Founder and director Chris Swasbrook says the managers of the new fund would move as quickly as possible on those targeted assets, but he could not be more specific.
The capital raised was at the lower threshold of the $75m to $150m range sought.
After listing on December 21, NZRLC disclosed five substantial security holders who collectively contributed $34.5m, or 46%, of the capital raised in the initial public offering (IPO).
They are United States property investors Clyde and Rena Holland, offshore entity Vaulterra Holdings and ANZ Custodial Services – all with 9.85% individually, Jarden Securities with 10.14% and the Walker Family Trust 6.6%.
The fund will maintain at least 75% NZ-ownership to avoid the need for Overseas Investment Office (OIO) approval for farmland purchases.
Swasbrook says the larger security holders were either long-standing clients of his company Elevation Capital or had made applications during the equity raising.
NZRLC co-founders Richard Milsom, Hayden Dillon and Swasbrook contributed $1.25m, and Allied Farmers added a further amount to match that figure.
Allied is 50% owner of NZ Rural Land Management (NZRLM), which will manage the farm leases and advise the lessees.
NZRLC chair Rob Campbell says after the listing that the 20-plus dairy farm prospects and the values of each large farm implied that more capital would be needed later this year.
Up to 30% of net asset value debt capacity would extend the reach of the fund.
Although dairy farms were the first target, the fund would also invest in horticulture, viticulture, forestry and sheep and beef farms.
Properties would be leased to financially sound tenants and NZRLC would take no part in farming operations.
It has signalled a minimum 4.5% annual return on capital from the landlord activities.
Swasbrook added that NZRLC was ideally placed to implement the purchase and lease strategy and to deliver to share market investors reliable returns from owning rural land that had not been available from previous vehicles.
The stock (ticker NZL) listed at $1.25 a share and has traded since in a range of $1.26 to $1.28.
Meanwhile, Allied Farmers has raised $3m with a one-for-three renounceable rights offer that closed oversubscribed on December 18.
Applications were scaled back to 63.6%.
Chair Richard Perry says the directors and managers were encouraged by the show of support, including the NZRLM proposal.
“This tells us that shareholders endorse this investment and want to participate in our strategy to provide solutions to the issues facing the agricultural sector,” Perry said.
During the NZRLC IPO process Allied Farmers lifted its investment from $375,000 to $1.125m.
It also issued 4.46m 50c shares to the value of $2.23m to acquire half of NZRLM.
Swasbrook has joined the Allied board but in view of the tie-ups with Elevation and NZRLC, he is not an independent director.
