SEPTEMBER 2017

OVERVIEW :

  • Preparation for 26 Footings done
  • Negotiations are ongoing with the council relating to the placement of driveway after which time the BA will be approved
  • Structural engineers have been engaged for site preparation

OCTOBER 2017

OVERVIEW :

  • Currently we have 3 offers on the table
  • $3.8m cash offer settlement 30 days
  • $4.2m offer settlement 45 days
  • $4.5m offer settlement 60 days
  • We have listed the property on Real Commercial to obtain a higher sale price
  • The directors are seeking a contract price of $4.8m $5m which is market value for the asset.
  • We anticipate that during the month of November we will close the transaction.

NOVEMBER 2017

OVERVIEW :

We currently have four (4) Asset Sale Agreements which the JV parties are currently negotiating. A final sale price and agreeing on price and terms are contained within the Sale Agreements.  Terms are as listed below.

Contract 1
$4.58 Million with a settlement in 30 days subject to gaming machine authority being transferred to new owners within 90 days of settlement The JV parties will facilitate this for the new vendor upon acceptance of the offer.

Contract 2
$4.7 Million with a settlement in 60 days subject to build price and fit out costs being agreed by all contractors.

Contract 3
$4.0 Million with no terms, a cash offer and settlement can occur now. The JV partners collectively feel that the offer is slightly low and would like the buyer to come up to $4.2 Million. This is under negotiation and the contract terms allow for early settlement before the New Year if all JV partners agree on price. The agreement is set between a Wellercorp and Vested Capital. In the event an agreement cannot be reached with price, Vested have the ability to exercise a Power of Sale and move the asset with any party currently on contract to return invested funds.

Contract 4
$3.87 Million cash offer with local building group with a 28 day settlement.. Currently a quote is being compiled for a build cost for further Due Diligence

DECEMBER 2017

OVERVIEW :

Update on Contracts and Letter of Offer

 Contract 1

  • $4.65m with conditions and settlement date of January 18th
  • We currently hold a $1.65m deposit and contract was unconditional upon signing.
  • The contract is subject to
    • Finance 30 days
    • Final agreed price for power supply and installation cost by Energex to be supplied to buyer by the 17th of January 2018
    • Further 30 day extension if the buyers requirements are not fulfilled by the Vendor and its suppliers  prior to January 18th 1:00pm
    • The contract has a sunset clause which allows us to except other offers during the term of the contract

Contract 2

  • $4.3m Conditions are: subject to finance 30 days and subject to Due Diligence 45 days. Total 60 days

Contract 3

  • $4.0m Cash buyer. The parties believe this price is to low and we continue to work with the buyer to increase it.

Contract 4

  • $3.8m Cash Buyer. The parties believe this price is to low and we continue to work with the buyer to increase it.

Letter of Offer

  • Offer- $4.35m Conditions are: subject to finance 30 days.

We continue to negotiate all parties to a closing.

JANUARY 2018

OVERVIEW :

  • 2 contracts are currently executed
  • Our Deed with Lendlease allows us to handle multiple buyers during settlement
    • This Deed stipulates that we can:
      •  Accept multiple Offers
  • Contract 1 was singed during the month of December 2017 with a settlement date of January 18 th . The Conditions surrounding installation costs from Energex have been confirmed and agreed by the parties. During negations the offer has now dropped to 4.0m plus GST, this reflects a discount of -$185,000 from previous offer. The new price is stipulated below with revised conditions.
  • Contract 1 is our preferred buyer as we understand their capacity to settle.

Contract 1

4.0 Million Exclusive GST

  • Further 45 Days of DD
  • 30 Days Settlement

Contract 2

4.3 Million Inclusive GST

  • Subject to Finance 30 Days
  • Signed date was 28/01/2018

FEBRUARY 2018

OVERVIEW :

  • 2 contracts are currently executed
  • Our Deed with Lendlease allows us to handle multiple buyers during settlement
    • This Deed stipulates that we can:
      • Accept multiple Offers
  • We have received a further two Letter of Offer on the 19th of February 2018. We have been working with these buyers and they have been listed in previous updates.
  • Please see up to date Offers and Contracts below.
  • Understanding that time is of the essence, we are working on all parties bringing them to contract and will accept the offer which has less conditions and quicker settlement.

Contract 1

4.0 Million Exclusive GST

  • Further 45 Days of DD
  • 30 Days Settlement

Contract 2

4.3 Million Inclusive GST

  • Subject to Finance 30 Days
  • Signed date was 28/01/2018

Offer to Purchase 1

  • 3.7 Million Inclusive GST
  • Settlement 14 days

Offer to Purchase 2

  • 3.8 Million Inclusive GST
  • Settlement 30 days

MARCH 2018

OVERVIEW :

Vested Capital’s JV partner in the Project (Welllercorp) has been served with a notice of default. Our legal department has issued a Notice of Exercise of Power of Sale. pursuant to Section 84 of the Property Law Act.  

This notification was exercised to expedite the sale of the asset due the non performance of Wellercorp and the parties not agreeing on the sale price.

Vested Capital gave notice to Wellercorp on March 13th 2018. Unless the default is remedied within 30 Days of notification, the Mortgagee (Vested Capital ) can proceed to sell to the party that Vested Capital chooses to, regardless the price.

Two contracts are currently executed, both give Vested Capital “ First Right of Refusal” which allows us to mitigate any risk associated to either party not reaching settlement but also allows Vested to deal with both parties during settlement.

Time frames in the below contracts are current with the prior monthly updates and timeframes taking into account.

We continue to reduce the time frame(s) of Contract 1 to run parallel with the times frame(s) of Contract 2. Both parties have indicated their ability to settle and acknowledgment of the time frames needed by the Mortgagee.

Contract 1

$4.0 Million Exclusive GST

  • Further 2 Days of DD
  • 30 Days Finance
  • 30 Days Settlement on or before June 7th 2018

Contract 2

$3.7 Million Exclusive GST

  • Further 10 days
  • 15 Days Settlement on or before of May 16th 2018

Expected Capital & Profit Date: May 28th.

Once the transaction has settled, all funds shall be immediately distributed by Vested Capital Lawyers to all shareholders.

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APRIL 2018

OVERVIEW

Vested Capital as Mortgagee is now under a power of sale with an Unconditional Contract in place with the most suitable buyer who can meet settlement. The contract details below.

Contract

  • $4.0 Million Inc GST
  • 60 Day Settlement on or before June 30th 2018
  • Expected Capital & Profit Date: June 30th 2018.
  • Once the transaction has settled, all funds shall be immediately distributed by Vested Capital Lawyers to all shareholders.

MAY 2018