McGAURAN’S AGRICULTURAL ESTATE SALES AND MARKETING RECOMMENDATIONS Smith Agri International SUBMISSION | SEPTEMBER 2015
McGAURAN   S AGRICULTURAL ESTATE SALES AND MARKETING RECOMMENDATIONS Smith Agri International SUBMISSION   SEPTEMBER 2015 ...
CONTENTS 01 INTRODUCTION 1 02 EXECUTIVE SUMMARY 3 03 PROPERTY OVERVIEW 5 04 TARGET BUYERS 11 05 METHOD OF SALE 12 06 CAMPAIGN TIMING 14 07 MARKETING INITIATIVES 15 08 AGENCY BASIS TERMS 17 09 INSPECTION PROTOCOL 18 10 STATUTORY REQUIREMENTS 19 11 CONCLUSION 20 12 APPENDIX A - PROFILE 21 13 APPENDIX B - TESTIMONIAL 23 Note – all property areas, figures, and calculations throughout this Submission are approximate in nature and are based upon figures obtained from external sources which have been relied upon without verification by the Vendor or by Smith Agri International or any of their respective officers, employees or consultants. A Recipient of this Submission should undertake their own due diligence investigations to obtain exact figures in relation to the McGauran’s Agricultural Estate.
CONTENTS 01  INTRODUCTION  1  02  EXECUTIVE SUMMARY  3  03  PROPERTY OVERVIEW  5  04  TARGET BUYERS  11  05  METHOD OF SAL...
01 INTRODUCTION The sale of the McGauran’s Agricultural Estate (The Property), on behalf of Rural Outlook represents a unique acquisition opportunity for the right market investor. Smith Agri International (SAI) specialise in this very type transaction wherein a broader market reach is favoured. Following inspection of the property with Max Jelleff on Friday 28 August 2015 we can confirm our genuine excitement at the prospect of partnering with Rural Outlook to deliver an outstanding outcome. Importantly in framing our proposal SAI has identified the key reasons that will drive investor interest in The Property. These are briefly categorised as Position (location/size), Agricultural Expansion / Alternative HBU (opportunity) and Market (access). Each of these industry fundamentals are present with The Property and provide a reasonable basis for generating good investor participation, in particular by those with a known appetite for agricultural investment within Australia. Underpinning this interest will be those institutional investors now also diversifying into various forms of agriculture among numerous opportunistic agricultural purchasers who will recognise the opportunity of expansion or possible conversion to various forms of highest and best agricultural use. As such, we expect an offering of this nature to suit a wide range of sophisticated investors. Essential to achieve the objectives of Rural Outlook, is the appointment of an agency team that will drive a proactive campaign and connect you with qualified, applicable buyers. We understand the value of unlocking alternative highest and best use agricultural opportunities from which to support true value. SAI, represents Australia’s most qualified agricultural transaction team with over 26 years’ direct institutional transaction experience. Simply our reach into the sophisticated international institutional agricultural investment sector cannot be matched by other agencies irrespective of agency size. We will provide Rural Outlook with: • A tailored, targeted marketing program - we recommend a two-staged marketing campaign, where we will directly approach a wide range of qualified buyers in an initial ‘soft sounding’ process to promote a competitive atmosphere and build momentum leading into a public marketing campaign. • A committed specialist agribusiness agency - with a truly targeted domestic and international network – SAI has dedicated asset specialists linking this opportunity to an extensive global network. Page 1
01  INTRODUCTION  The sale of the McGauran   s Agricultural Estate  The Property , on behalf of Rural Outlook represents a...
01 INTRODUCTION cont. • Recent, tangible expertise in applicable timberland and agricultural transactions - our recent track record includes: • Selohm Nolem (Peabody Energy), 8,615 ha Beef cattle station. • AFPT and AFPT 2 Portfolio (part of Gunns), 21,777 ha Agricultural land / plantation. • Gippsland Plantation Aggregation, 789 ha Pinus radiata / possible conversion to HBU. • Southern Plantation Aggregation, 2,500 ha Pinus radiata & Eucalyptus globulous. • Yarra Ranges Native Timberland Portfolio, 688 ha Eucalyptus regnans & mixed native species. • Associated database - we have over 2,300 key industry contacts as a result of prior ‘of-like’ engagements, ongoing industry relationships with key and emerging buyers both on and offshore. • Exceptional agricultural/timberland industry knowledge and experience - 26 year’s direct day to day sector involvement underpins our strong understanding of market influences (existing and emerging), agribusiness commerciality, the industry value-chain, logistics and key market drivers. We understand the role of the Rural Outlook Directors and hence, our proposal covers: • The most effective sale methodology. • Our understanding of the property. • An indicative timeline highlighting key project milestones and dates. • Target market. • Details of the team nominated to service this appointment, their track record, indicative agency terms and fee proposal. An undertaking of this nature will demand the highest level of engagement and commitment from the appointed agency. As such, our team will be led by David Smith (Director, SAI) ensuring a holistic service offering that exceeds Rural Outlook’s requirements.
01  INTRODUCTION cont.       Recent, tangible expertise in applicable timberland and agricultural transactions - our recen...
02 EXECUTIVE SUMMARY This proposal is provided with reference to our meeting and our inspection of The Property on Friday 28 August 2015. In accordance with the stated terms we have addressed the following: • • • • Selling mechanism (EOI, Auction, Tender, and Private Sale). Advertising campaign. Recommendation on timing of sale. Key terms, administration fee, commission rate (plus GST) and other costs that may be required in order to complete the transaction. • Inspection protocol. • Dedicated expertise. PROPOSED SELLING METHOD We recommend an overarching Expression of Interest (EOI) sale process with an initial off-market ‘soft sounding’ campaign, run in parallel with the preparation of an information memorandum and associated due diligence materials. Stage One: Consists of a four week public marketing campaign and will seek non-binding offers. Following evaluation by Rural Outlook, shortlisted parties would then enter Stage Two. Stage Two: Shortlisted parties may be provided additional information and/or data as may be required to confirm their respective best and final offers for The Property. ADVERTISING CAMPAIGN In the initial off-market campaign, SAI will specifically target identified buyers in addition to marketing The Property to its domestic and international databases. This will include international conference calls with industry experts and advisors in the commercial agricultural market, and the monitoring of ongoing interest from offshore parties. Commensurate with Stage One of the EOI sale process, we then recommend a four week national press and international web-based advertising campaign designed to focus additional attention on The Property and increase competition amongst interested parties. Further marketing collateral to be used throughout the campaign includes a detailed information memorandum and a brochure for targeted and emerging buyers (including; brochure distribution at key international conferences already booked, online distribution and internet listings). Page 3
02  EXECUTIVE SUMMARY  This proposal is provided with reference to our meeting and our inspection of The Property on Frida...
02 EXECUTIVE SUMMARY cont. RECOMMENDATION ON TIMING OF SALE Based on SAI’s extensive knowledge of the current agricultural investment market and current local listings likely to support the Rural Outlook offer, the timing of an optimum sale process would commence in September 2015 and following the completion of due diligence with final offers to be concluded early December 2015. Refer to campaign timeline on page 14 for a full outline of the proposed sale process. KEY TERMS We propose an exclusive agency period of eight months and a fee of 2.85% (plus GST) of the gross selling price, along with an administration fee of $15,850.00 (plus GST), covering all associated internal support services (including graphic design and campaign related costs). All project specific travel and accommodation costs (if any) will be invoiced separately at cost. We will provide a proposed advertising budget once appointed and in consultation with Rural Outlook. SAI PERSONNEL • David Smith - Director, SAI • Simon Penfold - Independent Industry Expert The above nominated personnel have worked on various agricultural transactions similar to The Property and has a detailed understanding of what is required to achieve a successful result. Page 4
02  EXECUTIVE SUMMARY cont.  RECOMMENDATION ON TIMING OF SALE Based on SAI   s extensive knowledge of the current agricult...
03 PROPERTY OVERVIEW PROPERTY INFORMATION The Property has been professionally managed through its transformation from commercial plantation to a well presented cropping and pasture property spread across 20 purpose designed paddocks, featuring new fencing/gates, good water access and good internal roads throughout. To unlock best value requires a strong understanding of the asset, alternative highest and best uses, markets, industry players, likely purchasers and movements within the investment sector. The ability to aggregate with of-like properties to increase investment size will be investigated. Source: SAI Earth Page 5
03  PROPERTY OVERVIEW  PROPERTY INFORMATION The Property has been professionally managed through its transformation from c...
03 PROPERTY OVERVIEW cont. PROPERTY INFORMATION - PROPERTY LAYOUT Source: Goggle Earth Pro - SAI The above image of the Property highlights the paddock layout, each paddock supported by adequate purpose constructed dams. The Property is dissected by good internal trafficable roads. Page 6
03  PROPERTY OVERVIEW cont.  PROPERTY INFORMATION - PROPERTY LAYOUT  Source  Goggle Earth Pro - SAI  The above image of th...
PROPERTY OVERVIEW cont. 03 PROPERTY INFORMATION - INSPECTION ROUTE Source: Magellan GPS – Initial Inspection of site with Max Jelleff (28 August 2015) The above image, highlights the recent initial inspection route taken of The Property and surrounding roads and properties as recorded by GPS. All inspections will be recorded and provided as part of SAI’s comprehensive reports. Page 7
PROPERTY OVERVIEW cont.  03  PROPERTY INFORMATION - INSPECTION ROUTE  Source  Magellan GPS     Initial Inspection of site ...
03 PROPERTY OVERVIEW cont. PROPERTY INFORMATION - TITLE BOUNDARIES Source: Beveridge Williams via McMillians The above image, highlights The Property’s various Certificate of Title details and localised title boundaries. Page 8
03  PROPERTY OVERVIEW cont.  PROPERTY INFORMATION - TITLE BOUNDARIES  Source  Beveridge Williams via McMillians  The above...
PROPERTY OVERVIEW cont. 03 LOCATION As shown within the regional map (below), The Property (circled) is ideally located within a sort-after developing region (Traralgon and Morwell) positioned within easy commuting distance of Melbourne, 135 radial kilometres. Excellent road and rail access to known markets is a feature. Source: Goggle Earth Pro - SAI Page 9
PROPERTY OVERVIEW cont.  03  LOCATION As shown within the regional map  below , The Property  circled  is ideally located ...
03 PROPERTY OVERVIEW cont. THE OPPORTUNITY Key selling points of The Property that we plan to highlight throughout our marketing materials and communicate strongly to prospective purchasers both domestic and international include: • Approximately 1,070 hectares* (2,634 acres) of premium agricultural land ideally positioned between the towns of Morwell and Traralgon within 135 radial kilometres of Melbourne’s CBD. • Consisting of 18 individual Certificates of Title this property enjoys perfect positioning with easy access to all the amenities of one of Victoria’s largest regional cities (Traralgon), directly adjoining the Princes Highway (the major highway linking Melbourne to Gippsland). • Excellent underlying land productivity ideal for Cropping and Pasture (cattle and/or sheep), The Property features high rainfall, deep fertile soils, flat to undulating topography). • 20 purpose designed paddocks, extremely well fenced (new fencing), good access to water and good roads throughout. • Professional agricultural property management is available through Minto Pastoral (existing month by month arrangement), providing extensive expertise, and detailed annual reporting a feature of this arrangement. • A host of subdivision, development and divestment opportunities available to the sophisticated investor. The value in The Property will largely be derived from the quality of the current agricultural pursuits, the likely cost of ongoing management practices (i.e. potential for irrigation development, fertilisation / improvement strategies, weed control, tendering etc.), and robustness of existing and emerging market opportunities. Although marketed independently of other agricultural properties, the opportunity to aggregate this asset with other ‘of like’ properties within the greater region presents an additional opportunity to entice sophisticated investors. A key aspect of the offering to enhance interest of sophisticated industry purchasers, will be a featured regional map within the information memorandum that highlights the presence of complimentary agricultural properties and uses within the region, and the opportunity to expand on resource and known markets and ports. SAI is happy to work with Rural Outlook to better explore these opportunities. As inspected the soil type, topography, consistent rainfall conditions and reasonable distances to known niche markets and ports underpin the opportunity. Page 10
03  PROPERTY OVERVIEW cont.  THE OPPORTUNITY Key selling points of The Property that we plan to highlight throughout our m...
04 TARGET BUYERS The Property presents a unique opportunity to attract an increasing pool of new capital and agribusiness market entrants making enquiries with SAI, including: • Agricultural investment funds seeking properties with operating and investment potential; • Institutional direct investment (agriculture or timberland); • Sophisticated localised agricultural purchasers; • Emerging fund managers; and • High net worth individuals (HNWI). We are confident that interest will be found internationally. SAI will utilise its current enquires list and global network to determine interest from offshore. SAI will access the global Agricultural Investor network which have dedicated agribusiness analysts within their respective teams. We will also utilise our direct contacts in Asia, Europe and North America and other parts of the globe. SAI is currently in discussion with a number of Australian and Chinese qualified parties seeking alternative investments and if appointed we will pitch the suitability of The Property to them immediately, strongly encouraging the properties for their diversified agribusiness investment portfolio. Underpinning the strength of these parties, we highlight that they have funded detailed inspections of emerging agricultural opportunities across 3 states to date. We have also identified a number of HNWI operating in the agricultural investment sector wherein such an opportunistic purchase may appeal. Page 11
04  TARGET BUYERS  The Property presents a unique opportunity to attract an increasing pool of new capital and agribusines...
05 METHOD OF SALE In order to provide the most appropriate and effective method of sale recommendation, we have considered the nature of The Property, associated assets and infrastructure, have analysed the market and potential purchaser targets along with the following primary methods of sale: • Public Auction. • Public Tender. • EOI. • Private Sale/Contract. We have conducted an assessment of the advantages and disadvantages of the above and strongly recommend that an Expression of Interest (EOI) method be utilised for the sale of The Property for the reasons detailed below. This would include an initial off-market ‘soft sounding’ campaign with SAI pursuing known investors active in the market followed by a rigorous public marketing campaign incorporating a two stage EOI sale process. SAI’s ongoing representation of The Property and our engagement within the international agricultural investment industry is highly likely to produce regular enquiry. EXPRESSION OF INTEREST An EOI campaign is the most flexible method of sale, which is paramount when taking complex agricultural assets to the market that require an increased level of due diligence, understanding and resources. It is also a highly transparent process which fosters open market competition, fully enabling the vendor to both control the campaign and extract maximum buyer participation, whilst providing the vendor with time to assess often complex and competing offers. Capturing interest across markets (local, sophisticated industry and international interest) ensures all parties understand they are not just competing within their known market, and hence any offer must represent true value if they are to be successful. Stage One: The first stage of the EOI will be an invitation to the target market to register interest in purchasing The Property; to be received in the prescribed form by Rural Outlook. A shortlist of qualified and genuine prospects selected from those who have registered will be invited to participate in Stage Two of the process. Stage Two: The shortlist of intending purchasers will be issued with Rural Outlook’s preferred contract to be used by them to submit final binding offers by a specified date. The final offers must be in a form capable of being accepted by Rural Outlook. Page 12
05  METHOD OF SALE  In order to provide the most appropriate and effective method of sale recommendation, we have consider...
05 METHOD OF SALE cont. EXPRESSION OF INTEREST cont. The advantages of this approach include the following: • It creates a high level of competitive tension. • There is a tendency for purchasers to submit their best proposal under competitive pressure. • It allows scope for flexibility in the structuring of offers, encouraging maximum participation. • It encourages more buyers as there is less cost to establish their position with Rural Outlook than formal tender. • All offers are received at the same time rather than over an extended period. • Rural Outlook can control the terms of sale/overall process and can prescribe the EOI format. • The first stage allows all possible interested parties to participate in the initial bidding process. In our experience, the option most favoured and able to produce the highest value often emerges during this initial process. In addition, when buyers know they are shortlisted, they will usually apply more resources to detailed due diligence investigations, they are more committed to the process, and they are able to properly ascertain full value. INITIAL OFF-MARKET CAMPAIGN Prior to commencement of the formal public advertising campaign we recommend an initial four week off-market campaign with SAI specifically targeting those known investors active within the target market together with possible new domestic and international entrants. From our experience the implementation of such a strategy is extremely effective in fostering the competitive atmosphere and building momentum in the campaign, including the possibility of obtaining a ‘knock out’ offer, and is of no additional cost to the vendor. Another reason for proposing the initial off-market campaign is to assist with any queries that may be raised by parties during this process. We are anticipating some detailed queries given the complex nature of the asset and by presenting the opportunity to the most likely target buyer profile initially and under a confidentiality agreement, we will be well informed with buyer queries and concerns and how best to mitigate and dissolve them during the EOI campaign. OTHER METHODS OF SALE In regard to the other potential methods of sale for The Property, our comments are as follows: • Public Auction - previously undertaken by Pat Rice & Hawkins in conjunction with Stockdale & Leggo (31 October 2013). Local market focused, it doesn’t provide sufficient flexibility and vendor control and is not recommended for more complex assets. A successful auction relies on at least two or three strong candidates participating. Certain purchasers (institutional included) and HNWI prefer not to buy at auction; the best auction results are achieved in a seller’s market and as such a failure to achieve a strong price at auction can impact upon ultimate selling price. • Public Tender - arguably the most formal method of sale however the flexibility and degree of control of the vendor over the sale process is less than an EOI. Also not recommended when the assets require a higher level of due diligence and increased cost to establish their position. • Private Sale - as a primary method of sale, lacks open market competition, less urgency and commitment to contract, although provides a logical second sale mechanism to other processes. Page 13
05  METHOD OF SALE cont.  EXPRESSION OF INTEREST cont. The advantages of this approach include the following       It crea...
06 CAMPAIGNE TIMING In consideration of the method of sale we have developed the following indicative divestment timeline so as to provide a high level graphic representation of the proposed EOI campaign. Should SAI be appointed, we would commence the production of marketing collateral immediately along with recommendations with regard to any practical pre-sale matters that would likely enhance the value of The Property. Please note that this time frame is indicative only and may be changed at Rural Outlook’s sole discretion. Page 14
06  CAMPAIGNE TIMING  In consideration of the method of sale we have developed the following indicative divestment timelin...
07 MARKETING INITIATIVES PROPERTY DUE DILIGENCE Pre-sale preparation is important to help ensure that buyers are focussed on price and not distracted by other issues. The sale process will necessarily involve due diligence investigations by the qualified purchaser and as such it is important that the following information is prepared and available: • Recent valuation reports (SAI has pre-emptively engaged with globally recognised independent valuation teams without property disclosure, in an attempt to gain a suitable affordable avenue to achieving same, quotes will be issued shortly). • Basic property details. • Plant/equipment inventories (if included). • Depreciation schedules (if included). • Survey reports and plans. • DA approvals and permits (if any). • Proposed Operational Cash flows where available (Minto Pastoral). • Specialist Planning Consultant & Pastoral Reports. • A draft contract of sale. Another advantage of having this information to hand at the outset is that it helps to ensure that all prospects are competing on equal terms. The materials need to be as detailed as possible to ensure that prospective purchasers have all the information they require to compete with confidence for The Property. SAI will work with Rural Outlook to assist the development of this information where required. PRESS ADVERTISING Press advertising is important, is intended to reach the broadest audience and is designed to bring new enquiries from the wider market. It also ensures those parties already identified understand that this is a transparent sale process requiring their strong commitment to what will be a competitive process. To ensure the widest possible exposure to the market we recommend advertising as per the below. A marketing quote will be provided by an independent third party quote following appointment. We confirm that SAI will simply pass on all advertising costs at cost. • Australian Financial Review: 10cm x 5cm in Monday edition over three weeks. • The Weekly Times: 124mm x 184mm in Thursday edition over two weeks. • Various Internet listings throughout the campaign. Page 15
07  MARKETING INITIATIVES  PROPERTY DUE DILIGENCE Pre-sale preparation is important to help ensure that buyers are focusse...
07 MARKETING INITIATIVES cont. INFORMATION MEMORANDUM We will prepare a detailed, high quality Information Memorandum that will take both hard and soft copy form. This document will form part of any presentations our team makes to potential purchasers, and will include: • • • • • • Overview of land areas. Property layout plans (highlighting a detailed paddock layout of dams, fencing, internal and external roads. Location map (relationship to other agricultural pursuits, properties of like, market centres and ports). Details of improvements. Sales procedure. Any sensitive information will be withheld from initial enquiries and would only be made available with Rural Outlook’s permission and under execution of a confidentiality agreement. INTERNET LISTING We do not underestimate the value of internet marketing – nationally and internationally. The Property will figure prominently in the following internet listings: www.realcommercial.com.au, www.realestate.com.au and www.myfun.com. BROCHURE A brochure will be designed as a ‘call to action’, so that interested parties will contact us for more detailed information. It will be distributed to the target market either in hard copy or electronically, using SAI’s extensive database. It will also feature among a select number of targeted projects as presented by SAI at upcoming international institutional forums/conferences focused on agricultural ownership/investment opportunities (September 2015). MARKETING BUDGET We will provide a proposed advertising budget once appointed and in consultation with Rural Outlook. The recommended advertising campaign likely to maximise enquiry exposure for this offer includes advertising within the Australian Financial Review and The Weekly Times, and nominated real estate internet sites. We believe this coverage together with featured representation at leading International Agricultural Investment Forums as keenly attended by sophisticated institutional investors will identify this opportunity to the purchaser profile we believe appropriate. For the purpose of this sale we considered offshore newspaper advertising, but from our experience a far greater return on investment is achieved through the utilisation of our international database and networks that proactively cover these markets. Page 16
07  MARKETING INITIATIVES cont.  INFORMATION MEMORANDUM We will prepare a detailed, high quality Information Memorandum th...
08 AGENCY BASIS TERMS SAI’s reach and contacts across the target market, and our ability to truly pull together a global service offering allows us to achieve exceptional outcomes for our clients. We have a strong preference for a sole agency appointment wherein we dictate the agency conditions of a suitable local agency, as we believe it is in the best interests of Rural Outlook. We outline our reasoning for this below: • Controlling the process: the best way to run a campaign is as a tight unit with presentations and negotiations kept totally confidential. • International capabilities: SAI has an outstanding relationship with our global network. These proven relationships have been the catalyst for delivering significant increases to perceived local market value for agricultural assets in recent transactions and we are confident that numerous parties familiar with the benefits of The Property will be engaged in this campaign. • Complete transparency: in a sole agency arrangement we can talk freely at every meeting without fear of compromise and we can add greater value in a far more efficient manner. • Leading intellectual property: the intellectual property our team will bring to the sale of Rural Outlook’s benefit, not our competitors. SOLE AGENCY We have considered the significance of this engagement, as well as the time and effort required by the nominated personnel to ensure we achieve the best possible result. Accordingly, we propose the following fee arrangement: • 2.85% (plus GST) of the gross realisation on the basis of a sole agency appointment. • Administration fee of $15,850.00 (plus GST) paid at signing of the agency agreement. • Advertising budget at cost – to be agreed. Any additional costs that are outside or extend the scope of this proposal would be approved by Rural Outlook before being incurred. Page 17
08  AGENCY BASIS TERMS  SAI   s reach and contacts across the target market, and our ability to truly pull together a glob...
09 INSPECTION PROTOCOL INSPECTION PROGRAM Inspections are crucial for potential purchasers of properties of this nature, and SAI is happy to take responsibility for their facilitation. SAI will qualify groups for inspection by looking closely at their capacity and genuine appetite to purchase The Property. We will work with Rural Outlook to develop a detailed inspection process, whereby we lead prospective purchasers through a structured inspection routine, emphasising key selling features - a combination of operational capabilities and surrounding infrastructure. As part of this process, SAI will also investigate each potential buyer’s background and history as existing participants in the industry. We would require a minimum notification period of 24 hours prior to inspection and inspections will be limited to qualified potential acquirers. SAI will determine with Rural Outlook any particular matrix or assessment requirements to be prepared following each inspection. REPORTING SAI will provide Rural Outlook with a fortnightly property activity report, summarising: • The number and quality of enquiries. • The number of property inspections. • Feedback from prospective buyers. Page 18
09  INSPECTION PROTOCOL  INSPECTION PROGRAM Inspections are crucial for potential purchasers of properties of this nature,...
STATUTORY REQUIREMENTS AND UNDERSTANDING OF DUE PROCESS 10 SAI is aware of the statutory and common law requirements bestowed upon financiers, partnership managers, administrators and insolvency practitioners when dealing with complex asset appointments. Through our understanding of these legal requirements and recognition that managers must act with the highest levels of ethics, probity and public accountability. Rural Outlook can be confident we will look after your interests while achieving a successful outcome. SAI’s understanding and knowledge of your obligations under Section 420A of the Corporations Act 2001 is important in limiting your exposure to potential legal action. We will implement a risk management strategy, paying particular attention to the following matters for the disposal of the properties: A. All parties are given an equal opportunity to participate. B. Any changes to the process are communicated to all parties. C. The highest level of client reporting is implemented. D. Commercially sensitive information is guarded with appropriate protocols and respected at all times. E. Filing of all correspondence and documents to ensure clear paper trails. F. Recording of all queries from proponents for the purpose of transparency and streamlining. G. Managing all queries and informing Rural Outlook of the most significant interest. H. Issuing of information that is independently checked and known to be accurate. PROCESS SAI will ensure in all dealings throughout the Sale Process, that due process is strictly adhered too. SAI will: • Test the market. • Record all enquiries and report to Rural Outlook on a fortnightly basis. Page 19
STATUTORY REQUIREMENTS AND UNDERSTANDING OF DUE PROCESS  10  SAI is aware of the statutory and common law requirements bes...
11 CONCLUSION To be appointed to market The Property, working with Rural Outlook to bring this property to market, represents an exciting opportunity for SAI. We hope from the outset of this document that we have made it perfectly clear that this is not simply another appointment for us, and that our commitment to the transactions overall success is demonstrated by the resources we propose to allocate to this project and the networks we will deliver this project too. We strongly believe that the personnel nominated to service this project are perfectly suited to the role and will deliver Rural Outlook the best possible outcome. We once again thank you for inviting us to submit this proposal, and look forward to discussing our recommendations with you in greater detail at your earliest convenience. Page 20
11  CONCLUSION  To be appointed to market The Property, working with Rural Outlook to bring this property to market, repre...
12 APPENDIX A PROFILE Page 21
12 APPENDIX A PROFILE  Page 21
PROFESSIONAL PROFILE David Smith Director Email: david.smith@smithagriinternational.com.au Web: www.smithagriinternational.com.au Mobile: +61 418 332 780 Smith Agri International has extensive agribusiness experience in North and South America, Europe, Asia and Australasia. The company has long-term industry links with current and emerging buyers and sellers which enable access to a wide range of agribusiness divestment opportunities trading either on- or off-market. Director David Smith has over 25 years of experience in rural property assessment, planning and transactions, with particular focus on the Forestry, Mining and Renewable Energy sectors. He has worked with key companies such as Rio Tinto, Willmott Forests, Virgin Forests, Ecofund Queensland and CBRE to unlock true asset value for divestment or investment. David is the architect of numerous large-scale forestry projects involving the establishment and management logistics of over 68,000,000 trees. He understands every aspect of the commercial value chain and has transacted the acquisition of over 300 properties throughout Australia equating to over 95,000 hectares (AUD$224 million) for the purpose of commercial plantation, industrial forest, biodiversity /carbon offset, dedicated biomass / biofuel and conservation. Smith Agri International has recently successfully transitioned significant agricultural landholdings from mining-sector ownership to Australian beef cattle managers. These transactions unlock true land asset value, allowing businesses to operate to their key market strengths, and deliver business sustainability for the benefit of all stakeholders. Smith Agri International maintains strong links with key industry associations, and regularly presents at Institutional Investor forums in Australia, New Zealand and North America. The company is also in constructive dialogue with all levels of government, with financial institutions and corporations, and with investor management, community and indigenous groups. CLIENTS ADVISED/INDUSTRY EXPERIENCE - CBRE - CS Energy - Visy Paper & Pulp - Department of Aboriginal and Torres Strait Islander and Multicultural Affairs (DATSIMA) - Green Crow (US) - NSW Premiers Office / NSW Treasury - Peabody Energy Australia - PPB Advisory - Santos Energy - Stanwell Corporation - McGrathNicol - RMS Resource Management Service, LLC - Ergon Energy - Australian Bluegum Plantations (ABP) - Southern Plantation Aggregation - Jelfor Treated Timbers RECENT SIGNIFICANT ASSIGNMENTS . AFPT & AFPT 2 Timberland Portfolio (part of Gunns, TAS, AU) . Peabody Energy - Cattle Station Aggregation divestment (QLD, AU) . Yarra Ranges Native Timberland Portfolio (VIC, AU) . Gippsland Plantation Aggregation (VIC, AU) PROFESSIONAL AFFILIATIONS / ACCREDITATIONS . Institute of Foresters of Australia (IFA) . Australian Institute of Management (AIM) . International Energy Association (IEA Task 40) . Guest Lecturer at Australian National University RELEVANT EDUCATION . Licensed Real Estate Agent (NSW / VIC / QLD / TAS) . Licensed Stock and Station Agent (NSW) . Licensed Business Broker (NSW) . Advanced Diploma-Forestry, Melbourne University
PROFESSIONAL PROFILE David Smith Director Email  david.smith smithagriinternational.com.au Web  www.smithagriinternational...
12 APPENDIX B TESTIMONIAL Page 23
12 APPENDIX B TESTIMONIAL  Page 23
FOR MORE INFORMATION PLEASE CONTACT: David Smith Director +61 418 332 780 david.smith@smithagriinternational.com.au www.smithagriinternational.com.au
FOR MORE INFORMATION PLEASE CONTACT  David Smith Director  61 418 332 780 david.smith smithagriinternational.com.au www.sm...