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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news