The New Zealand Rural Land Company is offering Wholesale Investors a stake in this country’s largest export earning sector, by creating the opportunity to own premium productive farmland that will be leased back to quality food production operators.
The New Zealand Rural Land Company has structured this offer to create a clear separation of land and agricultural operations. Investing in the land only, provides two major advantages.
Firstly, it limits investors exposure to the volatility of global commodity prices and, secondly, in the issuers opinion, it means investors are invested in what has historically been the best performing asset within agriculture, the land.
The New Zealand Rural Land Company plans to invest across the agricultural sector. Initially however, it sees an opportunity to focus on dairy land, due to a combination of recent legislative and bank lending changes. These changes have resulted in a lack of investment capital being able to flow into the sector, creating a very appealing buying opportunity for a premium asset. This has happened in an environment of global dairy product consumption increasing, with predictions of demand for milk-based protein outstripping supply five to one by the year 2027.
It is predicted that by the year 2050 feeding the world will require an increase in food production of 70%. All the while agricultural land suitable to meet this demand is decreasing. It’s no secret that New Zealand’s success in food production lies in its premium fertile land and natural environment, which allows us to produce some of the world’s most sustainable and lowest carbon footprint food products very cost effectively.
Click here to go through to the NZRLC website for more information and to register your interest.