Enjoy passive returns from the Inghams Portfolio Scheme
A substantial Waikato property portfolio on long-term lease to Australasia’s leading poultry producer, Inghams, forms the latest investment scheme from syndicator Silverfin Capital Limited.
A property syndicate is a direct property investment where a number of investors pool their capital to purchase real estate, which forms the syndicate or scheme.
Syndications can be an effective and affordable way to participate in the commercial property market and enjoy the returns from real estate assets without the daily burdens and commitment of property management.
The Inghams Portfolio Scheme is underpinned by the strength of well-known tenant Inghams and the growing popularity of its product.
Chicken accounts for 52 per cent of all the meat consumed in New Zealand. We eat about 37.5kg of chicken per person every year – that’s 20 chickens each, annually.
The Inghams Portfolio Scheme comprises a portfolio of six properties in and around Matamata that are strategically located to support Inghams’ highly successful, fully integrated, poultry supply chain.
The facilities include four breeder farms, a hatchery and a processing plant with a combined land area of 186ha, including a significant portion of vacant land to allow for future expansion.
All six properties are on 25-year ‘triple net’ leases to Inghams Enterprises (NZ) Pty Limited, expiring in 2039.
Investors can register for one or more of the scheme’s 932 investment parcels, priced at $50,000 each. Investors are projected to receive a pre-tax cash return 8.25 per cent per annum to 31 March 2024, with cash distributions paid on a monthly basis.
Colliers International Syndications Director Charlie Oscroft, who is marketing units in the scheme on behalf of Silverfin, says it is chance for investors to capitalise on the huge popularity of poultry.
“The properties have very strong investment fundamentals, including a long lease, superb tenant covenant and strategic Golden Triangle locations.
“Investors seldom get the opportunity to invest in properties of this calibre, let alone six properties at an affordable price point. The Inghams Portfolio Scheme represents just such an opportunity.”
Oscroft says all six properties are strategically located within a 60km radius of each other, which is a key feature of the portfolio. The properties are also located within close proximity to a large number of contract broiler farms as well as to Port of Tauranga, which is their main source of feed.
Inghams’ parent company is Australian stock exchange listed Inghams Group Limited (ASX:ING), which is the largest integrated poultry producer in Australasia.
Inghams Group processes over 4 million birds per week. It has a workforce of 8,000 and a strong network of processing and distribution facilities across Australia and New Zealand.
New Zealand is considered one of the best places in the world to grow chickens due to the temperate climate, advanced systems and disease-free status. These factors have made New Zealand chicken in high demand around the world.
New Zealand’s growing chicken consumption is due to continued population growth, greater affordability due to increased production efficiency and consumer trends including convenience, health and wellbeing; chicken contains less saturated fat than red meats such as beef, pork or lamb.
Chicken’s popularity can also be attributed to New Zealand’s push towards sustainability. Poultry has the lowest carbon footprint out of the commonly farmed and consumed meats.
Silverfin considers that these strong industry fundamentals underpin the Inghams Portfolio Scheme.
The company has steadily become a leading player in the New Zealand property syndication and management market since it was founded in 2016 – and currently has approximately $280 million of commercial property assets under management.
The company will manage the Inghams Portfolio Scheme and its properties on behalf of investors.