Kiwi farms attract American investor interest

Kiwi farms attract American investor interest

As a direct result of the global finance crisis, United States investors are looking to New Zealand rural property as an attractive investment option, says a local rural property consultant.

Peter Engel of PGG Wrightson Real Estate has seen an upsurge in recent interest derived from a relationship between his company and Montana-based rural real estate specialist Hall and Hall.

“American investors are motivated to diversify the geographic spread of their assets and recognise the strong fundamentals that underpin New Zealand agriculture, the stable political environment, and the favourable exchange rate.

“We have marketed rural property in the United States through our association with Hall and Hall, which is the largest investment quality rural real estate company in the United States.  

“New Zealand high country properties have traditionally attracted interest from overseas investors, but through Hall and Hall we are seeing a broader scope of interest in horticultural land, vineyards and dairying,” said Engel.

New Zealand properties that attract high net worth clients typically fall into one of two categories: those with outdoor recreational characteristics, such as access to hunting or fishing, or those with production potential that complements the type of operation the client is already involved with.

Joel Leadbetter, director and ranch partner of Hall and Hall, believes the relationship with PGG Wrightson and the opportunities it has opened up to Hall and Hall’s clients has been well received.

“There is a high degree of comfort with New Zealand’s stable government, the favourable exchange rate, and ethical business standards.

“Because of what is happening with the economy in the US, investors are venturing further afield for investment options. Our clients are generally self-made high worth individuals, looking to extend and diversify their interest but with a particular interest in the uniqueness and safety of New Zealand,” said Leadbetter.

Both men agree the relationship Hall and Hall has with PGG Wrightson is a natural one.

“Both companies specialise in working with farmers and in Hall and Hall’s case ranchers, both companies are derived from an ethic of integrity and hard work, and both companies are built around long-standing relationships with clients across multiple generations.

“Just as PGG Wrightson is one of the most respected names in New Zealand agriculture, Hall and Hall is one of the largest and most successful ranch brokerage companies in America,” Leadbetter said.

Hall and Hall was formed in 1946 as an agricultural mortgage company. Since then it has branched out into a wider role including ranch brokerage, resource management and consultation on conservation. Hall and Hall manages more than 200,000 hectares of land and services a loan portfolio of more than US$700 million.

It has nine offices in Montana, Wyoming, Idaho, Nebraska, Texas, and Colorado as well as relationships with similar companies in Brazil, Argentina, Chile and Canada, offering substantial rural properties from those countries for sale to its clients.

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