*All information contained in the Scheme Information section is as at Product Disclosure Statement date.

** Quarterly Reports (which provide investors with updates on the Scheme) are available from Silverfin Capital upon request. Please email alexandra@silverfin.nz.

KEY INVESTMENT HIGHLIGHTS:

• 7.5% p.a. pre-tax cash return projected to 31 March 2028, with distributions paid monthly.
• Fully leased to Inghams Enterprises (NZ) Pty Limited (a subsidiary of ASX listed Inghams Group Limited).
• Long initial lease term of 20 years commencing on settlement
• Triple net lease with annual 2% rent increases. 
• Two large freehold sites located in north Waikato with a total site area of 44.6 hectares.
• PIE tax structure (highest individual tax rate capped at 28%).
• Zero tax payable in the first two-years from depreciation allowances.

THE PROPERTIES

The Properties, located at 115 and 142 Brown Road, Tuakau and 87 Andrews Road, Onewhero, consist of two poultry farms held over multiple freehold sites, with a total land area of 44.6 hectares and a total floor area for all improvements of approximately 46,056 square meters (sqm).

87 Andrews Road

87 Andrews Road is held in a single title of 5.5 hectares. The site is improved with multiple buildings of approximately 5,371 sqm including three standalone poultry sheds, a residential building (to house staff members) and ancillary buildings including office and amenities, egg fumigation / chilled space and a storage shed.

Two of the poultry sheds (H10 and H11) were constructed in the 1990s and extended in 2007 and provide space for 7,200 birds. Construction comprises concrete block nib wall with long-run metal wall above, long-run metal roof and concrete slab floor. The third poultry shed was constructed circa 2018 and is of a similar construction, however, it has insulated panel cladding throughout and provides space for 12,600 birds. To the north of the shed is a secondary building platform for the possible future construction of a fourth shed.

115 and 142 Brown Road

115 and 142 Brown Road consists of 39.1 hectares of land across eight freehold titles with frontage and access available from Brown Road and Roberts Road. The improvements have a total floor area of approximately 40,685 sqm and include the substantial hatchery facility, 25 poultry sheds, fourteen residential dwellings (occupied by staff) as well as offices, storage and sundry facilities.

The 25 poultry sheds are all single storey structures of varying age, length, width, structural systems and cladding. All sheds have concrete floor slabs. A condition assessment was completed by engineers, Stiles & Hooker Limited, and revealed no visible structural issues.

The hatchery located at 115 and 142 Brown Road makes up a majority of the value of the improvements on this site with a replacement cost that is estimated at ~$20 million. The hatchery was completed in 2014 with an extension added in 2017/2018 creating a total floor area of 3,566 sqm. The building contains main amenities and offices areas as well as female and male biosecurity showers and washing area. The main area of the hatchery includes egg storage with capacity to store up to one million eggs, setter rooms, hatcher rooms and chick processing and storage rooms as well as a truck loading dock. The building is made up of concrete floors, steel portal frames and steel roof purlins.

The fourteen residential dwellings are occupied by staff members and a sub-lease arrangement will be put in place between the Tenant and their employees. The Scheme will not be responsible for any of the tenancy arrangements relating to the residential dwellings. The houses are all timber framed construction with timber floors and timber subfloor. All houses comply with healthy home standards (or will comply from the settlement date at the Vendor's expense) and reveal no visible structural issues.