PLP – Property valuation review lead to uplift in value

PLP – Property valuation review leads to uplift in fund value

28 April 2022

Booster Investment Management Limited (Booster) as manager of the Private Land and Property
Portfolio (the wholesale fund into which the PLP invests) has commissioned and received an updated
independent valuation report for its viticulture related properties for Hope, Nelson. These currently
represent ~16% of the total value of the assets the fund holds. The properties are leased for viticultural
use under a 20 year lease expiring in 2037.

In consideration of the independent valuation reports, Booster has adopted a valuation increase of
$2.919m, which represents a 18.8% increase in the value of the relevant properties and change of 2.93%
to the net asset value of PLP, increasing the most recent NAV (the unit price at which units are issued by
the manager) from $1.216 per unit to $1.251.

The valuation uplift reflects the valuer’s view of the open market value of the property while recognising
that the property is committed to a viticultural lease until 2037 so this value is not accessible before then.
Rental under the lease is reviewed 5 yearly and the first review is due by August 2022 and will reflect the
current market rent, which will likely be driven by its current configuration as vineyards. While the
review of market rent under the lease agreement is yet to be agreed, we do not expect a significant uplift
to the current rent.

The resulting position is that the fund will adopt a value that represents its current rental potential per
the lease terms, and a portion of the open market value that is available to the fund at the end of the
lease. In this period, the fund’s returns will therefore comprise both rental income and an assessed
portion of the open market value that could be realised in the future. Periodic valuation reports will also
reassess the open market value and any adjustment will be recognised as valuation evidence requires.

The focus of the fund and PLP remains the securing of appropriate rental income from property and land
investments. However returns since inception have been positively affected by re-setting of rural land
values, especially where alternative uses are competing for land (either other crops, or commercial or
residential use). Such land use valuation changes can be cyclical and are not the focus of the fund.

Booster is awaiting the valuation report for the kiwifruit property in Kerikeri (which represents ~20% of
the value of assets held by the Private Land and Property Portfolio). This is anticipated to be received in
the next week. The outcome of this remaining valuation review is not known. The last valuation for
Kerikeri was completed in May 2021.


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