Kaipi Road Limited Partnership
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.
View the Fact Sheet for Kaipi Road Limited Partnership by clicking here.
View the Information Memorandum for Kaipi Road Limited Partnership by clicking here
If you would like to know more, please contact us to discuss the offer further.
Watch the offer video below:
*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.
Webinars:
Want to learn more about this industry?
Free Range Chicken Farming in NZ - brought to you by Poultry Industry Association NZ
https://www.pianz.org.nz/video...
Turkeys: A Farmer's Story with Pete - brought to you by Poultry Industry Association NZ
https://www.pianz.org.nz/video...
How to apply?
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