IM | 37-39 Five Islands Road, Port Kembla

INFORMATION MEMORANDUM

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39 FIVE ISLANDS ROAD PORT KEMBLA, NSW

KNIGHT FRANK INFORMATION MEMORANDUM

EXECUTIVE SUMMARY

ADDRESS

37-39 Five Islands Road, Port Kembla NSW 2505

TITLE DETAILS Lot 23 and 24 of DP 811369 LOCAL GOVERNMENT AREA Wollongong City Council SITE AREA 37 Five Islands Road

1.325 ha*

39 Five Islands Road

1.39 ha*

Combined

2.715 ha*

FRONTAGE TO FIVE ISLANDS ROAD

37 Five Islands Road

105 m*

39 Five Islands Road

63.5 m*

Combined

168.5 m*

GROSS FLOOR AREA

37 Five Islands Road

2,948 sqm*

39 Five Islands Road

3,306.5 sqm*

Combined

6,254.5 sqm*

ZONING

E4 General Industrial

BUILDING HEIGHT

11 m

FLOOR SPACE RATIO

0.5:1

INSPECTIONS

All inspections by potential purchasers and/or their consultant are to be arranged by prior appointment via the exclusive selling agents.

SALE DETAILS

For Sale by Expressions of Interest closing Thursday, 22nd May at 3:00pm (AEST)

SELLING AGENTS

Ben Mostyn M: 0477 213 947 E: Ben.Mostyn@au.knightfrank.com Orlando Maciel M: 0413 344 430 E: Orlando.Maciel@au.knightfrank.com

Ben Churven M: 0421 657 510 E: Ben.Churven@au.knightfrank.com

*Approx.

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37-39 FIVE ISLANDS ROAD PORT KEMBLA

Outline indicative only

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KNIGHT FRANK INFORMATION MEMORANDUM

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37-39 FIVE ISLANDS ROAD PORT KEMBLA 4/63 MARKET STREET WOLLONGONG

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KNIGHT FRANK INFORMATION MEMORANDUM

INVESTMENT HIGHLIGHTS

The former Cleary Bros has been providing construction materials and services to the Illawarra region for over 100 years having been first established in 1916 with this being the first time this site is offered for sale in over 30 years. The site sits proudly on the high side of Five Islands Road overlooking BlueScope Steelworks surrounded by main arterials providing excellent access in and out of the Port Kembla from all directions. Industrial Lands Review The Wollongong Industrial Lands Review commissioned by Wollongong City Council is a recent report that outlines the importance of industrial lands to the Wollongong Local Government Area (LGA) and the need to preserve them as well as promote greater efficiency. Wollongong’s Industrial Lands were last reviewed by Council in 2006 through a study that informed the preparation of the draft Wollongong LEP 2009. This latest Review formally supersedes that study and aims to inform future land use planning directions for industrial lands across Wollongong including within the forthcoming ‘Six Cities Region Plan’. It seeks to make a range of recommendations for consideration. The recommendation range from minor housekeeping amendments to more significant investigations which would require specialist studies if they were to progress. The Review recommends the adoption of seven industrial lands planning principles as well as changes in relation to zoning, land use tables, development standards and DCP controls.

Clean Energy Wollongong is emerging as a global clean energy hub. Across the Illawarra Shoalhaven region there are major projects in green hydrogen production, dual fuel power generation, offshore renewable energy, gas pipeline and terminal infrastructure either planned or already operating. These transformative projects and assets are the cornerstone investments in NSW and Australia’s decarbonised energy future. Port Kembla is poised to become a hydrogen superpower with an ambitious vision to create Australia’s first 5GW+ scale green hydrogen hub. Advanced Manufacturing Manufacturing is part of Wollongong’s DNA, with more than 110 years of innovation and excellence in this sector. Home to a diverse range of operations in advanced manufacturing, Wollongong offers unique and significant opportunities particularly in the machinery, equipment design and manufacturing verticals. Wollongong has a growing number of organisations involved with the defence- related procurement, including a range of manufacturing services and research activities. Combined with the capability of the Shoalhaven’s defence assets, this highlights the substantial opportunities to partner with businesses in our region.

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37-39 FIVE ISLANDS ROAD PORT KEMBLA

MAKE THE STRATEGIC MOVE

VAST TALENT POOL

More than 700,000 working adults with a one-hour commute

MORE COST EFFECTIVE

Quality office and industrial space is affordable and staff turnover rates are typically lower than other CBD locations

SUPPORTIVE BUSINESS COMMUNITY

Home to a thriving business community with a range of well- established business networks

GLOBAL UNIVERSITY

Home to the University of Wollongong, a world-class research and teaching university

STRATEGICALLY LOCATED

One hour from Sydney and its airports, and 2.5 hours from Canberra

REAL WORK-LIFE BALANCE

Wollongong is easy to get around, has a growing cycleway network and a beautiful natural environment

GO GLOBAL

10,000+ businesses call Wollongong home including Mercer, KPMG, BlueScope, Scalapay, Easy Agile, Accelo, Hysata and more

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KNIGHT FRANK INFORMATION MEMORANDUM

PORT KEMBLA IN CONTEXT

become Australia’s largest duel-fuel (gas and green Hydrogen) power station. The Power Station is likely to be operational by 2025. BlueScope Major Projects BlueScope has >$2B of major projects in the pipeline. Five major manufacturing projects are either approved or approaching final investment decision (FID), including: • $1B+ | 6BF Reline • $414M | Metal Coating Line 7 (MCL7) | Approved • $400M+ | Advanced Steel Manufacturing Precinct (ASMaP) • $150M | Berth Upgrades (Project CLIP) | Approved Phase 1 Berth Repairs • $70M | Pipe & Tube Mill | Approved Port Kembla Master Plan • 18-month program to create a ‘vision’ for the re- imagination and transformation of land surplus to steel making needs • Appointed world-leading architects and urban designers, Bjarke Ingels Group • Should unlock a wide range of new uses and enable significant long-term economic and social value for the whole Illawarra

INDUSTRIAL INVESTOR DEMAND

Investor demand for industrial assets across the Wollongong region remains strong on the back of solid foundations and positive outlook for the sector. With the high yield metrics on offer in comparison to Sydney has made Wollongong an attractive investment option specifically for owner occupiers and Self Managed Super Funds (SMSF). Due to the dynamic of the investor market and the select number of assets, the market remains tightly held and thinly traded. The region has seen strong demand and an uplift in Industrial rents across the market have been achieving up to $265 per sqm for industrial rents whilst owner occupiers have seen rates on industrial property achieve up to $5,500 per sqm on a vacant possession basis for new Industrial developments.

NEW INFRASTRUCTURE AND PROJECTS

Port Kembla Gas Terminal Australian Industrial Energy (AIE) is developing NSW’s first energy import terminal at Port Kembla near Wollongong. With NSW currently importing more than 95% of the natural gas it uses from other States, the Port Kembla Energy Terminal will deliver a new source of energy to the market to meet predicted supply shortfalls and could supply more than 75% of NSW’s gas needs. It is estimated the Project will create around 130 – 150 jobs during construction and between 40 – 50 ongoing roles at a cost of around $250 million. Port Kembla Power Station The NSW Government has granted critical state significant infrastructure (CSSI) status for the $1.3bn Port Kembla Power Station. The Power Station will deliver a new source of large-scale dis-patchable, safe, reliable and lower emission electricity to support the growth in renewable energy and would

Source: Knight Frank Wollongong Insight Report 2023 &

BlueScope Major Projects Update i3net Town Hall 2023

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37-39 FIVE ISLANDS ROAD PORT KEMBLA

SPECIFICATIONS & OUTGOINGS

AREA SUMMARY

1,183 sqm*

Administration Building

Museum

502 sqm*

Workshop Building

2,800 sqm*

Attached Office

148 sqm*

Workshop/ Machine Room/ Office

1,195 sqm*

Wash Bay

72 sqm*

OUTGOINGS

$48,576 p.a.

Rates

$5,929 p.a.

Water

$92,216 p.a.*

Land Tax

*Approx.

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KNIGHT FRANK INFORMATION MEMORANDUM

ECONOMY ON THE RISE

103,217

104,000

102,802

96% of target met

102,000

100,000

97,740 97,658

98,000

96,194

95,560

96,000

94,000

92,641

92,000

90,000

88,000

86,000

10 year target

2017-18

2018-19

2019-20 2020-21 2021-22 2022-23 2027-28

Source: National Institute of Economic and Industry Research (NIEIR) 2024

In 2022-23, Wollongong’s Gross Regional Product (GRP) reached a new high of $15.7B, up 4.9% over the year and 13.3% over five years. The broader Illawarra-Shoalhaven economy is now estimated to be worth $27.3B, with Wollongong representing 57.6% as the regional capital. As at 2022-23, there were 102,802 local jobs within the Wollongong LGA, an increase of 5,143 jobs (+5.3%) over the past year and a 10,161 (+11%) increase against the base line over the first five years of the Strategy.

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37-39 FIVE ISLANDS ROAD PORT KEMBLA

INDUSTRIAL SECTOR ANALYSIS

In 2022-23, the five largest local employing sectors within Wollongong LGA were: 1. Health Care and Social Assistance: 20,628 jobs (20.1%) 2. Construction: 10,753 (10.5%) 3. Education and Training: 10,693 (10.4%) 4. Retail Trade: 8,237 (8%) 5. Manufacturing: 7,464 (7.3%)

The sectors with the largest job gains since 2017-18 (last five years) were: 1. Health Care and Social Assistance: +4,430 2. Construction: +3,049 3. Public Administration and Safety: +951 4. Professional, Scientific and Technical Services: +897 5. Wholesale Trade: +536

Construction has outperformed over the last five years shown in the above figures from the Wollongong City Council Economic Insights Report from July 2024, demonstrating a continued growth story for the region in this sector. Rider Levett Bucknall (RLB) releases a report on the number of cranes across cities in Australia every six months. Counting cranes on a city skyline is a simple way to understand the health of the construction industry. The below figure shows the number of cranes in the Wollongong LGA since joining in Quarter 3 2019.

20 18 16 14 12 10

18

16

15

15

13

12 12

12

12

11

8 6 4 2 0

Q3 2022

Q1 2024

Q3 2019

Q1 2020

Q3 2020

Q1 2021

Q3 2021

Q1 2022

Q1 2023

Q3 2023

Source: Q3 2023 RLB Crane Index

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KNIGHT FRANK INFORMATION MEMORANDUM

MARKET IN CONTEXT

The Wollongong industrial market is experiencing a period of strong growth fuelled by the recent surge of e-commerce, a rising renewable sector and the continued success of major market leaders in the region such as BlueScope and NSW Ports. With Wollongong’s Port of Port Kembla uniquely positioned to service the rapidly growing south- west markets of Sydney the connectivity to the new Western Sydney International Airport will drive a further uplift in occupiers demand from transport and logistics related users, as well as increase tourism and population growth rates over the longer term.

Vacancy across the Illawarra continue to sit at relatively low levels resulting from the lack of new developments amidst strong demand from industrial occupiers seeking warehouse space. This, along with construction costs remaining at increased levels has pushed rentals higher. A traditionally tightly held market, this prime opportunity is not to be missed.

Source: NSW Department of Planning, Industry and Environment

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37-39 FIVE ISLANDS ROAD PORT KEMBLA

ZONING PERMISSIBLE USES

ZONE E4 GENERAL INDUSTRIAL

Objectives of zone: • To provide a range of industrial, warehouse, logistics and related land uses. • To ensure the efficient and viable use of land for industrial uses. • To minimise any adverse effect of industry on other land uses. • To encourage employment opportunities. • To enable limited non-industrial land uses that provide facilities and services to meet the needs of businesses and workers. • To allow some diversity of activities that will not significantly detract from the operation of existing or proposed development or the amenity enjoyed by nearby residents, or have an adverse impact on the efficient operation of the surrounding road system. Permitted without consent: • Building identification signs; Business identification signs Permitted with consent: • Advertising structures; Agricultural produce industries; Animal boarding or training establishments; Boat building and repair facilities; Community facilities; Crematoria; Depots; Freight transport facilities; Garden centres; General industries; Goods repair and reuse premises; Hardware and building supplies; Helipads; Industrial retail outlets; Industrial training facilities; Kiosks; Landscaping material supplies; Light industries; Liquid fuel depots; Local distribution premises; Mortuaries; Neighbourhood shops; Oyster aquaculture; Places of public worship; Plant nurseries; Recreation areas; Recreation facilities (indoor);

Roads; Self-storage units; Service stations; Sex services premises; Take away food and drink premises; Tank-based aquaculture; Transport depots; Vehicle body repair workshops; Vehicle repair stations; Vehicle sales or hire premises; Veterinary hospitals; Warehouse or distribution centres; Waste or resource management facilities; Water treatment facilities.

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KNIGHT FRANK INFORMATION MEMORANDUM

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37-39 FIVE ISLANDS ROAD PORT KEMBLA 4/63 MARKET STREET WOLLONGONG

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KNIGHT FRANK INFORMATION MEMORANDUM

SALES PROCESS

37-39 Five Islands Road, Port Kembla is being offered for Sale via Expressions of Interest closing Thursday, 22nd May at 3:00pm (AEST). INSPECTIONS All inspections are via appointment. To arrange an inspection please contact the exclusive agents. ENQUIRIES All enquiries must be directed to the exclusive selling agents. CHANGES TO THE PROCESS The vendor reserves the right to alter the process at its discretion. The vendor is not responsible for any cost or expenses incurred by an interested party in preparing and lodging an Expression of Interest or in taking part in the process, whether or not the party is successful or whether or not the vendor terminates, varies or suspends the process or takes any actions available to the vendor.

AGENT DETAILS

Ben Mostyn M: 0477 213 947 E: Ben.Mostyn@au.knightfrank.com Ben Churven M: 0421 657 510 E: Ben.Churven@au.knightfrank.com Orlando Maciel M: 0413 344 430 E: Orlando.Maciel@au.knightfrank.com

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37-39 FIVE ISLANDS ROAD PORT KEMBLA

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37-39 FIVE ISLANDS ROAD PORT KEMBLA, NSW

This information memorandum has been prepared as a general outline only for the guidance of potential purchasers. It does not constitute advice, a valuation or an offer or contract by Knight Frank, or any of the vendors or their related entities or associates. Knight Frank has prepared this information memorandum for the private and confidential use of the recipient only. It is not to be distributed or reproduced in whole or in part without the prior written consent of Knight Frank. This information memorandum has been prepared in good faith and with due care. It does not purport, however, to contain all of the information that potential purchasers may require. In addition, it contains information provided by the vendors or third parties, which Knight Frank has not independently verified. Potential purchasers should not rely on any of the information in this information memorandum (including but not limited to figures, calculations, descriptions, photographs, dimensions, references to conditions or permissions for use and occupation) as statements or representations of fact. Areas, amounts, measurements, distances and all other numerical information is approximate only. Any photographs show only certain parts of the property as it appeared at the time they were taken. Except where otherwise provided, all references to rent, income or price are GST exclusive. Potential purchasers must make their own independent inspection and other enquiries to satisfy themselves as to the accuracy, correctness and completeness of the information. Potential purchasers should also seek independent financial, taxation, accounting, legal and other advice to assist them in making their own decisions and assessment appropriate to their circumstances. Any projections, analyses or other forward looking information are estimates only, are not representations of future matters and may be based on assumptions that, while currently considered reasonable, may not be correct. Actual results may vary from projected results (and variations may be material). No employee, agent or representative of Knight Frank or any of the vendors is authorised to make or give any representation or warranty whatsoever in relation to this property. To the extent permitted by law, Knight Frank, the vendors and each of their related entities and associates expressly disclaim any liability for any direct, indirect or consequential loss or damage (whether foreseeable or not) which may arise out of or result from any person or entity, or their agents or representatives, acting on or relying upon all or any part of the information contained in this information memorandum notwithstanding any negligence, default or lack of care. To the extent permitted by law, the property will be transferred or sold “as is” and “with all faults”, without any representation or warranty as to its condition, fitness for any particular purpose, or compliance with any relevant law, regulations or codes. The vendors reserve the right, at their sole discretion, to postpone or cancel the proposed transfer or sale of the property and to modify or add any terms and conditions to any proposed contract, vendors’ statement or other material associated with the proposed sale, which may be made available to a potential purchaser. Nothing in this disclaimer should be interpreted as attempting to exclude, restrict or modify the application of any applicable provisions of the Australian Consumer Law or a person’s rights to make a claim in respect of any consumer guarantees or other provisions of the Australian Consumer Law.

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