NRAS & INSTITUTIONAL INVESTMENT Policy Objective – A new class of institutional investment Work in progress but not yet engaged at scale QCHC explored the barriers to engagement with experts and presented to Commonwealth in October 2008

MAIN BARRIERS TO INVOLVEMENT No History / No track record Messy supply chain [ sourcing land, D.A, development finance, building, managing] Liquidity and tradability Predictability of income stream [ Guaranteed !] Portfolio packaging, scale and Packaging

A NATIONAL EFFORT TO UNDERSTAND AND ADDRESS BARRIERS Extensive communication effort across diverse interests Stakeholders, including National companies, working together to understand financing, liquidity, risk, marketing, quality assurance and change management issues within a new class of investment Aim to address, remove or mitigate each ‘Barrier’ [within current NRAS Legislation]

ADDRESSING EACH BARRIER Limits to what anyone can do with ‘No Track Record’ except look at investment models that do have a Institutional track record Liquidity via cumulative redeemable Shares  ‘Stapled to each property and tradable without the complexity and cost of trading the underlying asset  Prospectus A ‘Secured Income Stream’ through group insurance, self insurance and risk management

ADDRESSING BARRIERS Cont… National wholesale marketing meeting investment specifications and illustrating returns Much work on this infrastructure has been done:- DNA Mutual [DNA NRAS Ltd], WIPA and the QAHC [National Stream] Putting this arrangement in place under Round 2 with initial stock nationally [ A dedicated stream could be 10,000 initially]

NRAS PROCESS CHANGES ARE NEEDED To facilitate greater certainty for Institutional Investors the NRAS process needs further development The current process from the viewpoint of a Developer, Investor and Government – The aim is how we can meet the first two needs without impacting on Government probity and risk management processes A two part continuous assessment process consistent with current Legislation

ACKNOWLEDGEMENTS The people who shared with us their frank understanding of the barriers The leading experts from all fields who helped identify solutions to those Barriers The DNA Steering Committee for the detailed and extensive commitment of time and resources The Board and Members of QAHC Government – for continued encouragement and willingness to explore new ideas to meet common policy goals