ARK has purchased 28.65 hectares of land 10 kilometres northwest of Caboolture in Queensland for the purchase price of $1,750,000 (Strawberry Property No.3).

ARK drew down on its debt facility with NAB in order to complete the purchase of Strawberry Property No.3. The purchase was made therefore with 100% debt capital.

Simultaneous with its acquisition, ARK leased out Strawberry Property No.3 for an initial term of 18 years. ARK incurred transaction costs of approximately 4% as a result of acquiring Strawberry Property No.3. The rent being paid is $200,200 plus GST per annum. This equates to an income yield of 11%. The rent automatically rises each year by the greater of 2.8% or the consumer price index (CPI) for the 12 month period that has just passed. This rent increase occurs each year during this 18 year lease period.

Strawberry Property No.3 is comprised of a single title with a fence to fence area of 28.65Ha. Other pertinent points to note regarding Strawberry Property No.3 are:

• Strawberry Property No. 3 is located only 45Km to the north of Brisbane.
• Strawberry Property No. 3 has good water provisions with a large dam and 3 smaller dams all located on Strawberry Property No.3.
• Strawberry Property No.3 is suitable for a wide variety of crops (such as pineapples and sorghum) and orchards (such as macadamias, lychees and avocadoes).
• Strawberry Property No. 3 has medium to long term residential subdivision potential.
• Other primary improvements on Strawberry Property No.3 consist of 2 residential dwellings, a work shed and machinery shed.

The local authority is the Caboolture Shire Council. Strawberry Property No.3 is designated "Rural" under the current Caboolture Shire Council Town Planning Scheme.

Strawberry Property No. 3 has electricity and telephone connected. There is a wide range of services available in Caboolture.

About Caboolture

The Caboolture region is widely acknowledged as the fruit bowl of Queensland’s southeast. Its rich farmlands produce many sub-tropical fruits such as bananas, pineapples, paw paws and avocados. The Caboolture region is Queensland’s largest producer of strawberries. Caboolture has a hot and humid climate, averaging about 23°C from October until March and 16°C from March to October. Monthly rainfall averages for the summer months are about 200mm and average as low as 100mm in the cooler months.