Farms open to investors

Two farming entrepreneurs say they plan to offer off-farm investors share parcels of $500,000 each in a $40 million package of three dairy farms.

Rick Monk, who runs Mt Ella Station at Murchison, and Ian Stuart, chief executive of Australian gold explorer Laconia Resources in Perth, plan to buy Mt Ella and run it with two smaller dairy farms at Culverden, in North Canterbury.

Outside investors will be able to own the holding company, Zelan Pastoral, which will lease the properties to Fonterra suppliers.

They hope to offer investors a minimum dividend (pre-tax) of 3 per cent to 5 per cent a year.

Mr Monk and Mr Stuart own Five Twelve, which will manage the company and the lease contracts.

They will collect shares equivalent to 2.5 per cent of the total - worth $1 million if the $40 million is taken up - when the property values rise by 5 per cent, then 2.5 per cent when values are up 10 per cent.

- NZPA