Purchaser Information Disclosure

1. Understanding the Infrastructure Funding and Financing (IFF) Levy

Te Awa Lakes Finance LP (Te Awa SPV) is a Special Purpose Vehicle established by National Infrastructure Funding and Financing Limited (a Crown owned company) with the sole purpose of raising capital required to finance key roading, stormwater, freshwater and wastewater infrastructure required to service the Te Awa Lakes development in Hamilton.

The total cost of the infrastructure is expected to be ~ $70 million. Te Awa SPV expects to contribute approximately $50 million of financing towards the costs of constructing the projects. The remainder of the project costs (plus any cost over-runs) will be funded by the Te Awa Lakes JV (ie: the developer of Te Awa Lakes).

The funding will be provided by Te Awa SPV under the Infrastructure Funding and Financing Act 2020 (the IFF Act) and will be repaid via IFF Act Levies (Levy) payable by the owners of the properties in the Te Awa Lakes development that benefit from that infrastructure (the Levy Area) – see below indicative map.

The Levy will be payable by owners of properties over a 30-year period, starting 1 July 2027 and ending 30 June 2057 (Levy Period).

The funding and Levy arrangements have been made under the Infrastructure Funding and Financing (Te Awa Lakes Project Levy) Order 2026 (the Levy Order) approved by the Government under the IFF Act.

Collection of the Levy will be managed by Hamilton City Council. If you are obligated to pay a Levy, this will be included as a separate line item on your annual rates invoice.

2. Who pays the IFF Levy and how is it collected?

The following is an indicative map of the Levy Area:

The description of the Levy Area in the Levy Order is determinative if there is any inconsistency between the indicative map and the description in the Levy Order.

If you purchase a property in the Levy Area, you will be responsible for paying your share of the IFF Levy. The Levy will be included as a line item on your general Hamilton City Council rates invoice for each year of the Levy Period. Your individual share of the Levy depends primarily on:

• the capital value (CV) of your property compared to others in the development, and
• whether the property is residential or commercial (commercial properties pay 1.3x the residential rate).

Hamilton City Council is collecting the Levy on behalf of the Te Awa SPV. You need to pay your Levy at the same time that you pay your rates and in accordance with the instructions on the Hamilton City Council rates invoice. Penalties are incurred for late payments and continued non payment may lead to enforcement action (see section 7 (e) below).

3. What is the maximum total Levy the Te Awa SPV can charge?

The Levy Order sets out the intended annual Levy (excluding GST) that Te Awa SPV can charge each year as per the below table, this is spread over all the properties in Te Awa Lakes as further described below). The amount includes an increase of 3% per annum from FY29 onwards.

4. How much will my Levy be?

Each year, the Levy attributable to your property will be calculated and included as part of your Hamilton City Council rates invoice.

As mentioned above, the total Levy revenue (excluding GST) which is recovered across all properties in the Levy Area is fixed for each year of the Levy Period.

Based on current forecasts:

• If all of the 1,500 properties which are expected to be developed in the Levy Area are of residential category and if the CV of your residential property is equal to the average CV in the Levy Area, the Levy is expected to be approximately $2,100 per annum (excluding GST) in the year 1 July 2027 to 30 June 2028, increasing each year thereafter by 3%. If the CV of your property is higher than the average CV in the Levy Area, your annual Levy will be higher. If the CV of your property is lower than the average CV in the Levy Area, your annual Levy will be lower.
• If the final development includes commercial properties the amount of IFF Levy paid by residential properties should reduce as the commercial properties will pay 1.3x the residential Levy. The Levy paid by commercial properties will also increase by 3% each year.

5. Factors that could affect your Levy

The amount of IFF levy for each property may vary depending on:

• The final number and mix of residential vs commercial properties developed in the Levy Area. The Levy revenue is recovered from rateable properties in the Levy Area. If there are fewer properties developed, the amount paid by each property increases. If fewer than 1,425 properties (or 28.5 ha of land) are developed, the developer must make payments to the Te Awa SPV to offset the shortfall so that the Levy paid by homeowners and businesses does not continue to increase. If 1,425 residential properties are developed (the minimum before the developer needs to make payments to offset further decreases) and the CV of your residential property is equal to the average CV in the Levy Area, the Levy would be expected to be approximately $2,211 per annum (excluding GST) in the year 1 July 2027 to 30 June 2028 – an approximate maximum increase of $110.
• The changing mix of development— the amount of Levy you pay depends on how your CV compares to the average CV in the Levy Area. While the development is being built the mix of properties paying the Levy will change from year to year so the amount of Levy you pay from year to year may fluctuate as the mixture of CVs change.
• Any changes to Capital Values assessed by Council over time to the extent that this results in the relativity between the Capital Value of your property and others in the Levy Area changing.

6. Key infrastructure funded by the Levy

The IFF Levy will fund a share of the following projects:

• Large stormwater lake and wetlands (providing water quality and amenity).
• Hutchinson Road upgrade and main access roundabout.
• Primary internal spine road and bridge.
• Three waters infrastructure (stormwater, wastewater, and potable water).
• Pump station and rising main.

7. Important notes for purchasers

• The IFF Levy is a statutory charge under the IFF Act, similar to a targeted rate collected by Hamilton City Council.
• The Levy is attached to the land, not the owner. It will continue to apply to any future owner of the property for the duration of the Levy Period.
• The Levy is distinct from normal Council rates and is used solely to repay the financing for the infrastructure listed above.
• You cannot prepay the Levy (in whole or in part) on a property – you can only pay Levy in accordance with the Hamilton City Council rates invoice.
• If you own a property that is required to pay Levy, then you are legally obligated to pay the Levy. If you fail to pay Levy then you will be contacted (either through Hamilton City Council or directly) to remind you of your obligation to pay the overdue Levy as set out in the HCC rates invoice and you may be charged late payment fees on the same basis as Hamilton City Council charges late payment fees for overdue general rates. If you continue to fail to pay the overdue Levy, Te Awa SPV (or Hamilton City Council acting as its agent) may take legal action to recover the overdue amounts and associated costs. The IFF Act includes a power of sale which means that we may sell your property to recover unpaid Levy in the event of persistent non-payment.