MyFarm, a rural investment manager, has initiated a $190 million kiwifruit investment vehicle in New Zealand, following the amalgamation agreement by 11 orchard-owning partners. This initiative will enable wholesale investors to engage in the kiwifruit industry through a fund that encompasses a broad portfolio of properties across New Zealand's prime kiwifruit growing areas.
The MyFarm KiwiFruit Fund amalgamates 13 properties in the Bay of Plenty and four in Northland, all cultivating the SunGold variety, including associated Zespri shares, marking it as one of New Zealand's most significant kiwifruit investment entities. The fund, covering over 155 canopy hectares, produced in excess of two million trays in the recent season.
Andrew Watters, MyFarm Chief Executive, highlighted the fund's operational and financial efficiency benefits due to its scale. David Jensen, with extensive experience in kiwifruit cultivation and dairy farming, has been appointed as the chair-designate of the fund. The board will also include independent directors Sally Gardiner and Bridget Coates, along with MyFarm-appointed directors Paul Richardson and Andrew Watters.
The consolidation of assets from the 11 partnerships has been in progress since the previous November, with the fund's units to be quoted on the Syndex exchange. This new structure aims to enhance the liquidity of the invested capital, offering investors a low-risk opportunity to own quality Kiwifruit orchards, access to protected PVR3 kiwifruit varieties, and Zespri shares ownership. SunGold orchards have historically yielded high returns, demonstrating the potential financial benefits of this investment.
Source: farmersweekly.co.nz