outside of the Perth CBD.

Fremantle’s most important assets are its heritage and its people of diverse backgrounds and cultures - the irresistable character of its built form is inviting and rich in history

8

Fremantle is located 18 kilometres south west of the Perth central business district. It lies on the western edge of the Swan River coastal plain, and is bounded to the west by the Indian Ocean. The terrain throughout Fremantle CBD is mainly flat, with a few hills amongst the suburbs. A significant portion of the land on the western edge of the city centre has been reclaimed, creating public spaces, Fishing Boat Harbour and the Fremantle Inner Harbour, including Victoria Quay.

As Perth’s second city, Fremantle offers a diverse range of housing options, exceptional access to public transport and a dynamic economy, creating the jobs and opportunities that enable Fremantle residents to live, work and play. Its character is embodied through stunning heritage buildings that house important cultural and artistic institutions including the Fremantle Arts Centre and the Shipwreck Galleries, as well as tributes to Fremantle’s iconic past including the Duyfken replica.

Fremantle shares much in common with its Mediterranean sister cities by way of climate and lifestyle. Fremantle’s sunshine, combined with the swan river waterfront and beaches, means its desirable Mediterranean climate offers ideal opportunities for relaxing with family and friends, recreating, and enjoying the Swan River and Indian Ocean. On hotter days, the Fremantle sea breeze, known locally as the “Fremantle Doctor” provides respite from the heat on summer afternoons, and provides perfect options for sailing and windsurfing.

Fremantle’s public spaces, reserves and sporting grounds are also associated with several sporting teams including the national AFL team the Fremantle Dockers, to whom Fremantle lends its name.

Fremantle’s rich cultural history has created a city with numerous dining options, a vibrant cafe and bar scene, and a range of entertainment options. The arts are strongly represented within the city, and numerous food, arts and crafts, and music festivals take place in the city each year.

River, coast and climate -

a Mediterranean oasis right here

in Australia

9

As a result of technology advancements within the shipping industry, an ever progressive Fremantle moved to diversify its economy and evolve to create a more diverse population driven offering. In 1987, Fremantle played host to the America’s Cup which resulted in significant investment within the tourism and hospitality sectors and raised Fremantle’s profile internationally as a world class destination. This allowed for the incubation and growth of strong population driven industries within the CBD of Fremantle including tourism, hospitality and retail.

Fremantle’s Gross Regional Product has grown steadily over the past decade, reaching $4.27 billion in 2012-13iv. This growth is driven by strong local commercial activity across a range of industry sectors, including knowledge based and population driven industries. Major infrastructure such as Fremantle Port Inner Harbour, Fremantle Hospital and the Fremantle Campus of the University of Notre Dame Australia complement the numerous small and medium enterprises throughout the city. Fremantle Port, a beacon of Fremantle’s strength adds significant economic weight to the city, having handled over 30 million tonnes of cargo in 2012-13v.

From humble trading post to 30 million tons of cargo per year -

Fremantle is at the beating heart of WA’s economy

10

Significant education and training institutions within Fremantle also make a strong contribution to the Fremantle economy. As at the year ending 2012-13 the education and training sector in Fremantle:

Fremantle was the most visited destination in WA outside of the Perth CBD receiving:

Tourism and hospitality industries in Fremantle were responsible for the:

Tourism and hospitality industries in Fremantle were also responsible for the:

11

The majority of workers in Fremantle are:

34.2% 12.6% 11.9%

In 2011 there were 24,701 people working in Fremantle: In the year ending 2013:

Education and training:

1.26 million VISITORS

2,585 PEOPLE $251 million

The highest percentage of workers were:

Fremantle workforce that live in Fremantle:

Fremantle labour force that hold a Bachelor or higher degreevi:

W E R E F E M A L E

W E R E M A L E

YEARS OLD

LIVES & WORKS IN FREO

40.7%

59.3%

Professionals

Bachelor or higher degree

Other

ManagersClerical and

Administrative Workers

vii

+403 jobs between 2012 and 2013viii

+$34.5m between 2012 and 2013viii

3,673 people

$373.8 million

D I R E C T E M P L O Y M E N T O F

E M P L O Y E D

S A L E S O F

GENERATED AN OUTPUT OF

ix

12

The City of Fremantle has recently been focused on implementing strategies to revitalise the city centre. The strategies implemented, including some much needed planning scheme amendments, have led to a significant increase in investor confidence in Fremantle. A number of new hotel, retail, residential and commercial developments have already been completed.

Amendments 38 and 49, now incorporated into the City of Fremantle Town Planning Scheme, primarily allow for additional building height within certain areas of the CBD. The purpose of the amendment 49 in particular was to increase height limits on 12 non-heritage listed sites within the Fremantle CBD to encourage high-quality development and to increase Fremantle’s economic capacity. The 12 key sites are located in the eastern area of the City Central zone, focused around Queen Street between the Fremantle Railway Station and Kings Square.

In addition to town planning scheme amendments, there has been a focus on increasing the number of residential dwellings in the CBD in order to catalyse city centre revitalisation through the increased population and resident activity within the central core.

The key strategic sites were identified by the City of Fremantle and State Government of Western Australia as being capable of supporting redevelopment of intensity and scale that would make a significant contribution to the economic prosperity of Fremantle. The City of Fremantle is committed to engaging with developers who wish to be part of Fremantle’s vision of a denser, modern city, mixing old and new in a captivating and truly unique way.

Integrated urban design, thoughtful planning and sensible development are the keys to building a city that embraces the past and is well prepared for the future

13

70,000m2

A-GRADE COMMERCIAL OFFICE SPACE

1,500 ADDITIONALDWELLINGS

20,000m2

ADDITIONAL RETAIL FLOOR SPACE

14

The industry agrees Fremantle is fast becoming recognised as the place to invest

There is an indescribable depth to Fremantle that reaches far beyond its status as a strategic metropolitan centre. It is a living representation of the State’s character and beginnings. As our economy continues to diversify, Fremantle’s commanding position as the manufacturing and logistics hub of WA and the most visited destination beyond Perth’s CBD will become even more apparent and attractive to investors. We have invested in Fremantle because we want to be part of its growth story; its continuing emergence as a driver of economic outcomes for Western Australia; solidifying its status as a tourism and cultural hotspot; and ensuring it remains a great place for locals to call home. Matthew McNeilly – Managing Director, Sirona Capital

Over the past five years Fremantle has worked hard to meet the needs of investors resulting in an enviable development pipeline that has positioned the city as a viable consideration for large scale commercial and residential development. You only have to look at the number and scale of development approvals within the city centre to realise that something big is poised to happen in our port city. Chris Palandri – President, Property Council of Australia WA

Fremantle is a unique, warm and culturally diverse community bringing together entertainment, food and fun and tailors well to every visitor and every resident. It is situated 18 kilometres from Perth CBD and in the midst of high end residents. It is becoming the equivalent of The Rocks of Sydney and Southbank in Melbourne. It will continue to grow as it’s unique qualities and water aspect are discovered by more people. Gerard O’Brien, Silverleaf Investments

The significant increase in apartment complexes in Fremantle is having a flow through impact on business as local residents seek to work, shop and play close to home. When combined with innovative approaches to economic development, investment in residential, commercial and retail development continues to be attracted to Fremantle. Debra Goostrey – CEO, Urban Development Institute of Australia WA

There are five successful elements required to build a successful commercial precinct. Previously Fremantle had four of these elements – excellent public transport, a great location, and a clear favourable local brand, the uniqueness to secure opportunistic tenants. The recently adopted planning scheme amendment 49 completes the requirements, creating value for investors in Fremantle. Lino Iacomella – Deputy Executive Director, Property Council of Australia WA

The question ‘why Fremantle?’ is made simple by Fremantle’s clear competitive advantage.

Proximity to Perth CBDFremantle is under 20 kms from the Perth CBD and directly accessible by commuter rail. Travelling to Perth takes less than 30 minutes. Other major metropolitan centres do not enjoy such close proximity to our capital city.

Distance from CBD

Western Australia’s busiest port on our doorstepFremantle is home to Western Australia’s busiest and undoubtedly most well known port. The port provides seamless logistical access to Australia’s North West and South East Asia and is a magnet for businesses operating within or servicing manufacturing, marine and logistics industries.

Opportunities to leverage our greatest natural assetFremantle provides unrivalled access to the Indian Ocean and the Swan River both as a drawcard for tourists and as a unique and lucrative trading environment for local businesses. Fishing Boat Harbour and Bathers Beach allow absolute waterfront operation for some of Perth’s most successful and iconic retail and hospitality businesses. Few metropolitan locations offer such a unique trading environment adjacent to both the ocean and the river.

WA’s most visited destination outside of the Perth CBDAccording to Tourism Western Australia, Fremantle is the most visited destination outside of the Perth CBD. This provides strong opportunities for population driven industries that other metropolitan centres cannot compete with. Fremantle is also the primary stop for cruise ships in the Perth metropolitan area.

Fremantle is part of the State’s cultural fabricYou will be hard pressed to find a Western Australian who hasn’t heard of Fremantle. The strength of Freo’s brand makes the port city recognisable state-wide as one of WA’s favourite places to be.

15

Fremantle’s competitive advantage We made the decision to base our

headquarters in Fremantle due to the close proximity to Western Australia’s

busiest port and ease of access to the heavy port facilities and marine services we rely on. Fremantle is

centrally located between Carnegie’s operating assets both onshore and

offshore, marine support facilities and service providers that are key to our operations and still within 30 minutes of the CBD.

Greg Allen, Chief Operating Officer,Carnegie Wave Energy

Fremantle 19.7 km

Joondalup 27.9 km

Cockburn Central 21.8 km

Armadale 37.9 km

16

Victoria QuayProject name: Victoria Quay RedevelopmentLocation: Fremantle HarbourValue: $350 millionSite Area: 35,000 sqmStatus: Plans submitted for approval

Atwell ArcadeProject name: Atwell Arcade RedevelopmentLocation: Atwell Arcade between Cantonment Street and High Street MallValue: $7 millionSite Area: 2,400 sqmStatus: Construction commenced

17

HeirloomProject name: HeirloomLocation: Queen Victoria StreetValue: $60 million5 Storeys, 183 residential apartmentsDevelopment application approved

Point StreetProject name: Point Street RedevelopmentLocation: Point StreetValue: $70 millionSite Area: 5,015 sqmStatus: Construction commenced

Kings SquareProject name: Kings Square RedevelopmentLocation: Kings Square, William StreetValue: $220 millionSite Area: 13,665 sqmStatus: Development application approved

18

Activation of Fremantle’s east end - quality inner city living and world standard accommodationKEY FACTSProject name: Point Street RedevelopmentLocation: Point StreetValue: $70 millionSite Area: 5,015 sqmStatus: Construction commenced

ABOUT THE PROJECTThe Point Street redevelopment, currently underway, includes the construction of a 7 storey mixed use building which will include 173 hotel rooms, 77 residential units and multiple restaurants and shops. The development has secured DoubleTree by Hilton as the central hotel tenant which will transform the eastern edge of the CBD and activate the public realm adjacent to key sites including the Wool Stores and the historic Boy’s School building.

Kings Square - a vibrant and active civic heart, attracting a large number of visitors and new residents to the city centreKEY FACTSProject name: Kings Square RedevelopmentLocation: Kings Square, William StreetValue: $220 millionSite Area: 13,665 sqmStatus: Development application approved

ABOUT THE PROJECTThe Kings Square Project is an integrated redevelopment of key sites in Fremantle’s Kings Square precinct. The project includes the redevelopment or refurbishment of a number of properties currently owned by the City of Fremantle and the former Myer building owned by Sirona Capital Management.

The objectives of the project are to:• Create a community, civic, retail and commercial

centre reflecting Kings Square’s unique place as the traditional ‘centre’ of Fremantle and a vibrant, active and safe place for visitors and citizens alike; and

• Develop a landmark precinct that attracts and retains more people within Fremantle’s city centre including office workers, retailers, shoppers, hotel guests and residents.

The project will create the opportunity for further significant private sector investment through the facilitation of public-private partnerships, attraction of new major investors and increased collaboration and investment from existing economic anchors. The resultant increase in population and activity within the city centre will provide opportunities to attract large private enterprises as well as develop industry clusters that contribute to the sustained growth of local businesses.

19

Heritage with undeniable intrinsic value – iconic, architectural and innovativeKEY FACTSProject name: HeirloomLocation: Queen Victoria StreetValue: $60 million5 Storeys, 183 residential apartmentsDevelopment application approved

ABOUT THE PROJECTAn exemplar of the notion that heritage complements development, this project will see a historic four-storey building, with its saw-tooth roof, century old jarrah beams, exposed brick expanse, grand windows and 3.6 metre high ceilings be magnificently restored and adapted for life. Developed by Match, up to 183 New York style residential apartments will be created within this heritage structure. This development will transform the eastern end of the Fremantle CBD by bringing hundreds of residents into the area.

A-grade office space in the heart of Fremantle’s CBD – a game changer for High Street MallKEY FACTSProject name: Atwell Arcade RedevelopmentLocation: Atwell Arcade between Cantonment Street and High Street MallValue: $7 millionSite Area: 2,400 sqmStatus: Construction commenced

ABOUT THE PROJECTAn opportunity exists for the High Street Mall to become a key strategic link between Market Street and the new Kings Square redevelopment. The Atwell Arcade redevelopment has the potential to bring significant activity to the area in the form of up to 300 office workers and high-quality retail offerings. This aligns well with the City’s broader revitalisation strategy that has been making big inroads in other parts of the Fremantle city centre.

A re-activated destination enhancing Fremantle’s identity, culture and historyKEY FACTSProject name: Victoria Quay RedevelopmentLocation: Fremantle HarbourValue: $350 millionSite Area: 35,000 sqmStatus: Plans submitted for approval

ABOUT THE PROJECTFacilitated by Fremantle Ports, the Victoria Quay Commercial Precinct Plan along with Fremantle Station and Pioneer Park Precinct Plans aim to create an integrated urban form that provides multiple connections from the Fremantle CBD to the Victoria Quay waterfront and Fremantle Railway Station.

It will provide new and re-activated destinations that enhance the identity, culture and history of the area through well designed and high quality urban spaces that are safe, inclusive and inviting. The vision is to open the way for revitalising the Victoria Quay Commercial Precinct, the Fremantle Railway Station area and Pioneer Park as a vibrant quarter of Fremantle by embracing its heritage, improving connections between the waterfront and the city centre and enabling sustainable economic, social and environmental outcomes.

Plans for this redevelopment are currently lodged with the Western Australian Planning Commission awaiting comment.

20

Residential apartment market snapshotx

21

Fremantle’s residential apartment market continues to provide significant opportunity for investors. Coupled with an increased demand for high density living, unit prices have consistently grown in the Fremantle area due to sustained interest from owner occupiers and young professionals being quite active in the area. Fremantle has higher price points for apartments than most other metropolitan areas that are not within inner Perth due to proximity to the coastline but still with access to the Perth CBD via the rail line.

Since November 2006, unit prices have grown 31% (or 3.4% p.a.) and the median price currently sits at $595,000 as of November 2014. Over the year to November 2014, the market witnessed steady growth of 3.3%. Whilst annual sales volumes have varied from year to year, the average sales turn over for units in Fremantle (over 9 years from 2006-14) was approximately 203 units.

With regard to return on investment, the median weekly rents for units in Fremantle have grown by 50% since November 2006 and now sit at $500 per week. Over the year to November 2014 rental yields for units dropped to 4.25%, down from 5.0% the previous year.

The residential development pipeline is strong for Fremantle with up to 1,000 units planned, approved or underway which are part of investments totalling $350 million. Based on pre-sales levels from 36 and 11 Queen Victoria Street the current overall take up rate is estimated at approximately 50-60 units p.a.

Over the next 14 years to 2026, the ‘lone person’ smaller household types are projected to increase by 700, or 58 p.a. making up some 32% of the total household by 2026. Initiatives taken by the City of Fremantle will ultimately attract increased take up levels over the next 10 years as an increasing amount of ‘outside buyers’ become attracted to Fremantle.

Fremantle Core (CBD): Major New Unit Supply (As at March 2015)

Building Name/Address Description Status No. UnitsInvestment Overall Project

81 Queen Victoria Street 7 storey residential apartments

Development approved 54 $11 million

50 Pakenham Street 4 storey mixed use Development approved 19 $5 million

19-23 Queen Victoria Street

7 storey residential apartments

Plans underway 51 $12 million

2 Point Street 7 storey hotel and apartments

Construction started 77 $70 million

11 Queen Victoria Street 6 storey mixed use Construction started 46 $12 million

36 Queen Victoria Street 5 storey mixed use Development approved 183 $60 million

Bannister Street Apartments

4 storey mixed use Construction started 11 $5 million

Total 441 $175 million

Median Unit Price$595,000

Buyer ProfileYoung Professionals; workers; new overseas immigrants; one person and couple only investors.

Unit Growth3.4% p.a.

22

Office market snapshotxi

23

The Fremantle suburban office market is the 5th largest in the Perth metro area at circa 62,900 sqm. Fremantle enjoys a relatively stable office market, due to minimal exposure to resource sector tenants and subsequent protection from supply shocks. In the last two years, 21% of all transactions over $5 million in suburban markets have taken place in the Fremantle core, the largest being the sale of Customs House, 2 Henry Street Fremantle for $30.6 million at an initial yield of 11.07%. Indicative prime yields in Fremantle core softened by 10 bps during 2014 to range from 8.10% to 9.35%. Secondary yields softened by 15 bps to range from 9.00% to 10.15%.

As of December 2014, indicative prime capital values averaged $4,067 per sqm whilst indicative secondary capital values averaged $2,931 per sqm. In the same period prime net face rents averaged $360 per sqm reflective of the current stock of older style office buildings. The current development pipeline contains up to 38,000 sqm of new A-grade office space either planned, approved or under construction which is likely to increase this average.

Initiatives taken by the City of Fremantle to ignite redevelopment will ultimately attract increased absorption levels over the next 10 years as there is likely to be new market entries in the office sector on the back of better quality office space attracting higher quality tenants. The long term growth fundamentals in WA remain strong and this will generate ongoing demand for office space in Fremantle going forward. By 2029, the tenancy mix of the Fremantle office market will have grown considerably and is likely to cover a wider range of tenants to service the broader range of services needed to support the local economy. Occupier demand going forward will be intrinsically linked to the ‘services economy’ and demand for office space in Fremantle will be driven by this part of the economy. Green technology and Marine services are likely to be the key drivers of growth over the long term.

Annual GrowthEst. 1.3%

Avg. Long Term AbsorptionEst. 800-1,200 sqm p.a.

Avg. Prime Capital ValueEst. $4,067 per sqm

Fremantle Core (CBD): Major New Office Supply (As at March 2015)

Building Name/Address Description StatusOffice Area Sqm.

Investment Overall Project

14 Henderson Street 5 storey mixed use Development approved 6,000 $21.5 million

10-14 William Street 7 storey mixed use Development approved 9,000 $21.5 million

120 High Street Mall 5 storey retail and office Under construction 3,500 $7 million

Myer Building, Kings Square 6 storey office and retail Development approved 14,500 $35 million

11 Cliff Street 4 storey office Under construction 2,000 $8 million

11 Queen Victoria Street 6 storey mixed use Under construction 958 $12 million

26 Parry Street 4 storey mixed use Development approved 1,820 $7.1 million

19 Duoro Road 3 storey mixed use Development approved 200 $3 million

Total 37,978 $115.1 million

24

Retail market snapshotxii

25

Fremantle’s main retail precinct is within the CBD centred around Queen and Adelaide Streets, High Street, High Street Mall and William Street as well as South Terrace and Market Street. Growth in food and beverage retailing continues to outperform the broader retail sector, with a higher proportion of food and beverage retail offerings on South Terrace. Current demand levels from food and beverage tenancies are likely to continue on the back of population growth, higher visitation and increases in food based retailing turn over. Changes in retail spending post GFC have led to some changes in the broader retail tenancy mix throughout Fremantle, mainly leading to a prevalence of service/experience based retailers. Retail strips in Fremantle remain extremely tightly held with few transactions taking place to gauge the market.

Yields for prime retail assets in Fremantle range from 5.75% to 6.25% and have remained stable over the last 24 months. Rents on Fremantle’s main retail strips have also remained relatively steady over the year to December 2014, with average gross indicative rents on Market Street sitting at $1,250 per sqm and $1,850 per sqm on South Terrace. Fremantle retail strips are the most expensive rents across all Perth metropolitan strips with rents in Bayview Terrace, Claremont next in line at a Gross Indicative Rent of $1,150 per sqm. Rents for the ground floor retail component of a new mixed use development within 1.5 km of the Fremantle core have been estimatedxiii to range from $400 to $750 per sqm gross. Vacancy on both Market Street and South Terrace remains extremely tight at 5.0% and 3.0% respectively.

WA Retail Sales GrowthEst. 1.0%

Prime Retail YieldEst. 5.75% - 6.25%

Gross Indicative RentEst. $1,850 per sqm

Fremantle’s retail core is serviced by three distinct customer segments including surrounding residents, those employed within the core and visitors to the city including students, day-trippers and overnight tourists. CBRE research indicates there are approximately 50,027 sqm of retail supply at development application approved planning level, identified as having the potential to be developed within the Fremantle core area.

Fremantle Core (CBD): Major New Retail Supply

Building Name/Address Description StatusRetail Area Sqm.

Investment Overall Project

8 Pakenham Street Short stay apartments

Under construction 116 $ 15 million

52 Adelaide Street Hotel Development approved 323 $18 million

19-23 Queen Victoria Street

Ground floor commercial

Plans underway 721 $12 million

14 Henderson Street 5 storey mixed use Development approved 1,200 $21.5 million

2 Point Street Hotel Under construction 1,949 $70 million

10-14 William Street 7 storey mixed use Development approved 2,000 $21.5 million

120 High Street Mall 5 storey retail and office

Under construction 2,400 $7 million

Myer Building 6 storey office and retail

Development approved 7,208 $35 million

Bannister Street Apartments

4 storey mixed use Construction underway 80 $5 million

Victoria Quay Mixed use Plans underway 12,000 $350 million

Total 27,997 $555 million

26

With the Australian Dollar expected to deprecate further, the number of international and domestic visitors to WA are forecast to grow over the next 12-24 months. In the years ending 2011-12-13, the average number of international visitors per year to Fremantle was 47,100 (20% of visitors). This equated to 800,100 international visitor nights with the average length of stay being 17.0 nights for international visitors. Within the Experience Perth region, Fremantle was the most visited by international visitors outside of the Perth CBD, receiving 39,000 international visitors in 2012-13.

In total Fremantle received an average of 1,556,000 visitor nights in the three years to December 2013 of which 44% were intrastate, 36% were interstate and 20% were international. The annual average room occupancy for the last 2 years (2013-14) ranged from 66% to 79.4%.

Both the average room rate and revenue per available room (RevPAR) increased by 3.2% and 16.7% respectively over the year to June 2014. Current average room rates range from $220 - $280 per night in Fremantle. Hotel operators have been reacting to softer conditions by stimulating demand through lower room rates, which dropped by 6.4% to $217 per night over the June 2014 quarter.

Avg. Annual Visitor Nights1.55 million

Avg. Annual Occupancy RateEst. 66% - 79.4%

RevPAR GrowthEst. 16.7%

There are currently three existing hotels and one serviced apartment provider servicing the Fremantle market. There are currently five major hotel developments either approved or under construction totalling an investment of up to $120 million and 440 additional rooms. The largest hotel transaction to occur in Fremantle was the sale of the Esplanade Hotel (300 rooms; 4.5 star) in November 2012 for $88.5 million reflecting an initial passing yield of 12.5%. The hotel was operating at 85% occupancy with an average room rate of $213 and RevPAR of $181.05.

Fremantle Core (CBD): Major New Accommodation Supply

Building Name/Address Description StatusNo. of Rooms

Investment Overall Project

Quest Apartments Short stay tourist apartments

Construction underway 73 $15 million

Hilton Doubletree Hotel Hotel and apartments Construction underway 173 $70 million

Hougoumont Hotel Hotel with restaurant and bar

Phase 1 complete Phase 2 underway

92 $7 million

Adelaide Street Hotel Hotel Development approved 151 $18 million

Challenger Harbour Serviced apartments Development approved 42 $10 million

Total 531 $120 million

Hotel market snapshotxiv

27

i Source: Approved development applications – City of Fremantle 2014ii As at date of publishingiii All figures sourced from Department of State Development WA – WA Economic Profile December 2014 iv Source: economy.id.com.au/fremantle 2014v Source: Fremantle Ports Authority 2014vi Source: economy.id.com.au/fremantle

Photography AcknowledgementsInside Cover: Photography by Alan DeveauPage 4: Image courtesy of the Fremantle MarketsPage 6: Photography by Phil HevronPage 8: Photography by Max Kordyl

Page 9: Photography by Ben TesslerPage 12: Photography by Roel LoopersPage 14: Image courtesy of Bathers Beach House & Cicerello’sPage 15: Photography by Stephen LoboPage 24: Photography by Max Kordyl

vii Source: Tourism Western Australia 2014viii Source: economy.id.com.au/fremantle 2014ix Source: economy.id.com.au/fremantle 2014x Source: CBRE Market Reportxi Source: CBRE Market Reportxii Source: CBRE Market Reportxiii Source: CBRE Market Reportxiv Source: CBRE Market Report

Town Hall Centre, 8 William Street, Fremantle WA 6160PO Box 807, Fremantle WA 6959T 08 9432 9999 F 08 9430 4634 TTY 08 9432 9777E info@fremantle.wa.gov.auwww.fremantle.wa.gov.au