OCP Origin Capital Partners - Origin Capital Fund I: Properties Secured
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OC P Origin Capital Partners Origin Capital Fund I: Properties Secured June 2021
Origin Capital Fund I: Investments Secured
Whakamarama Orchard, Bay of Plenty
The Fund’s first Bay of Plenty orchard is located in an established Kiwifruit location, on the outskirts of Tauranga
Background
❖ An 8.7 canopy hectare orchard located in Whakamarama, about 15 minutes drive from Tauranga
city.
❖ The orchard is a fully producing block. It contains both Green and SunGold. Consistent with our
investment mandate, the Green will be converted to SunGold, and this will occur in winter 2021,
as SunGold licence was successfully secured
❖ The orchard is a strong performer, with the SunGold component of the orchard typically yielding
crops 15% - 20% above industry average. In addition, some level of payment premium has been
achieved historically due to the fruit taste properties (sugar levels) being higher than industry
average. There are a number of
kiwifruit orchards in the
local region
❖ 2021 produced a record result for this orchard. The SunGold produced 20,500 tray/ha, while the
Green produced 14,500 trays/ha, half of which was Kiwistart.
❖ The orchard is fully irrigated, with the irrigation also serving as frost protection, giving some
level of protection against usual climatic risk. An outlay for increased wind shelter has been
included in the investment case, with the south-western corner of the property exposed to the
prevailing wind, and our assessment is that this will be affecting yield. The additional shelter will
be installed following harvest.
❖ This orchard was secured through a privately run process, and will be a good fit for the Fund,
with its size, location and track record all considered attractive.
Origin Capital Fund I: Investments Secured
Eade Road Orchard, Gisborne
Construction has begun on Origin Capital Fund I’s first bare land development project
Existing orchard held by
Background
members of the OCP team
located very nearby
❖ We are very pleased to have nearly completeted development of a 12.5ha parcel of bare land in
Patutahi, Gisborne. Land secured is the green
triangular property
❖ Located about 10km from the centre of Gisborne, the property contains fertile soils, is
perfectly flat, and an agreement for access to water (to enable irrigation) has been signed. Our
expectation is it will be one of the Fund’s premier orchards once mature with its first harvest
expected in March 2023.
❖ Patutahi is an area that the Origin Capital Partners team know well. Paul Jones and Lain
Jager, as well as investment committee member Tony Hawken are all part of an existing
kiwifruit investment located less than 1km away. This orchard was also developed from bare
land, with its first harvest in 2020, and is performing extremely well.
❖ The quick build time for this orchard has been nothing short of exceptional. Planting occurred
occurring within four months of taking over the property, and two days after being awarded
Zespri SunGold licence and this is no doubt an industry record. For context, planting in less
Construction underway
than 12 months is normally considered very strong.
❖ Our construction team of Taylor Howatson, Mark Geuze and Paul Gordon have done an
outstanding job. This rapid build time will give the orchard the best chance of a strong first
crop in March 2023.
❖ Gisborne is an area of strategic focus for the Fund. SunGold in Gisborne can crop early but
still achieve high taste, and as a result Gisborne SunGold orchards are among the most
profitable in New Zealand.
Origin Capital Fund I: Investments Secured
Papatu Road Orchard, Gisborne
Origin Capital Partners have acquired an early harvesting and high-yielding orchard in Gisborne
Background
❖ Opportunities to acquire strong SunGold orchards in Gisborne are rare as there are very
rarely sellers, due to the ability of Gisborne kiwifruit to crop early and achieve payment Overhead shelter helps limit wind
Neighbouring properties and maintain high temperatures to
premiums from Zespri. As such, we are very pleased to have acquired Papatu Rd orchard for also kiwifruit orchards promote strong and consistent crops
the Fund.
❖ Papatu Rd orchard is a 7.2 canopy hectare orchard (4.8ha mature, the balance newer) located
in Manutuke, about 15 minutes drive from the Gisborne town centre. The area contains some
of the most fertile soils in Gisborne with this orchard sitting on Matawhero Heavy Silt Loam.
Many of the neighbouring properties contain kiwifruit, reflecting the growing qualities of the
area. Water is sourced from the Te Arai River, via an ‘A Class’ consent.
❖ There are a limited number of orchards in New Zealand capable of achieving both high yields
and payment premiums, and Papatu Rd orchard has historically done both. It’s performance
last season was categorised as elite:
▪ Yield (1) : 18,700 trays/ha (vs industry average of 14,200); and,
▪ Payments per tray: $13.2 (vs industry average of $11.5).
❖ The 2021 crop volume was slightly down on last year (due to what we believe was largely an
issue with pollination prior to Origin Capital Partners assuming ownership), because of this
year’s early crop premium we expect 2021 orchard returns to be in line, if not slightly ahead
of our investment case. View from underneath the shelter
❖ As can be seen in the pictures, the block has full overhead shelter, while there was also
significant investment by the previous owner to improve the properties drainage. An outlay
for further expenditure has been included in Origin Capital investment case - we will be
installing a water storage facility and an additional frost fan in 2021 after harvest. In both
cases we are focussed on reducing the downside risk of irregular climatic events such as
unseasonal frosts or extended droughts.
Notes: (1) on mature 4.8ha of orchard. Balance a mixture of recent green conversion and new planting. The green conversion is carrying its first crop
Origin Capital Fund I: Investments Secured
Bushmere Road Orchard, Gisborne
Origin Capital Fund I purchased a 7.1 canopy hectare SunGold orchard in Gisborne in March 2021
Background
❖ We have purchased a 7.1 canopy hectare SunGold producing orchard located in what is
known as Gisborne’s “Golden Triangle”. The orchard contains 6ha of producing vines, View of the Bushmere Road orchard
with another 1.1ha of recent plantings which will have its first crop in 2022.
❖ Bushmere Rd has been purchased with this year’s crop, and harvest occurred within
three days of the agreement being signed. The crop has already been packed (week 2
Kiwistart).
❖ The orchard infrastructure is very good - it is fully irrigated with a tile based drainage
throughout the property. Water is sourced via an A Block consent from the Waipoa river
with the consent recently extended until June 2024. No frost protection is necessary.
❖ We can increase the total orchard size through better land utilisation and will be
removing excess shelter, to plant in Kiwifruit. Once complete, the total orchard size will
be 7.9 canopy hectares.
❖ The orchard is managed by Mark Geuze, a local grower who also manages Papatu Rd
Bushmere Rd Orhcard, located between
orchard for the Fund. In our opinion, Mark is Gisborne’s best orchard manager. O’Grady Rd and Eade Rd Developments in
Gisborne’s “Golden Triangle”
❖ As can be seen in the photo (lower right) Eade Rd, O’Grady Rd and Bushmere Rd
orchards are all closely location, in what is considered prime Gisborne growing area.
Papatu Rd orchard is located 10 minutes drive East of these.
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Origin Capital Fund I: Investments Secured
O’Grady Road Orchard, Gisborne
O’Grady Road orchard is superbly located and will be a high quality, 10.2 canopy hectare orchard
Background
❖ The Fund settled on the O’Grady Rd development in April and development work is
underwat
❖ The property is being constructed by the same team, and to the same design
specifications as Eade Rd development. Overhead shelter will be installed, while water
will be sourced via a bore into the local Makauri Aquifer. Licence was secured in full for
this property.
❖ Purchased as a citrus orchard, the block will be converted this year into approximately 10
canopy hectares. Construction will commence immediately after Eade Rd is complete.
❖ O’Grady Rd development is superbly located and we believe that it will become an
exceptional SunGold orchard.
❖ Directly beside the property is what we believe to currently be Gisborne’s best SunGold O’Grady Rd development, located
orchard – a consistently high yielding, early harvesting orchard. Our expectation is that within 3km of Eade Rd development &
Bushmere Rd orchard in Gisborne’s
once mature, this orchard will be an extremely strong performer. It is ideally located, “Golden Triangle”
with an exceptional soil profile
❖ Planting will occur in September 2021
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Origin Capital Fund I: Investments Secured
Charlies Rock Orchard, Kerikeri
Charlie’s Rock orchard is the Fund’s first orchard located in Kerikeri, and adds to the geographic spread of assets
Background
❖ Charlie’s Rock orchard is a 12.9 canopy hectare SunGold producing orchard located on the northern edge of
the Kerikeri township. This is the Fund’s first purchase in Northland. The property was secured through a
private process direct with the Vendor.
❖ Similarly to Bushmere Rd orchard, Charlie’s Rock orchard has been purchased “with crop”, this means that
the Fund will receive proceeds from this year’s harvest, which occurred before settlement.
❖ This year, the orchard produced 167,000 trays of SunGold kiwifruit. There are two attractive features
about this year’s harvest:
▪ 95k trays were packed in the last week of March, which will attract a c.$2.80 per tray premium
from Zespri, due to being harvested early; and,
▪ The rest of the crop was harvested in April and has a very high TZG (Zespri’s taste rating index).
Indicatively, this high level of taste will attract a c.$1 premium per tray vs industry average.
❖ The current and historic production of this orchard is below its potential, albeit in line with the average for
Kerikeri. There are a number of clear opportunities to improve the performance of this orchard – these
include:
▪ Removal of external gum trees which are overshading the canopy;
▪ Improved canopy utilisation, achieved through an improved winter pruning program; and,
▪ Aggressive replacement planting throughout existing canopy gaps.
Charlie’s Rock orchard is located on
the northern edge of Kerikeri township
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Origin Capital Fund I: Investments Secured
Plateau Orchard, Gisborne
A 17.3 canopy hectare orchard has been secured in Opotiki, Bay of Plenty
Overview
❖ Plateau orchard is a large scale orchard located about 10 minutes drive north of Opotiki. The orchard will
be the largest in the Fund’s current portfolio.
❖ The purchase aligns with the Fund’s strategy to secure high quality Bay of Plenty orchards, of scale, in
strong growing areas. ‘Plateau land’ (hence the name) in Opotiki are renowned for containing excellent
kiwifruit orchards due to favorable altitude, soil profile and climatic characteristics.
❖ The orchard contains 14.51 canopy hectares of licenced SunGold and 2.84 canopy hectares of licenced Red
Kiwifruit. The orchard is developed, but not producing. It’s first (small) crop will be in 2022, and it will
not be at full capacity until 2024.
❖ A key risk attached to this property is therefore that there is no known track record with which we can
assess past performance. However, this is mitigated by the familiarity the OCP team have with this
location – Dom, Paul and Craig have personal investments in two high quality orchards located within
2km of Plateau orchard, while IC member Tony Hawken has been deeply involved with the Opotiki
region for decades. We are confident this will be a strong performer.
❖ The orchard has full overhead shelter (photo right) with water for irrigation sourced via a bore. Once
fully established, this property will have minimal irrigation requirements. Due to the location and
Opotiki
moderate temperatures, frost protection is not required.
Plateau
❖ Plateau orchard was secured through a private tender process with only four parties invited, and Orchard
settlement is to occur in late July / early August.
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Origin Capital Fund I: Investments Secured
Portfolio Summary
The Fund’s portfolio now consists of seven properties
Geographic Spread of Properties Portfolio Mix (Canopy Hectares)
1 Seven Properties (76 canopy hectares)
4%
Kerikeri 3ha
•12.9ha SunGold Producing
Bay of Plenty
•17.3ha SunGold/Red Non-Producing
•8.7ha SunGold Producing/Non- SunGold Non-Producing
Producing
Gisborne SunGold Producing
41% 55%
2 •7.2ha SunGold Producing 31ha 42ha
•11.5ha SunGold Non-Producing Red Non-Producing
•7.8ha SunGold Producing/Non-
4 Producing
•10.2ha SunGold Non-Producing
❖ Plateau orchard significantly increases the Fund’s scale in Bay of Plenty. ❖ The Fund now holds 76 canopy hectares. 36ha were producing for this year’s
❖ Further acquisitions of scale in the Bay of Plenty remain a strategic priority for the harvest, including 4.9ha of Green kiwifruit at Whakamarama orchard which will be
Fund. converted to SunGold over winter now that licence has been secured.
❖ 40ha did not produce a crop this year, being Plateau, Eade Rd and O’Grady Rd
orchards.
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