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Northland rural portfolio offers exciting potential
Media Release
Northland rural portfolio offers
exciting potential for savvy operators
One of
Northland’s largest farming portfolios has come to the
market at a time when the region has been capitalising on a
wave of ‘out-of-towners’ snapping up farmland that is
extremely price-competitive when placed in a national
context.
The seven dairy farms and three support blocks are in a tight cluster located close to the rural service town of Kaikohe and, combined, offer a total of landholding of 3,300 hectares milking around 3,900 cows. They are for sale individually, or as a portfolio by tender closing 27 November.
“This is a significant opportunity to invest in the future of New Zealand dairy farming which is a leading light on the global agri-stage,” says director of Bayleys in the North, Mark Macky.
“A new owner could successfully leverage off the time, work, energy and investment that has gone into creating this substantial dairy operation which is experiencing an increasing production curve with considerable growth and development potential still available.”
“We recognise that this portfolio will generate huge profile for farming in this part of the country and open up potential pathways for established New Zealand dairy farming entities who have, until now, not typically considered the Northland rural market.”
The Bayleys Northland rural team has brokered a significant number of Northland dairy farms in the past 18 months to buyers from outside Northland who recognise the value of Northland dairying and support land, and who have eschewed the more high-profile areas such as Waikato, King Country, Taranaki and Canterbury in favour of the North.
REINZ data confirms a recent upswing in the Northland rural market. Latest figures show that there were 159 farm sales within the Northland region in the 12 months to June 2014 – the highest figure since the September quarter of 2008 and 137 percent up on the cyclical low of 67 sales recorded in the year to June 2011.
“Another indicator of the current interest in the Northland market is the fact that sales continued over the winter period which has not been typical in recent years,” says Macky.
Dairy farms in Northland represent some of the most cost-effective dairying land in New Zealand and come with tangible upside given the potential for growth.
“The combined properties within this portfolio for sale are forecast to milk in excess of 1,200,000kgMS this season and there are identified opportunities to further increase production levels,” says Macky.
“Some of the dairying blocks are transitioning to new boundary structures and there is scope to lift production as a result. Irrigation is already in place on some of the farms, fed from a 14.8 ha lake, and plans are in place to further develop the irrigation schemes which will help drive production growth and protect from any possible adverse climatic events.
“The properties have also had a proactive and well-planned regrassing programme in place with most utilising summer crops then returning the paddocks to perennial rye and clover pasture.
“In addition, a thoughtful and production-driven supplementary feed programme is being bedded in which will support production targets. A proactive new owner will quickly identify a few initiatives that may generate significant production gains and lift the performance of the dairying platform.”
The dairy units on offer comprise a total owned milking platform of approximately 1,543 hectares and a further 275 hectares of neighbouring leased land.
Access on the farms is streamlined with efficient tracks and races and fencing is of a high standard.
The three support blocks offer a further 1,000 hectares in owned grazing land.
Kaikohe is strategically-located within the Northland province and as a service town provides a necessary and important function within a well-established farming district.
“The lifestyle benefits of this region cannot be underestimated,” says Macky.
“This is an unprecedented opportunity to secure a sizeable chunk of Northland dairying land that offers real scale as well as further development potential.
“Dairying continues to define New Zealand’s agricultural sector and it is an enduring industry with exciting prospects for growth.”
ENDS
Bayleys Real Estate
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
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