This is an alternative leasing arrangement we identified for the ATO. This would have delivered a significant financial benefit over the existing leasing arrangement.

1. ATO OFFICE – LEASE EXTENSION
2020 2021 2022 2023 2024 Est. Cost over new
1st Year 2nd Year 3rd Year 4th Year 5th Year Lease Period
Current Rate Review Increase $10,606,592 $11,030,856 $11,472,090 $11,930,973 $12,408,212 $57,448,723
Option 1 - Fixed Rate for Extension $10,198,646 $10,198,646 $10,198,646 $10,198,646 $10,198,646 $50,993,230
Savings $6,455,493
• The estimated savings are based on the following:
o Approval to Extend the Current Lease by Five Years
o Talks with the Landlord (or representative)
• Due to time constraints, the Option put forward is an informal - negotiated arrangement
• We have market tested our thesis and expect the savings identified to be the minimum outcome
• We have also used the ATO’s Brand as leverage
“Now, before the Property is sold is the optimum time to get as much commercial leverage with
the current Lease”