June Quarter '18 - Development Finance Index Development Finance Index Question Title * 1. Are you.... A Property Developer A Development Financier / Funder (Non-Bank Lender - NBL) A Bank A Development Finance Broker / Arranger Other (please specify) OK Question Title * 2. In which States do you operate? NSW VIC QLD WA SA Tas ACT NT OK Question Title * 3. In which Development Markets do you operate? Capital City - Inner Ring/ CBD Capital City - Middle Ring Capital City - Outer Ring/ Fringe Regional City OK Question Title * 4. How many active Projects under development / How Many Projects Financed have you, or your Developer clients, had in past year. Less than 2 Projects 3-5 Projects 6-10 Projects More than 10 Projects OK Question Title * 5. Average value of Projects being Developed / Financed in past year by you, or your Developer clients. Less than $1m $1M - $3M $3M - $5M $5M - $10M $10 - $15M $15m - $20M $20M - $40M $40M - $80M $80m - $100m $100m plus OK Question Title * 6. In order of importance, what do you think are the biggest issues facing the Development Industry at present (1 being most important, 6 being least) 1 2 3 4 5 6 Development Approvals 1 2 3 4 5 6 Development Finance 1 2 3 4 5 6 Purchaser Finance 1 2 3 4 5 6 Taxes & Development charges/levies 1 2 3 4 5 6 Construction costs 1 2 3 4 5 6 Development Site availability & pricing OK Question Title * 7. How would you rate the Development Financing environment? (Availability, Pricing, LVR constraints, Covenants) Very good Good Neutral Poor Very Poor OK Question Title * 8. In order of difficulty, rate the most difficult covenants/requirements to achieve at present (1 being most difficult, 6 being least) 1 2 3 4 5 6 Pre-sale covenants 1 2 3 4 5 6 Financier maximum Loan-to-Value Ratio 1 2 3 4 5 6 Financier required Interest Rate 1 2 3 4 5 6 Financier required maximum loan term 1 2 3 4 5 6 Financier required developer experience and track record 1 2 3 4 5 6 Ability to secure required valuation OK Question Title * 9. What form of Development Financing do you understand to be the most challenging to source at present? (1 being most challenging, 4 being least) 1 2 3 4 Senior Acquisition Financing 1 2 3 4 Senior Construction Financing 1 2 3 4 Senior Residual Stock Financing 1 2 3 4 Mezzanine / Pref Equity OK Question Title * 10. Do you, or your Developer clients, primarily source Senior Development Finance / Development Funding from... A Bank A Non-Bank Lender (NBL) Other (please specify) OK Question Title * 11. Do you, or your Developer clients, source your Development Finance direct through a Funder (Bank or Non-Bank Lender) or through a Finance Broker/Arranger? Direct through a Bank Direct through a Non-Bank Lender (NBL) Through a Finance Broker/Arranger Other (please specify) OK Question Title * 12. If you, or your Developer clients, go through a Finance Broker/Arranger what fee do you pay to Broker? Zero Less than .5% .5% - 1% 1% - 1.5% 1.5% - 2% More than 2% Don't use a Finance Broker/Arranger OK Question Title * 13. Do you, or your Developer clients, have a long term relationship (5 years plus) with a Bank Financier? Yes No OK Question Title * 14. Are you as the Developer, or your Developer clients, at risk of Project delays due to the lack of suitable Development Finance No Delay 1-3 month delay 3-6 month delay 6-12 month delay 1-2 year delay Project at risk of not proceeding OK Question Title * 15. What is your, or your Developer client's, most recent Senior Development Finance terms - LVR LVR of between 70%-80% LVR of between 65%-70% LVR of between 60%-65% LVR of between 50%-60% LVR of between 40%-50% LVR of between 30%-40% LVR below 30% OK Question Title * 16. What is your, or your Developer client's, most recent Senior Development Finance interest rate pricing? 5% - 6% p.a. 6% - 7% p.a. 7% - 8% p.a. 8% - 9% p.a. 9% - 10% p.a. 10% - 11% p.a. 11% - 12% p.a. 12% - 14% p.a. 14% - 16% p.a. 16% - 20% p.a. 20% plus OK Question Title * 17. What is your, or your Developer clients, most recent Senior Development Finance establishment fee and other fees? .5% - 1% of facility amount 1% - 1.5% of facility amount 1.5% - 2% of facility amount 2% - 3% of facility amount 3% plus OK Question Title * 18. Did you source the majority of your Senior Development Financing through Banks in 2017? Yes No OK Question Title * 19. Do you as Developer, or the majority of your Developer clients, use Mezzanine Debt to Finance Projects? Yes No OK Question Title * 20. If yes, what was the most recent LVR you or your Developer client achieved for Mezzanine Financing? 30-60% LVR 60-70% LVR 70-80% LVR 80-90% LVR Not Applicable OK Question Title * 21. If yes, what was the most recent Mezzanine Finance interest rate pricing? 10-14% p.a. 14-16% p.a. 16-18% p.a. 18-20% p.a. 20-24% p.a. 24% plus p.a. Not Applicable OK Question Title * 22. If you would like a copy of the results of the survey please provide your email address OK DONE