MyFarm $13m Rockit apple investment offer closes oversubscribed
Global demand for the snack-sized apples is running ahead of production.
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MyFarm Investments, which pools funds for rural investment, says its $13 million offer for growing miniature Rockit snack apples has closed oversubscribed.
The offer, under the Rakete Orchards Ltd Partnership, closed on December 15 having attracted 67 investors with an average investment of $195,000, the company says. The partnership will lease and fund the planting of 55ha of the Rockit apple variety in four orchard blocks in the Heretaunga Plains of Hawke's Bay.
Rockit apples are packaged in a distinctive plastic tube and were developed in New Zealand. They are grown under licence in nine countries and sold at airports, sports stadiums and cafes in 29 countries.
Rockit Global is struggling to grow sufficient apples to meet global demand and in 2017 the miniature apples sold out 10 weeks earlier than the previous season despite a 40% lift in production.
"The enthusiasm of investors' response, especially at this time of year, shows New Zealanders understand and want to share in great brand stories like Rockit," MyFarm chief executive Andrew Watters says.
Rockit Global holds the worldwide exclusive licence for the snack-sized apples and will provide the trees, orchard management services, packing and storing, and marketing and sales.
Rakete Orchards will lease the land, with a term of 18 years plus two rights of renewal of five years each, suiting the production of the trademarked apple, which has a further 22 years to run under its plant variety rights.
Mr Watters says 25 staff from MyFarm and Rockit Global have invested in the partnership through a special company set up to give them access to the offer.
MyFarm was set up in 1990, initially investing in dairy farms which it syndicated to investors. It has since diversified into sheep and beef farms, horticulture, manuka honey and rural commercial property. It has more than $500 million of rural assets under management.
(BusinessDesk)
Tina Morrison
Wed, 27 Dec 2017
Wed, 27 Dec 2017
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MyFarm $13m Rockit apple investment offer closes oversubscribed
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