Development Update

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STRICTLY CONFIDENTIAL
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STRICTLY CONFIDENTIAL
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Our development philosophy is based on “ownership” with our development team having a high degree of control over
all development phases via our own internalised project management system.

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We mitigate property development risk by exercising a high degree of control over the design, consenting, procurement,
development and construction process
We have developed a standardised and scalable design for our Apartment, Villa and care offerings
based on past development experience, leading to greater cost efficiencies.
We can tailor this design as desired to meet the local market conditionsso our developments are
efficient, without being “cookie-cutter”, and fit into the local area.
We use internal project management expertisein the resource and building consent process, manage
the tender and procurement process, and manage the building contract directly, all reducing reliance
on external parties and other consultants
Our scale enables procurement savings. We have established supply chains including direct supply of key
construction materials

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We mitigate property development risk by exercising a high degree of control over the design, consenting, procurement,
development and construction process
Early contractor engagement enables cost savings via “value engineering”, and preliminary and general costs,
margin and programme are fixed up front with trades priced on an “open-book” basis but ultimately linked to a “fixed
lump sum”.
We closely monitor all of our projects to ensure a quality product is produced. This is achieved via continually
inspecting all phases of constructionwith Oceania internally managing the final snag and defect process.
Weconsiderourproducttobeourkeydifferentiator in market. We firmly believe that our product is superior to our
peers –thequality of build is just one element in the quality of our product -the overall quality of product also includes
the location of our facilities and the focus we have on creating the highest quality common spaces.

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Acquisition of suitable brownfield and greenfield sites:
As we have done with the recent acquisition at Waimarie
Street in St Heliers we will supplement our pipeline with
opportunistic acquisitions of 8,000m
2
–3 h.a. sites to
replicate the Eden and Maureen Plowmanmodel and 2-3
h.asites to replicate the larger Meadowbank model. We will
also add neighbouring properties where this is economic, as
we have done at Eden, to leverage the scale of our existing
villages.
We will target areas with median house prices that enable us
to deliver new units that are very affordable to residents (50-
70% of the median house price).
It remains our intention to maintain an overall portfolio focus on Aged Care, while optimising capital efficiency by
increasing the proportion of Retirement Village Units and Care Suites
Population
Aged 75 to 84
Population
Aged 85+
⚫Our target is to deliver an average of 250 new Residences per annum
⚫Current pipeline following the completion of Stage 3 at Meadowbank is 2,186 with 1,533 units and beds under construction or
consented (1,680 with 955 respectively 12 months ago).
⚫Our development strategy comprises:
Consent & Execution of existing Tier 1 consented sites
(1,809 beds and units):
Development of integrated Aged Care and Retirement
Village facilities on existing land. All Tier 1 developments in
metropolitan areas are consented with the exception of
Elmwood and the recent acquisitions at St Heliers. Both are
currently in the consenting process.
Development of remaining Tier 2 brownfield landbank
(593 beds and units):
Our Tier 2 developments comprise smaller villa and care bed
development projects in regional locations. We are
consenting these to “bolt on” around our Tier 1 projects and
diversify our timing and location of delivery of units.

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In FY19 we will deliver 272 new units and beds at The Bayview, Meadowbank, and The Sands on time and on budget. We
are managing a further 6 projects with 389 units and beds under construction
(Auckland)
49 Apartments;
32 Care
Suites/Studios
Note: A further 22 villas are currently under construction at Eldersleaand Whitianga
(Auckland)
47 Villas
(Auckland)
42 Apartments
(Auckland)
40 Apartments
67 Care Suites
(Wellington
area)
19 Nikau Villas
(Nelson)
25 Nikau Villas
(Auckland)
44 Apartments
(Auckland)
14 Apartments
(Taupo)
23 Villas
1
(Auckland)
25 Villas
(Auckland)
64 Apartments,
44 Care
Suites/Studios
Completed
In progress &
scheduled to
complete
(Nelson)
27 Apartments;
61 Care
Suites/Studios
(Hamilton)
90 Care
Suites/Studios
(Tauranga)
81 Care
Suites/Studios
(Auckland)
62 Apartments;
30 Care
Suites/Studios
(Nelson)
10 Villas
(Tauranga)
72 Apartments
(Christchurch)
22 Apartments;
71 Care
Suites/Studios
Consented &
Scheduled to
commence
(Auckland)
72 Apartments
(Auckland)
142Care
Suites/Studios
(Hawkes Bay)
17 Villas
(Hawkes Bay)
33Villas
(Auckland)
69 Apartments
(Auckland)
26Apartments
(Hamilton)
63 Apartments

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Over 70% of our pipeline is now either under construction or consented

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1. Year to Date (“YTD”) is the period 1 June 2018 to 11 April 2019
WehaveconsentedprojectsatElmwood, Meadowbank, Eden and Eversley in FY19
Population
Aged 75 to 84
Population
Aged 85+

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1. Median house price calculated using data from sales within 2.0km radius of the Windermere Village, 3+ bedrooms, over 150 square meters

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1. Projects currently under construction and expected to complete post 31 May 2019
Afurther57bedsandunitsarebeingconvertedorunderconstruction outside of our large redevelopment projects
Population
Aged 75 to 84
Population
Aged 85+

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1. Year to Date (“YTD”) is the period 1 June 2018 to 11 April 2019
36care suite conversions have completed in FY19 year to date
Population
Aged 75 to 84
Population
Aged 85+

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