PLP - Additional commentary on recent property revaluation

Wednesday 5th April 2023

Following the market announcement on 28 March 2023 outlining the impact of the revaluation of the Marlborough based vineyards in the Private Land and Property Portfolio (the wholesale fund into which the PLP invests), we have provided below some background to the increase in value.

The increase in the Manager’s valuation reflects updated assessments from an independent valuer. The primary method of valuation the independent valuer relied on was comparative sales, in addition to considering other market observations. The independent valuer identified some drivers to the increase in valuation which we have described below, despite a backdrop of increased interest rates and downward pressure in other property markets.

Increased grape prices

Due to strong demand overseas for New Zealand wine, and other inflationary pressures, the observed market price of grapes (particularly Marlborough Sauvignon Blanc) has increased over the past 4-5 vintages. While there are also increased costs in the management of vineyards, these are more than offset by the grape price increases, resulting in increased grower margins. The higher grower margins are being reflected in transactions at a higher land value in the Marlborough region.

Increased yields

The specific vineyards owned by the Fund had a proportion of recently planted vines (2017 -2018) which take time to reach full maturity. Based on the yields from those vineyards in 2022 and expected this year, the valuer considers they have reached full productive maturity one year earlier than our initial forecasts, and as a result, has had a positive impact on the current assessment of value.

In accordance with the PLPP valuation policy, independent valuations are obtained on properties at no less than 2 yearly intervals, with the previous valuation for Marlborough based properties being performed in June 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

Additional commentary on recent property valuation

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