We saw an opportunity for New Zealanders to invest in the very land that is the backbone of our country. The benefits of investing in land were obvious to us. But the way to help people benefit from investing in land wasn’t as clear cut.
That’s why we created our Private Land and Property Fund (PLPF). PLPF is a specialised portfolio of unlisted New Zealand agricultural and horticultural land and other property investments.
We’re a nation of land and property owners . Most Kiwis see property as a safe, long-term investment. But more and more people are finding that property ownership is too expensive, too much stress or just simply out of reach.
One alternative is to invest your money in long-term investments. Or, you could set up term deposits. But that’s not always the best answer either. What if you need to access your money quickly? Or want a better return than most term deposits are offering?
We wanted to help New Zealanders invest in something positive, with the freedom and flexibility to access their money when needed – without sacrificing returns.
That’s why we created PLPF. It’s an investment fund with flexibility. PLPF invests back into New Zealand and gives you easy access to your money when you need it.
You can invest a little bit with PLPF now and grow your investment over time. You only need $1,000 to get started.
If you’re new to investing, PLPF is a great way to start building up your investment portfolio with property investments. You’ll be investing in a range of income-generating assets right from the start.
If you’ve already got a nest egg saved, PLPF gives you another option for some of that hard-earned cash. With an aim to have healthy returns and built-in flexibility, it’s a smart way to get the most from your money.
PLPF invests in productive land and property assets. This is often agricultural and horticultural land. These assets are held through our wholesale fund, the Private Land and Property Portfolio (PLPP). The land (or property) is then rented by a company looking to grow or supply crops – for instance, a farmer or viticulturist. That creates an income stream for investors.
Often, these investments have come out of our specialist NZ investment fund, Tahi, so we’re already working with the business owners and understand the returns and potential growth of the investment.
PLPF is listed on the NZX, which gives you more flexibility in how you choose to invest and also, withdraw your money from PLPF.
You can choose to invest in PLPF directly with us, or on the NZX. There's no set investment period.
You can withdraw up to $50,000 in any 12-month period directly from the fund without incurring a withdrawal fee. You can also set up regular monthly withdrawals from the fund.
You can choose to sell your holdings on the NZX at any time.
PLPF isn't a replacement for term deposits. PLPF gives you another option for a portion of money you might have in term deposits - money you want to keep accessible but would otherwise just be sitting there, not doing very much.
|No set investment period||Money is locked away for a fixed period of time|
|Can access money when you need it. No fees on withdrawals up to $50,000 in a 12-month period||Money can only be accessed after the term ends. Penalties apply if you try to access your money earlier|
|Aims to generate 8% target return rate||Term deposit return rates typically between 1 – 3%|
|You can make lump sum payments or regular contributions to grow your investment||Can’t make contributions to a fixed term deposit once it is locked in place|
|Investment designed to keep pace with inflation||Money locked in term deposits may not keep pace with inflation|
|Money is locked away for a fixed period of time|
|Money can only be accessed after the term ends. Penalties apply if you try to access your money earlier|
|Term deposit return rates typically between 1 – 3%|
|Can’t make contributions to a fixed term deposit once it is locked in place|
|Money locked in term deposits may not keep pace with inflation|
PLPF's average long-term return target of 8% is before tax but AFTER all fees, charges and costs. We don’t charge set up or contribution fees.
Because PLPF is actively managed by us, there is a management fee to pay.
|PLPF Annual return||Average target return rate
(after all fees but before tax)
|Management fee||Management fee
(paid to Booster)
|Other management and admin charges||In fund costs||0.10%|
|Property operating expenses (estimate)||3.10%|
|Annual fund charges||Total (estimate)||4.20%|
The long-term annual average return target is 8% over rolling 7-year periods. This is before tax, but after all fees, charges and costs. The return is a combination of income distributions and capital growth.
When the fund pays distributions (usually once a year), you can choose to receive this payment or reinvest it in PLPF.
No investment is without some risk – even term-deposits! One way to manage that risk is to diversify your investment portfolio.
PLPF provides diversification as it invests in land and property. PLPF offers greater flexibility, better returns than term deposits and you have access to your money when you need it. Plus, you’re investing directly back into New Zealand.
PLPF offers diversification across different property types and regions in New Zealand. This means you can access a level of investment diversification that most people can’t achieve without substantial investment sums.
- Portfolio diversification
PLPF offers you an opportunity to further diversify your investment portfolio. By investing in the fund, you’re adding a mix of investment properties into your portfolio – but with none of the associated risk of managing it all yourself!
- Lower return volatility
PLPF offers you more certainty as an investment choice because the fund has lower return volatility. Because PLPF invests in unlisted properties, the investments are not revalued as often as listed property investments - which are typically priced and traded daily on an active market.
- Your investment keeps pace with inflation
With PLPF, the fund is designed to appreciate with inflation, helping preserve the ‘real’ value of your investment.
It’s a good idea to think about the true value of your money sitting in term deposits. Over time you might find that the actual value of your money in a term deposit has dropped – because money in term deposits doesn’t appreciate with inflation.
Eg: if inflation was at 1%, and your term deposit was paying 3%, your ‘real’ rate of return is 2% - and that’s before tax.
PLPF is listed on the NZX, which means you can choose how you invest in and withdraw from the fund.
You can buy shares on the NZX. Or, you can invest directly with Booster.
If you invest directly with Booster, we accept new investments into the fund at the start of each month. You can purchase shares at any time via the NZX.
If you decide to withdraw your investment, you have two options: You can sell directly on the NZX. You'll need to instruct your broker to sell on your behalf.
Or, you can make a withdrawal request to Booster. We process withdrawal requests at the start of each month. The nature of property means that if we needed to sell assets to meet your withdrawal request, it might take longer than our standard timeframes. So you have the option to sell your holdings on the NZX if you need to access your investment more quickly.
Need more info? Download our PLPF Buying and selling FAQs
If you are ready to invest, you can get started here.
It doesn't matter how you choose to invest in PLPF - the outcome will be the same. You'll hold investment units in the Private Land and Property Fund.
It's more about how comfortable you feel about managing your own investment account. If you choose to invest through NZX, this will be managed on your behalf by your broker.
If you choose to invest directly with Booster, you'll get access to mybooster so you can manage your investment yourself. You'll also receive communications directly from Booster.
|Entry fees||No entry fees||Brokerage will apply|
|Exit fees||No exit fees on withdrawals up to $50,000 in a 12mth period. A fee of 1-5% may apply to withdrawals over $50,000 per year||Brokerage will apply|
|Price/Value||Unit price reflects value of the fund's assets||Unit price is set by the market|
|Liquidity||Withdrawals are processed and paid once a month. Given the nature of property investments, withdrawals could take longer, depending on available liquidity.||Trading occurs daily|
|Availability||Under usual circumstances, the fund should be able to accept any investment requests.||The market will dictate the volume of units available to buy and sell.|
PLPF is a listed PIE. This means that the amount of tax the fund pays is calculated at the rate of 28% on its taxable income.
The fund intends to pay an annual distribution which will include any imputation credits. If you are a New Zealand resident individual or trustee investor (other than a unit trust) and your marginal tax rate is less than 28%, you can choose to include the fully imputed portion of the distribution in your tax return, and apply the surplus tax credits against other income on which you are required to pay tax.