$50,000 for a slice of the Hawke's Bay apple industry

The 11.5 canopy hectares freehold orchard in Twyford to be developed by the Heretaunga Orchards Limited Partnership. Photo / Supplied

A slice of the Hawke's Bay apple orchard industry is being offered for $50,000.

Primary industry investment company MyFarm has launched a new Hawke's Bay Rockit apple syndicate which you can buy into for a minimum of $50,000.

MyFarm is seeking $9.3 million in total for the syndicate, offering 930 units of $10,000 each.

The Heretaunga Orchards Limited Partnership will develop one freehold orchard of 11.5 canopy hectares in the Twyford area north of Hastings and another leased block of 9 canopy hectares at Pukehamoamoa, southwest of Napier.

Both will grow Rockit apples, with the orchards to be developed and managed by Rockit Global Limited, which will also provide post-harvest and export services.

A Rockit apple orchard. Photo / Supplied

MyFarm expects the syndicate to start generating cash returns from the 2024 financial year, starting at 2 per cent on contributed capital and growing to 20 per cent once the orchards are delivering mature production.

MyFarm chief executive Andrew Watters said primary sector investments have proved resilient in the face of many Covid-19 related challenges over the past year.

"The Heretaunga Partnership offers wholesale investors a rare opportunity to share in the international success of Rockit, a true New Zealand-bred value-add strategy," he said.

MyFarm chief executive Andrew Watters said primary sector investments like the orchards have proven resilient to Covid this year. Photo / Supplied

Rockit apples are a rosy red, small and sweet snack apple sold in branded tubular packaging in 28 countries worldwide.

The freehold orchard is expected to be planted in 2021, while the leased orchard was established in 2020 for an initial term of 18 years from 2019, with the option to extend for two periods of five years each.

The staged nature of the development means funds will be called in at least three tranches over a three-year period. The initial investor fund call is 20 per cent on application, 55 per cent on March 1, 2021, and the remainder (25 per cent) over the following two years.