PGG Wrightson offshoot NZ Farming Systems Uruguay has boosted its presence in the South American nation with the purchase of a 4000-hectare farm for US$10.4 million ($13.6 million).
NZFSU, established last year, bought the Santa Isabel farm in Uruguay's Rocha District from a consortium of New Zealand investorsincluding PGG Wrightson and NZFSU director Murray Flett.
The purchase brings the venture's total holdings in Uruguay close to 12,000 hectares.
PGG Wrightson formed NZFSU to exploit NZ-style dairy and beef farming opportunities in Uruguay, which boasts a temperate climate and low production costs, including labour.
Although it is contracted to manage the venture, PGG has reduced its holding to just 10 per cent, making Australian-based fund manager Hunter Hall the largest stakeholder at 19 per cent.
PGG Wrightson deputy chairman Craig Norgate said the buy was the venture's largest, amounting to a third of its total holdings in Uruguay.
Norgate, a former chief executive of Fonterra, is managing director of Rural Portfolio Investments, a 6 per cent stakeholder in NZSFU, and a 30 per cent owner of PGG Wrightson.
He said part of the farm purchase was in shares, bringing the total capital on issue close to $170 million.
Norgate said he expected NZFSU to list on the NZX after shareholders had paid for the second tranche of their shares on December 15.
"Our expectation is that we will almost certainly list before Christmas."
Norgate also indicated that a number of other farm purchases were pending. "There's still a fair bit that's happening."
NZFSU is trying to recruit 12 New Zealanders to take part in the Uruguay operations.
