*All information contained in the Scheme Information section is as at the Information Memorandum date.

** Quarterly Reports (which provide investors with updates on the Scheme) are available from Silverfin Capital upon request. Please email [email protected]

KEY INVESTMENT HIGHLIGHTS

·        6.0% p.a. pre-tax cash return projected to 31 March 2023

·        Two strategically located industrial properties in Christchurch

·        WALT of 8.5 years (as at 01/02/2022)

·        Significant land holding of 19,161 sqm

·        Net lettable area of 6,687 sqm

·        Fully leased to two essential service tenants

·        Easy access to main arterial routes

Investors are currently receiving distributions of 6.0% per annum pre-tax. The net asset value per unit at 31 December 2023 is $36,617.

520 Waterloo Road, Islington, Christchurch

520 Waterloo Road is 2,590 sqm industrial property located in the Waterloo Business Park, Islington, on the western side of Christchurch on an 8,501m² freehold site.

Waterloo Business Park is a 114-hectare industrial park, which has attracted businesses from a broad range of sectors including Halls Group, Cardinal Logistics, Sorted Logistics and Flyways. The business park is located 10km from Christchurch Airport and 14km to the west of Christchurch CBD. The precinct is easily reached by main arterial roads, with State Highway 1 being less than 1 km away from the subject property.

The Property consists of modern food processing and storage areas, office space, a factory shop, staff and visitor parking and truck loading areas.

The Property is split into a 2,010m² factory and processing facility (Building 1) and a 580m² office and reception area (Building 2) both constructed in 2014. Building 1 is constructed from steel portal frames with external steel cladding and a profiled steel roof. Building 2 is constructed from timber framed walls with external composite cladding (Alucobest) and a profiled steel roof. Both structures sits atop concrete pad foundations for the columns and a raft type floor slab under the load bearing walls.

Structural consultants, Centraus Structural Consulting, completed a Detailed Seismic Assessment (‘DSA’) of the Property in December 2021. The DSA reported a rating of 100% of the New Building Standard, a rating which is equivalent to a seismic ‘Grade A.’.

The Tenant – Hello Foods Limited

The Property is 100% leased to Hello Foods Limited, previously trading as South Island Fresh Foods, who specialise in ready-to-eat and heat-and-eat meals for a large range of supermarket and online brands. Hello Foods is owned by Polar Capital, a venture capital business set up by Colin Neal who sold his ‘Big Chill Distribution’ business to Freightways for ~$117 million in 2019. Polar Capital notably purchased the retailer Smith City in 2020.

As a food processing business, Hello Foods is deemed an essential service and can continue to operate during COVID lockdown requirements.

The purchase price for the Property is $10,000,000 which represents 52.4% of the total portfolio purchase price of $21,030,000. 

719 Halswell Junction Road, Hornby, Christchurch

719 Halswell Junction Road is positioned in the heart of Hornby, an Industrial Heavy zoned area with excellent road and rail access, located 11km west of Christchurch’s CBD. Hornby has a well established industrial precinct and has excellent infrastructure to cope with increasing demand, including ample power services and staff amenities in the immediate location.

State Highway One is 300 meters away and Christchurch Southern Motorway is approximately 2.3 kilometres away.

The Property sits on a prominent freehold corner site of 11,110m² with an amount of surplus land. The 4,096m² building was originally constructed in 1995 for food production purposes and has been divided into several sections. The Property comprises a mix of offices and amenities, high stud food processing areas with associated cool storage, and distribution and loading areas. The majority of the accommodation is at ground floor level. Office accommodation and a viewing corridor is provided at mezzanine level.

The Property benefits from dual access to Connaught Drive and has a significant concrete yard / car parking area to the front.

The construction of the Premises consists of the roof, which is light steel framed with steel cladding, which is supported on steel trusses on concrete columns and walls. The ground floors are concrete slab on grade. All are supported on interior and perimeter foundations.

The building is configured into several internal components. There are interior EPS panels separating the spaces provided with food quality finishes and timber framed walls in the office and amenity areas to the southeast. The mezzanine floor is of timber construction with the underside of the floor lined with plasterboard.

Structural engineers, Centraus Structural Consulting, completed a Detailed Seismic Assessment (‘DSA’) of the Property in October 2021. The DSA reported a rating of >85% of the New Building Standard, which is equivalent to a seismic ‘Grade A’ and consequently determined the building to be neither earthquake prone nor an earthquake risk.

The Tenant – Dairyworks Limited

The Property is 100% leased to Dairyworks Limited, a subsidiary of Synlait Milk Limted, which is a NZX listed company.

Established in 2001, Dairyworks is a world leader in branded dairy products and owners of multiple household dairy brands including Dairyworks New Zealand, Alpine and Rolling Meadow. Dairyworks source high quality bulk cheese and butter from local South Island suppliers and transform it into added-value consumer products for an ever-increasing clientele throughout New Zealand and Australia.

The tenant is considered an essential service and could therefore operate throughout the various COVID lockdowns.

The purchase price for the Property is $11,030,000 which represents 47.6% of the total portfolio purchase price of $21,030,000. 

This offer is limited to persons who are wholesale investors for the purposes of the offer in terms of clause 3(2) or 3(3)(a) of Schedule 1 of the Financial Markets Conduct Act 2013. This includes ‘eligible’ investors.4