Unpublished

MY GOAL – Sale Leaseback a Dairy Farm – Land with Fixed Infrastructure.

My goal is to arrange a Sale Leaseback transaction on the land & fixed infrastructure with a compatible new investment partner.

LEASE BACK TRANSACTION – GENERAL DESCRIPTION & HIGH LEVEL CONCEPT TERMS

• A$10 million is the combined market value proposed for the freehold land & existing infrastructure of the single farm asset proposed for sale lease back .

• 6 years (4+1+1) is the proposed Lease Period.

• Lease rate pricing proposed is designed to change with the price of milk.

• Quarterly review and reset periods for the Milk Price and Lease Rate with a pre-determined matrix available in a Term Sheet on request by qualified parties.

• Murray Goulburn is the proposed milk price setting mechanism.

• As lessee, I would rent and use the property to feed, milk and tend to my own livestock.

• Day-to-day operation of the farm including all Repairs & Maintenance would be my responsibility.

• Capex would be fully at the New Owner’s expense,  subject to cost/benefit analysis and mutual approval.

SINGLE ASSET DAIRY FARM LAND & FIXED ASSETS – DESCRIPTION & ATTRIBUTES

The single dairy farm property proposed for sale lease back is a successful going-concern within my multi-farm milk dairy business.

This single farm asset has the following attributes:

• Amalgamation of a dairy farm with cropping land (21 titles) comprised of:

• 458 Ha of which 295 ha are in pasture;

• 140 Ha is irrigated (571 ML of water) – Excellent subdivision & reticulated water;

• Topography is undulating to rolling red basalt, free-draining soils

• 50-cow rotary dairy with feed system

• Four houses (includes a newly constructed house for the resident manager)

• 5 Ha ex-pine forest & 78 Ha conservation

• 37 Ha of Plantation Forestry (conversion back to dairy grass land is underway)

• 3 hours driving distance from Wynyard and Burnie in Tasmania

MY COMMERCIAL TRACK RECORD

My successful 10-year track record covers owning, operating and improving dairy farms as a low cost producer of milk in Tasmania.

• Currently we operate a total of five different dairy farm properties.  Across our whole business, we milk more than 5, 000 cows and manage more than 1, 400 hectares of land.

• 3 of the 5 different farms that we manage,  we also hold a minority joint venture ownership stakes.

•  2 of the 5 different farms that we manage, we hold full ownership control.

PARTNER IDEAL ATTRIBUTES

•Able to conduct business in English by telephone or video call.

•Partnership that may be able to evolve into China market access for future trade or investment flows.

• Qualified compatible professional seeking investment access into the dairy industry of Tasmania and wants a partner-style relationship with me to rent the farm property and manage the property for our mutual benefit.

FAQ:

#1 QUESTION – Why do you want to sale lease back only 1 of the 5 farms?

#1 REPLY: This first sale leaseback transaction is a “pilot.”  We want to try this in our business in a way that we can adjust and scale.

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