AUS Brochure

About

LDC Infrastructure is the Australian leader in ground lease acquisition. We provide value, capital and
liquidity to qualified property owners and landlords of ground leases for telecommunication, outdoor
advertising and renewable energy infrastructure. Our mission is to enhance the financial lives of our
clients with integrity and purpose.

Our Core Business

At LDC Infrastructure we buy the rights to the rents underlying key infrastructure assets. This includes
the leases for:

. Telecommunications Towers & Rooftops
. Outdoor Advertising Billboards
. Wind Turbines
. Large Scale Solar Farms
. Fibre Optic Cable
. Data Centres

Creating Value

The majority of our clients don’t recognise the value in their infrastructure lease until
they work with LDC. Our clients are in different shapes and sizes but have one thing in
common – they have a better use for a lump sum than ongoing rental payments. In the
past we have seen clients use the lump sum in different ways:

. Real Estate – reinvesting the sale proceeds into real estate to target long-term capital growth in
addition to recurring income

. Shares – reinvesting in the share market to enjoy a balance of long-term capital growth and shorter
term yield

. Reducing Debt – paying down debt to reduce risk and free up cash flow for other more profitable
uses

. Reinvesting in the Business – several small business’ have used the lump sum to grow their
business to the next level

. Capital Purchases – sometimes it is the right time to buy something fun (new car) or something
essential (new tractor)

. Superannuation – some of our clients have used the sale proceeds to bolster their superfund or
even allow them to retire immediately

Phone: 1300 149 449 | [email protected] | www.ldcinfrastructure.com.au

Eliminating Risk

When LDC acquires the rights to a lease we take on all risk associated with the site and the lump sum is
completely non-recourse. There are two primary risks associated with infrastructure leases:

1. Decommission Risk - Although the risk of your site being decommissioned in the short-term is
low, it does exist. In the telecom industry consolidation has seen leases cancelled, while in outdoor
advertising numerous smaller format sites have been removed. Meanwhile, wind turbines are said
to have a useful life of 20-25 years from installation which results in uncertainty after this period.

2. Rent Reduction Risk – This is the much more significant risk facing property owners. In the telecom
industry especially rents are continually being pushed down after years of increasing at rates above
CPI. Billboard leases are also subjected to possible rent reduction, as advertising revenues are
closely tied to the greater economy.

Fast Settlement

At LDC we have built a reputation for swift settlement of transactions. Previously we have closed
transactions within 22 days of acceptance of our offer. Our dedicated local closing and legal departments
ensure we consistently close transactions within 30-45 days.

Frequently Asked Questions

Would this transaction affect my ability to sell my property?
Not at all – when the property is sold it is simply sold without the income associated with the lease.
Prospective buyers will be aware that the rental rights have been sold – our interest in the (telecom/
billboard/wind turbine) lease is registered on title (the format of this registration varies by state and
individual transaction.)

What are the implications of this transactions on my ability to redevelop my property?
We are always happy to include a redevelopment clause in our closing documents. This would allow you
the freedom to redevelop the property as you see fit. Naturally the redevelopment cannot be in breach
of the current lease - which is no different to your current arrangement.
Under our closing documents we simply require that after the redevelopment the tenant (telecom
carrier/billboard company) continues to see the site as viable and the changes do not affect the rent
payable under the lease.

How does LDC Infrastructure make money?
We are a specialty real estate investor. Traditionally real estate investors have bought apartment
buildings or shopping centres – however at LDC we buy the leases underlying infrastructure assets.
Similar to traditional real estate investors we achieve diversification by owning thousands of leases.

Why would a property owner sell their lease?
All of our clients are very different, however they have one thing in common – they have a better use for
the lump sum than the potentially unsecure rent. In the past we have seen clients use the lump sum to
get higher returns in real estate, shares or through reinvestment in their business. Additionally we have
seen clients pay down debt, bolster their super or fund a capital purchase.

Would this transaction affect the value of my property?
In most cases selling the rights to the future rents will influence the value of the property. However in
almost every case potential buyers would not be valuing the leases at the same level as LDC. This is
validated by the fact that LDC have completed numerous transactions when a property was for sale. In
each case the Vendor realised that they could get a higher overall purchase price by selling the property
and the leases separately.
One of the main reasons that leases are not attributed a fair value when sold with the property is that
banks typically do not include the leasehold income in their valuation for a mortgage.

Phone: 1300 149 449 | [email protected] | www.ldcinfrastructure.com.au

Frequently Asked Questions cont.

What happens if the lease is terminated? Is the lump-sum non-recourse?

When we buy the lease at a site we take on all of risks associated with the site.
This includes the risk of a reduction in rent or lease termination. The lump sum
is completely non-recourse.

How does LDC value my site?

There are a number of factors that influence how we value your site. Our
analysts will research the other sites in the area, market rent for the area and
the risks associated with the particular site. The valuation that is provided to
you will take into account all of these factors as we determine what rent to
expect from the site in the long-term.

The LDC Team Harley McKenzie
Director, Acquisitions
Luke Course
VP, Acquisitions

Daniel Francis Brett Macartney
Director, Acquisitions Director, Acquisitions

Daniel Bagdon Michael Cohen
Director, Acquisitions Director, Acquisitions

Tony Garcia Stephanie McManus
Director, Acquisitions Director,
Closing & Documentation

Completed Transactions

Asset Type: Telecommunications Tower
Tenants: Telstra, Optus, Vodafone
Location: Perth, WA
Purchase Price: $380,000

ASX listed industrial company that identified the telecom leases as non-core
assets – selling them to reinvest in the business.

Asset Type: Telecommunications Rooftop
Tenants: Telstra, Vodafone
Location: Sydney, NSW
Purchase Price: $1,040,000

Commercial real estate investor that saw value in selling the leases to reinvest
into additional properties.

Asset Type: Telecommunications Rooftop
Tenants: Telstra
Location: Regional WA
Purchase Price: $450,000

Bowling Club that capitalised on the value of their Telstra lease and reinvested in
infrastructure at the club.

Asset Type: Billboard
Tenants: oOh! Media
Location: Brisbane, QLD
Purchase Price: $480,000

Family trust that monetised their billboard lease and used the proceeds to pay
down debt.

Asset Type: Billboard
Tenants: oOh! Media
Location: Gold Coast, QLD
Purchase Price: $106,000

Small business that sold their oOh! Media to extract extra value from the property
before they sold the land.

Phone: 1300 149 449 | [email protected] | www.ldcinfrastructure.com.au

Testimonials

“ It was a pleasure closing the transaction with Luke. Obstacles were overcome proactively, efficiently“
and with full communication, and our deadline was achieved.“
- Jason Cantwell, Delta Corporation
“
“ Daniel Bagdon has recently assisted the New Norcia Benedictine Community arrange a lease“
assignment for the local Optus mobile telephone tower. Daniel guided the community through the“
process and provided all relevant documentation and instructions that enabled the whole process to
be completed with minimum fuss.

From the date of submitting the signed documentation [Heads of Terms], full settlement proceeds

were received within 21 days. I have no hesitation in recommending Daniel…and am confident

that you will receive the same high standard of service and support as the New Norcia Benedictine

Community received.

- Roy Gardner, New Norcia Services

“ Recently I was approached by Daniel Bagdon to arrange a lease assignment. Daniel guided me
through the procedure and provided all the relevant documentation, and full settlement was
received quickly and hassle free.

I would have no hesitation in recommending Daniel, should you be considering assigning your

mobile phone tower lease. I have no doubt that Daniel will deliver the same high standard of work

that we have received.

- Brian Craig, Nanaraino Pty Ltd

“ I’m taking the time to write to you to thank LDC Infrastructure and Harley McKenzie in particular
for his work in acquiring [the Telstra least at 21a Sierra Avenue]. Harley was able to assist me in
demonstrating the value of the site, give the Vendor comfort that the process was going to be fast
and straightforward and then deliver closing the deal out within the timeframe he promised.

The speed and professionalism of this transaction shown by LDC Infrastructure is to be commended
and I especially thank Harley for his hard work.

- James Johnston & Knight Frank, Agent for Frasers Property Ltd

“ Selling the billboard leases to LDC was a fast and pain-free process. They delivered on everything they
promised and made sure I was always kept up to date throughout the settlement process.

Before I was approached I never thought I could sell my billboard leases – however I am glad I did
and I would highly recommend LDC.

- Director, The MBN Pty Ltd

PHONE: 1300 149 449 [email protected]
80 WILLIAM STREET, SUITE 103 | WOOLLOOMOOLOO NSW 2011