Friday, March 29, 2024

Added investment in horticulture

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The Syndex online platform for privately-owned companies, syndicates and partnerships is noticing a trend towards primary sector investment opportunities, chief executive Ross Verry says.
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About one-third of Syndex’s 200-plus investment schemes are in the primary sector and that proportion waxes and wanes, and right now it is growing, he says.

Horticultural opportunities in kiwifruit, avocados, cherries, apples, packhouses and the like are filling within a week, rather than a month.

Among the better-known entities, Syndex hosts My Farm and Craigmore syndicates for services like registry, investor relations and secondary markets.

Verry says investment schemes and managed funds in commercial property and technology also cross over into the primary sector.

Syndex has a database of over 10,000 account holders to whom it promotes awareness of primary sector opportunities and can publicise upcoming new ventures.

“We also work with clients to make their proposals more investable,” he said.

“We have a set of rules to help good governance, good investor relations and access to liquidity, which are things that private farming businesses haven’t usually had in the past.”

Other attractions are going beyond bank finance, facilitating succession planning and bringing in new smart investors with skills the farming principals don’t have.

Syndex is also providing a pathway to public investment in the future, working with NZX.

Communications, registry, governance and liquidity are areas in which to develop before contemplating an initial public offer.

Both exchanges want to provide a seamless and sustainable growth path in capital raising and public listing for entrepreneurs and small-to-medium businesses.

An example is the New Zealand Rural Land Company that started on Syndex and intends to list on the NZX shortly.

It has plans for an initial public offering between $75-$150 million to buy rural land to lease to farmers, not to run all the enterprises itself.

A NZ Rural Land Management entity will bring Allied Farmers into the fold for practical matters.

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