Cash-Flow Calculator BUPE aims to remove as many of the unknowns as possible for investors. Commercial investors purchase properties for different purposes, either for capital gains or cash-flow. While capital gains can be impacted by outside influences, calculating cashflow can be a bit easier and BUPE has put together the following tool to help clients understand what the Net returns could be annually. Disclaimer: The cash-flow calculator provides an indicative yield based on the inputs provided. This does not constitute financial advice and BUPE is not a financial advisor. We always recommend that clients, prospective clients and investors seek professional financial advice at their discretion.

Is BUPE right for you. You own or are in the process of purchasing a commercial property and want to learn more about the service we provide. Each property has a capital value of up to 10 million and is located within Auckland. A standard commercial lease commonly incorporates the recovery of operating expenses from tenants, which typically includes the property management fees. Explore how BUPE can assist with the management at no cost to you. You are looking to create more free time to enjoy the things you love. While you enjoy investing in commercial property, you are looking for more of a hands off approach. You are not satisfied with your existing manager and wish to review your options. You own commercial properties with multiple tenancies and struggle to apportion the OPEX across all leases fairly and as per the agreement. Administering the financials is becoming too hard. You are looking for professional management to maintain and increase the capital value of your commercial investment. You are looking to develop a relationship with a specialist property manager that can guide and assist you around all aspects of commercial properties. You have a long-established commercial relationship with the Bayleys Commercial Sales & Leasing team and want to work with the same group of professionals Capability Document About Us We’re focused on supporting commercial investors by getting the basics right. With a focus on service and backed by significant industry knowledge and experience, BUPE was established to provide a market-leading service for the specialised area of Commercial Property and Asset Management. BUPE has the experitse and track-record to provide clients and commercial investors with confidence that every aspect of their property is being well managed to the highest standards. Getting the basics right provides peace of mind while maximising returns for clients. BUPE Commercial Property Management BUPE specialises in a unique sector of the market managing commercial property up to the value of circa 10 million. BUPE can assist clients with all aspects of leasing and sales. Multiple services, one property manager.

Michelle De Villiers is a market-leader in all aspects of commercial property management. Get in touch today. Michelle De Villiers Partner/Property Manager Phone: 027 777 7674 Email: michelle@bupe.co.nz Address: 30 Guant Street Wynyard Quarter Auckland 1010 A Bit About Me We are excited to announce the appointment of Michelle De Villiers who will be heading up the new ‘lite’ commercial property management service. Michelle brings a wealth of knowledge and expertise to BUPE and has over 10 years of experience in commercial management. In her previous roles, Michelle elevated the commercial portfolio at the James Group which focused on lite commercial properties and more recently has been the National Property Manager at Harvey Norman with a portfolio valued at circa $450 million. During her career, Michelle has been involved in developing commercial management software and worked with REINZ as a consultant on the new, and soon-to-be-released, Commercial Property Management training program. During her career, Michelle has built an extensive knowledge of all types of commercial properties including industrial, retail and office. Her knowledge of these three key areas also gives her the insights and expertise with establishing lease agreements and she has strong connections with top leasing and sales agents across Auckland. If you are looking for a Property Manager that can support you across all aspects of commercial property management, give Michelle a call today . Let's Get Social

Ten Reasons to invest in Commercial Property Auckland, New Zealand. JULY 2024 In this latest blog, we look at ten reasons why investing in commercial property makes sense, and how you can maximise returns depending on your investment goals. From tax benefits to the structure of the lease agreement, click below to learn more about how BUPE can support you. Before the recent changes to tax, and the ability to claim interest against your income, investors have often looked to commercial property for several valid reasons. Depending on the motivation behind the desire to invest in commercial property, it can often be a very good way to diversify your portfolio. Bayleys has an experienced team of Commercial Property Managers and currently manages properties for investors throughout New Zealand. Whether you are a seasoned investor or someone looking to explore your options – contact our team below for a no-obligation consultation. Here are some of the reasons why you should consider investing in commercial property. Cash Flow & Yields are Higher – Commercial property often yields far greater cash flow than term deposits in the bank and the residential property market. Many long-term investors have often looked to diversify their residential investment portfolios with commercial properties. The Residential Tenancy Act has made it trickier for landlords. Investors are increasingly moving their funds into some of those lower-value commercial investments as a starting point. You can pick one up for $500,000 and still get a $30,000 return. We are starting to see a big shift in that happening. Leases can increase the Value – Without changing anything to the property, you can increase the value of a commercial asset by negotiating a good lease. This means you can buy an empty building, get it tenanted (which can potentially double the value of the building), sell the building and pay no tax on the capital gain. An experienced property manager will negotiate terms for their owners that see fair leases set up to lock in income for often decades. As always, seek financial and tax advice from a registered advisor before moving forward. Exempt for Tax Reforms – Unlike the residential market, commercial investment properties did not fall within the recent changes across the residential sector. This includes the extended Brightline test and also the mortgage interest. Furthermore, if applicable to the owner, management fees are 100% tax-deductible. Structuring the Outgoings – With commercial investment properties, the OPEX costs can be structured so that the tenant or tenants pay for most of the outgoings as part of the lease. This can include rates, building WOFs and management fees, to name but a few. Like every other commercial venture, you can claim expenses back, including interest. Also, you have depreciation, which can allow you to deduct a portion of your property's value from your taxable income each year. For many investors, this reduces the total tax burden quite significantly. The depreciation rules need to be discussed with your tax advisor. Post-Covid – Right across provincial New Zealand, we are seeing countless examples of businesses relocating the regions because the residential property is cheaper for their workforce as well. One of the critical sectors any investor should consider before purchasing is the local employment opportunities. As this trend continues, the opportunities for commercial and residential properties continue to grow. Options to enter the Commercial Sector - Another trend on the upswing over the last ten years has been significant growth in the syndication market. People get the benefit of only putting $50,000 or $100,000 into a property, and a professional property manager is engaged to manage it. The rental returns can often be in the range of 5% to 7.5% return, and the entire process can be an excellent way to learn more about the industry. Tenant Responsibilities – At times, tenants' circumstances change, and they may need to move their business. Within the commercial sector, if a lease is in place, the owner has a greater assurance that rent will continue to come in as it becomes the tenant's responsibility to sub-lease the property. Any business that sub-leases a property is subject to the same terms and conditions as the original lease. Business Relationships - Since you're working with business owners, their reputations are essential to protect, and they look at the interaction with the owner and property management through a different lens. This typically results in a more careful and diligent approach with day-to-day interaction and following the rules. It is uncommon for a commercial tenant to leave a property or lease to bad terms as the implications can be significant. Selling can be easier - When you sell a commercial property, the cosmetic attributes of the asset, such as the colour of the drapes, are not a factor. Commercial Property Investment is an unemotional transaction. The value is in the lease, and the sale process is much more straightforward. More flexibility in negotiating the terms of the lease - A significant advantage to commercial property investments is that negotiating the terms of a lease can be more satisfying if you know what you are doing or use a good commercial property manager. There are fewer regulations. The residential property owner's ability to negotiate is set down in the Residential Tenancies Act. The same is not valid with commercial properties, giving the savvy owner/ manager a huge advantage and a better position in bargaining power when negotiating a lease.

Privacy Policy BUPE is a subsidiary of Bayleys Corporation Limited (BCL) and any Agreement entered will be defined by the BCL Privacy Policy as provided below. We take our privacy responsibilities very seriously. This privacy policy explains how we collect, store, use, disclose, process and protect your personal information. We are committed to complying with the Privacy Act 2020 and to good practice standards. Please take the time to read it and contact us if you have any questions or requests relating to your personal information. Definitions used in this policy. “Agreement” means agency agreement or any other agreement that you have entered into with us; “Bayleys”, “we”, “us” and “our” refers to the Bayleys entity with which you have entered into an Agreement, which has provided you with services (Services) or to whom you have otherwise provided your personal information, and being: a. Bayleys Corporation Limited (BCL), or a subsidiary or related company of BCL; or a franchisee, licensee or authorised representative of a party listed at a. above; “personal information” means information about an identifiable individual, as defined in the Privacy Act; “Privacy Act” means the Privacy Act 2020 and includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of the Privacy Act, regulations or other instruments. “You” , “Your” includes any authorised representative who represents you (such as a solicitor, trustee, director), or where you are the authorised representative, the individual you are representing. If you provide us with any personal information of a another party, you confirm that you have collected that information in accordance with the Privacy Act (including complying with Information Privacy Principle 3) and are authorised by that person to disclose the information to us Application of this policy This privacy policy applies to any collection of your personal information by us and should be read together with the terms of the Agreement. In the event of a conflict between this policy and the Agreement, the terms of the Agreement take precedence. By providing us with your personal information or by signing an Agreement with us you consent to the collection, storage, use, disclosure and processing of your personal information in accordance with this privacy policy. We may update our privacy policy from time to time to reflect changes in the law and our business practices. Why we collect your personal information We may collect any necessary personal information about you and anyone who represents you for the following purposes (“Purposes”): to enable us to provide services to you including; sale and purchase of residential/rural and commercial real estate, including recording attendance at a property, interest in a listing, facilitating an Agreement (including an agreement for sale and purchase), providing valuations, and providing itemised chattels, photos, and records or interaction with a person or their property. Marketing and promoting current and future properties, including advertising, direct marketing, other promotions and social media engagement, and for maintaining a relationship through the provision of market information, news and or/ events. Direct marketing communications may be sent in various forms including mail, SMS, fax and email, in accordance with applicable marketing laws, such as the Spam Act 2003 (Cth). If you indicate a preference for a method of communication, we will endeavour to use that method whenever practical to do so. In addition, at any time you may opt-out of receiving marketing communications from us by contacting us (see the details below) or by using opt-out facilities provided in the marketing communications and we will then ensure that your name is removed from our mailing list. Conducting market research and surveys. Contact information may be used to make initial contact and invite participation in market research and survey activities. Where the individual opts-in to participating, the information may be used to provide insights into real estate market activities; analysing website and sales data; to carry out our internal business functions and activities in order to monitor, measure and improve our own business practices. This includes checking our processes are being followed, managing, training and developing our personnel, and improving or customising our products and services to comply with our legal obligations (such as those under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) or the Overseas Investment Act 2005), to maintain records for real estate agent code of conduct regulation and tax purposes, and to comply with any lawfully issued notice to provide information to a regulatory agency including the New Zealand Police and the Serious Fraud Office; for credit assessment purposes, to invoice you for services provided to you and collect any debt owed to us by you (which may involve disclosing your personal information to debt collectors); and any other lawful purpose connected with the function or activity of our business that we tell you about or you authorise (including in any Agreement). How we collect your personal information We collect your personal information directly from you and from your authorised representatives. We collect your personal information when you interact with us – for example when you instruct us to represent you, your business or other entity. We may also collect personal information about you indirectly as permitted in the Privacy Act, such as where that information is publicly available and such collection would not be prejudicial to you. You authorise us to collect your personal information from other Bayleys entities, from credit reporting or identification verification agencies or other third parties, for credit assessment purposes or to fulfil our obligations under the AML/CFT Act. We also collect personal information about you through cookies and other technologies. Bayleys and our third-party service providers use a variety of technologies to assess how our websites and mobile applications are used, to personalise your experience and to deliver you marketing, including online content, tailored to your interests. Some technologies we may use include the following: Cookies Cookies are small files issued to your device when you visit a Bayleys site that can be understood by the site and collect information. We use that information to remember who you are (to log you in), your preferences, to advertise, to tailor offers or other content to your interests and to assess how our sites are used. You can accept or decline cookies through your browser settings however without cookies you may not be able to use all of the features of our Sites or other websites and online services. To learn more, please look at the cookie settings available in your specific web browser(s). Other technologies Other technologies we use to collect information from you are: Our web servers, which may log information such as your device type, operating system type, browser type, domain, and other system settings, as well as the language your system uses and the country and time zone where your device is located. We also may record information such as the address of the web page that referred you to our Sites and the IP address of the device you use to connect to our Sites. We may log information about your interaction with the Sites, such as which pages you visit. Web beacons. Web beacons are small files that link web pages to particular web servers and their cookies. These control which of our web servers collect information. Javascript or other computer languages. These may be used to gather information and details about your interaction with our Sites. Third-Party plug-ins We may use third-party web analytics services on our Sites, such as Google Analytics. These help us analyse how you use the Sites. The information obtained for this purpose (including your IP address and other information collected by automated means) will be disclosed to or collected directly by these service providers. The providers of third-party plug-ins and widgets on our Sites, such as embedded videos and social media sharing tools, may use automated means to collect information regarding your use of the Sites and your interactions with the plug-ins and widgets. We may also receive information you have made available to those third party services, including the geographic location of your mobile device and other information about you (such as name, email address, gender, locale, time zone, languages, social media profile URL, personal website URL, biographical information, birthday, photo, list of devices, education history, work history, hometown, interests, current city, political views, favourite athlete and teams, relationship status and information, religion, name of significant other, and certain security settings information) and your contacts on those services. This information is subject to the privacy policies or notices of the third-party providers of the plug-ins and widgets. Retention and storage of your personal information We will only retain your personal information for the length of time that we believe is reasonably necessary for the Purpose for which it was collected. We will ensure that there are reasonable safeguards in place against loss, misuse or unauthorised disclosure or destruction of your personal information. Accessing and correcting your personal information Under the Privacy Act, you have the right to access and request correction of your personal information. You may request access to any personal information we hold about you at any time by contacting us (see the details below). Where we hold information that you are entitled to access, we will try to provide you with suitable means of accessing it (for example, by mailing or emailing it to you). We may charge you a fee to cover our administrative and other reasonable costs in providing the information to you and, if so, the fees will be disclosed on our website. We will not charge for simply making the request and will not charge for making any corrections to your personal information. There may be instances where we cannot grant you access to the personal information we hold. For example, we may need to refuse access if granting access would interfere with the privacy of others or if it would result in a breach of confidentiality. If that happens, we will give you reasons for any refusal. If you believe that personal information we hold about you is incorrect, incomplete or inaccurate, then you may request us to amend it. We will consider if the information requires amendment. If we do not agree that there are grounds for amendment then we will add a note to the personal information stating that you disagree with it. Disclosing personal information We may disclose personal information (but only if we need to for the Purposes) to: other Bayleys entities; third party service providers; your professional advisers, such as lawyers; credit reporting agencies; debt collection agencies; regulators and government agencies and anyone else who we are legally required or authorised to share your personal information with, such as under AML/CFT Act; or any other third parties we tell you about or to whom you specifically authorise us disclose such information. We may also use or disclose your information where that use or disclosure is permitted under the Privacy Act or any other applicable law, such as where the information disclosed is publicly available or where it would not be unfair or unreasonable to use or disclose the information. We may also disclose information when it is not in a form which identifies you. Disclosing personal information outside New Zealand If required for a Purpose above, we may transfer your personal information to a party outside New Zealand and you consent to this transfer. Where we transfer personal information outside New Zealand we have arrangements in place to ensure that such personal information will be transferred and used in a manner that is consistent with the requirements of the Privacy Act and any other applicable privacy laws in the jurisdiction or jurisdictions to which the information is transferred. Security As our website is linked to the internet, we cannot provide assurance of the security of information you transmit to us online or that the information you supply will not be intercepted while being transmitted over the internet. Any personal information or other information which you transmit to us online is transmitted at your own risk. Links to other websites and apps Our website may provide links to other websites and for your convenience and information. These websites and apps may operate independently from us. Linked sites and apps may have their own privacy notices or policies, which we strongly suggest you review. To the extent any linked websites or apps are not owned or controlled by us, we are not responsible for their content, any use of the websites or apps, or the privacy practices of the websites or apps. Complaint process If you believe that your privacy has been breached please contact us. Please provide details of the incident so we can investigate it. We will deal with the complaint in accordance with our current Compliant Handling Procedure. Please contact. Duncan Ross, Chief Operating Officer by emailing Duncan.Ross@bayleys.co.nz or sending a letter to: Chief Operating Officer, Bayleys House, 30 Gaunt Street, Auckland Central 1010 / PO Box 8923, Symonds Street, Auckland, New Zealand. This policy was last reviewed on 23rd December 2020.