As you know, 100% of the money you deposit with RaboDirect is invested in New Zealand’s food and agriculture sector. But, as you will see, our colleagues at Rabobank do more than just lend money:
When a team of Taranaki farmers and investors, led by Tim Barrett from Farm Venture, wanted to purchase a grazing property to convert to dairy farming, they approached Rabobank to fund the equity partnership deal.
The property was initially passed in at a mortgagee auction. However, the group of equity partnership investors – under the name WairereAria Ltd Partnership – secured the property after auction with the help of Rabobank.
Nick Bettington, Rabobank’s Rural Manager in New Plymouth, said that equity partnerships are becoming an excellent alternative for farm ownership as a result of the trend toward larger scale farming, and the capital now required to purchase these operations.
'In this particular case, funds were needed upfront not only for the property purchase but also for the conversion infrastructure, stock and Fonterra shares,' Nick said.
An equity partnership is simply where two or more people combine their equity and skills to purchase a farming operation, and they typically involve a small group of investors.
'As we saw more and more people expressing interest in this type of partnership, Rabobank decided to set up a database of interested equity partnership investors,' said Nick. 'When a suitable opportunity arises, we pass on the information to potential investors. The WairereAria Ltd Partnership is one of around five deals we have helped fund in the last 12 months.'
If you are interested in being added to Rabobank’s Equity Partnership investor database, please contact a Rabobank Equity Partnership Specialist on 0800 722 622 (0800RABOBANK), or visit our website for more information.