SunGold kiwifruit has been positioned as a potential vehicle for wealthy foreigners to obtain New Zealand residency through the government's Active Investor Plus visa scheme. The programme was adjusted earlier this year to attract overseas capital, according to Immigration Minister Erica Stanford.
Greener Pastures, a local fund management firm, has launched a new investment fund targeting offshore investors with at least NZ$5 million (US$3 million). The fund, approved by New Zealand Trade and Enterprise, allows investors to contribute to kiwifruit orchards or to acquire shares in Zespri.
Dominic Jones, managing director of Greener Pastures and parent company Origin Capital Partners, said the group manages NZ$225 million (US$135 million) in kiwifruit assets across about 150 canopy hectares in the Bay of Plenty, supported by around 250 local investors.
"In simple terms, if [clients] invest $5m into our funds, it's a pathway for them to secure residency. It gives our clients the ability to meet the investment requirements of the Active Investor Plus visa through investing in one of New Zealand's most successful industries," Jones said.
Jones noted New Zealand's production advantages, including suitable growing conditions, counter-seasonal supply for Northern Hemisphere markets, and the single-desk Zespri system. "New Zealand is quite easily the best place in the world to grow kiwifruit, so we can produce a lot more per hectare than other countries around the world," he said. "And the big advantage for New Zealand kiwifruit is we are supplying those markets when they can't supply themselves."
The growth category of the visa requires an investment of at least NZ$4.8 million (US$2.9 million) and three weeks in New Zealand over three years. A balanced category requires NZ$10 million (US$6 million) and 105 days in the country over five years.
Greener Pastures has additional SunGold orchards coming into production in the Bay of Plenty and expects to manage five funds within the next year, four focused on kiwifruit.
Other investment activity in the sector includes MyFarms, which is raising NZ$35 million (US$21 million) to expand its kiwifruit orchard portfolio in Northland and Bay of Plenty and to purchase more Zespri shares. The company already manages about NZ$200 million (US$120 million) in kiwifruit assets.
According to MyFarms chief executive Andrew Watters, kiwifruit is now New Zealand's fourth-largest primary sector export after dairy, meat, and forestry.
Source: RNZ