Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Equity partnership sought for large-scale farm ownership

Equity partnership sought for large-scale farm ownership

One of the oldest and most historic farms in the North Island is being marketed for sale – with a private equity partnership being marketed as an option for investors. A maximum of $6million of equity is on offer.

The 1179 hectare Gwavas Station, which is currently a sheep breeding and intensive bull beef finishing farm in Central Hawke’s Bay, is capable of wintering approximately 13,500 stock units. The farm has been owned by the Hudson family and direct descendants since 1856.


Click for big version


Caption: The ‘new age’ of rural real estate ownership in New Zealand – Gwavas Station in the Hawke’s Bay is being marketed for sale to a group of equity shareholders.

The equity partnership sell-down of the station aims to attract shareholdings of between $500,000 and $6million – depending on the number of investors. Farm owners John and Fiona Hudson intend to retain a minimum 30 percent stake in the business, but may consider other options.

The property has been developed as an intensive pastoral farm, and is currently subdivided into some 100 main paddocks with an average size of seven hectares, including approximately 300 hectares utilising an intensive grazing system. Cash and fodder cropping activity is also undertaken on the farm.

The Gwavas equity partnership is being marketed nationally through Bayleys Real Estate in conjunction with GoodmanRural and AgPlus. Bayleys Hawke’s Bay director Glynn Rees-Jones said the $500,000 proportional price tag allowed entry into commercial farming at a level lower than full property ownership, while making provision for high-level investment.

Mr Rees-Jones said the private offering had been put together under strict adherence to the Securities Act, and suited passive investors with an interest in the long-term future of New Zealand’s primary produce sector.

“Opportunities to purchase passive investments in agribusiness – particularly rural land of this type - are scarce, and Gwavas represents true quality,” Mr Rees-Jones said.

“Under the equity partnership proposed, existing owner John Hudson will continue to manage the property as farm manager and maintain a shareholding, as well as retaining the two existing fulltime staff who have individual enterprise management responsibilities in their respective areas,” he said.

The Gwavas farm occupies 1001 hectares, while an adjacent 178 hectares is leased by the business under a long-term agreement – providing approximately 1100 hectares of effective farming land.

Key buildings on the farm include a large homestead dating back to the mid-1800s, along with two other three-bedroom staff homes, a five stand woolshed, three sheep yards and three additional sets of cattle yards.

“The property – due to its contour and soils – is generally free-draining. A considerable number of shelter belts were planted in the 1980s and 1990s to increase shelter for stock and pastures. Gwavas Station has also invested in well-drilling, and there are applications for water consents which will allow multiple land-use options to be considered id secured,” Mr Rees-Jones said.

A confidential information memorandum on the farm’s operations and investment are available from the offices of Bayleys, AgPlus or GoodmanRural – with applications closing on December 15.

Mr Rees-Jones said that while the owner’s preference was to sell the property to an equity partnership, an outright sale to individual buyers outside the equity partnership would be considered.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:



Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: