A new dairy farm investor says it has received a positive response from potential investors, with some prepared to stump up close to a$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% and 6%. It could eventually list on the stock exchange.
The farms will be managed by MyFarm, which already manages 47 farms across New Zealand.
MyFarm's director Andrew Watters says major institutions are looking over the offer documents and 900 retail investors have also requested prospectuses.
The initial public offer closes on 20 April and requires a minimum investment of $20,000.