Record Price For Lower North Island Farm Sale

Record Price For Lower North Island
Farm Sale

Bucking the national trend of slowing farm sales and a slump in values, a substantial breeding and finishing farm east of Taihape has just sold for a lower North Island record-breaking price of $12million.

Peter Stratton of Bayleys Taihape completed the transaction for Kaiangaroa Station which was sold to a group of investors under the MyFarm umbrella. The $12 million price achieved eclipsed the previous lower North Island record farm price set by Bayleys in May 2006 with the sale at auction of Otiwhiti Station in Hunterville for $8.75million.

Mr Stratton said MyFarm’s purchase of Kaiangaroa Station is a bold move in what is currently a hesitant market and says with family farmers reluctant - or financially unable - to invest in the current market, large scale quality properties are increasingly catching the eye of long-term corporate investors.

“It’s an exciting investment for a district dominated by family farms and more traditional ownership structures and the sale will no doubt create a lot of interest in this tight-knit farming community,” he said.

With traditional paths to farm ownership challenged by the current economic environment and an increasing demise in family succession plans, equity partnerships such as those demonstrated by MyFarm sees the experience of established farmers harnessed under an ownership structure that spreads the risk and returns.

“The group that now owns Kaiangaroa Station includes experienced farmers Guy and Jennie Melville as the cornerstone investors. The Melvilles will manage the station according to the MyFarm business plan that proposes to breed and finish lambs and graze dairy heifers and calves,” Mr Stratton said.

“This involves running capital stock at only two-thirds of capacity to maximize the returns available from finishing up to 22,000 lambs – some for superior margins – in the late winter and spring,” he added.

The 1278 hectare farm in the heart of the Pukeokahu district close to Taihape is widely regarded as one of New Zealand’s most attractive and most productive breeding and finishing properties. It was recently confirmed by independent consultants Baker and Associates as performing easily within the top 10 percent of farms in its class.

The investment group says consistent contour, climate and good soils coupled with the well-maintained infrastructure of the property and sound equity management structure underpins the reliability of income.

Record price obtained for high-performing breeding and finishing property in Pukeokahu district near Taihape.

ENDS

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