INFORMATION MEMORANDUM
FLORABUNDANCE 149 VERRIERDALE ROAD VERRIERDALE QLD 4562 Prepared by Warwick Peters Ray White Commercial North Coast Central
THE OPPORTUNITY Florabundance is a leading propagator, producer and wholesaler of premium bedding and other decorative plants to high profile, leading retailers and wholesale nurseries in Queensland & NSW. Florabundance dominates its market, in terms of the overall value package, through scale, efficiencies, quality and service, making it hard for competitors to impact on them. All products are sold wholesale to plant retailers, of which Bunnings makes up to 90%. The balance is sold to retail nurseries throughout QLD. The business supplies all Bunnings stores from Cairns to Canberra. Florabundance supplies product lines to Bunnings, retailers, landscapers & councils. Key ranges supplied to Bunnings include gardenia, climbers, New Guinea impatiens, pelargoniums, kangaroo paw, lavenders and perennials. The owners have adopted a highly structured approach to virtually every aspect of the business, creating a fully systemised and organised operation, to become one of the most efficient and reliable plant producers in the country. Florabundance operates in a similar way to any other manufacturing business. Production processes are
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systemised, automated, controlled, monitored and are continually being improved. Current production capacity is approximately 500,000 units per annum, with facilities located over more than 2ha of growing/production area, some 65% of which is hail protected. Florabundance is completely water self-sufficient. Irrigation comes from 3 dams, an established bore and an agreement in place with a close neighbour for their dam water in the case of a severe drought. The business is operating profitably, with net profit for 2018 again on track to increase over the previous year. Opportunities for growth are significant.
The Business is currently for sale, including freehold land, stock and improvements at $4,300,000 offers. Information: Based on current loan approvals from one of the major banks, their commercial lending criteria will allow up to 50 % borrowing of the business purchase price and 70% borrowing of land purchase, at rates less than 5% p.a. (subject to valuation & income servicing criteria).
EXECUTIVE SUMMARY The property
Florabundance (Lot 2 Verrierdale Road, Verrierdale QLD 4562)
Business Type
Wholesale Production Plant Nursery
Description
Propagator, producer and wholesaler of premium bedding & decorative plants. 29 years of operation and key supplier to Bunnings in Qld, NSW & ACT
Property
Property Located near Noosa on the Qld Sunshine Coast, the property consists of two prime rural residential (freehold) land lots with site improvements in excess of $575,000 wdv
Land Area
23,572 sqm
Customers
Bunnings is the principal customer with weekly purchase orders for 90% of the stock. They operate within a 14 days payment window, leaving the business with reliable cashflow and no bad debts.
Approvals
NIASA and EcoHort accredited.
Experience & Training
If you are already experienced in horticulture this will not be a problem. If you need to be trained, a suitable training program can be easily negotiated with the owners.
Turnover
* Approximately ^ Important:
Trading Hours
Year 2017 2016 2015 2014
Sales $3,091,645 $2,987,671 $3,063,395 $2,792,054
Gross Profit $1,944,648 $1,847,503 $1,831,464 $1,668,484
4 days per week
Prospective purchasers conduct due diligence investigations of the property strictly at their own expense and risk, and the vendor will have no liability in relation to such expenses. Consent by the vendor to the conduct by any potential purchaser of due diligence activities or investigation will not in any circumstance be construed as a representation that the vendor will be exercising, or refraining from exercising its rights deal with the property, or any representation that the vendor intends to contract with that potential buyer, or at all. 20 full & part time toemployees, including working owners
Staffing
For Sale
Offers $4,3000,000 (including freehold land, improvements, plant & stock) Warwick Peters (Accredited Business Broker)
Marketing Agent
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Ray White Commercial North Coast Central T 1300 25 50 75 M 0412 234 231
PROPERTY OVERVIEW Address
149 Verrierdale Road, Verrierdale QLD 4562
Land Area
2.3572ha overall (Lot 2 - 13,750m2 & Lot 5 – 9,822m2)
Zoning
Rural Residential
Description
Lot 2 on RP 191217 & Lot 5 on SP 117996
Council
Sunshine Coast Regional Council
Improvements
• (2) Climatically controlled tunnel houses 37m x 17m and 30m x 18m • Hail guard structure with night lighting 80m x 40m • (3) weather protection tunnel houses 12m x 27m, 9m x 20m and 30m x 13m • Gutter connected growing on tube house 20m x 14m • Hail guard structure 50m x 35m • (2) Propagation tunnels 14m x 5m and 6m x 9m • (2) Pump sheds • Tunnel house approx. 12m x 9m • Industrial shed 24m x 13m with upstairs offices, staff room & truck loading bay suitable for semis • Besser block home 6m x 10m designed for a live-in manager. • Lock up chemical shed • Colourbond storage shed 6m x 8m • Demountable weather proof structure 6m x 8m • Multiple propagation houses
Water is a key ingredient to the production process. Florabundance is virtually water self-sufficient, with a comprehensive automated irrigation system that draws from 3 on-site dams and distributes to all growing beds. All water infrastructure is duplicated so that the site is never without water due to an equipment failure. The watering system is very well developed and includes spray, drip, bed saturation, atomisation and fogging areas which are tailored for optimum efficiency, output and biosecurity. The irrigation system is also used to feed the plants with a pre-determined dosage of fertilisers. Biosecurity is taken to industry best practice level, with such measures as sponge mats on walkways to eliminate crosscontamination within the site and from outside. Walkways are concrete for efficiency, biosecurity and maintainability.
Trading Hours The business operates 4 days per week: Monday: 6am to 5pm Tuesday: 6am to 5pm Wednesday: 6am to 5pm Thursday: 7am to 3.30pm (Closed) Friday, Saturday & Sunday
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REGISTERED BUSINESS NAMES Registered Business Names Name: Florabundance Registration Number: BN5063851 Registered State: Queensland Registration Date: 26/10/1993 Name: Florabundance Wholesale Nursery Registration Number: BN4369804 Registered State: Queensland Registration Date: 4/10/1991 Stock at Value As stock & inventory levels fluctuate each year according to seasonal demand, an estimated figure of $380,000 has been included in the overall asking price of the business sale. Land Value The buyer should obtain their own independent advice in this regard, however, agent appraisals of the 23,572m2 of land over two separate titles have indicated a sales figure in excess of $1,350,000 plus a minimum of $600,000 on the value of improvements.
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PLANT & EQUIPMENT The detailed list of extensive plant & equipment, together with freehold improvements and motor vehicles accompanying the sale will be provided under separate attachment from the 2017 depreciation schedule. A. Demtec Automated Potting Machine B. Plant & Equipment Motor Vehicle Car Pool C. Main building structure including office facility
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B
C
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BUSINESS & PROPERTY PHOTOS
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DISCLAIMER The information contained in this Information Memorandum and any other verbal or written information given in respect of the property (“Information”) is provided to the recipient (“you”) on the following conditions:
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1. C ecil Healy Pty Ltd trading as Ray White Commercial North Coast Central and or any of its officers, employees or consultants (“we, us”) make no representation, warranty or guarantee, that the Information, whether or not in writing, is complete, accurate or balanced. Some information has been obtained from third parties and has not been independently verified. Accordingly, no warranty, representation or undertaking, whether express or implied, is made and no responsibility is accepted by us as to the accuracy of any part of this, or any further information supplied by or on our behalf, whether orally or in writing.
2. All visual images (including but not limited to plans, photographs, specifications, artist impressions) are indicative only and are subject to change. Any measurement noted is indicative and not to scale. All outlines on photographs are indicative only.
3. The Information does not constitute, and should not be considered as, a recommendation in relation to the purchase of the property or a solicitation or offer to sell the property or a contract of sale for the property.
4. You should satisfy yourself as to the accuracy and completeness of the Information through your own inspections, surveys, enquiries, and searches by your own independent consultants, and we recommend that you obtain independent legal, financial and taxation advice. This includes as to whether any listing price is inclusive or exclusive of GST.
5. We are not valuers and make no comment as to value. “Sold/ leased” designations show only that stock is “currently not available” – not that the property is contracted/ settled. If you require a valuation we recommend that you obtain advice from a registered valuer.
6. The Information does not and will not form part of any contract of sale for the property. If an interested party makes an offer or signs a contract for the property, the only information, representations and warranties upon which you will be entitled to rely will be as expressly set out in such a contract.
7. I nterested parties will be responsible for meeting their own costs of participating in the sale process for the property. We will not be liable to compensate any intending purchasers for any costs or expenses incurred in reviewing, investigating or analysing any Information.
8. We will not be liable to you (to the full extent permitted by law) for any liabilities, costs or expenses incurred in connection with the Information or subsequent sale of the property whatsoever, whether the loss or damage arises in connection with any negligence, default or lack of care on our part.
9. N o person is authorised to give information other than the Information in this Information Memorandum or in another brochure or document authorised by us. Any statement or representation by an officer, agent, supplier, customer, relative or employee of the vendor will not be binding on the vendor or us.
10. To the extent that any of the above paragraphs may be construed as being a contravention of any law of the State or the Commonwealth, such paragraphs should be read down, severed or both as the case may require and the remaining paragraphs shall continue to have full force and effect.
11. You may not discuss the Information or the proposed sale of the property with the vendors or with any agent, friend, associate or relative of the vendor or any other person connected with the vendor without our prior written consent. We accept no responsibility or liability to any other party who might use or rely upon this report in whole or part of its contents.
12. The Information must not be reproduced, transmitted or otherwise made available to any other person without our prior written consent.
AGENT WARWICK PETERS Accredited Business Broker 0412 234 231 warwick.peters@raywhite.com RAY WHITE COMMERCIAL NORTH COAST CENTRAL raywhitecommercialnorthcoastcentral.com 3/125 Morayfield Road, Morayfield Qld 4506 PO Box 840, Mooloolaba Qld 4557 T 1300 25 50 75 ABN 98 933 833 870
Prepared by Ray White Commercial North Coast Central | raywhitecommercialnorthcoastcentral.com