ARK has completed the acquisition of a large fruit packing facility in Caboolture, Queensland for the purchase price of $4,500,000 (Strawberry Property No.2).

ARK drew down on its debt facility with NAB in order to complete the purchase of Strawberry Property No.2. The purchase was made therefore with 100% debt capital. 

ARK has leased out Strawberry Property No.2 for an initial term of 10 years. The starting rent is $450,000 plus GST per annum. This equates to an income yield of 10%. The rent to be earned by ARK automatically rises by 2.8% per year during this 10 year lease period.

Pertinent points to note in relation to Strawberry Property No.2 are as follows:

• Strawberry Property No.2 is a world class fruit packing facility designed to the highest specifications and including the very latest in design and innovation in fruit packing technology.
• Strawberry Property No.2 is the largest and most technologically advanced fruit packing facility of its kind in Caboolture, Queensland.
• The fruit packing facility includes a world class fruit cooling system. This fruit cooling system facilitates the rapid cooling of fruit as it is processed through the shed, ensuring the highest retention of fruit colour and flavour, as well as materially increasing the shelf life of the fruit. Due to these factors, the owners of all fruit packed through the facility receive higher prices from the buyers of the fruit since the buyers recognise these quality factors and pay materially more for the fruit in question.