INGHAMS PORTFOLIO SCHEME
projected pre-tax cash return p.a.
.2(projected5 until 31-3-2024)%
20 YEAR LEASE
A UNIQUE OPPORTUNITY TO INVEST IN A LONG TERM OFFERING WITH STRONG TENANT COVENANT
www.silverfi nsyndications.nz8 KEY INVESTMENT HIGHLIGHTS
HIGH YIELDING, PASSIVE INVESTMENT
The Inghams Portfolio Scheme is forecast to return an 8.25% per annum pre-tax cash return (forecast to 31/3/2024). Silverfi n intend to pay the cash distribution on a monthly basis. The Scheme will be a Portfolio Investment Entity (PIE) subject to meeting eligibility requirements.
LONG LEASE TERM
Inghams Enterprises (NZ) Pty Limited occupy the land and buildings across the six sites on a 25-year lease term with 20 years to run with fi ve further rights of renewal of 10 years each. The initial lease expiry is 18 July 2039*.
TRIPLE NET LEASES
The leases are effectively ‘Triple Net’, greatly reducing the Scheme’s exposure to capital costs and operating expenses.
SIGNIFICANT LAND HOLDING (186 HA) IN STRATEGIC LOCATIONS
Six facilities strategically located to support Inghams’ highly successful poultry supply chain. The facilities, comprising a hatchery, breeder farms and processing plant, collectively occupy 186 ha within the Matamata MATAMATA and Waitoa area. Six sites strategically located to support Inghams’ highly successful poultry supply chain.
STRONG TENANT COVENANT - INGHAMS ENTERPRISES (NZ) PTY
Inghams Enterprises (NZ) Pty Limited is a wholly-owned subsidiary of the Australian stock exchange listed company, Inghams Group Limited, who are the largest integrated poultry producer in Australasia.
* Figures refl ect a remaining 10 year lease term which can be extended by the Scheme at any time for a further 10 years. INGHAMS PORTFOLIO SCHEME
THE TENANT The sole tenant of the Properties is Inghams Enterprises (NZ) Pty Limited, which is a wholly-owned subsidiary of the Australian company, Inghams Group Limited (ASX:ING).
Inghams Group Limited are farmers, producers and distributors of poultry and stockfeed products across Australia and New Zealand. Inghams is the largest 2 Banks Road, Matamata integrated poultry producer in Australasia, processing over 4 million birds per week. Ingham’s have a workforce of 8,000 and a strong network of processing and distribution facilities across Australia and New Zealand.
Inghams Enterprises (NZ) Pty Limited has been operating as a fully integrated chicken company, based in the Waikato region, since 1990. The tenant is fi ve years into a 25 year term certain lease with an expiry of 17 July 2039. The tenant has fi ve further options of 10 years, taking the fi nal expiry date (if all options are exercised) to 17 July 2089. This lease is effectively a ‘triple net lease’ and all usual outgoings are recoverable from the tenant in addition to many capital costs.
THE PROPERTIES & LOCATION The portfolio consists of six strategically located properties within the
Matamata and Waitoa region. All six properties lie within a 60km radius 207 Mowbray Road, Matamata of each other which is a key feature of the portfolio and is integral to the operation of the successful poultry supply chain.
111 Pohlen Road, Matamata. 207 Mowbray Road, Matamata. 25 Okauia Springs Road, Matamata. 903 Leslie Road, Tapapa. The four properties have a site area of 115.2 ha and serve as breeder
FARMS and raiser farms in the Inghams’ supply chain network, producing eggs 4X BREEDER that are delivered to the hatchery for incubation and hatching.
2 and 16 Banks Road and 7473-7481 State Highway 27, Matamata The 8.4 ha site at Banks Road serves as a hatchery in the Inghams supply chain network. The hatchery receives eggs from the breeder farms, incubates and hatches chicks for delivery to the contract HATCHERY broiler farms.
111 Pohlen Road, Matamata 594-668 Waihekau Road, Waitoa The 62.5 ha site at 594-668 Waihekau Road, Waitoa serves as the processing plant in the Inghams’ supply chain network and includes PLANT a signifi cant portion of vacant land (circa 31.9 ha out of the 62.5 ha) PROCESSING that is currently utilised for irrigation purposes and grazing.
The combination of the six properties presents a rare and hard to replicate portfolio. The locations are integrally linked and are close to each other, third party broiler farms and the Port of Tauranga.
The complexity of the poultry supply chain network coupled with the resource consenting challenges in setting up a poultry farm, means that the Inghams portfolio of properties would be diffi cult to replicate elsewhere. 25 Okauia Springs Road, Matamata 903 Leslie Road, Tapapa
594-668 Waihekau Road, Waitoa NEW ZEALAND FIGURE 1 – NZ MEAT CONSUMPTION 2018 POULTRY INDUSTRY 25% PORK
CHICKEN – A NEW ZEALAND FAVOURITE Chicken is an extremely popular meat choice – representing 52% CHICKEN 52% of all meat consumed in New Zealand (fi gure 1). New Zealanders eat around 37.5kg of chicken every year 18% – that’s 20 chickens per person, per year. BEEF & VEAL
To meet demand, the poultry industry has 180 farms around the 5% country, employing 3,500 people. The industry has a government SHEEP mandated code of welfare and combined with the Poultry Industry Association of New Zealand’s (PIANZ) high standards of training, stockmanship and systems, means that NZ chicken is in high demand around the world. In fact, NZ is often described FIGURE 2 – NZ MEAT CONSUMPTION KILOGRAM PER CAPITA as the best place in the world to grow chickens, due to our temperate climate, advanced systems and disease-free status*. 40 NZ POULTRY
35
30 GROWTH IN CONSUMPTION 25 Chicken is one of the cheapest and most popular meats in New Zealand and contains less saturated fat than red meats such as 20 beef, pork or lamb. WORLD 15 POULTRY In almost 30 years, annual poultry consumption in NZ has Consumption – Kg per Capita 10 increased from ~14 kg (1990) to ~37 kg (2018) a compound NZ BEEF annual growth rate of 3.4% per annum. Over the same period 5 WORLD BEEF worldwide consumption of poultry increased 3.1%. 0 This compared to NZ consumption of beef which reduced 1990 1995 2000 2005 2010 2015 2018 by 2.5% per annum over the same period and the worldwide consumption of beef which remained fl at (fi gure 2). FIGURE 3 – FULL LIFECYCLE GAS EMISSIONS COMPARISON
40 Post farmgate emissions (includes processing, transport, retail, cooking and waste disposal) CARBON FOOTPRINT 35 New Zealand as a society is working to reduce carbon emissions. Production emissions (includes emissions before product 30 leaves, the farm plus avoidable and unavoidable waste) This is demonstrated by the Government’s proposed Zero Carbon Bill, which provides for a transition to a low emissions economy. 25 e 2 The transition to a low emissions economy is likely to favour the 20
increased consumption of chicken meat as it has the lowest Kg CO 15 carbon footprint out of the commonly farmed and consumed meats (fi gure 3). 10
5
0
KEY DEMAND DRIVERS FOR CHICKEN LAMB BEEF PORK CHEESE FARMED TURKEY CHICKEN CANNEDTUNA SALMON 1. Continued population growth in New Zealand 2. Affordability, achieved through increased effi ciency in Kilogram (Kg) of Consumed Food production and growing systems 3. Market positive consumer trends, in particular health, Sources: * PIANZ website well-being and convenience related preferences Figure 1 & 2 OECD Agriculture Statistics: OECD-FAO Agricultural Outlook (Edition 2018) 4. The drive towards a low emissions economy. Figure 3 Environmental Working Group Meat Eaters Guide: Methodology 2011 SILVERFIN CAPITAL LIMITED
Silverfi n Capital Limited specialises in property syndication and management. Our schemes are structured to provide investors with a cash return from commercial and industrial real estate, without the burdens of private property ownership.
Silverfi n commenced operations in 2016 and currently has circa $280m of commercial property assets under management. Silverfi n is licensed under the Financial Markets Conduct Act 2013 as a manager of managed investment schemes (excluding managed funds) that invest in real property or property syndicates/real property proportionate ownership schemes. In addition, Silverfi n has a strong governance structure with an experienced board consisting of three independent directors and one non-independent director.
At Silverfi n we pride ourselves on our ‘investor fi rst’ culture and believe we have set a new standard in the property investment industry by enhancing solid investment strategy with a truly personable approach. We have an ‘open door’ policy at our central Auckland offi ce and would encourage potential investors to visit us and meet the management team.
903 Leslie Road, Tapapa KEY FINANCIALS PURCHASE PRICE $86,000,000 ESTABLISHMENT COSTS $3,600,000 TOTAL $89,600,000 TO BE FUNDED BY: Subscriptions from Investors (932 units @ $50,000) $46,600,000 Bank loan $43,000,000 TOTAL $89,600,000 OFFER TIMELINE
INTENDED OFFER OPEN DATE 31st May 2019 INTENDED OFFER CLOSE DATE 19th July 2019 SETTLEMENT OF ACQUISITION OF THE PROPERTY 14th Aug 2019 AND INTERESTS ISSUED TO INVESTORS 594-668 Waihekau Road, Waitoa
Dates are subject to change
Contact us to register your interest and to receive a copy of the Product Disclosure Statement, when available: CHARLIE OSCROFT: 021 824 564, [email protected] KRIS ONGLEY: 021 657 687, [email protected]
Colliers International Ltd. GET TO KNOW US. INVEST WITH US. | WWW.SILVERFINSYNDICATIONS.NZ Licensed under the REAA 2008
Silverfi n Capital Limited intends to make a retail offer of interests in this scheme. No money is currently being sought and interests cannot currently be applied for under the intended offer. If the offer is made, the offer will be made in accordance with the Financial Markets Conduct Act 2013. Silverfi n is seeking preliminary indications of interest for the offer which can be made by contacting Colliers International via the contact details above. No indication of interest will involve an obligation or a commitment to acquire interests. The 8.25% p.a. projected pre-tax cash return is a projection only and is subject to change. If the offer proceeds, the actual returns paid may differ. All information in this brochure is current at the time of publication, but is subject to change.