Wholesale
MyFarm Limited
Puketawa Station

CQuest LP

Forestry

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WARNING The law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to this offer if you are a person who comes within Scheudle1, clause 3(2)(a)-(c) or 3(3)(a)-(b)(ii) (inclusive) of the Financial Markets Conduct Act 2013. This includes where the amount invested upfront by the investor (plus any other investments the Investor has already made in the financial products) is $750,000 or more.

 

If you call within Schedule 1, clause 3 of the FMCA as a result of this exclusion, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for this investment. Investments of this kind are not suitable for retail investors. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.

 

Note: We urge you to carefully review the Information Memorandum and additional attachments (if applicable) before lodging an application. In the event that there are any material changes to the Information memorandum communications will be added to the attachments for review.

Total Share/Units
15,200,000 Units
Min Investment
50,000 Units
Min Invest Value
NZD 50,000.00
Par Value
NZD 1.00
Issuer
MyFarm Limited
Issue Type
Forestry
Sector
Agriculture
Offer End Date
October 8, 2021

This Offer is to wholesale investors of Units representing partnership capital in CQuest LP, a Limited Partnership formed in September 2021 to target bareland carbon + forestry conversions. The Partnership ('CQuest Fund') will be established to purchase and plant up to 1,500 hectares of Pinus Radiata over the next three years.

The main objective is to invest in bareland conversion of suitable properties into radiata pine to earn carbon credits and produce timber.  The forests are planned to be managed for future harvesting, but the primary focus through the first rotation will be distributing carbon returns to investors. Carbon is expected to be sequestered at a cost of $20-25/t and can then be sold for a profit through the NZETS. 

Subject to the success of this Offer, the CQuest Fund will invest in the Puketawa Station property and yet to be contracted properties to create a portfolio of radiata pine forests. If only the minimum amount of capital ($4.0 million) is raised the Fund will only own Puketawa Station.

CQuest LP will enter into a management agreement with Afforestation Partners Management Limited to establish and grow radiata pine forests. Planting will start next autumn/winter and run through to 2024. Carbon units are expected to be earned from year 5 to 16 with harvesting to occur afterwards (if the cutting rights or properties aren't sold before).

To establish a portfolio of radiata pine forests of around 1,500 ha a combination of $15.2 million of contributed capital and $6.9 million of bank debt is expected to be required. This provides CQuest Fund with a targeted loan to value ratio of 35% that is expected to reduce as the forest grow. The fund has a maximum LVR of 50%.

The Puketawa Road property has been contracted for $4.4 million, but the house and 30 ha are expected to be subdivided providing plantable area of 356 ha.

A one-off underwriter's fee of $96,000 will be charged by the MyFarm Underwriters Fund to secure the Puketawa Station.

The Offeror reserves the right to accept or decline over-subscriptions and to determine which applications are accepted.

As a limited partner the maximum amount payable is $1.00 per Unit and no other payments are required to be made other than those specifically agreed to. The minimum investment is $50,000 and thereafter the size of an investment can be increased in multiples of $10,000 (10,000 Units). Payment of $1/Unit is due at the time of application.

IMPORTANT DATES: On application, a payment of $0.35/Unit (35%) is due by 8 October 2021. A further $0.65/Unit (65%) is due on 20 working days notice to fund further suitable properties or development activities. All funds are deemed fully paid by 1 April 2024.

Property Name Location Address
Puketawa Station Tiraumea 185 Puketawa Road, Tiraumea, Eketahuna, 4996

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CQuest LP Carbon and Forestation Fund IM - Updated 21 Sept 2021
9/21/2021
21/9/2021

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