LAND 9 ANNUAL UPDATE FY2023

Report summary

Every year on September 30th is the deadline for all fund audits, and the land annual report released by KSI will be published between September and October.

The highlight of this year's land annual report is the increase in land prices in the southwest region as shown in the second section.This year, the land prices in Rossmore have surpassed 350 AUD per square meter, a more than 100% increase compared to the purchase price of Land 9 at $180/m². Although the continuous rise in interest rates has put some pressure on the Australian real estate market, the lands meticulously selected by KSI for raw land investment remain unaffected, maintaining an annual compound growth of over 20%. We anticipate this trend in land prices to continue in the future. The third section of the report, which discusses the net assets and changes in land net value, and the fourth section, which provides a third-party evaluation report, clearly show that the land value has increased by 53% from the previous year's 3.6 million AUD, reaching 5.5 million AUD. The net asset value also increased by 42% from 0.8023 to 1.1399.

The land annual report also discloses the land evaluation report and crucial accounting data for the 2023 fiscal year to land shareholders, including expenditure and changes in assets.

The report also introduces self-managed superannuation fund (SMSF) land shareholders on how to conduct the SMSF annual audit and how to obtain financial data.

The entire land annual report is full of highlights, with rich and detailed data and images. Land shareholders are encouraged to read it thoroughly. If you have any questions, please feel free to contact Michael Guo at 0430680555! Thank you!

Content

1. Sydney Property Market Update

2. Recent Sales And For Sale In The Area 

3. Net Asset Unit Price Change

4. Annual Property Valuation

5. Milestone Investments In Western Sydney In FY2022 – Overview 

6. Milestone Investments In Western Sydney In FY2022 – Details 

7.  Instruction on annual tax return and audit for Self managed Superfund

1: Sydney Property Market Update

In June 2023 the median house price in Sydney was $1,538,017 Australia’s housing recovery gathered momentum over the June quarter. All capital cities saw house prices rise over the June quarter and have moved into a recovery phase. Sydney continues to lead the recovery and witnessed the greatest acceleration in growth.

2: Recent Sales And For Sale   In The Area 

The land in yellow represents the land we bought, with the buying price ranging from 162 AUD/square meter to 180 AUD/square meter. The red ones are the lands that have been recently traded. As everyone can see, the transaction price for 475 Tweith Avenue Rossmore is 358 AUD/square meter."

3: Net Asset Unit Price Change : 1 July 2022 – 30 June 2023

4: Annual Property Valuation

The annual valuation was conducted by CBRE on 9 June 2023      

The property was valued at $5,500,000

5: Milestone Investments In Western Sydney In FY2023 - Overview

5-1: Jul 2022:

South West Metro Extension to Western Sydney International Airport

5-2: Aug 2022:

First tenant of Bradfield City Centre

5-3: Oct 2022:

Five-Building Plan Lodged for Leppington Town Centre

5-4: Oct 2022:

Leppington Oval Masterplan Approved

5-5: Dec 2022:

M12 construction update

5-6: Mar 2023: 7/11

McDonald’s, childcare centre at Leppington approved

5-7: Mar 2023:

Australia's migrant rush: biggest population increase.

5-8: Apr 2023:

Land 13 is now officially part of a new suburb called Bradfield

5-9: Jun 2023:  

Second building of Bradfield

5-10: Jun 2023:

Bradfield City Centre's Central Park design competition enters final stage

5-11: Jun 2023:

Under development- Western Sydney Airport Business Park Stage One

5-12: Jun 2023:

Qantas and Jetstar to operate from Western Sydney International

5-13: Aug 2023:

Bonus Floor to space ratio (FSR) for new apartment and commercial developments

6: South West Metro Extension to Western Sydney International Airport

6-1   South West Metro Extension to Western Sydney International Airport

July 2022

A massive $60 million was committed to planning a business case for the development of the extended airport metro line, while a further $95 million has been reserved for hardship property acquisitions, according to budget papers. $40m in 2022-2023 - business case $20m in 2023-2024 - business case $95m in property acquisitions A Sydney Metro spokeswoman told NewsLocal the Western Sydney Airport Metro “will extend from Western Sydney Aerotropolis to Glenfield, via Leppington and will connect to the new Western Sydney International Airport”.

6-2  First tenant of Bradfield City Centre

August 2022

The NSW Government has agreed to finalise the first private-sector tenancy agreement for the Bradfield City Centre’s First Building with global giant Hitachi, whose collaborative research model will attract advanced technology jobs to Western Sydney. NSW Premier Dominic Perrottet said the Japanese multinational would establish its Kyoso (collaborative creation) Centre alongside the Advanced Manufacturing Research Facility (AMRF) in the First Building in Australia’s newest city Bradfield, in 2023. 'Hitachi will be the first non-government tenant in Bradfield City Centre. This signals high confidence in the private sector for the vision of the Western Parkland City. It means more premium, high-skilled jobs and global career opportunities for the residents of Western Sydney,' Mr Ayres said.   Hitachi’s Regional Vice President Mr Nakakita said: 'Hitachi’s participation in Western Sydney reflects our confidence in the significant growth opportunities in NSW and Australia. We are delighted that Western Sydney will allow Hitachi to showcase our co-creation strategies and deliver our global capability and solutions, for the benefit of our customers and the community at large.' The Hitachi agreement is a result of a public tender process and follows the NSW Budget commitment of $260 million to establish the Australian-first full scale AMRF, which will create new high-paying jobs of the future in Western Sydney and make Bradfield City Centre the national capital of advanced manufacturing.

6-3 Five-Building Plan Lodged for Leppington Town Centre

October 2022

Five-Building Plan Lodged for Emerging Leppington Town Centre Five buildings are proposed for a mixed-use development envisioned as a foundation project for the transformation of a rural area in Sydney’s south-west into a major town centre to cater for future growth. The proposal comprises five buildings from four to six storeys with a combined gross floor area of 26,170sq m, including a total of 242 one, two and three-bedroom apartments sitting above 4850sq m of retail and commercial space. Block A would accommodate a 1304sq m “mini major” supermarket, 67 apartments and 1261sq m of retail/commercial space. Blocks B and C each would comprise two buildings of 84 and 91 apartments and 1090sq m and 1195sq m of retail/commercial space, respectively.

6-4  Leppington Oval Masterplan Approved

October 2022

A grand plan to transform Leppington Oval in three stages has been locked in after Camden Council voted to endorse the $27.6 million proposal. The Leppington Oval Precinct masterplan covering 174,300 m2 proposes a new recreation and open space precinct, incorporating the existing Leppington Oval, also known as Pat Kontista Reserve. The precinct is to be delivered in three stages with the aim to provide high quality recreational facilities to the Leppington community and visitors. The facility will comprise three full playing fields; three tennis courts; fitness stations; shared paths and a variety of play spaces

6-5: M12 construction update

December 2022

Construction on the Central and West sections of the new $2 billion, 16 kilometre toll-free M12 Motorway is underway. In the past few months: completed construction of the site compounds built the access roads installed the temporary traffic signs and safety barriers relocated overhead electrical cables underground completed water main work to service Bradfield City Centre development

6-6: 7/11, McDonald’s, childcare centre at Leppington approved

March 2023

A childcare centre, a fast food chain and a service station will soon occupy a major site in Leppington after the $28.4m development plans were given the green light. Camden Council approved the application which will see a 7/11 service station, a 120-place childcare centre, and a McDonald’s constructed at 96 Rickard Road, Leppington after plans were submitted by the Stevens Group.

6-7:  Australia's migrant rush: biggest population increase

March 2023

Australia will experience biggest two-year population surge in its history, with an extra 650,000 migrants this financial year The influx of tourists, foreign workers and students is boosting spending, the tax take and demand for services, particularly housing, where the government’s concerns are greatest given extremely tight rental markets.

6-8:  Land 13 is now officially part of a new suburb called Bradfield

April 2023

Land 13 is now officially part of a new suburb called Bradfield The new suburb of Bradfield was officially established on 31 March 2023. Due to this change Land 13 is now officially under the administration of the new suburb of Bradfield. This marks a big milestone in the development of Australia's first 22nd century city and Sydney's third CBD.

6-9: Second building of Bradfield

une 2023

Building 2 size: 15,000 m2 Building 2 height: 12 stories and 3 basement levels Development cost: $156m Timeline: The project is to be completed by December 2026 to align with the opening of Bradfield Station AMRF Purpose / Focus The immediate technology focus of the AMRF will be on the packaging of semiconductor devices and the production of high capably printed circuit boards (PCBS), specifically or high value, low volume specialised and secure systems. Semiconductor device packaging (also referred to as assembly and integration) is an increasingly important intermediate stage in the semiconductor value chain, where significant value and sovereign capability can be added to devices. The combination of the AMRF’s semiconductor packaging and the First Building's next generation fabrication will enable Western Parkland City to play a critical role in the defence and space manufacturing ecosystem and access the $1.8b annual Research and Development (R&D) market in defence and space

6-10: Bradfield City Centre's Central Park design competition enters final stage

June 2023

The design competition for a stunning 2-hectare park in Australia’s newest city, Bradfield, is nearing its final stage with five leading architect firms, short-listed to present their project vision to an esteemed and independent jury. The winning scheme, with an unusually high weighting of consideration of Country-centric design, is due to be announced in August. Central Park, the first metro stop in from the 24-hour Nancy Bird Walton International Airport, will give foreign and domestic visitors a first sense of the city. A functional space as well as an arts and culture hub, it will be at the centre of the new suburb’s CBD, Central Park is due to open in the last quarter of 2026, at the same time as the Metro and airport.

6-11: Under development- Western Sydney Airport Business Park Stage One

June 2023

A Major Development plan has been released by Western Sydney International Airport for the first stage of the Airport Business Precinct at the gateway to the Airport. This will deliver key early services to serve as a catalyst for the wider business precinct and support the Airport and surrounding community.

6-12: Qantas and Jetstar to operate from Western Sydney International

June 2023

The Qantas Group and Western Sydney International Airport have reached a landmark agreement that will see both Qantas and Jetstar operating domestic flights from the new airport when it opens in late 2026. The Qantas Group plans to operate up to 15 narrowbody aircraft – 10 Jetstar and five Qantas – from Western Sydney International (Nancy-Bird Walton) Airport (WSI) within the first year, flying domestic routes such as Melbourne, Brisbane and the Gold Coast. It is expected these aircraft will carry around four million passengers through WSI per annum on more than 25,000 flights. Around 700 operational jobs are expected to be needed, with local recruitment to take place in the lead up to the first flights.

6-13: Bonus Floor to space ratio (FSR) for new apartment and commercial developments

A recent document released from Liverpool Council indicates that there will be a bonus Floor Space Ratio (FSR) apply to new apartment and commercial developments. The Floor Space Ratio (FSR) is a tool used by local governments to manage development density. An increase in the FSR allows for a greater building area relative to the size of the parcel of land, and often corresponds to a denser, more urban environment.  We can get up to 0.75:1 bonus FSR. For example if we develop land 13 to mixed use residential and commercial then we will be able to claim 0.75:1 on the top of the current 2.5:1 FSR, which is a 30% bonus. Currently this policy is applied to Leppington Town Centre only but it will be expanded across other parts of Liverpool council areas such as Bradfield.

7:  Instruction on annual tax return and audit for Self managed Superfund

SMSF always need annual tax return and audit even if it has no activities in the financial year. You need an licensed SMSF accountant to help you to lodge the tax return and conduct an audit. We recommend Yuk Wong who is very experienced in SMSF area. We have been working with him for a long time. Please contact us if you need his service. You invested in Domacom Fund, you can download your annual statement from your client’s account and send it to the accountant. If there were no transactions during the year, only annual statement is needed. If there were transactions, an annual tax statement will be provided by Domacom and you will also need to download and send it to the accountant.