Transfield Holdings Proprietary Limited

,

Multi-College Student Housing Evaluation

In 2006 Transfield Holdings Proprietary Limited was party to a transaction to acquire Century Development, a leading U.S. student housing real estate development/management company with holdings of 17 physical property assets and long-term management contracts with over 30 institutions. Transfield engaged a team of consultants, including B&D, to perform due diligence on the potential acquisition. We were responsible for completing an assessment of each property’s physical condition, financial performance, and market position relative to other institutional housing facilities and private off-campus housing. We sent staff to all 17 properties to conduct a uniform evaluation. We toured the grounds and facilities of each property, interviewed staff, toured the associated college campus, and toured private off-campus housing developments and neighborhoods. We also reviewed the past, current, and projected financial performance of each property and assessed it under the lens of a physical conditions and financial analysis to determine its relative value to the acquisition. All property assessments were then aggregated to determine the portfolio-wide value. Our assessment concluded that, on a portfolio-wide basis, these 17 properties would maintain healthy occupancy rates, strong market positions, and remain viable physical assets into the foreseeable future.