With term deposit interest rates plummeting to record lows investment opportunities with 10.7% return per annum over six years are like gold for those who want their money to work for them.
Cherry LP1 is raising up to $17.8 million dollars for the acquisition and subsequent leaseback of three Central Otago orchards to an established grower and distributor of cherries and returning investors 10.7% IRR over six years with no ongoing fees.
Investors will receive 8% cash yield per annum paid quarterly.
At the conclusion of the lease the lessee has the option to acquire the orchards at an 18 percent uplift from purchase price.
The cherry industry in New Zealand has undergone substantial growth over the past few years, from being an additional crop on existing stonefruit orchards to dedicated orchards.
Leading research company Coriolis completed a comprehensive study to identify emerging growth opportunities for the New Zealand food and beverage industry and out of 697 opportunities, fresh cherries were highlighted as one of the top areas of potential growth.
The quality, premium price point and limited seasonality means that New Zealand branded product is highly desirable in Asian markets during the highly lucrative Chinese New Year gift giving season.
Currently around 95 percent of global cherry production is harvested from the Northern Hemisphere which has a completely different harvest window to the Southern Hemisphere. New Zealand’s Southern Hemisphere competitors (Chile) struggle to match New Zealand grown cherries’ sweetness, size, freshness and overall quality. This highlights the exciting opportunity for growth in New Zealand cherry plantings and investment.
The Central Otago properties purchased by the Limited Partnership will be fully managed and maintained by the Lessee who will be responsible for all future budgeted capital costs including operations and maintenance related to further capital development over the six year term of the lease on all three properties.
This offer is provided to recipients in New Zealand on the understanding that the recipient is a wholesale investor as described in clauses 3.2 and 3.3 of Schedule 1 of the Financial Markets Conduct Act 2013. Neither the provision of this memorandum nor anything contained in it constitutes a regulated offer or a product disclosure statement for the purposes of the FMCA.
Minimum investment is $100,000NZD.