MyFarm says investors are hungry for access to the kiwifruit sector. Photo/Supplied
MyFarm says investors are hungry for access to the kiwifruit sector. Photo/Supplied
Investors are being sought for a 16 hectare gold kiwifruit orchard at Paengaroa, at the eastern end of the Tauranga Eastern Link.
Rural investment specialist MyFarm is seeking $6.3 million from investors for the Expressway Orchard Limited Partnership - the third kiwifruit orchard syndicate to be established by MyFarmin the past two years.
Chief executive Andrew Watters said it had taken two years to secure a gold kiwifruit orchard with the key attributes investors were looking for.
"It is a very competitive market for quality orchards with established gold vines. We're thrilled to find a property that is established but also has a development component that will add value for investors."
The orchard adjacent to the Te Puke golf course comprises 9.83 canopy hectares already planted in Gold; 2.9 cha of Hayward (green) and 3.3 cha of G14 (green) which will be replanted in Gold over the next five years. Paengaroa is a prime kiwifruit growing area, favoured for its climate, low altitude, flat contour and free draining soils.
Andrew Watters said the conversion to gold kiwifruit would add a nice 'twist' for investors in the form of a forecast 11.3 per cent development margin.
Expressway Orchard will be leased and managed by current owner DMS under a 10-year contract. DMS is one of NZ's largest kiwifruit and avocado management companies with more than 100 orchards in the region under its management.
Andrew Watters
Andrew Watters said investors were hungry for access to the kiwifruit sector, and praised Zespri's careful management of export supply and kiwifruit variety licences.
"The accelerating export demand for kiwifruit, with the Gold variety leading the charge, is testament to the investment the industry has made in R and D."
He said MyFarm had experienced strong interest in the Expressway Orchard investment opportunity since launching it earlier this week.
"Investors want access to the growth of the kiwifruit sector and to the Bay of Plenty region."
