Wholesale
Country & Co Advisory Limited

Edendale Equity Syndicate

Agri-Business

Register Interest

WARNING

The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision.

If you are a wholesale investor under the definition of that term in clause 3 of Part 1 Schedule 1 of the Financial Markets Conduct Act 2013, the usual rules do not apply to offers of financial products made to you. As a result, you may not receive a complete and balanced set of information.

You will also have fewer other legal protections for these investments. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself

Transaction Size
NZD 6,750,000.00
Share Price
Minimum Investment
NZD 67,500.00
Issue Type
Agri-Business
Sector
Dairy

Overview

The opportunity exists for wholesale investors to invest in a well located dairy farm near Edendale, a premier farming region in Southland. The farm is a high performing 239 hectare dairy unit with well-maintained infrastructure, including a 50 bale rotary cowshed, and a new house built last season to complement the other two existing houses. The equity syndicate will also purchase 365,000 shares in Fonterra Co-Operative Group. Management will be high calibre, herd owning 50:50 share milkers with a proven track record in performance, operating in the top 5% of operators in Southland. The share milkers will also invest and own 25% of the land owning entity. The focus of the business will be on delivering sound shareholder returns paid on a monthly basis.

This is an exciting new dairy investment opportunity for July 2021 ownership.

  • On target to achieve 346,000 kg MS in the 2020/21 season, which equates to 1,530 kg MS/hectare and 500 kg MS/cow.
  • Current vendors have proven management ability and their results place them in the top 5% of operators in Southland.
  • Well capitalized with 58% equity and a break even milk price of $4.31/kg MS on average, The Fonterra milk price in the previous ten seasons has averaged $6.25/kg MS.
  • The investment is forecast to return a pre-tax gross return on equity yield of 7.00% per annum, the annual return is to be paid out on a monthly basis once cashflow is established.

For further information, see the flier by clicking on the Documents tab. To be put in contact with the issue manager and receive access to a full Information Memorandum click to Register Interest.

Edendale Equity Syndicate Summary
May 3, 2021
3/5/2021

Country & Co Advisory Limited

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