If you are looking to invest in a farm property in New Zealand, AGInvest is well positioned to assist in one or all of the three key aspects involved in the purchase process:
1) Identifying a suitable property for investment
2) Overseas Investment Office requirements
3) On going management of properties.
Identifying suitable properties
We can work with you to identify farmland that will provide a good return on investment, by ensuring properties have the necessary productivity potential. Our team understands the physical parameters that determine a property’s ability to deliver an above-average and repeatable performance. We also have deep market knowledge and therefore recognise when an investment represents good value for money.
As an insight, we consider more than 20 properties in our desired territories (there are regions of New Zealand that we will not invest in because of inherent climatic or other weaknesses) to buy just one property.
As part of the purchase process, AGInvest develops a business plan that clearly demonstrates how the target property can be expected to operate and perform. We also conduct a detailed and thorough due diligence process. Farm purchases can fail, due to an unsatisfactory due diligence outcome. That could be the quality and quantity of water supply, effective farm area, or any number of future constraining factors.
Overseas Investment Office requirements
Offshore investors (excluding New Zealand citizens and residents) require the approval of the Overseas Investment Office (OIO), before purchasing land in New Zealand.
A series of requirements must be met for approval to be granted. This process is to ensure tangible benefits to New Zealand, after the property has been purchased. These benefits include the level of proposed investment in the property’s development, any environmental protection measures, additional exports created (in the form of increased milk or meat production) and future job creation.
AGInvest understands the OIO’s requirements and can help you complete your application accurately and with all the necessary information provided. This includes a solid business plan, which adds value and demonstrates that the property will continue to contribute positively to the New Zealand economy.
Management of farm properties
Many absentee owners want the assurance that their investment is performing at optimal levels. AGInvest provides an on going management service, with staff on the ground in the key farming areas of New Zealand.
We have a variable schedule of fees, relating to the level of service required. Equally, we are happy to operate on a performance-delivery basis – that is, we are only paid above our costs when the property performs from an investment perspective.