The first offering for direct public investment into a dairy farm is out of the starting gate, having raised a minimum $2 million required, triggering the unconditional purchase of the Mid-Canterbury farm.
Work has already begun on preparing a Southland dairy farm for similar investment.
After PRD Investments Ltd opened the two-week offer, it was extended a week and closed on August 9.
A total of about 40-45 investors put up the minimum $20,000 each to purchase their shares, with subscriptions edging beyond the minimum $2 million threshold, MyFarm director Andrew Watters said.
''We have now gone unconditional to buy '' the Mid-Canterbury property, Mr Watters said when contacted.
PRD Investments Ltd is looking to raise $9.5 million, including up to $3.8 million from investors, to purchase the 181ha, going-concern, Poplar Rd farm in Mid-Canterbury for $13.75 million, which includes land, plant, 690 cows and Fonterra shares.
Promoted by MyFarm, which itself has $500 million tied up in 47 dairy farms, PRD Investments is offered the ''collective investment vehicle'' to pool smaller public investments to make a larger investment. Each property is a separate, stand-alone, investment.
Poplar Rd farm would be purchased from a MyFarm syndicate, which would initially get paid a $455,000 establishment fee and then after that charge a 0.5% annual management fee.
The offer has a registered prospectus and plans to list to attract small investors. MyFarm also has other syndicates operating, but they have a minimum threshold of $250,000, with the average subscription being about $500,000.
''It was slow getting started and we had to get the prospectus through the FMA (Financial Markets Authority). The Fonterra [contamination] scare was not helpful, but we got beyond the minimum,'' Mr Watters said.
When first going public with the offer, Mr Watters hoped if the ''collective investment vehicle'' was attractive to smaller investors, four to five farms a year could be syndicated in this way by MyFarm.
Analysts have said the liquidity, or tradeability of the shares, will be crucial for the new syndicates to work.
The prospectus outlined future plans for trading on the Unlisted platform, which Mr Watters has said would be a priority to achieve before the end of the year.
Craigs Investment Partners broker Peter McIntyre said PRD would likely be happy with the offer having begun, while investors will be pleased they will have a share in both milk payouts and Fonterra's value-added shares.
''They [PRD] will want to get a number of these syndicates under way to form a [share] trading base.
''Being listed remains key and once trading gets under way it's likely the investment will become more popular,'' Mr McIntyre said.