Friday, March 29, 2024

Fund to invest in horticulture

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MyFarm has launched a $100 million fund to invest in a group of horticultural enterprises rather than one-at-a-time syndicates for kiwifruit, avocados, hops and pack houses.
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The Kakariki Fund is aimed at wholesale investors with minimum amounts of $100,000 to invest, a qualification that has applied to MyFarm offers in the past.

MyFarm has identified four initial properties; a kiwifruit orchard in Bay of Plenty, a half share in a 130 canopy hectare hop farm, 35 canopy hectares of Rockit apples and a new 2000ha manuka plantation.

The first call on investors will be 25c in the dollar to buy those four assets.

Since moving away from dairy syndicates MyFarm has raised $165m for investment in 18 horticultural businesses since 2015.

The target for Kakariki is annual investment returns of 10%, made up of earnings from the sale of crops through the partners and any increases in land values. 

The partners are Rockit Global and Freshmax in apples, Sacred Hill Wines, grower Hop Revolution, manuka honey producer Comvita and kiwifruit grower and packer DMS Progrowers.

Investors in Kakariki will be exposed to all ventures, reducing the risks that come with investing in a business in a single geographic location and on one crop.

MyFarm said Kakariki will be scheduled for an NZX listing in three to five years, providing a chance for retail investors to participate and providing a potentially rewarding exit for wholesale investors who get in at the ground floor.

Chief executive Andrew Watters said there is no other way New Zealanders can invest in a diverse range of permanent crops or benefit from the intellectual property the partners have in their plant varieties and brands.

Rockit Global chief executive Austin Mortimer said demand for the apples is outstripping supply and the company plans to treble its orchard area to 600ha in Hawke’s Bay by 2025.

Kakariki will have an independent board of directors comprising chairman Julian Raine, the previous chairman of Horticulture NZ, John Loughlin, chairman of Rockit, Hop Revolution and EastPak, Dianne Kidd, director of Co-operative Bank, and Paul Richardson, an independent financial consultant.

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