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


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news