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


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news