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 Schedule 1, 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 fall 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.
This is an offer to Wholesale Investors for Units in Ōhanga Properties Limited Partnership ("The Partnership"). Your money will be pooled with other investors to purchase the 20 ha property located at 2316 Rakaia Highway, Rakaia, Canterbury. The property comprises of six specialist sheds and associated equipment operated in two separate units. Approximately 120,000 breeding chicks are raised in the facilities each year.
The chicken sheds on an approximately 3 ha site is leased to Tegel Foods Ltd, a wholly owned subsidiary of Tegel Group Holdings Ltd. The lease term is to 8 February 2033, with three rights of renewal for five years thereafter. The Lessee is expected to be responsible for all outgoings and the majority of the maintenance requirements. The cash return to investors is expected to be 6.5% p.a paid monthly. The mix of 3% p.a. and CPI rent review is forecast to see cash returns increasing over time. Additional spare cashflow is expected to be directed to debt reduction or maintenance costs.
The remaining area, approximately 17 ha, is to be leased to Rhodes Hills Ltd, the vendor of the property, to be utilised for calf rearing, heifer grazing, and beef grazing. The rental is $17,000 plus GST and the term is for three years with no rights of renewal. On expiry of that lease, the Partnership will need to find another lessee and/or take possession of the 17 ha property. This may mean a period of no rental income for that part of the property.
The Partnership will invest in the property located at Rakaia, Canterbury, using a combination of $6.45 million of contributed capital to be raised in this Offer and $3.385 million of bank debt.
The property is to be purchased at the price of $9.305 million and the residual capital is required to cover establishment costs. This provides the Partnership with a loan to value ratio (LVR) of 36%.
The offer is for 645 Units in Ōhanga Properties Limited Partnership at an issue price of $10,000/Unit. The minimum investment is 5 Units ($50,000).
In the event that the Offer is under-subscribed, MyFarm will hold any unsubscribed units as Unpaid Units. These would then continue to be marketed as Unpaid Units on the secondary market after the Offer has closed, at the Offer price of $10,000/Unit.
The Offeror may elect to accept or reject over-subscriptions and is entitled to scale, order or reject any application as it sees fit.
|Ōhanga||Rakaia||2316 Rakaia Highway (SH1), Rakaia, Canterbury, 7781|