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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news