This document summarizes an investment fund called the Trinity Accommodation Regional Hospitality Fund (TARHF). Some key points: - TARHF will invest in regional Australian hospitality assets like motels over 5 years, targeting annual returns of 10% from distributions and 5% from capital growth. - The fund will be structured as a unit trust with an independent custodian. Assets will include freehold passive, freehold business, and leasehold properties. - The principals have over 25 years of experience in hospitality, property, and finance. They currently own and manage seven motel properties through the Trinity Accommodation Master Trust. - The pipeline includes the Goulburn Heritage Motel

1. TARHF
TRINITY
ACCOMMODATION
REGIONAL HOSPITALITY
FUND

2. FUND HIGHLIGHTS
TIMETABLE
• 12-24 month investment period depending
on total funds raised with immediate cashflows
• Five year investment time frame
• 12 month exit period
• Ability to exit or continue at each investor's
choice at end of term.
RETURNS
• Cash distributions of at least 10% per annum
paid quarterly from inception
• Capital growth of at least additional 5% per annum
FUND SIZE
• Targeting $30m with first soft close at $10m.
Max $100m with oversubscriptions
• Gearing at 50-65% depending on asset class
and risk profile of asset
UNIT TRUST STRUCTURE
• Flow through structure
• Independent custodian
• Tax timing benefits
ASSET MIX
• Low risk profile. Property backed.
• Maximum 20% capital to any one asset or town
• Targeting a portfolio of asset classes and geographies
- Freehold business (30-50%)
- Passive Freehold (30-50%)
- Leasehold (0-20%)

3. JOHN ZECKENDORF – PRINCIPAL
B.Econ, ACA,Grad Dip Fin
• Chartered accountant with over 25 years work in hospitality,
property and finance
• Completed 12 years with Price Waterhouse in insolvency,
property and corporate finance
• Specialist in hospitality and property working on more
than 200 regional assets
• Seconded to NAB to turnaround and monitor 75 regional assets
• Asset Manager for HRH Prince Jefri of Brunei.
Involving more than 70 property assets globally worth $5 Bn
• Established Mandala Asset Solutions in 2003 with Ryan Shaw.
Serving much of the financial industry in Australia and around
Asia:
- Property Development
- Asset Management
- Financial Advisory
• Purchased first motel 2007 on private account
• Establish Trinity Accommodation Master Trust (TAMT) 2010
KEY INVESTMENT PROFESSIONALS
RYAN SHAW – PRINCIPAL
B.Econ, ACA
• Chartered accountant with over 20 years work in hospitality,
property and finance
• Completed 9 years with PWC in insolvency and corporate finance
in 8 countries rising to director level
• Developed IT and job management systems for PWC, 2 major
banks, 4 asset management companies and use in 6 countries
• Worked for HRH Prince Jefri of Brunei also including capex
programs for three major hotel assets
• Established Mandala Asset Solutions in 2003
• Heavily involved in operation of current TAMT motels

4. PRABAL ARORA
CMD - OCC International
M.B.A, M Bus
• Prabal, Mandala’s alliance partner in India, is heavily involved in the
promotion of the Fund ‘TARHF’ worldwide.
• Prabal received two Master’s degrees, major ‘International Business’ and
‘Marketing Management’ from Central Queensland University, Australia &
Fiji. After leading a successful career in Sales, Marketing and
Promotions in the UK, New Zealand, Fiji Islands, and East Africa for 15
years, he moved back to India in 2007.
• OCC International provides efficient, honest, professional and
transparent services in hospitality Fund in Australia to Institutional
investors, Funds, HNI & NRIs and individuals would like to migrate.
INDIAN ALLIANCE PARTNER

5. KEY INVESTMENT PROFESSIONALS’ TRACK RECORD
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
PWC: Principals trained in insolvency, corporate finance and
property at PW(C) and managed 200+ hospitality assets
ASIAN FINANCIAL CRISIS:
Peregrine Bank (HK), Thai FRA
HRH PRINCE JEFRI OF BRUNEI:
Asset and legal management, 1500 hotel
rooms, 70 properties, US$5bn assets
ESTABLISHED
MANDALA
ASSET
SOLUTIONS:
Thai asset
restructuring,
China, Indonesia.
Manage 300+
properties for
Australian Govt.
2003
JV WITH ING:
NPL/NPA
Philippines, China
& Taiwan
INDIA: Setup property advisory business in India. Advising investors, land owners, financiers and
developers on design, technology, sales and materials. Asset management including managing and
advisory for multiple hospitality assets
FIRST
MOTEL
PURCHASE
SETUP TAMT
MOTEL FUND
TAMT
expands
to four
properties
Group own /
manage seven
properties
Seeking to
expand
motel funds

6. EXAMPLES OF DELIVERING
ON OUR INVESTMENT PROPERTIES
BERRY VILLAGE
BOUTIQUE
MOTEL
• 25 rooms 4 star
• Purchased 2007 for $3.6m
as a freehold business
• Initial yield to investors =12%
• RATIONALE: Good upside in
supply constrained town. Strong
weekend business
• VALUE ADDED STRATEGY:
Product enhancement, proper
marketing to corporates to lift mid-
week trade, operational
effectiveness, keep upgrading the
property
• RESULT: Present yield of 30%.
Capital uplift has more than
doubled the value of the equity
AMBASSADOR
ORANGE
• 50 rooms 4 star
• Purchased 2010 for $1.7m as a
leasehold. Freehold sold at same
time for $4.8m
• RATIONALE: Property quality
was high but poorly managed.
Excellent motel town with stable
and strong demand
• VALUE ADDED STRATEGY:
Improving marketing, enhance
offering including premium product,
promote functions.
• RESULT: sales up 20%, profit up
50%, cash cow!
• OPTION: If funds were available, we
could have purchased the freehold
also, lifted result and sold off a lease.
Had we done this, we would be sitting
on a passive freehold yielding >20%
with a massive capital upside
NAMBOUR
LODGE MOTEL
• 20 rooms 3 star
• Purchased 2012 for $1.4m as a
freehold passive
• Initial yield to investors = 12%
• RATIONALE: Recently upgraded
property with minimal work
required. Good returns and great
rent reviews.
• VALUE ADDED STRATEGY:
Possible deal with tenant to
upgrade room for rent increase.
Financing options.
• RESULT: Present yield exceeds
16% passive and recently
rejected offer indicated that
capital has almost doubled
PARKLANDS
RESORT – MUDGEE
• 68 rooms (plus large conference
resort) 4 star
• Purchased 2010 for $1.75m
leasehold. Freehold sold to
investor at same time for $6.25m
• Initial yield to investors = 20%
• RATIONALE: Poorly managed and
maintained property. Very tired
product
• VALUE ADDED STRATEGY:
Renovate extensively ($600k), created
premium product, marketing, drop
franchise
• RESULT: Sales up 25%, Profit up
15%, asset quality maintained and
capital value enhanced
• OPTION: If funds were available, we
could have purchased the freehold
also, lifted result and sold off a lease
• We would be sitting on a passive
freehold yielding 18% with
considerable capital upside

7. INVESTMENT STRATEGY
STABLE INCOME AND CAPITAL GROWTH
• Invest in income producing regional hospitality assets with operational and property upside
to enhance returns of both capital and income.
• Assemble a portfolio of freehold passive, freehold business and leasehold properties to
achieve overall IRR of at least 15%, including annual cash distributions of more than 10% over
an asset holding period of five years.
• Utilize the Principals’ property, finance, insolvency and turnaround skills to add value in:
- Asset acquisition including forced sales
- Revenue enhancement, cost control and marketing
- Property upgrading including product positioning, hard and soft renovations
• Play the arbitrage between multiples associated with different ownership classes for a
property.
- 3-4x for leaseholds
- 6-7x for freehold businesses
- 10-11x for freehold passive

8. VALUE PROPOSITION
KEY INDUSTRY DRIVERS RESULT IN LOWER RISK
• Regional centres statistically are far more stable over the medium term than Capital cities.
• Prices for motel properties are determined by yield, not property-driven value fluctuations.
• Yields have been stable for a number of years. Therefore, property values are underpinned by essentials
and much less subject to speculation and ‘bubbles’.
• As a result we consider this class to be a good ‘defensive’ investment with strong risk-related returns.
• The demand for motels is rising, but supply is falling. The cost of building new properties is now prohibitive
and few new motels have been built in the last 10 years. However, supply declines as existing sites (generally
on major retail routes) are redeveloped. This is pushing up rates.
• Motels have traditionally been owned and managed by a ‘management couple’. Generally, they are not
experienced professionals and on average management is poor, allowing considerable upside for many
properties under professional management.
• Over 75% of all motels need renovation. Properties respond very well to renovation with almost immediate
rate and occupancy improvements (see case studies). It is generally not being done due to lack of funding
and expertise, not quality of return.
• Market structure is changing – traditional owner/operators cannot afford to own freehold and thus assets are
‘split’ between freehold and leasehold. Renovated, well performing properties offered as leaseholds are in
massive demand as they are favoured by owner operators who value property profile over pure yield.

9. WHY MANDALA FOR THIS MARKET
MANDALA COMPETITIVE ADVANTAGE
• Hands on operations combined with deep understanding of property and finance
• Deal origination network
• Background in insolvency and turnaround to add value
• Deep sector knowledge and experience
• Success in delivering result in these assets over many years
• Leverage off existing capability and team is already in place
• Access to multiple exit routes

10. ALIGNMENT AND FEES TO MANAGERS
MANDALA ALIGNMENT
• Key Professionals own 100% of Mandala = retention and financial alignment
• Mandala Principals already heavily exposed personally to this asset class
• No related party transactions will be performed
• Reward based performance fee will deliver profits to Mandala
• Principals will adopt significant personal guarantees for trading accounts
FEES
• 1% of funds under management paid quarterly
• 10% of the cash distribution made to investors each quarter from income/operations
• 10% of the net capital gain made with a catch up for any losses
• 3% placement fee for equity raised - payable on draw down of equity funds. This fee is NOT
paid to the Managers

11. ROLE OF TRUSTEE - How safe is your money !
TRUST STRUCTURE
• Trustee receives and holds all money from and for investors
• When TARHF want to purchase a new property, Trustee advances money directly to vendor on settlement. New
property is registered in the name of the trustee for the benefit of investors
• As property makes money (e.g. rent, trading profit etc.), money is sent from the Trustee to investors directly (not
via Mandala). Trustee ensures that all investors are treated fairly and equally
• When a property is sold, the Trustee comes to the sale settlement, takes the sale proceeds and distributes them
to investors equally.
• Property is never in the name of Mandala – always in the name of the Trustee
IOOF
• Trustee is one of Australia’s largest and oldest trustee companies, IOOF. www.ioof.com.au
• Among Australian Stock Exchange’s (ASX) top 100 companies, established in 1846 and supervises more than
$154 billion of assets
• Trustee’s role is well defined by Australian law for many decades (rather centuries). Role is to legally hold assets
and distribute money to investors
• Trustee is completely independent of Mandala and TARHF and can remove Mandala if necessary

12. INVESTMENT STRUCTURE
MANDALA
INVESTORS
(incl Mandala Principals)
TRINITY ACCOMMODATION REGIONAL HOSPITALITY FUND TRUST
(TARHF)
TRINITY HOLDINGS CITY A
TRUST
(owner and operator of asset)
TRINITY HOLDINGS CITY B
TRUST
(owner and operator of asset)
Invest and receive units
Controls trust and enforces trust deed
Management agreement
TRUSTEE (IOOF)
(Administrator)
100% 100%

13. CONTACT DETAILS
OCC INTERNATIONAL
INDIAN ALLIANCE PARTNER
www.occinternational.com
PRABAL ARORA – CMD
India Mobile: +91 9999 02 78 79
Email: prabal@occinternational.com
MANDALA ASSET SOLUTIONS
www.mandala.net.au & www.tarhf.com.au
JOHN ZECKENDORF- PRINCIPAL
International Mobile: +61 407 915 188
Email: jz@mandala.net.au
RYAN SHAW – PRINCIPAL
International Mobile: +61 438 415 367
Email: rs@mandala.net.au

14. KEY STAFF
JOHN ZECKENDORF – Principal. Refer detailed profile
- KEY SKILLS – marketing, operations, finance, structuring
RYAN SHAW – Principal. Refer detailed profile
- KEY SKILLS – IT, systems and reporting, internet distribution of product, operations, cost control
KERRIE WALLACE – CA
- KEY SKILLS – finance and accounting operations
FRANCIS PRIOR – Group manager
- KEY SKILLS – operations and management, cost control, HR
VARIOUS GENERAL MANAGER COUPLES –
more than 30 years in ownership and managing motel properties such as those
targeted
- KEY SKILLS – operations and management, connectivity in industry
NEVILLE HOCKING – Capex
Has developed and fitted out more than 50 hospitality assets
- KEY SKILLS – development of maintenance, project management, worthiness of buildings
GRAHAM MCKEE – environmental lawyer specializing in DA and development
- KEY SKILLS – legal support and getting DA’s approved
Other members include a wide network of property managers, real estate agents, brokers, operators, industry
experts and property developers. Note, many of the above team are on an “as required” basis

15. ANNEXURE B
AUSTRALIAN MOTEL MARKET

16. Number of motels by state
1998 2006 2013 CAGR (‘98-
’06)
CAGR (‘06-
’13)
NSW 969 1025 981 0.7% -0.6%
QLD 513 526 531 0.3% 0.1%
VIC 473 530 493 1.4% -1%
TAS 52 56 52 1% -1%
Source: ABS data

17. Turnover by state
$ million 1998 2006 2013 CAGR (‘98-
’06)
CAGR (‘06-
’13)
NSW 514 665 856 3.7% 3.6%
QLD 65 108 140 6.6% 4%
VIC 243 325 372 4.2% 1.9%
TAS 25 44 48 7% 1.2%
Source: ABS data

18. Outlook for industry
Source: Dranfield hotels and resorts – includes non-motels

19. ANNEXURE C
CURRENT INVESTMENT PIPELINE

20. PIPELINE ASSETS
BACKGROUND
• Mandala source motel assets via their network of industry contacts which we have built up over seven years in
the industry. We can also direct approach certain properties of interest. We can also get access to advance and
silent listings provided by specialist brokers due to our reputation in the market.
• Below is a list of pipeline assets available as at October 2014.
• Obviously, assets may be sold by the time funding is completed. However, current stock is typical of general
availability.
• Full due diligence will be required on all target assets – this has not yet been performed and is usually only
undertaken after an offer is accepted (subject to DD, valuation and contract).

21. FREEHOLD INVESTMENTS
NAME / LOCATION
GOULBURN HERITAGE MOTEL
GOULBURN, NSW
42 ROOMS
TYPE Freehold investment
PRICE / YIELD
– Purchase price = $5 MILLION, Proposed gearing = 60%, Equity Required = $2.35 MILLION
– Income Return on investor funds after fees year 1 = 9%
– Income Return on investor fund expected by year 5 = 11.5%
– Capital gain expected by year 5 = 20%
COMMENTS
– New 30 year lease being created on split.
– 1992 construction – good condition
STRATEGY – Buy and hold for yield – strong property presents limited risk

22. FREEHOLD INVESTMENTS
NAME / LOCATION
REMINGTON MOTOR INN
MUSWELLBROOK, NSW
54 ROOMS
TYPE Freehold investment
PRICE / YIELD
– Purchase price = $8 MILLION, Proposed gearing = 65%, Equity Required = $3.8 MILLION
– Income Return on investor funds after fees year 1 = 9%
– Income Return on investor fund expected by year 5 = 11.5%
– Capital gain expected by year 5 = 20%
COMMENTS
– New 30 year lease being created on split
– Brand new property – expect very little outgoings
– Would need to consider location concentration with this and other pipeline assets
STRATEGY
– Buy and hold for yield
– New properties have slightly higher risk – would look for price reduction to enhance entry yield.
– Likely yield enhancement via extensions to property at later stage

23. FREEHOLD INVESTMENTS
NAME / LOCATION
COUNTRY MOTOR INN
SINGLETON, NSW
49 ROOMS
TYPE Freehold and business
PRICE / YIELD
– Purchase price = $5.5 MILLION, Proposed gearing = 60%, Equity Required = $2.4 MILLION
– Income Return on investor funds after fees year 1 = 11.5%
– Income Return on investor fund expected by year 5 = 18%
– Capital gain expected by year 5 = 40%
COMMENTS
– Strong corporate property in mining area
– Price probably too high at present but subject to negotiation
– Would need to consider location concentration with this and other pipeline assets
STRATEGY
– Would benefit from rebranding, soft refurbishment. Classic example of a good property
let down by poor presentation
– Could look to split lease quite quickly once refurbishment is complete

24. FREEHOLD INVESTMENTS
NAME / LOCATION
DALBY CARAVAN PARK
DALBY, QLD
27 vans and cabins included in 82 sites
TYPE Freehold and business caravan park
PRICE / YIELD
– Purchase price = $4.8 MILLION, Proposed gearing = 65%, Equity Required = $2.3 MILLION
– Income Return on investor funds after fees year 1 = 13%
– Income Return on investor fund expected by year 5 = 19%
– Capital gain expected by year 5 = 30%
COMMENTS
– Strong property in diverse resources rich area
– Price probably too high at present but subject to negotiation
STRATEGY
– Add more cabins/vans to meet high demand
– Replace demotivated owners with keen managers
– Could look to split lease once refurbishment is complete

25. FREEHOLD INVESTMENTS
NAME / LOCATION
CLAN LAKESIDE LODGE
TERRIGAL, NSW
32 ROOMS
TYPE Freehold and business
PRICE / YIELD
– $6 million (but expect around $4.9 million based on valuation)
– Entry yield 11%
COMMENTS
– Strong property on waters edge.
– Recent reviews suggest property is tired and needs improvement
STRATEGY
– Improve property condition
– Both restaurant and conference centre appear underutilised – improve service offering and
marketing to local business conferences as an alternative to chain properties.

26. LEASEHOLD INVESTMENTS
NAME / LOCATION
RED CEDAR LODGE
MUSWELLBROOK, NSW
32 ROOMS
TYPE Leasehold (land available also)
PRICE / YIELD
– $1.2 million – Equity required = $0.75m
– Entry yield <20%
COMMENTS
– Strong property with newly built rooms
– Property could be expanded also if demand continues to outstrip supply
– Would need to consider location concentration with this and other pipeline assets
STRATEGY
– Some minor capex to freshen product
– Buy for yield and upside in expansion. Consider purchase later of freehold

27. ANNEXURE D
GOVERNANCE, PROCESS
AND RISK MITIGATION

28. GOVERNANCE, PROCESS & RISK MITIGATION
BEST PRACTICE CORPORATE GOVERNANCE
Independent Trustee owns structure and ensures that Fund objectives are met with regard to acquisitions and
disposals. Trustee has authority to review and direct Managers as it sees fit.
• No related party dealings
• Investor representative committee (IRC) – significant investors will be offered a place on an advisory committee to
provided advice and guidance to the Trustee as required – especially in the area of acquisitions and disposals
• All opportunities sourced by the Managers must be offered to the Fund = no distractions/conflicts
• Clear and transparent reporting - asset investment packages, quarterly, interim and annual reports provided to
all investors. Detailed and dedicated investor website contains all investor related information
INVESTMENT PROCESS
Investment acquisition/disposal approval process:
• Manager to present each opportunity to the Trustee (and IRC) to consider, and approve, noting any outstanding
concerns with the due diligence or further investigations to be undertaken
• Proposed transactions must be approved by the Trustee, prior to submitting a binding bid and the contract for sale
is actually executed by the Trustee

29. GOVERNANCE, PROCESS & RISK MITIGATION
RISK MANAGEMENT AND MITIGATION
Mandala place a premium on protecting and preserving investors’ capital and therefore performs a comprehensive risk-
reward analysis on each investment
The Manager will examine risks at both a macro level for the Fund and at the individual asset level by following a strict
process:
• Identify all known risks
• Determine how the risk may occur
• Determine the likelihood that the risk will occur
• Determine the impact on the Fund/asset if the risk occurs
• Determine and implement measures to manage the risk, including the frequency of reviews of the measures implemented
• Allocate the risk to an individual member of the management team
Separate and independent custodian (Trustee) will hold all Fund assets

30. ANNEXURE E
CASE STUDIES OF
STRATEGIC RENOVATIONS
UNDERTAKEN BY THE
PRINCIPALS

31. CASE STUDIES OF RENOVATIONS DONE
ZIG ZAG MOTEL
LITHGOW, NSW
50 ROOMS
ROOMS AND PUBLIC AREAS
RATIONALE: Increased competition at the higher quality
properties in town created a gap in the product that was
causing some of our corporate guests to leave us for
newer products. The public spaces had little ambiance
and were affecting our ability to win functions. There
were some operational issues that needed to be fixed in
terms of restaurant service.
WORK UNDERTAKEN: We created an upgraded class
of rooms, freshened up the restaurant, solved the
operational issues and allowed better competition for
premium rooms. Total cost was under $75k.
RESULTS: Cost savings of 0.3 FTE, function revenue
rose 25%, restaurant capture rate increased, locals
eating in increased significantly. Able to recapture some
lost corporate clients.
BEFORE RENOVATION
AFTER RENOVATION

32. CASE STUDIES OF RENOVATIONS DONE
PARKLANDS RESORT
MUDGEE, NSW
68 ROOMS
ROOMS AND PUBLIC AREAS
RATIONALE: Property was extremely tired and poorly
maintained having been starved of capex for nearly a
decade. Property had no attraction and was failing to
compete in function, leisure and rooms. The public
spaces had little ambiance and were very old fashioned.
WORK UNDERTAKEN: Extensive renovations
including total upgrade of bathrooms, public areas,
function spaces. We created an upgraded class of
rooms, freshened up the restaurant, extended the deck,
upgraded the function rooms, installed a gym, created a
bridal suite and wedding spaces. Total cost was more
than $500k.
RESULTS: Property is a premium property and able to
handle large functions and formal gatherings. Revenue
up more then 25% over the entire property. The newly
installed wedding gazebo paid itself off in the first week
when we sold three weddings!
BEFORE RENOVATION
AFTER RENOVATION

33. CASE STUDIES OF RENOVATIONS DONE
PARKLANDS RESORT
MUDGEE, NSW
AFTER RENOVATION

34. CASE STUDIES OF RENOVATIONS DONE
BERRY VILLAGE BOUTIQUE MOTEL
BERRY, NSW
25 ROOMS
ROOMS AND PUBLIC AREAS
RATIONALE: Small amounts of capex are
undertaken regularly to keep the product fresh and
the property looking new. Creation of new category
of deluxe rooms allowed increase in rates.
Restaurant was very dated.
WORK UNDERTAKEN: Major upgrade to
restaurant, new colour schemes and furniture for
rooms, bathrooms fittings, tiling. Around $100k over
6 years.
RESULTS: Restaurant performance lifted
immediately after renovation. Restaurant capacity
increased by 10 seats and introduced far more
flexibility. Rooms remain fresh and attractive.
Deluxe rooms paid the capex cost back in 3 months.
Profit has nearly doubled over 5 years despite
increased competition.
BEFORE RENOVATION
AFTER RENOVATION

35. ANNEXURE F
EXIT ROUTES

36. EXIT ROUTES GENERALLY
PHILOSOPHY
• There are multiple exit routes for investors as detailed in the following slides
• Any investor timetable can be accommodated with planning. However, property investments have high
transaction costs which are best amortised over longer timeframes.
• We do appreciate that timetables change, sometimes unexpectedly. With some notice and a sensible
market, we expect that we could exit an investor via multiple exit routes within a reasonable timeframe.
• However, investors should expect and plan that an investment in this Fund is illiquid.
• Multiple exit routes are essential. We understand that markets change, appetites change and investors
don’t want to be caught if you need to exit.
• We buy assets with the exit in mind. Buy well and exiting is easier. Buy badly and you can never exit well.

37. EXIT ROUTES AVAILABLE TO THE FUND
SALE OF INDIVIDUAL PROPERTY
• Essentially buying in poor market and sell in better market having lifted operating returns
• Can sell freehold and leasehold together or separately (often gives better return)
SALE OF MULTIPLE PROPERTIES
• Allow other strategic players to pay a premium for multiple properties as well as getting yield compression
TRADE SALE OF PROPERTIES
• Variation of above to provide “next step” properties for larger players currently buying in first tier locations
SALE OF PROPERTY COMPANY / PROPERTY WHILE MAINTAINING OPERATING
• Buying at ~15% and can split off the freehold at around 8-9% leaves tremendous capital upside and ongoing
cashflows from low capital invested base
SALE OF OPERATING COMPANY WHILE MAINTAINING PROPERTY
• Opposite of the above allowing exit from operations and passive investment with lower cost base
• Can be used with sale of property company to give better exit returns for individual properties

38. EXIT ROUTE/S AVAILABLE TO THE FUND
SALE TO REIT
• Variation on sale of property company or sale to pool of REIT investors looking for diversified stable indexed
returns with no management hassles
• Includes ability to sell ‘en globo' to wholesale buyer at attractive yields (eg super funds)
LISTING OF EITHER PROPERTY COMPANY OR OPERATING COMPANY OR
BOTH
• Future market for this may become attractive again
SALE OF STRATA ROOMS / TIMESHARE / FRACTIONAL OWNERSHIP
• Less popular in current market but had tremendous appeal 3-4 years ago and may become so again.
May need to consider type of properties that are suitable for this.

39. MARKET FOR EXIT – INDIVIDUAL PROPERTIES
LEASEHOLD
• “Mums and dads” have very strong interest and provide large market depth in the price range to $1m
• There is very strong interest from smaller yield operators and syndicates in the price range from $1.5m to $3m
• Once a property is over say $3m, it starts to appeal to corporate buyers and larger syndicates
FREEHOLD
• There is strong interest and large market depth from SMSF and HNWI for medium returning (8-9.5%) well
presented properties with a price to $2m. These properties are usually hotly contested.
• As the price point rises to around $4m, these buyers tend to band together to form a strong interest. Again,
presentation of the property and a quality lease is essential. Most of these buyers do not want to deal with capex or
other “hassles”.
• There are a number of “syndicates” that have strong demand for well maintained and presented properties in the
price point from $3-10m. One syndicate we have dealt with has more than 90 properties (Jack Cartwright) with a
strong appetite for more. Another has ~40 (actually a TAMT investor also) and another has ~30. There are other
groups still that we have not yet dealt with including Blue Sky Group.

40. MARKET FOR EXIT – PORTFOLIOS
LEASEHOLD
• There is some interest in portfolios of properties in the present market. Most disposals of group leasehold
assets have been broken up.
• TAMT has received approaches from three parties who have a strong interest in clusters of up to say 6 larger
properties.
• There is sporadic interest from chains and hotel group investors (eg Thakral, Accor, Aust Hotels etc) looking to
acquire bulk or certain types of assets.
• Smaller properties (say under $1.5m) are unlikely to match the criteria of the above investors.
FREEHOLD
• There is strong interest and large market depth from super funds, investment companies,
SMSF and HNWI for medium returning (8-9.5%) well presented properties. These properties are usually hotly
contested and yields are compressing over recent years.
• This interest includes a large number of foreign investment funds who are very interested in such yields if they
can invest larger sums of money. Depending on the success of the fundraising and gearing used, this may be
possible – especially as a platform play into further Australian investment.
• A sizeable portfolio of asset managed inflation indexed assets will have tremendous appeal to super and life
funds if we can hit critical mass of around $100m.

41. WHY IS TARHF DIFFERENT?
MANAGERS BRING UNIQUE EXPERIENCE AND ABILITIES
• Hands on operations
- Proven track record in operations of such properties
- Can step into defaulting tenants if required to maintain returns
- Able to add value where most needed; especially in renovations and marketing
• Ability to add value
- Because Mandala can operate the property also and have extensive experience in capex, it can raise the value of
the property before splitting off a lease or the freehold
• Ability to place money into winning situations
- Landlords can’t operate and most operators can’t do capex YET
- Most properties need capex to add value
• Focus on risk management and downside protection
- Mandala’s background is insolvency. We have seen how bad things can get and know how to manage them to
prevent and mitigate risk
- Mandala can take over and operate a defaulted property and then sell for a profit later
- The nature of the fund itself and the type of investments as well as the market risk mean that it is highly unlikely that
the capital will be at risk and even the income returns are extremely well protected in a downturn. This asset class
is nothing like commercial tenancies

42. ANNEXURE G
TARGET PROPERTIES
SELECTION CRITERIA

43. REGIONAL TARGET TOWNS
SELECTION CRITERIA
• The Fund aims to target potentially any regional town. However, we tend to avoid:
- Any areas for which mining (and the mining boom) are the main sources of income.
- Towns for which a preferred alternative accommodation destination is less than 60 minutes drive away.
- Towns with major social problems
. - No pubs, bars, hot-sheet motels, poker machines etc
• The Fund aims to target:
- Towns predominantly (but not exclusively) within one day’s drive of the Eastern seaboard of Australia which have a
reasonably limited supply of accommodation properties
- Towns that have demonstrated stability over the long term.
- Towns that are on the regional corporate ‘circuit’, where sales reps will tend to stay on their travels.
- Areas that will provide reasonable tourist income, particularly on weekends.
- Properties that are higher quality within in their sub-market (not necessarily the nicest property in town)

44. TARGET PROPERTIES
TYPES OF PROPERTIES
• The Fund is generally targeting 3.5-4.5 star quality properties, usually among the better properties
in each town (or within its sub-market), with 25-100 rooms.
• The purchase price of a freehold property would typically be between $3-12m. Leaseholds will
typically be between $1-3m.
• We tend to favour properties that have been poorly run due to bad management and those that
need renovation.
• We favour ‘corporate’ properties that tend to house travelling reps during the week and also cater
for leisure traffic at the weekend.
• Most properties will be within one days drive of the Eastern seaboard of Australia

45. WHAT WE WILL DO WITH THEM – OPERATIONS
IF OPERATING THE PROPERTY, THE MANAGERS WILL:
• Introduce professional management, systems, marketing channels
• Reposition offering, marketing, product and distribution
• Cost control
• Consolidation of functions to extract synergies
- Reporting and management
- Marketing (not branding)
- Purchasing and staffing
STRATEGIC DEVELOPMENT AND CAPEX
• Develop active capex plan
• Implement this plan by use of our considerable experience and team in renovation and fitting out
• Include proactive maintenance plan as well as reactive plan
• Value add capex in discussions with tenants
• Bring finance to the table – this is very unusual for a landlord in these properties!
• Look for renegotiation and value added opportunities
- Expansion
- Renovation
- Rebalancing leases
- Acquisition of leasehold / freehold business