Inviting an Investor to a Growing Operation: Coolavin Limited Partnership

Our business goals

Our aim is to develop a high performing, irrigated finishing & grazing unit that pays out a 5% p.a. return on invested capital within 3 years of purchase. This investment's initial commitment period is 5 years, with an expected 10 year+ life span. The Ida Valley is ripe with opportunities for expansion that could be considered once cash flow is proven, if all shareholders were in agreement.  

Our experience

We are passionate farmers with over 20 years experience in the rural industry. Richard (45yo) graduated from Lincoln University with a Bachelor of Agricultural Science (hons) in 2001. He then began a career as a Farm Consultant for PGG Wrightson for 6 years, before joining Rabobank in Gore in 2007. Over 13 years at Rabobank, Richard worked from a Rural Manager, up to Branch Manager and on to Major Agri Client Manager.

Alongside working, Richard built his farming portfolio, which involved share farming (2002-2009), leasing (2004-2007) and a dairy equity partnership(2006-2014); before moving back home in 2009 to lease the family's 200ha sheep and beef unit at Pukerau. With Renee he then purchased The Forks at Shingle Creek in 2013 (1,464ha - 3,700su - employed a Farm manager), adding a neighbouring 220ha to this in 2019, at which time the combined operation ran 7,000su.

By 2021 with 3 children in the mix it was time for a change in pace. The decision was made to finish at Rabobank and to sell both properties, consolidating them into one farming business. The Coolavin property was purchased to develop a finishing unit, with livestock sourced from Fernvale Genetics Ltd in Moa Flat (The Copland's also purchased a 25% share of Fernvale Genetic's livestock - a 40,000su stud/breeding operation). Fernvale Genetics has leased Coolavin since its purchase, but will exit with the proposed land purchase restructure to form Coolavin LP.

Richard has continued some part time consultancy work (generally in an advisory board role) to utilize his strong financial and analytical skills, and to keep current with leading edge farming systems. He is off farm one day per week between Fernvale Genetics and farm consulting.

Renee trained as an Occupational Therapist, working for Southern DHB before becoming a fulltime mum. Farm raised, Renee is a capable stockmen and enjoys being part of the farm team.

Why we are you exploring a farming partnerships

Timing is not perfect for us to expand right now, but a great opportunity has appeared on our doorstep. We'd rather share this opportunity than miss it, and have been part of successful partnerships before.

The land at Poolburn is exceptionally good finishing country. The soils versatility and ability to winter heavy cattle to supply markets out of season, helps underwrite good cash profitability; while it's developed value at $25,000-$28,000 per pivot irrigated hectare compares very favourably with irrigated Canterbury and North Otago, relative to its productive potential. Our irrigation cost inclusive of water, electricity and repairs & maintenance is under $250/ha per year, which combined with the above would support an increase in capital value over time. For these reasons, and to gain further economies of scale around labour and livestock pricing etc, we are actively looking to raise capital with like minded people to grow our Poolburn business.  

What we would value most in a partnership

Honest and clear communication, where all shareholders goals are aligned, and a win-win is created. While its ultimately up to us to deliver, more heads can be better than one, and we'd love all shareholders to feel part of, and have the same sense of pride in the business that we do.

Why we would be a great partner

During my time at Rabobank I helped establish many successful equity partnerships, and have good first hand knowledge of how to create a win for all parties. We have great people skills, a proven track record, and are 100% committed to making this work.

Other important things to mention

The time frame is tight with a due diligence period within the purchase agreement already ticking. However, we are confident that if we are making genuine progress an extension will be granted.

A full Information Memorandum is available on request. We'd love the opportunity to discuss this further with you.