Wholesale
MyFarm Limited

Te Arai Orchard LP Secondary Offer

Agri-Business

Register Interest

WARNING

The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision.

If you are a wholesale investor under the definition of that term in clause 3 of Part 1 Schedule 1 of the Financial Markets Conduct Act 2013, the usual rules do not apply to offers of financial products made to you. As a result, you may not receive a complete and balanced set of information.

You will also have fewer other legal protections for these investments. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.ing an application. In the event that there are any material changes to the Information Memorandum communications will be added to the attachments for review.

Transaction Size
NZD 795,000.00
Share Price
NZD 1.00
Minimum Investment
NZD 50,000.00
Issue Type
Agri-Business
Sector
Horticulture

This is a secondary market offer to wholesale investors for Units in Te Arai Orchard Limited Partnership ("The Partnership").

 

The Partnership has invested and will continue to invest in the development and operation of a 20 cha Rockit™ apple orchard located on Waingake Road. The investment at settlement was funded using $4.52 million of asset finance and bank debt as well as $12.81 million of contributed capital, including an underwritten amount of $1,855,000.

 

Since settlement a further $1.06m of units have been transacted. The remaining 795,000 secondary market units in Te Arai Orchard Limited Partnership are offered at an issue price of $1/Unit. The minimum investment is 50,000 Units ($50,000) and thereafter the size of an investment can be increased in multiples of 10,000 Units ($10,000).

The development nature of the Orchard means that there is expected to be no distributions until FY26. Thereafter, the Partnership is expected to provide limited partners with increasing cash distributions until the Orchard reaches mature production, expected to be in FY29. 

 

Key information:

  • 28 hectares of bare land to be developed into a 20 cha Rockit™ apple orchard.
  • Orchard to be developed/managed by Rockit Global Ltd.
  • Forecast cash distributions of 25-30% p.a. at full maturity.
  • Tax losses through development period.

About Te Arai:

With fertile soils, plenty of water, and a climate well suited to produce early season fruit, Te Arai lends itself perfectly to another of our export superstars – Rockit™ apples.

 

About Rockit™:

Rockit™ apples were the world’s first commercially successful miniature apple developed and launched in New Zealand back in 2010. Brilliantly marketed as a snack apple and packaged in tubes, it has achieved year on year growth in high value markets, with demand continuing to outstrip supply. 

 

  • Grower returns have exceeded $70/TCE (Tray Carton Equivalent) – compared to commodity apples at around $25/TCE and club varieties at $35-50/TCE.
  • Strong growth in Japan, India and Middle East is creating more diversification in Rockit Global Limited’s export markets.



On application, a payment of $0.35/Unit applied for (35%) is required, an additional $0.25/Unit applied for (25%) is due 1 September 2021. The remaining $0.40/Unit applied for (40%) will be required in early 2022 and 2023 and will be call on 20 days notice.

Te Arai Orchard Limited Partnership - Settlement IM - 1 July 2021
July 6, 2021
6/7/2021

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