Stake in mega farmer for sale
A HALF stake in a $100 millionplus pastoral farming operation in Otago and Canterbury is up for sale.
New Zealand Pastures owns seven farms, ranging in size from 958 hectares to 7533ha, which are predominantly used for lamb and beef grazing or finishing units.
Combined, they cover a land area of 23,500ha with capacity for around 140,000 stock units.
NZP trades as Greenfield, and its largest shareholder is a Dutch-based pension fund which will retain its 50 per cent stake.
The other half is held by a small group of professional and institutional investors.
Greg Anderson, a director of Northington Agricapital and Shane O’Brien, national director of rural and agribusiness for Colliers International, are handling the sale.
Anderson said NZP was preferably looking for one large shareholder to acquire the stake.
‘‘The scale of this offering makes it unusual and we believe it will appeal to long-term investors looking for value-add opportunities.’’
The farms were well positioned to expand its productive dryland together with increased irrigation using existing water rights, Anderson said.
‘‘Two of the seven properties are partly irrigated, and there is the potential to irrigate an additional Hitchin Hills (958ha grazing and finishing, in Hurunui) Three Rivers (1,534ha, grazing, near Kaikoura) Grantham Springs (1,312ha grazing and finishing, North Canterbury) Hills Creeks (3676ha, dryland sheep and cattle finishing property, central Otago) Huntleigh (6404ha, 6404ha, three adjoining properties, finishing and grazing in Central Otago. Quailburn (1802ha, grazing and finishing, near Omarama, North Otago) Styx (7533ha, grazing and finishing, Central Otago) 670ha over three properties.’’
NZP is targeting annual cash yields in the 4-5 per cent range and expects continued strong capital growth.