Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Urban investors attracted to dairy farm investment

Urban investors attracted to dairy farm investment.

City investors are showing keen interest in investment in Eastbourne Dairy Farm Limited in Southland says Roger Dickie (N.Z.) Ltd spokesman Richard Bourne.

Mr Bourne says shares in Eastbourne (the company's 92nd rural investment) are now 78% subscribed with interest coming from largely city based New Zealand and overseas investors. Overseas investors are limited to 24.9% of the shareholding says Bourne and that portion is close to being fully subscribed.

Eastbourne Dairy Farm is located in Southland in an area known for its good quality soils and reliable rainfall. Existing farmers in the vicinity of Eastbourne are obtaining high production levels with minimum supplement input.

After listening to investor feedback, Mr Bourne said that Eastbourne has been structured to have no term debt and it is proposed that annual dividends will be paid from the first year onwards. Shareholder income will come from an annual cash dividend derived from operating profits and longer term, any capital gain in the value of the land and assets. Historical figures provided by Quotable Value and REINZ showed long term capital gain in New Zealand dairy farms averaged 5.4% per annum net of inflation for the past 25 years, he said.

Mr Bourne believes the reason city investors are interested in Eastbourne is because they like the fact that they were involved in freehold ownership of quality land with no debt. In addition he said, the level of investment is very flexible starting at $25,000 and the secondary market operated by the company for their 2,500 other investors, helps provide liquidity for their shares. It gives them an opportunity to be part of the star performer of the New Zealand economy, dairying, Mr Bourne said.

END

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news