King Country farm sells for record price

News release

King Country farm sells for record price

A King Country property has sold for $32.5 million, believed to be a record price.

Peter Wylie and Gary Scott of PGG Wrightson Real Estate are the property agents responsible for the sale of the 3,139 hectare Waipa Valley sheep and beef farm.

Peter Wylie says a consortium of investors with a track record in dairy farming has purchased the farm with the intention of using it for dairy support

“This is one of the most substantial North Island farms to come on the market in recent years. As a pastoral property, the farm has easily wintered 24,000 stock units in the past. Its peak season stocking rate is 30,000 stock units.

“There are few properties that compare to this farm. Every aspect of its development to date is exceptional. While it has previously been used to finish sheep and beef, it is well suited for dairy support or dairying.  Its scale and productivity, coupled with the current returns for milk, make this an exceptional opportunity for dairying interests, who have responded accordingly.

“While there is still considerable development required by the new owners before the property can operate as a dairy support unit, its proven productivity over the past decade promise a favourable rate of return on the investment they have made,” he said.

The Waipa Valley farm is approximately 35 km south east of Te Kuiti.

Peter Wylie and Gary Scott held a series of open days on the property in February. The sale was made by private treaty process, which has progressed over approximately the past two months.

In October last year, PGG Wrightson sold a 490 hectare Southland dairy farm for $29.3 million, which was believed to be a record at the time. Taking various other factors into account, the value of the Southland sale equated to approximately $50,000 per hectare.

Peter Wylie said PGG Wrightson Real Estate has sold smaller farms at a comparable or greater price per hectare, but the scale and value of the Waipa Valley property had set a new benchmark.

There is very solid interest from the dairy sector willing to invest in the King Country, he said.

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