Product/Platform Governance and administration

1. Introducing DNA NRAS Exchange (a platform for supporting a legislated Commonwealth initiative)National Rental Affordability Scheme (NRAS) Product/Platform Governance and administration DNA Mutual Ltd and Distribution Networks Australia Partners

2. What is in this presentation? This Power Point covers the ‘Who’, ‘What’, ‘When’, ‘Why’ of the NRAS financial product opportunity. (commercial in confidence).

3. What is NRAS? NRAS is the National Rent Affordability Scheme; • A legislated Commonwealth and State Government rental income subsidy initiative • Encouraging private investment in 50,000 NEW QUALITY rental dwellings. • 50,000 properties equates to >$20bn of new property to be delivered by June 2012 • There are 1,500,000 people eligible for NRAS grants equating to 685,000 homes. • Market Demand: 50,000 new dwellings allocated equates to 7% of demand. • NRAS was legislated to stimulate institutional, private and community sector collaboration, in order to; • Supply 50,000 new homes for mainstream Australian families that are eligible under the scheme., • Ensure they represent quality investment opportunities • Attract institutions to invest in the residential sector • Provide social outcome of affordable accommodation.

4. What is NRAS ? NRAS Housing Social Housing Community Housing Non NRAS Housing • Removes financial strain from mainstream Australians • Trends suggest a move toward long term rental market simular to Europe. • NRAS is an affordable rental scheme, a possible step towards home ownership for mainstream Australians. • 10 year Government rental subsidy of $8,000 Rent CPI indexed • Strong social outcome • Strong fiscal stimulation of policy – policy drives investment into the property sector constrained by capital Government Operated Open Market

5. What does NRAS mean to the Tenant and Investor • An investor purchases a specialised residential NRAS property with government grant attached • Rental is linked to market rentals and reviewed as per Rent CPI adjustment of base rent • Annual NRAS subsidy/tax credit of $8000 p.a. is also Rent CPI adjusted (5.4% Source ABS) • A better ROI is achieved based on the NRAS endorsed property than if it was open market • Under the DNA Platform a ten year secured income tenancy agreement is achieved • A fully managed property investment with less income risk compared to a property on the open market. • A managed investment requiring minimal input of the ongoing investment i.e. no dealing with individual tenants, repairs, insurance etc • Tenant receives a discounted market rent – 75% of market

6. GOVERNMENT TARGETS Round 2 Round 3 Round 1 (Closed) Close Jan 2010 March Outcome 27th March 12,500 Apps Received Expected May Announcement Target 8500 Target 39,000 2500 Grants Provided Total 50,000 DNA DELIVERY Round 1 Round 2 27th March Round 3 Jan 2010 Target 2000 submissions Expected May Announcement DNA Approvals 200 Target 20% Total 10,000 Approx 8% approved. Most approvals were non profit organisations. Target 23% 2000 target approved Available to transact $15M Available to transact $32M Available to transact NRAS Stock $800M

7. NRAS ASSET TRANSACTION PROCESS Sales to open market Sales to open market Sales to open market $100M INSTO DNA NRAS Property sold to market Real- estate Property marketers AFSLs INSTO DEVELOPERS Investment Committee ACCEPTED NRX listing For sale Wholesale Distribution Regulator Institutional NRAS INSTO Real-estate Performance Transaction Satisfies Approval Criteria Set by Investment Committee Research AFSL Valuation Research Eligibility AFSL $400K

8. Developer Benefits Summary By taking advantage of our services the developer is able to receive specialised advise that will assist in: • Relieving peak debt • 30% presales over project • Reduce discount on pre-sales • More marketable property • Our specialised understanding in the NRAS sector – immediate access • Reduced Marketing costs • Multi distribution channels • Non exclusive distribution • Access to scale • Access to institutional acquisition platform

9. Who are weDNA NRASA purpose built delivery platform for this specialised property sector

10. Governance DNA MUTUAL LTD G’TEE Profit and Probity Governance System of SPV DNA NRAS LTD SPV :Property Tied Share Institutional strength NRAS financial product (and value chain functionality) Platform Platform operational project ‘management and advisory board’ as shared committee structure (Incl. government, community and commercial stakeholder representatives). Wholesale administration Distribution Partners Development Partners Consortium of project partners that consolidate via central project committee web management and succession program QAHC(Management) AEP Pty Ltd (Procurement) Pilot Partners WIPA Pty Ltd Distribution) HOW DNA Partnership System was presented to the Federal Housing Minister as a generic platform solution Ministers View ACT Prop Analyst

11. How – White Label Offerings enable allocation of NRAS Stock. Application Form for National Rental Affordability Approved; Property Tied Share Class Home for rent Name.................................... Trader code........................... Address............................................................................................................................................ .....................number ..................................... DNA NRAS The National Rental Affordability Scheme Product Prospectus Offering Governance and administration by DNA Mutual Ltd and associated members of Distribution Network Australia Limited Partnership. NRAS Stock Investors View

12. How Documents and transactions flow to enable housing solution procurement platform function Procurement platform/division DNA NRAS PRODUCT Governance by DNA Mutual Ltd And its delivery platform partners Access Commercial Transactions Pty Ltd Investment Valuation sales Price Developer Institutions/ Investors Property Tied Share Title Deeds 10 -12% IRR National Residential Exchange and Settlement SPV

13. NRAS ASSET TRANSACTION PROCESS Sales to open market Sales to open market Sales to open market $100M INSTO DNA NRAS Property sold to market Real- estate Property marketers AFSLs INSTO DEVELOPERS Investment Committee ACCEPTED NRX listing For sale Wholesale Distribution Regulator Institutional NRAS INSTO Real-estate Performance Transaction Satisfies Approval Criteria Set by Investment Committee Research AFSL Valuation Research Eligibility AFSL $400K

14. The Tenancy Head Lease. Properties are procured DNA NRAS PRODUCT Governance by DNA Mutual Ltd And its delivery platform partners Valuation sales Price Investment Investors Property Tied Share Title Deeds 10 -12% IRR All net rental income flows to Property Tied Share owner particular to that property along with NRAS $8,000 Tax Free component. Head Lease Insurance Policy Sub Lease Affordable Housing Coalition Ltd AON Tenants Rent Property Management platform/division Underwriter

15. Distribution/Exchange platform/division The NRX Exchange of Property Platform Wholesale Investment Property Australia P/L Investors Access Commercial Transactions Procurement platform/division DNA NRAS PRODUCT Governance by DNA Mutual Ltd And its delivery platform partners Valuation sales Price Investment Property Instrument Title Deeds 10 -12% Head Lease Insurance Policy Underwriter Sub Lease AON Affordable Housing Coalition Tenants Property Management platform/division

16. Forecast Cash flow

17. Summary of DNA NRAS product and platform Benefits • For Institutional investors the benefits include: • Government legislated environment • Governance, probity and compliance platform underpinning model • Property procurement delivered • Investment research • Specialised support to NRAS platform of legislation • Streamlined ownership application process • Financial instrument rather than direct investment product • Tenant management (fully managed investment) • Secured rental income streams • Liquidity of exchange • Wholesale distribution capacity • Transparency of asset and report ability • Reduced transactions costs of buy/sell • Scalability

18. Thank You