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Agricultural Property Asset No.12 – 137.67Ha – Teak Property – Ingham Queensland
ARK has purchased 137.67 hectares of land 20 kilometres south-west of Ingham in Far North Queensland for the purchase price of $1,454,000 (Teak Property No.7).
ARK drew down on its debt facility with NAB in order to complete the purchase of Teak Property No.7. The purchase was made therefore with 100% debt capital.
Simultaneous with its acquisition, ARK leased out Teak Property No.7 for an initial term of 20 years. The starting rent is $145,400 plus GST. This equates to an income yield of 10%. The rent to be earned by ARK automatically rises by 2.8% per year during this 20 year lease period.
Teak Property No.7 is comprised of 7 lots the subject of 7 different titles and has a fence to fence area of 136.67Ha. Prior to making an offer for Teak Property No. 7, ARK received a sworn valuation in respect of Teak Property No.7.
The sworn valuation of Teak Property No.7 made the following important points:
- Teak Property No.7 is currently used as a sugar cane farm.
- Teak Property No.7 is comprised of good quality agricultural land well suited to a variety of agricultural pursuits.
- Teak Property No.7 is located in an established and well regarded sugar producing locality.
- Situated upon Teak Property No.7 is a residential dwelling which is 203sqm in size, a work shed which is 270 sqm in size and a 70 sqm storage shed.
Teak Property No.7 is located 20Km south-west of Ingham. Ingham is situated approximately 110 kilometres north of the city of Townsville. It is the administrative centre of the Hichinbrook Shire Council. Ingham is situated on the Herbert River and has a district population of 13,000 people. All major services and amenities are available in Ingham. Ingham is most well known for sugar cane farming and has the largest sugar mill in the southern hemisphere.
Suitability for Teak Production
Teak Property No.7 is ideal for the growing of Teak (Tectona grandis) trees. Teak Property No.7 is thoroughly suitable for the growing of Teak for the following reasons:
- Teak grows in areas that receive between 1000 and 4000 millimetres of annual rainfall. The Teak Property has reliable annual rainfall in excess of 1600mms, and has adequate soil depth, nutrient levels, drainage and site microclimate conditions.
- Teak Property No.7 is close enough (110Kms) to a major port (i.e. Port of Townsville). Well established road and rail infrastructure exists from the Teak Property to the Port of Townsville.
- Teak Property No.7 has a normal risk exposure profile to natural catastrophe after assessing key indicators, which include historical exposure of the site to fire, wind, disease or drought).
