This is an offer to wholesale investors for Units in Wairau Valley Vineyards Limited Partnership, formed to purchase two recently developed vineyards (Kowhai and Walkers) totaling 42 canopy hectares (cha) planted in Sauvignon Blanc grapes, there is approximately 4 cha that is expected to be planted in the coming season. Both properties are located in the Wairau Valley on State Highway 63, Walkers at 3211 and Kowhai at 2765 respectively. 

The Partnership will enter into a lease agreement with Misty Cove from settlement and will receive a gross rental return equal to 7% of the property purchase cost; once both properties are settled this is equivalent to $16,766 per cha or $772,389 per annum. 

Misty Cove is to lease each vineyard for an initial period of 15 years, with two rights to renew for a further 5 years each on 1 July 2037 and 1 July 2042. A market rent review will occur on 1 July 2029 and every three years thereafter.  The rental value cannot drop below the preceding period prior to the review.

Subject to the success of this Offer, the Wairau Valley Vineyards LP will invest in Kowhai and Walkers vineyards located in the Wairau Valley. The combined purchase price for both properties (including establishment and syndicate costs) is $11.71 million. It is proposed that the Partnership will raise $7.02 million of contributed

capital and $4.69 million of bank debt as part of this Offer. Misty Cove will acquire $2.20 million of the Units being offered as part of this Offer, this leaves $4.82 million to be raised from the other MyFarm investors. This provides Wairau Valley Vineyards LP with a targeted loan to value ratio of 43%, which is forecast to drop to 36% at maturity.

The MyFarm Underwriters’ Fund was used to secure the Kowhai and Walkers vineyards, via a $3.34 million property underwrite. A fee of $86,400 will be included in the establishment costs for the Partnership. 

The Offeror also reserves the right to accept or decline over-subscriptions and to determine which applications are accepted. No provision has been made for over-subscriptions.

This Offer is for 7.02 million Units in Wairau Valley Vineyards Limited Partnership at an issue price of $1/Unit.

The minimum investment is 50,000 Units ($50,000) and thereafter the size of an investment can be increased in multiples of $10,000. The minimum capital raise is $7.02 million Units.

As a Limited Partner the maximum amount payable is $1/Unit and no other payments are required to be made other than those specifically agreed to.

IMPORTANT DATES: Applications close at 5pm on Tuesday 21 June 2022, with payment due for 65% of Units applied for due at this time. The remaining 35% ($0.35 per Unit) will be used to settle the Kowhai vineyard and will be subject to a call notice period of 15 business days.