Acquisition of Southland Dairy Farm

The Blade, Level 4, 12 St Marks Road, Remuera, Auckland, 1050, New Zealand | +64 9 379 6493
www.nzrlc.co.nz
NEW ZEALAND Rural Land Co
WWW.NZRLC.CO.NZ
NZX Announcement
15 March 2021
New Zealand Rural Land Company Limited (NZL.NZX)
New Zealand Rural Land Company Limited (NZL.NZX) is pleased to announce that is has a conditional agreement for the first
in a series of expected acquisitions.
NZL’s first purchase is a 456 hectare dairy farm in Mokoreta, Southland with a settlement date of 1 June 2021. The purchase
price is NZ$10.373 million. The agreement remains conditional on a successful ‘Drop Test’ to test the integrity of the effluent
pond on the farm and this condition is due to be confirmed on 26 March 2021.
NZL has agreed the terms of a lease for the farm with Fortuna Group which will commence from settlement. The lease is for
10 years with a rental of $515,667 per annum, representing a 4.97% per annum lease yield (after transaction costs). This
acquisition is consistent with NZL’s stated plans and tenant requirements at the time of the IPO in December 2020.
NZL continues to work on several larger scale acquisitions of dairy farms in the South Island and expects to complete those
negotiations in the ensuing weeks with earlier settlement dates than traditional dairy farm settlements (being 1 June). Successfully
concluding these negotiations would see NZL generate lease income prior to its 30 June 2021 balance date that would be
earlier than indicated in the IPO documentation. NZL is in discussions with debt funders to establish funding lines for these further
acquisitions.
Attached to this NZX release is an Acquisition Announcement document which provides a property and tenant summary.
ENDS
Contact:
Christopher Swasbrook
Mobile: 021928262
Email:  chris@nzrlc.co.nz

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Acquisition Announcement
15 March 2021
www.nzrlc.co.nz
NEW ZEALAND Rural Land Co
WWW.NZRLC.CO.NZ

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Property & Tenant Summary
PROPERTY OVERVIEW
TENANT
$10,373,062.50
$515,667
4.97%
purchase price (NZ$) [iNcludiNg traNsactioN costs]
lease value (NZ$ pa)
lease rate
PROPERTY LOCATION
Southland
TENANT OVERVIEW
Fortuna is a Southland based company that operates more
than 18 (wholly-owned and majority-owned) dairy farms in the
Southland region. The company runs more than 10,000 dairy
cows over 3,626 hectares, and operates 920 hectares of support
land over three farms.
Fortuna meets all of NZL’s tenant criteria as was outlined in NZL’s
IPO documents.
New Zealand Rural Land Company [NZL.NZX] has a conditional
agreement to acquire a 456 Ha dairy farm in Mokoreta, Southland.
The farm contains a 64 Bail Rotary Dairy Shed, a 13 Bay Purpose Built
Calf Shed, 4 houses, and other ancillary buildings.
NZL has a signed lease with Fortuna Group, an experienced partner
for NZL as we look to expand our ownership of quality rural assets in
the Southland region. The lease will commence from settlement of the
acquisition.
This farm is a large operation, enabling economies of scale with close
proximity to two dairy factories.
The sole outstanding condition for the acquisition is the completion of a
successful ‘Drop Test’ to ensure the integrity of the effluent pond on the
property. This condition is to be confirmed on or before 26 March 2021.
TRANSACTION OVERVIEW
10 Years - CPI Adjustment Years 3, 6, 9
lease term
1 June 2021
settlemeNt date
PROPERTY DETAILS
456
total ha
Easy Undulating - Rolling
coNtour
Bore
water source
Mokoreta, Southland
locatioN
houses
4
Predominantly Kaiwera
Soils with a small strip of
Waimahaka Hill Soils.
soils
You can learn more about Fortuna group at:
https://fortunagroup.net.nz/
Operating Performance
& Experience
Strong Balance Sheet
Robust Governance Sustainability Focus

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NEW ZEALAND Rural Land Co
WWW.NZRLC.CO.NZ
New Zealand Rural Land
Company
Level 4, 12 St Marks Road
Remuera
Auckland 1050
New Zealand
New Zealand Rural Land
Management
105 Bellevue Road
Pukemoremore
Waikato 3284
New Zealand
+64 9 379 6493
info@nzrlc.co.nz
www.nzrlc.co.nz

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