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.