New kiwifruit investment fund targets wealthy foreigners wanting NZ residency

Kiwifruit has continued to perform well, despite global economic challenges. Photo / Zespri / Craig Robertson

By Monique Steele of RNZ

Lucrative SunGold kiwifruit may hold the key to unlocking New Zealand residency for wealthy foreigners, through what is being dubbed the “golden visa”.

The Government eased the requirements earlier this year for the Active Investor Plus visa to “turbocharge economic growth”, according to Immigration Minister Erica Stanford.

Fund management firm Greener Pastures launched a new fund targeting foreign investors with at least $4.8 million (US$2.9m) to invest in the kiwifruit sector, with approval from New Zealand Trade and Enterprise.

Dominic Jones, managing director of Greener Pastures and its parent company, Origin Capital Partners, said it managed $225m worth of kiwifruit assets, including about 150 canopy hectares in orchards around Bay of Plenty, by its 250 mostly local investors.

The new fund aimed to capitalise on a sector that had seen “enormous growth” and continued to outperform other agricultural sectors over recent years, he said.

“In simple terms, if [clients] invest $5m into our funds, it’s a pathway for them to securing residency.

“It gives our clients the ability to meet the investment requirements of the Active Investor Plus visa through investing in one of New Zealand’s most successful industries.”

Funds raised by investors, who must be of good health and character, could contribute to ownership of new or existing orchards or shares in marketer Zespri.

Jones said New Zealand had the advantages of good kiwifruit-growing conditions, counter-seasonal supply for the Northern Hemisphere and the single-desk Zespri model.

“New Zealand is quite easily the best place in the world to grow kiwifruit, so we can produce a lot more per hectare than other countries around the world.

“And the big advantage for New Zealand kiwifruit is we are supplying those markets when they can’t supply themselves.”

The fund manager considered other lucrative sectors, such as mānuka honey or Rockit apples, but Jones said market structures or policy settings posed risks compared to kiwifruit.

“We keep coming back to kiwifruit because it’s consistently outperforming a lot of sectors, really.”

The growth category would require an investment of at least $4.8m and three weeks spent in New Zealand over three years by applicants.

A minimum of $9.7m (US$5.8m) investment would be required for the balanced category, and at least 105 days spent in New Zealand over five years.

Greener Pastures will have new SunGold orchards coming on stream soon in the Bay of Plenty.

Within the next year, the firm expected to have five domestic and international funds in operation, four of which were solely in kiwifruit.

It comes as another investor, MyFarm, is raising $35m to add to its $200m KiwiFruit Fund.

The offer is to pay for expanding its portfolio of kiwifruit orchards in Northland and Bay of Plenty, and to buy more shares in Zespri.

Chief executive Andrew Watters said kiwifruit was now the fourth-largest primary sector export after dairy, meat and forestry.

- RNZ