Private Land &Property Portfolio adds Hop Garden

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Private Land and Property Portfolio adds Hop Garden

25 March 2021
Booster’s Private Land & Property Portfolio adds Hop Garden

Booster is adding a hop garden to its wholesale Private Land & Property Portfolio, and therefore into its
retail Private Land and Property Fund (PLP).

The investment into hop growing land alongside an existing operator provides further geographic and
crop diversification to the fund which is currently invested in viticulture and kiwifruit land. New Zealand
hops are known and sought after for their unique aromatic character and demand has been increasing
due to the rise in the consumption of craft beer, which requires greater quantities of hops.

The Private Land and Property Portfolio will make a cash investment of $7 million for a 50% shareholding
in Waimea West Hops Limited (‘WWH’) which currently farms 28.5 hectares of mature hops in
Brightwater, near Nelson.

Further development is planned to expand the farm to total approximately 83 hectares of hop gardens.
This development, which is budgeted to cost up to $15 million, will be funded from the $7 million capital
introduced by the Private Land and Property Portfolio in combination with new bank funding to WWH.
The planned development includes the purchase of additional land (most of which is under contract), as
well as an upgrade to the existing picking and processing equipment to improve the quality and
processing capacity of the plant. The fast-growing nature of hop plants means the new gardens will be
fully mature within 3 years of initial planting.

The expected returns from this investment are forecast to be accretive to the overall return generated by
the fund, though it is recognised that the over the 4-year development phase of the additional gardens
the cash return from the overall investment will be relatively modest.

Agreement to the commercial terms of the investment was achieved overnight and the transaction is
now only subject to execution of finalised documentation and approval of the fund’s supervisor.
Settlement is anticipated to occur on 26 March 2021, and will be funded by existing cash held within the
Private Land and Property Portfolio.

Following this transaction, PLP (through its investment in the Private Land and Property Portfolio) will
have property related assets of over $80 million, which, after borrowings, have a net asset value of over
$62 million.

Investors can continue to purchase units in PLP on the NZX or can subscribe for units in the fund as part
of the process described in the fund’s Product Disclosure Statement (PDS) that is available at
www.booster.co.nz

For further information regarding PLP visit www.booster.co.nz/booster-investments/private-land-and-
property-fund

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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 $4 billion on behalf of more than 120,000 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, please visit
www.booster.co.nz