Booster will be listing its $50 million Private Land & Property Fund on the New Zealand Exchange this Wednesday (18 September). The fund provides a unique opportunity to connect investors with quality property investments.

“We strongly believe that the fund is a very important investment option, particularly in the current low-interest climate,” said Paul Foley, Chairman of Booster Financial Services Ltd.

“Reserve Bank Governor Adrian Orr has talked about this very issue, asking savers to look at alternatives to long-term deposits.” The Private Land & Property Fund is two years old, but this NZX listing enables units in the fund to be bought and sold more regularly by investors.

“We are pioneering a new category for retail investors. This is good news because it provides them with a unique property investment option made up of productive provincial and rural New Zealand land. For two years we have exceeded our own expectations and delivered returns to investors of 11.1% before tax. It is time for more investors to enjoy the kind of returns the fund aims to provide,” said Foley.

The listed fund is a property investment with good liquidity options. Listing the fund provides the daily liquidity of the open market, allowing investors to cash up when they want to.

“Listing the Private Land & Property Fund will provide greater visibility to the general public,” said Foley. Booster believes investors will choose to divert some of the $300 billion currently sitting in term deposits to the fund. The Private Land and Property Fund, a Portfolio Investment Entity (PIE) aims to generate annual long-term returns of about 8% before tax after all fees and on a seven-year investment timeframe.

The fund currently invests in agricultural land. The properties are in the North and South Islands and are vineyard properties. Further horticulture properties are in the pipeline. Investments are likely to broaden over time, and may be supplemented with industrial, commercial and retail properties.

The compliance listing allows investors flexible access to the fund. They can buy and sell on the open market whenever they want to. They also have the option to invest directly through Booster Financial Services as has been the case since its inception.

“It’s another way for retail investors to have freedom and control of how they want to grow their portfolios,” said Foley.

Booster’s Private Land & Property Fund was originally conceived after Booster began investing in successful unlisted New Zealand companies, many of which have a strong reliance on land.

“We have seen the challenges low interest rates create for savers,” said Foley. “The Private Land and Property Fund was the company’s response. It connects savers with income-generating land investments and the lower volatility of unlisted property.

“We do not believe New Zealanders should put all their eggs in one basket,” he said. “High returns often come with higher risks, so it is a good idea for investors to diversify their portfolios. The Private Land & Property Fund is attractive for investors who can’t weather short-term fluctuations or are vulnerable to life events. We have had good support and this listing will enable more investors to participate.”

The fund is supervised by Public Trust. It is Booster’s first public listing. Booster has two other specialist investment funds. Booster Tahi LP owns New Zealand businesses, predominantly operating on land owned by the Private Land and Property Fund and the NZ Innovation Booster invests in university intellectual property in conjunction with Victoria University of Wellington. Booster manages $3b across its range of KiwiSaver and Investment funds, most of which have an exposure to its specialist funds.Paul Foley, Chairman of Booster Financial Services Ltd rang the bell in Wellington’s NZX offices yesterday morning to celebrate Booster’s $50 million Private Land & Property Fund (PLPF) listing.

PLPF is the first of Booster’s funds to be listed on the NZX and it’s the first fund the NZX has listed under its new rules.

“We strongly believe that the fund is a very important investment option, particularly in the current low-interest climate,” said Foley.

The listing on NZX will bring an avenue for increased liquidity for investors who, depending on how the market operates, should be able to buy and sell whenever they want to.

“Listing the Private Land & Property Fund will provide greater visibility to the general public,” said Foley.