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

 

Half Share for Sale in Large Pastoral Farming Portfolio

Half Share for Sale in Large New Zealand Pastoral Farming Portfolio


13 August 2015 – Half the shares in a large pastoral farming operation, New Zealand Pastures Ltd (NZP), are being offered for sale.

NZP is a private company that owns seven properties in Otago and Canterbury with a combined value over $100 million. Its portfolio comprises two partially irrigated and five dryland farms, ranging in size between 958ha and 7,533ha that have been predominantly managed as lamb and beef grazing and finishing units. Combined land area is 23,500ha with an assessed carrying capacity around 140,000 stock units.

NZP trades as Greenfield, and underwent a major restructuring process in 2013 to become internally managed. Its largest shareholder is a Netherlands-based pension fund, which will retain its 50% stake. The divesting shareholders are a small group of professional and institutional investors.

The sale is being handled by Greg Anderson, a director of Northington Agricapital and Shane O’Brien, national director of rural and agribusiness for Colliers International.

“Unlike the dairy industry, red meat is facing a better time and good well managed farms continue to generate attractive returns. The NZP farms are located in Canterbury and Otago, traditionally strong sheep and beef areas with a long history of good quality stock performance,” Anderson said.

NZP is looking for one large shareholder to acquire the half share on offer.

“This is an opportunity to invest in an established vehicle which has a strong performance record and on-going growth prospects. The scale of this offering makes it unusual and we believe it will appeal to long-term investors looking for value-add opportunities.

“NZP is well positioned to improve its performance by further expansion of the productive dryland on all existing properties together with increased irrigation using existing water rights. Two of the seven properties are partly irrigated, and there is the potential to irrigate an additional 670ha over three properties. We also see an opportunity for the development of branded products, and potential investment in processing and distribution capability.”

Anderson said the shareholders who were selling have enjoyed strong returns and are now looking for new opportunities.

NZP is targeting annual cash yields in the 4%-5% range and expects continued strong capital growth.

The portfolio consists of:
· Hitchin Hills, Hurunui. A well developed and partly irrigated grazing and finishing property with total area of 958ha.

· Three Rivers. Located near Kaikoura, a 1,534ha grazing property that has undergone significant development.

· Grantham Springs. 1,312ha of grazing and finishing land in North Canterbury.

· Hills Creeks. Located in Central Otago, a large developed dryland sheep and cattle finishing property covering 3,767ha.

· Huntleigh. An amalgamation of three adjoining properties in Central Otago. Total land area of 6,404ha, extensively developed for finishing and grazing.

· Quailburn. Just out of Omarama in North Otago, a 1,802ha grazing and finishing property with further irrigation potential.

· Styx. A well developed Central Otago grazing and finishing property (7,533ha) with further irrigation potential.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>


Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>