Baffle Creek Plantations	Gladstone, Bundaberg - Queensland, Australia
Location Brochure Contact Agent Expressions of Interest close noon, 30th November, 2011 INSPECTIONS By appointment only

Welcome to Baffle Creek Plantations, an outstanding investment opportunity in two of Australia’s strongest investment sectors, agriculture and tourism.

It’s clear that Australia is emerging as an internationally well regarded country for investment, with
a strong economy and a magnificent climate.

We are seeing in Australia dynamic and robust growth.

Growth underpinned by a strong mining sector, a strong agricultural sector and by a strong, dynamic and expanding tourism sector.

Located at the southern end of the Great Barrier Reef Marine Park, with a total of 5km ocean frontage and magnificent inland estuaries, Baffle Creek offers abundant natural assets, as well as a solid, well established income stream.

This income stream is underpinned by strategic investment in one of Australia largest vertically integrated macadamia farm and processing operations.

THE REGION

Baffle Creek Plantations are situated on 876 hectares of prime agricultural and lifestyle development land.

Approximately 100kms north of the major regional city of Bundaberg and south of the international port and city of Gladstone, the property is located in an idyllic part of Queensland. The topography of the area ranges from tropical rainforest to untouched beaches and it is in this setting that you find the improved macadamia plantations of Baffle Creek.

The Great Barrier Reef Marine Park, which sits on its doorstep, is included on the World Heritage List, and has been named as one of the Seven Wonders of the World.

A marine wonderland - it covers 345,950 square kms and contains the world’s largest collection of live coral and coral reefs. Comprising 2,900 individual reefs and 900 islands, the Marine Park stretches over 2,600km, making it five times the size of Tasmania. Apart from its natural beauty, it also contributes in excess of $1 billion per year from tourism. Regarded as a global tourist mecca, recent figures indicate the area receives in excess of 1.6 million visitors per annum, including about 640,000 from overseas. International and domestic travellers find excellent airline connections, with easy access to the Great Barrier Reef and the commercial centres of Gladstone and Bundaberg.

SOME FACTS

• Australia is the largest producer of macadamias in the world – responsible for approximately one-third of all global production
• Australia currently farms 17,000 hectares containing 6 Million trees
• In 2011 the Australian crop was estimated at 35,500 tonnes (nut in shell), of which approx. 1,150 tonnes were produced by Baffle Creek Plantations
• The Australian macadamia industry returned over $95 Million to the economy in 2010
• Australia now competes only with South Africa for future global production
• 40% of the Australian production is exported to the USA, Europe and Japan
• Global consumption is mainly for retail snacks, confectionery, baking, food service and macadamias are also used for a wide range of cosmetics

THE FUTURE IS BRIGHT

• Macadamias only account for approx. 1.1% of the world tree nut production thereby representing an enormous growth opportunity
• Only 45% of the Australian plantation trees are regarded as mature at this stage, and therefore, in terms of fruit bearing, the other 55% have yet to reach full production – another opportunity

MACADAMIAS - THE HEALTHY NUT

• Highest in “good oil” monounsaturated fats
• Cholesterol-free
• Lowest in polyunsaturated fats
• Can lower blood cholesterol without adding weight, if consumed regularly
  (at less than 20 grams per day)

ALL OF THE MACADAMIA NUT IS PROFITABLE

Apart from the valuable kernel we consume, the nut comprises the outer husk and the shell. The husk is sold to landscape gardeners for mulch etc and the shell is used as a green heat fuel additive at power stations and abattoirs.

Nothing is wasted. Being a renewable green energy source, the fuel side of the nut provides another outstanding growth opportunity.

THE MACADAMIA INDUSTRY

The Baffle Creek Operation

Baffle Creek Plantations are split into three main farms – Fernfield, Fingerfield and Kenfield,
all located in the Miriam Vale/Baffle Creek area.

Comprising a total of 876.61 ha, 408.41 ha are planted containing 95,000 macadamia trees.

FARM SUMMARY

THE HISTORY

The Plantations were originally established in 1959 by the Colonial Sugar Refining Co Ltd, founded in 1855 by Sir Edward Knox. These farms have played a very significant part in establishing the macadamia industry in Australia. They were purchased by the now owner in 1999, and have undergone a significant capital injection which included the introduction of professional management and ‘state of the art’ equipment. This development has resulted in a 100% increase in the tree population to 95,000 and the establishment of a vertically integrated operation with early processing ‘on farm’.

A strategic investment in the world’s largest macadamia processor, the Macadamia Nut Processing Company Limited - MPC, was also made to complement the farming operation.

THE FUTURE

The Baffle Creek Plantations are continuing to experience the benefits of the investment that has been made over the past years, with “best practise” techniques continually being honed. This year production is expected to reach 1,150 tonnes. of fruit, effectively producing 1,150,000 kgs of nut in shell. This is projected to increase in the future as the yield rises from the younger trees as they mature.

THE FARMS

FERNFIELD – The Headquarters

Situated on the Blackwater Creek estuary, Fernfield enjoys 14kms of magnificent water frontage on three sides of the property.

Irrigation

• A weir on Blackwater Creek provides both Creek frontage and licensed irrigation
  for the plantation - a unique and extremely valuable asset
• Water is pumped from Blackwater Creek to a very large (estimated 1,250MgL)
  storage dam and reticulated through the plantation
• This dam covering about 25ha is also used for water sports, such as skiing, canoeing & jet skis
• Blackwater Creek runs into Broadwater Creek, which eventually runs in to the ocean, providing a myriad of boating, fishing and water sport opportunities
• The property holds three irrigation licences

Accommodation

• Fernfield homestead - a recently renovated 4 bedroom Queensland-style weatherboard home, with all modern conveniences.
• A newly renovated manager’s 3 bedroom home, with in-ground pool & 4 car garaging
• Additional staff accommodation - 3 houses & expansive staff & casual workers barracks

Infrastructure

Excellent operating improvements:

• Sate of the art de-husking plant
• Sorting and drying facilities
• Weight cell dispatch facility
• Large new primary machinery shed with fertiliser bunker
• Second machinery shed/workshop with secured parts store
• Numerous silos
• Sundry buildings

KENFIELD

Kenfield fronts the Coral Sea beach esplanade for 2.5km, whilst also having extensive frontage to Deepwater Creek. Its elevated position provides views of the mountains to the west, and the sweeping coastline to the east.

Irrigation

Kenfield also benefits from a weir on Deepwater Creek which provides both creek frontage
and licensed irrigation for the plantation - a unique and valuable asset.

Accommodation

• Refurbished Manager’s house
• Two additional staff residences

FINGERFIELD

Fingerfield also has its own magnificent 2.5km stretch of absolute beach frontage on the Coral Sea and Rules Beach and with the Fingerfield Reef
stretching out into the ocean, providing a wealth of beach fishing possibilities and adds to the great scenic outlook from the property.

Irrigation

• An underground irrigation main from Fernfield supplies water from the large storage dam
  and provides an outstanding asset for both farming and development options.
• Also a small dam is served by a natural spring on the north eastern end of the farm

Accommodation

• Three well maintained staff houses with associated services

Infrastructure

• Machinery shed
• Chemical shed
• 90,000 litre underground water tank

Farm Yields and Equipment

• The mature trees generally produce between 18 – 24 kgs (nut in shell) per tree per annum
• Dehusking is carried out at Fernfield, with further processing for sales of kernel being completed at MPC in Lismore (NSW) and soon at nearby Bundaberg, just south of the farms
• Each farm is equipped with tractors, slashers, large spray rigs and the sundry equipment necessary for the full maintenance of the properties. All harvesting and major infrastructure is housed at the Fernfield site and transported to the other farms as required

MACADAMIA NUT PROCESSING COMPANY Limited (MPC)

Baffle Creek Plantations are major shareholders in MPC – the world’s largest macadamia nut processing company.
These shares will be available to the purchaser of the plantations. This is an outstanding feature as it ensures a continuing market for the product grown on the farms, as under the shareholding supply agreement, MPC is committed to take
the full supply of nuts produced at the Baffle Creek Plantations, therefore providing surety of market.

Holding such a large interest in the company will ensure the purchaser holds a position of influence and a real opportunity to actively participate in the industry in a very meaningful way. The owner has served on the board of MPC for 5 years.

A Wonderful Development Opportunity

Located at the southern end of the Great Barrier Reef Marine Park, and with 5kms of absolute beach frontage and 14kms of estuary frontage, the Plantations are ideally located for tourist development.

Recognised as one of the most popular global marine lifestyle destinations, the Reef area has seen an explosion in tourism. Situated in close proximity to some of Australia’s leading tourist resort destinations, and with major mining interests in the hinterland, Baffle Creek is also located in a very strong agricultural region, explaining why economic growth is expected to continue at between 5% and 10% per annum over the next decade.

The land is ideal for eco housing, resort and golf course style developments. Very seldom do you find a position with the natural beauty and unobtainable beach frontage that Kenfield and Fingerfield offer, combined with the 14kms of estuary frontage on three sides at Fernfield, culminates in an outstanding opportunity for now and the future.

The natural habitat oozes Australiana, with areas of tropical rainforest, the Great Barrier Reef and a myriad of wildlife, including kangaroos, emus, wallabies, native birds and echidnas, to name a few. Just imagine fishing for barramundi or picking up mud crabs in the morning and later, playing a round of golf in the balmy sub-tropic afternoon. It’s all within easy reach at Baffle Creek.

Planners and architects have been retained to assess the opportunities, and have been enthused by the potential of the sites. They have prepared indicative development models and design sketches that will set a benchmark for the region.

These days, one of the most difficult things to find, is a genuine development opportunity. With outstanding natural resources and a strong existing income, Baffle Creek will give you just that.

LOCATION