ARK has purchased 18.62 hectares of land 46 kilometres east of Melbourne in Victoria for the purchase price of $1,500,000 (Strawberry Property No.6).

ARK drew down on its debt facility with NAB in order to complete the purchase of Strawberry Property No.6. The purchase was made therefore with 100% debt capital.

Simultaneous with its acquisition, ARK leased out Strawberry Property No.6 for an initial term of 18 years. ARK incurred transaction costs of approximately 4% as a result of acquiring Strawberry Property No.6. The rent being paid is $171,600 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.6 is comprised of one certificate of title with a fence to fence area of 18.62Ha. Other pertinent points to note regarding Strawberry Property No.6 are:

• Strawberry Property No.6 is located only 46 Km to the east of Melbourne.
• Strawberry Property No.6 is located in the farming district of Seville in the Yarra Valley. The Yarra Valley is a very popular tourist area with numerous wineries, vineyards, bed and breakfast venues, spas and other tourist related establishments.
• Other land uses in the area immediately surrounding Strawberry Property No.6 include the grazing of horses and cattle, orchards, market gardens and small hobby farms.
• Strawberry Property No.6 is only 5Km to the east of the small township of Seville and is 16Km to the east of the major centre of Lilydale. Lilydale is only 30Km east of Melbourne.
• Strawberry Property No.6 is situated within walking distance of the small township of Woori Yallock, which has a local shopping centre, State primary School and local recreation reserve. There is a bus service which connects between Warburton and Lilydale which passes nearby to Strawberry Property No.6.
• Electricity, telephone and mains water are all connected to Strawberry Property No.6.
• Sewerage on Strawberry Property No.6 is via a septic tank sewerage disposal system.
• The local authority is the Yarra Ranges Shire. Strawberry Property No.6 is zoned Green Wedge "5" pursuant to the Yarra Ranges Planning Scheme.
• Structural improvements on Strawberry Property No.6 include a modern residential dwelling, a 175sqm machinery shed and 165sqm garage workshop.