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Kaipi Road Limited Partnership

Sector

Commercial property

Returns

9% p.a.

paid monthly

Minimum investment

$50,000

with $1000 increments thereafter

Contact

Book a time

Kaipi Road Limited Partnership

With forecast distributions of 9.0% p.a., inflation adjusted rent reviews, and a long-term lease to New Zealand’s biggest name in chickens, MyFarm’s latest property investment is well worth crossing the road for.

Jokes aside, Kaipi Road Limited Partnership is a steady cash-generating investment in the land and infrastructure of a modern poultry production unit, leased and operated by Tegel Foods.

The property comprises nine chicken rearing sheds built in 2014 that are fully equipped with modern automation technology. Further capital upgrades completed in 2022 have transformed this operation into a desirable free range certified chicken rearing unit

  • Total 11.49 hectares located in Taranaki.
  • Includes nine free-range certified sheds of 2,200 square metres each.
  • Current lease to Tegel Foods runs until 2032, with 3 x 5-year rights of renewal to 2047.
  • Forecast cash distributions of 9.0% p.a., paid monthly.
  • Depreciation allowances lift equivalent fully taxable returns to over 11% p.a.**
  • Annual CPI adjusted rent reviews.
  • Minimum investment $50,000.

We like this investment because it’s a lease-income story with a long-established, reputable tenant producing a high quality, staple food product.

  • The lease is adjusted annually against the Consumer Price Index (CPI), which means the Partnership’s income is protected against inflation.
  • Costs to the Partnership are kept to a minimum because Tegel is responsible for all expenses associated with operating and maintaining the underlying assets.
  • Taranaki is one of Tegel Food’s four national hubs with a strong infrastructure and logistics presence in the region. Kaipi Road LP is close to other Tegel processing facilities and a pool of skilled labour, suggesting the company is likely to remain here for the long term.
  • New Zealand chicken producers are protected from overseas competition thanks to our rigid biosecurity laws preventing the importation of chicken meat. This contributes to price stability and prevents dumping of cheap product into our market, which is good for Tegel and good for your investment.

If you would like to know more, please contact us to discuss the offer further.

This offer closes 5pm, Monday 10th June 2024.


*This offer is only open to investors who fall within the exclusions applicable to offers made to “wholesale investors” as set out in Schedule 1, clauses 3 (2)(a)-(c) and 3 (3)(a)-(b)(ii) of the Financial Markets Conducts Act 2013 (FMCA). You can obtain further information on FMCA requirements, and whether you come within the exclusions and their requirements at www.myfarm.co.nz/fmca

** It is expected that depreciation allowances, being removed on commercial property, will remain on Fowl Houses, lifting returns to the equivalent of 11.0% p.a. for investors paying 33% tax and comparing to investments where returns are fully taxable.

Offer open at
Wednesday 15 May 2024
Offer closes at
17:00 PM, Monday 10 Jun 2024
Find out more

How to apply?

View this offer and apply via the Syndex Trading Platform or Apply via MyFarm's Downloadable application form

Contact

Book a time

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