A new investment fund is seeking to raise at least $75 million to buy South Island dairy farms.
While the minimum investment is $20,000, it is the first time dairy sector investments have been available to the public, other than a $250,000 minimum offered by separate fund manager MyFarm.
Pastoral Dairy Investments (PDI) wants to raise $25 million from small investors, which will trade on the Unlisted platform and potentially go to the NZX within 24 months.
Meanwhile, a further "co-investor" fund worth $50million is targeting charitable trusts, high-worth individuals and institutions.
PDI will hold an investor presentation at Craigs Investment Partners in Dunedin on Thursday.
With the $75 million being targeted, and oversubscription available, PDI will buy outright up to nine farms in Southland, Otago and Canterbury, debt free.
These will be managed by MyFarm.
Each farm, with herds of 600-1000 cows, will be held by a separate company in which shareholders invest and, all going well, will be paid quarterly dividends. They will also get a return of the capital when the farm is sold.
