PLP - Initial impact assessment of weather on portfolio

GENERAL

Wed, Feb 15 2023 09:09 am

Booster Investment Management Limited as Manager of the Fund (the Manager) is currently assessing the impact that the current weather event (Cyclone Gabrielle) has had/ is having on the property portfolio of the Private Land and Property Portfolio (PLPP), the wholesale fund into which the PLP invests.

Background
The PLPP holds a diversified range of property across the country, summarised as follows (as at 31 December 2022):

Fixed Lease Rental:
Hope, Nelson Region, Vineyards $ 19.0m
Hawke’s Bay Winery building $ 3.0m
Hawke’s Bay Vineyards $ 5.8m
Mahana, Nelson Region,
Winery building and vineyards $ 4.1m
Kerikeri, Northland Kiwifruit orchard $ 23.1m
Southland, Dairy farmland $ 32.8m
Bay of Plenty and the Far North,
Avocado orchards $ 18.3m

Crop Supply:
Awatere Valley, Marlborough, Vineyards $ 23.2m
Waimea, Nelson Region (via investment
in Waimea West Hops Ltd), Hop gardens $ 9.8m

Total Property Assets $139.1m

As demonstrated above, the majority of the value of the property owned by the PLPP is covered by a fixed lease arrangement (approximately 76%), which includes all of the properties that are located in the North Island.

This reduces the impact a weather event can have on the Fund, as the risk of current season crop damage is largely not faced by the Fund.

The property value may be impacted by permanent damage to the land itself (such as erosion), through damage to infrastructure (such as fences/ trellis or irrigation systems), or damage to the trees/ plants that have a long-term impact on crop productivity (such as excessive wind damage or disease).

Current Assessment
An assessment of the impact of the weather event is currently ongoing. While the areas hardest hit by the cyclone include Northland and Hawke’s Bay, at this stage, there are no reported issues that would have a material impact on the value of the property held by the PLPP.

The Manager recognises that communication with and access within each of the affected areas remains challenging, and that it may take some time before the full impact of the weather event is clear. As a result, the Manager will continue to monitor the situation and will provide a further update should its assessment change.

For further information regarding the Private Land and Property Fund visit www.booster.co.nz/booster-investments/private-land-and-property-fund

For more information, please contact:
Gary Scott
Company Secretary
Booster Investment Management Limited
04 8944300

About Booster
Booster Investment Management Limited (Booster) is the manager and issuer of the Fund, and part of the Booster Group which has been helping New Zealanders save since 1998. The group currently administers superannuation and investment funds of over $5 billion on behalf of more than 170,000 New Zealanders.
PLP is a managed investment fund that invests in land and property-based investments by investing in units in Booster’s Private Land and Property Portfolio. PLP only holds these units.
For more information, including a copy of the Product Disclosure Statement and the latest net asset value per unit, please visit www.booster.co.nz