Purchases for Rural Trust

Press, 27 September 1988, Page 37

Purchases for Rural Trust

The New Zealand Rural Property Trust has recently announced the acquisition of a further four properties, bringing the trust’s portfolio total to 24. This announcement coincides with the release of its fourth prospectus. The properties comprise a Hawke’s Bay deer farm, a Taranaki dairy property, a Banks Peninsula sheep and cattle property and a South Canterbury intensive cropping property. The trust has also recently announced the purchase of a Taranaki forestry unit and a Manawatu dairy farm.

Preston Parker, the trust’s managing director, said the properties all met strict investment criteria, being selected for purchase on the basis of prime location, natural soil fertility, flexibility of use and potential for development, expansion and product diversification. “They are all located in prime, highly productive, low risk agricultural regions with proximity to towns and cities, processing facilities and export ports,” he said. Mr Parker said the trust’s prospectus records a very satisfactory performance over its first

periods of operation. Highlights include: ® A steady growth in funds subscribed to total $18.2 million as at June 30, 1988. © Continuing low levels of borrowing with gearing of only two per cent of total funds under management as at June 30. © Maintenance of high levels of liquidity; 34 per cent of total funds under management as at June 30. © A cumulative rate of return of 23.75 per cent, per annum, on net funds invested over the first two periods of operation, to December 31, 1987.

© The growth of the asset portfolio to include 24 prime rural properties. “Low levels of borrowing and high levels of liquidity were aspects of the fund which enhanced investor security,” Mr Parker said. “The prospectus provides a percentage break down of productive activities across the portfolio, illustrating the trust’s strategy of investing over a wide and balanced spread of productive activities. This ensures a natural hedge against fluctuations in any specific commodity prices.”