The current landowner receives lease income from the properties as follows. Both properties rental incomes will increase in line with CPI from the 1st July 2010> $230,400 p.a. before GST (and excluding any CPI adjustments) plus $50,000 p.a. (excluding GST) for the lease of sheds and buildings until 2028 (not including further 5 year and 4 year options).> based on the current valuation of $4.3 million (Wide Bay Properties dated September 2008) this represents a yield (before capital appreciation) of 6.5% in the first year
At the expiration of the lease term unencumbered and unrestricted ownership of the then mature orchards reverts to landowner.