Wholesale

Te Arai Orchard LP

Horticulture

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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
12,820,000 Units
Min Investment
50,000 Units
Min Invest Value
NZD 50,000.00
Par Value
NZD 1.00
Issuer
Issue Type
Horticulture
Sector
Agriculture
Offer End Date
June 21, 2021

This is an offer to wholesale investors of Units in Te Arai Orchard Limited Partnership ("The Partnership"). Your money will be pooled with other investors to acquire 28.0179 ha of land located at Waingake Road, Muriwai, Gisborne.

Subject to the success of this Offer, the Partnership will invest in the development and operation of a 20 cha Rockit™ apple orchard located on Waingake Road. The investment is expected to be funded using $12.81 million of contributed capital and $4.52 million of asset finance and bank debt.

The Offeror reserves the right to use up to a further $1.282 million of short-term bank debt, and declare the sale and purchase agreement unconditional once it has received applications for $11.538 million of contributed capital. 

The Offeror may elect to accept or reject over-subscriptions and is entitled to scale, order or reject any application as it sees fit.

MyFarm operates an underwrite fund - MyFarm UF1 Limited Partnership, that is to underwrite $3.846 million (30% of Units) of the Partnership equity being sought. This has a cost of $96,150 that is to be directly paid by Te Arai Orchard LP. Post the property's settlement any Underwrite Units will be sold down before short-term debt is reduced to the target LVR.

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. 

The offer is for 12.81 million Units in Te Arai Orchard Limited Partnership 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).

On application, a payment of $0.20/Unit applied for (20%) is required. A further $0.15/Unit applied for (15%) is due on 29 June 2021, 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.

Te Arai Orchard Limited Partnership- Information Memorandum - 20 May 2021
5/20/2021
20/5/2021

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