D - Economic Impact Assessment Addendum by Location IQ (6.08.19)

Memorandum
                     This indicates that there is demand for floorspace based on tenants which are not currently
                     represented but are clearly sustainable within the total trade area.

Impact Assessment

     i.    It is important to note that impacts outlined in this report are indicative as it is difficult to precisely project
           the sales impact of the opening of a new store/centre on existing retail facilities. A number of factors
           can influence the impact on individual centres/retailers, including but not limited to:

           ­     Refurbishment/improvements to existing centres;

           ­     Expansions to existing centres;

           ­     Loyalty programs of existing retailers;

           ­     The existing centre mix and how it competes with the proposed development.

           For all these reasons and other similar factors, sales impacts outlined in this report should be used as
           a broad indication. Notwithstanding, the methodology used in this analysis is well established and is
           generally consistent with that utilised across the retail industry in assessing competitive impacts on
           competing centres/precincts.

     ii.   Table 4 provides indicates projected sales for the proposed Noosa Marketplace as detailed in sub-
           section 4.2 of the EIA report. As shown, the proposed development is projected to achieve sales of
           around $3,500 per sq.m in 2022 (constant 2019 dollars and including GST), or around $30.7 million.

     iii. Projected market shares for Noosa Marketplace are also shown in Table 4. This analysis assumes a
           worst-case scenario where 100% of Noosa Marketplace sales come from the large format retail market.
           In reality, the composition of the centre will likely include a provision of non-retail showroom/light
           industrial uses. Projected large format retail market shares for Noosa Marketplace are 6.4% across the
           total trade area, 7.5% across the main trade area and 8.4% from the primary sector.

     iv. Table 5 outlines an indicative assessment of the impact of the proposed development on competitors
           in the region. The steps involved in assessing the sales and impacts on competitive centres are
           presented as follows:

           ­     Step 1: Estimate sales levels for existing centres in the 2019. These estimated are based on
                 industry benchmarks and an assessment of the performance of the various precincts as part of the
                 floorspace survey undertaken in April 2019;




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