New Zealand farm property investment and operations management firm Farm Venture has launched a diversified agriculture fund which aims a total capital raise of NZ$150 million ($109 million), according to an official announcement by online trade platform Syndex.
The fund, which will be listed on the Syndex exchange, targets a first close of $37 million. There is a minimum capital investment of NZ$25 million for ownership of an initial three dairy farms and livestock, plus capex and the proportional purchase of Fonterra shares.
Known as New Zealand Pastoral Investments, the fund targets returns of 10 per cent per annum, comprising a 6 per cent per annum return from operations after management fees, before tax, plus a 4 per cent per annum capital value increase potential from productivity improvements and valuation movements.
The fund will allow investment participation from institutional and wholesale investors, as well as private equity funds.
“Internationally we see investment portfolios with much higher weightings in alternative investments and particularly agricultural assets. It is aimed squarely at New Zealand investors, with international investors capped at 20% of tranche one capital raising,” said Farm Venture Managing Director Tim Barrett.
Farm Venture has more than 12 years of experience in syndicated farm management.
Syndex focuses its service for proportionally-owned, alternative assets such as agricultural assets, commercial property and private equity. It provides liquidity opportunities for primary and secondary market listings through its cloud-based exchange.
The platform recently broke the three-million-dollar threshold of trades on its secondary market.