- Investments »
- Property Asset #1 »
- Property Asset #2 »
- Property Asset #3 »
- Property Asset #4 »
- Property Asset #5 »
- Property Asset #6 »
- Property Asset #7 »
- Property Asset #8 »
- Property Asset #9 »
- Property Asset #10 »
- Property Asset #11 »
- Property Asset #12 »
- Property Asset #13 »
- Property Asset #14 »
- Property Asset #15 »
- Property Asset #16 »
- Property Asset #17 »
- Property Asset #18 »
- Property Asset #19 »
- Property Asset #20 »
- Property Asset #21 »
- Property Asset #22 »
- Property Asset #23 »
- Property Asset #24 »
- Property Asset #25 »
- Property Asset #26 »
- Property Asset #27 »
- Property Asset #28 »
- Property Asset #29 »
Agricultural Property Asset No.1 – 30% Unit Holding in the Ord Orchards Land Unit Trust No.1
On 13 December 2005, ARK announced the completion of the transaction to subscribe for a 30% unit holding in the unlisted unit trust named Ord Orchards Land Unit Trust No.1 (Trust). The Trust is the sole owner of 2 items of property in Kununurra, Western Australia with a gross fence to fence area of 473 hectares upon which have been developed 456 hectares of mango and red fleshed grapefruit orchards. ARK completed the purchase of 300 units in the Trust in exchange for the payment of $2,100,000. These 456 hectares of mango and red fleshed grapefruit orchards have been developed by Rewards Projects Limited, the Responsible Entity for 3 registered managed investment schemes for and on behalf of a total of 829 individual growers, many of whom are high net worth individuals. The details of these 3 registered managed investment schemes are as follows:
| Managed Investment Scheme (MIS) Name | Australian Registered Scheme Number (ARSN) | Australian Taxation Office & (ATO) Product Ruling Number | Number of Growers |
|---|---|---|---|
| Rewards Group Tropical Fruits Project 2003 | 103 358 229 | PR2003/1 and PR2003/1A | 175 |
| Rewards Group Tropical Fruits Project 2004 | 108 145 160 | PR2004/20 and PR2004/21 | 268 |
| Rewards Group Tropical Fruits Project 2005 | 113 282 232 | PR2005/32 | 386 |
| TOTAL | 829 |
Financial Snapshot
The Trust has fully leased the 2 properties which it owns. The pre-tax rental income stream which the Trust now enjoys is approximately $400,000 per annum.
Ord Orchards Land Unit Trust No.1
| Financial Snapshot | |
|---|---|
| Total Number of Hectares of Orchards | 456 hectares |
| Total Number of Units in Trust | 1000 units |
| Pre-Tax Rental Income of the Trust Per Annum | $400,000 per annum1
|
| Pay Out Ratio of the Trust | 100% |
Note 1: this rent figure of approximately $400,000 per annum will rise at the contractually agreed rate of 2.8% per annum every year for a period of 20 years. This means that it reaches approximately $700,000 in 2025.
| ARK Fund’s $2.1M Investment in Ord Orchards Land Unit Trust No.1 | |
|---|---|
| Total Number of Units Owned | 300 (i.e. 30%) |
| Total Subscription Monies | $2,100,000 |
| ARK Fund’s 30% Share of Pre-Tax Rental Income of the Trust Per Annum | $120,000 per annum1 |
| Pre-Tax IRR between Today and 2025 | 18% |
| NPV (assuming discount rate of 8%) | $7,900,000 |
Note 1: this rent of $120,000 will rise at the contractually agreed rate of 2.8% per annum every year for a period of 20 years. 30% of $400,000 equals $120,000. In 2025 this figure will have risen to approximately $200,000.
ARK estimates that the value today of this 30% unit holding in the Trust is $7,900,000 assuming a discount rate of 8%.
