IQ Apartments

Budget

To prepare a fully costed administration budget requires a detailed understanding of the development complex. This not only satisfies the legislative requirements for sales contracts, it also alleviates any future angst around second year budgets. More often than not we see draft budgets‟ that have, not only fallen short of the legislative requirements to provide properly noted GST and unit entitlements, they also are deficient in identifying the detailed expenditure across the asset. Our team has the skills and industry experience to view and analyse the development plans and assign accurate expenditure.

For example we have identified the following operation requirements at IQ Apartments, not only for budgeting, for the asset register:

 Fire Services – sprinklers installed in basement 1, basement 2 and ground floor  Hot water pumps – maintenance post the DLP period

 Security – roller shutter motor, as well as the swipe card readers and intercom system  Management of the car parking allocation to the commercial and retail tenants  Management of the commercial waste areas, in addition to the management and collection of the

tenants waste from the collection points  Lift maintenance post the DLP period  Car park exhausts – maintenance post the DLP period  Landscaping maintenance

Sinking Fund budgets also form part of a properly costed asset plan. Our sinking fund allocation in the first year budget allows for a properly prepared and costed sinking fund report. This report is the base line for the property asset management plan, and works towards future-proofing the asset. We have taken the liberty of applying our knowledge and expertise in providing a draft budget and contributions schedule that includes some of the omissions identified in your existing budget. Please refer to Annexure E. Registering a complex building such as IQ Apartments is a daunting task, and in our experience we generally take the lead with developers, builders and solicitors in preparing all the documentation surrounding the registration and striking levies against the first year budget. As we have intimate knowledge of the budget process our internal processes allow us to set up the building in our system well ahead of time. This provides our administration teams with the necessary information to prepare the section 119 certificates, enter the approved budget figures and complete the draft house rules and inaugural minutes in readiness for the first annual general meeting. It‟s also at this time our skills and experienced teams are able to provide you with recommendations around the best possible way forward in managing the complex. For example with all mixed use developments there are always issues with:  Signage rights on the outside of the building  Use of company graphics and logos internally  Granting rights of access over easements  Interdependency between commercial/retail and residential tenants around noise, security and waste issues Our process post registration