Kaipi Road LP
Commercial Property
WARNING: The law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to this offer if you are a person who comes within Schedule1, clause 3(2)(a)-(c) or 3(3)(a)-(b)(ii) (inclusive) of the Financial Markets Conduct Act 2013. This includes where the amount invested upfront by the investor (plus any other investments the Investor has already made in the financial products) is $750,000 or more. If you fall within Schedule 1, clause 3 of the FMCA as a result of this exclusion, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for this investment. Investments of this kind are not suitable for retail investors. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.
Note: We urge you to carefully review the Information Memorandum and additional attachments (if applicable) before lodging an application. In the event that there are any material changes to the Information memorandum communications will be added to the attachments for review.
Kaipi Road Limited Partnership is an opportunity to access inflation-protected forecast returns of 9.0% p.a. from a passive investment in a free-range poultry production property, leased to Tegel Foods Limited.
Investment Highlights
- Total 11.49 hectares located in Taranaki.
- Includes nine free-range certified sheds of 2,200 square metres each.
- Current lease to Tegel Foods runs until 2032, with 3 x 5-year rights of renewal to 2047.
- Forecast cash distributions of 9.0% p.a., paid monthly.
- Depreciation allowances lift equivalent fully taxable returns to over 11% p.a.*
- Annual CPI adjusted rent reviews.
- Minimum investment $50,000.
We like this investment because it’s a lease-income story with a long-established, reputable tenant producing a high quality, staple food product.
- The lease is adjusted annually against the Consumer Price Index (CPI), which means the Partnership’s income is protected against inflation.
- Costs to the Partnership are kept to a minimum because Tegel is responsible for all expenses associated with operating and maintaining the underlying assets.
- Taranaki is one of Tegel Food’s four national hubs with a strong infrastructure and logistics presence in the region. Kaipi Road LP is close to other Tegel processing facilities and a pool of skilled labour, suggesting the company is likely to remain here for the long term.
- New Zealand chicken producers are protected from overseas competition thanks to our rigid biosecurity laws preventing the importation of chicken meat. This contributes to price stability and prevents dumping of cheap product into our market, which is good for Tegel and good for your investment.
Please contact Gordon Love to discuss this offer.
0274 888 238
* It is expected that depreciation allowances, being removed on commercial property, will remain on Fowl Houses, lifting returns to the equivalent of 11.0% p.a. for investors paying 33% tax and comparing to investments where returns are fully taxable.
Kaipi Road
