RiverBank Rights Issue Offer
	Interview with Daryl Winter, National Manager - Almonds
	Fund Overview
	Fund Assets
	Fund Benefits
	Performance & Financial Information
	Unit Prices
	Distributions
	Redemptions

 

Recent News

RiverBank Rights Issue Offer

Rural Funds Management Ltd (RFM) has issued an RFM RiverBank (RiverBank) PDS dated 27 September 2011 which details the discounted Rights Issue Offer available to both new and Existing RiverBank Unitholders. This PDS should read in conjunction with the Supplementary Product Disclosure Statement (SPDS) issued 27 January 2012. There are a range of applications planned for the funds raised under this Offer, including the completion of an irrigation system and additional infrastructure on RiverBank’s properties, finalising a vendor finance repayment, and the facilitation of a future Redemption Offer. For a full list of applications, please read the PDS.

The Rights Issue Offer price is $1.1353 which represents a 30% discount to the 15 June 2011 Net Asset Value (NAV) of $1.5914 and incorporates a 3% buy spread. The minimum subscription under the Rights Issue Offer is $4 million.

The Rights Issue Offer was available exclusively to existing RiverBank Unitholders from 27 September 2011 to 19 October 2011. The Offer then opened to the public at the same discounted Unit Price, and will remain open until 25 May 2012. To view the RiverBank PDS and SPDS please follow this Link.

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Farm Update, Spring 2011

Fund Overview

RiverBank aims to provide investors with competitive risk-adjusted returns through select investments in land, infrastructure and water assets. An investment in RiverBank seeks to provide a reliable tax efficient income stream and the potential for capital growth through the acquisition and long term leasing of land and water assets. Irrigation entitlements are a specific focus of the RiverBank investment philosophy. RiverBank was established in February 2005 to acquire land and water assets in rural and regional Australia and lease these assets to selected counterparties.

Returns generated by RiverBank are a combination of regular lease payments and capital growth resulting from increases in asset values.

Table 1: RiverBank Summary

¹ The Indirect Cost Ratio is expressed as a percentage of the net asset value of the Fund. This includes GST reduced by the estimated Reduced Input Tax Credits. Refer to the Product Disclosure Statement for details of fees and costs.

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Fund Assets

RiverBank is a unit trust which primarily invests in horticultural land, water and infrastructure. RiverBank generally does not undertake farming activities on its own accord; rather it leases assets to third parties. Consequently, although the nature of the assets owned by RiverBank is agricultural, the income generated by RiverBank for its investors is dependent upon lease payments rather than agricultural commodity cycles.

RiverBank's main assets are almond orchards situated on two properties near Hillston, 100 kilometres north of Griffith, NSW. These assets include the land, almond trees, and irrigation infrastructure and extraction rights to bore water from the Lower Lachlan Aquifer.

The majority of RiverBank's almond orchards are leased to Select Harvests Limited, a listed Australian agribusiness company, for a period of 20 years. The leases require rent to be paid quarterly in advance and a six month security "bond" lodged with RiverBank, insuring RiverBank against any interruption to rental payments. The remaining almond orchards are leased to three tax effective managed investment schemes, also managed by RFM. This provides RiverBank with a diversified counterparty arrangement.

RiverBank is unique: whilst it owns assets that are primarily agribusiness in nature, due to the nature of its business, it is not directly exposed to the various risks inherent in managing an agricultural enterprise.

RiverBank intends to continue acquiring water entitlements in the future, as and when suitable counterparties are identified. RiverBank will also look at acquiring additional combined land and water packages to be leased to appropriate third parties.

The Murray Darling Basin Authority Update

Previous correspondence reported that MDBA had released a draft that envisaged a reduction in consumption use of between 1,000 and 2,000 GL a year.

Since then, the MDBA announced it will be reassessing the situation and consultants will be checking the numbers, as well as taking into consideration the socioeconomic impact of any reduction in water resumption.

RFM expects any reduction in entitlements as a result of the review will not be material.

Table 2: RiverBank Assets

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Fund Benefits

• Low volatility income: RiverBank is a rural property and infrastructure fund that derives its income through the long term leasing of its assets. Unitholders are not exposed to significant operational risk.
  
  
• Capital growth potential: RiverBank owns rural property, water entitlements and infrastructure used for the production of food (predominantly almonds). Unitholders benefit from the increases in property and water values, which in the rural property sector are historically linked with higher commodity and food prices.
  
  
• Demonstrated track record: RiverBank has a long track record of paying distributions.
  
  
• Long term lease: All leases reflect long term arrangements and expire in 2026 through to 2030. Almond trees have a productive life of up to 35 years. Following expiry of the leases, the almond crop proceeds revert to RiverBank.
  
  
• Discounted issue price: RFM is offering units to existing Unitholders and new investors.

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Performance & Financial Information

Click here for historical performance and financial information

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Unit Prices

Click here for historical unit price information

Table 5: RiverBank Unit Price History

Reinvested units and units purchased via rebated trail will be issued at the most recently published unit price.

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Distributions

RiverBank distributions are paid quarterly. Please note that distributions are taxable in the year of receipt, not the year of entitlement.

Distributable income is allocated to Unit Holders on a per-unit basis according to the number of Units held at the end of the distribution period.

Reinvested distributions will be reinvested using the application price for the distribution period, which is determined on the Unit Price calculation date immediately following the distribution period, also being the Reinvestment Date. The application price is the NAV for the relevant period, except where units are being offered at a discount.

Cash distributions will be paid to Unit Holders by the 14th day of the month immediately following the Reinvestment Date.

Table 6: RiverBank Distribution History

 

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Redemptions

Subject to the total capital raised under the current offer, RFM's intention is to provide a redemption offer for the financial year 2012, in accordance with the RiverBank Constitution and the provisions of the Corporations Act regulating offers for non-liquid managed investment schemes. RFM will notify all RiverBank investors when RiverBank will re-open for redemption.

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• RiverBank SPDS - 27 January 2012
• RiverBank PDS - 27 September 2011 

  31 August 2011

• RBK Notice of Meeting - 5 October 2011 

  31 August 2011

• Annual Report

  30 June 2011

• RiverBank Research Reports 
• Offer Documents
• Newsletters
• RFM Adviser Brief

  Murray Darling Basin Authority Guide

  13 October 2010