A new dairy farm investor says it has received a positive response from potential investors, with some prepared to stump up close to $1 million.
Pastoral Dairy Investments hopes to raise $25 million through an initial public offering, with private institutions expected to invest another $50 million.
It plans to buy between seven and 10 large dairy farms over the next 18 months, which it expects to generate pre-tax returns of between 5% to 6% and could eventually list on the Stock Exchange.
The farms will be managed by MyFarm, which already manages 47 farms in New Zealand.
MyFarm director Andrew Watters says major institutions are looking over the offer documents, while and 900 retail investors have requested prospectuses.
He says it is likely that most of the money will still come from provincial New Zealand.
Mr Watters says there is a mix of investors at about the $20,000 mark, as well as a number looking at $500,000 to $1 million.
He says charitable trusts are looking for a 5% to 6% return, which the fund is set up to provide, and an asset base that hopefully grows at least in line with inflation.
The initial public offer closes on 20 April and requires a minimum investment of $20,000.