This is an offer to wholesale investors of Units in Awakeri Orchard LP ("the Partnership"), a limited partnership to be formed to acquire Awakeri Orchard, a young Sungold™ kiwifruit orchard near Edgecumbe in the eastern Bay of Plenty. The Orchard is 9.26 cha in size and is being purchased for $9.7 million. Of this area, 3.72 cha cropped for the first time in 2019. The remaining 5.54 cha will crop for the first time in 2020. The Orchard is located at 82A Melville Road, Awakeri. The Orchard will be managed under contract by Southern Cross Horticulture Limited ("SCHL"). SCHL is a Bay of Plenty kiwifruit orchard developer and manager and is locally owned and operated.

Subject to the success of this offer (‘Offer’), the Partnership will purchase the Orchard and meet syndicate establishment costs using a combination of $7.8 million of contributed capital to be raised in this Offer and $2.44 million of bank debt, a 24% post settlement loan to value ratio (‘LVR’). Following settlement, further borrowing will be undertaken to meet operating expenses in FY20 ($0.423 million), and to help cash flow the interim distributions in FY21 ($ 0.206 million). Assuming the Offer is fully subscribed, this additional debt will increase total borrowing to $3.1 million, and increase the LVR to 30%. Note, the calculation of LVR excludes establishment fees and costs.

The Offeror reserves the right to use up to a further $2.43 million of bank debt and declare the sale and purchase agreement unconditional once it has received applications for $5.4 million of contributed capital. If only $5.4 million of contributed capital is raised, the LVR post settlement would increase to 50%. The Offeror also reserves the right to itself, or through associated entities, underwrite up to $1.0 million of contributed capital for a 2.0% fee payable by the Partnership.

Due to the fact that settlement is only 8 days after the closing date, full payment of $10,000/Unit is required at the time of application.

The Partnership is expected to provide limited partners with quarterly cash returns at the rate of 5% p.a. after 9 months from the date of purchase of the Orchard, and steady state returns of more than 9.0%p.a. from 21 months after the date of the purchase of the Orchard.

The Offer is a Managed Investment Product as defined by the Financial Markets Conduct Act 2013.

Your money will be pooled with other investors’ money and invested.

The investment is in Units in Awakeri Orchard LP. Awakeri Orchard LP is being formed to purchase Awakeri Orchard.