The Wealthcheck Qld Rural Trust (the Fund or Trust) has been established to provide investors an investment return through the purchase and hold of agricultural property for a period of 10 years. It is a closed end Trust. The investment strategy is to give investors exposure to the capital growth potential from a large diversified farming operation, together with a stable cashflow over the term of the Trust.
The offer involves the issue of up to 13,812,300 Units in the Trust at $1.00 per Unit. Upon the Completion of the offer period, the Trust will acquire a portfolio of Australian investment grade rural agricultural properties together with certain water entitlements with an anticipated value of $20,820,000.
The property consists of an aggregation of a number of properties which have previously been amalgamated to form “Woodbine” (the Property). The Property is located near the town of St George in southern Queensland.
The anticipated benefits of the offer include the following:
- Stable income derived through a long term lease with a quality tenant;
- Projected Internal Rate of Return 17.50 %** (Subject to the risks and assumptions and other factors outlined within the information memorandum);
- Average annual income of 9.88%** (Subject to the risks and assumptions and other factors outlined within the information memorandum);
- 10 year closed end investment; and
- Lease to A.A. Company Pty Ltd for 10 years (the Tenant).
The Trust will be managed by an experienced investment team, Wealthcheck Funds Management Limited (Wealthcheck). Wealthcheck has been engaged by the trustee to provide advice in relation to the offer and the ongoing management of the Property and Tenant. It will adopt an active approach to portfolio management based on an analysis of investment opportunities, a deep understanding of the fundamentals of the property market, and the ability to provide responsive and proactive management.
Wealthcheck brings together expertise in investment markets across equities, agriculture and property. Their combined experience is approximately 45 years spent in the financial services, finance, taxation, and property industries to develop investment products that maximise the potential return, whilst limiting risk.
The offer is open to wholesale, sophisticated and professional investors only as those terms are defined in the Corporations Act. Minimum subscriptions are $100,000 unless approved by the Trustee.
The closing date for the offer is 15 March 2013, however, the offer may be extended or closed early at the discretion of the trustee.
You can download a copy of the information memorandum for the Trust and the offer (including the Application Form) from this page.
Should you have any questions, please call us on (02) 8277 0000 to discuss further.