Willowford Dairies and Gwavas Station sell on the hammer

February 18, 2011 at 4:12 pm

Willowford Dairies and Gwavas Station Sold at auction for $6.25m and $9.2m respectively on the 18 Feb 2010.

Willowford Dairies, a third year conversion completed to a high standard comprised a 60-bail rotary cow shed with cup removers and individual cow monitoring, two herd homes and approximately 240ha of the 320ha milking platform irrigated. Production history has been 239,323ms in 2008/2009, 159,513ms in 2009/2010, and on target for 191,000ms for 2010/2011. The average will be 196,500 if this season continues to plan. The sale price excluding shares, dairy shed and irrigation plant is $29.15/ms, or $24.30/ms on 240,000kg/ms. Analysed milking platform land values are $11,000/ha for the irrigated land and $8,000/ha for the non irrigated land. The property has some rolling to medium hill in the non-irrigated area. The terms and conditions of sale make analysis of the property difficult to assess market trends of dairy farm values in the Willowford/Patoka districts.

Gwavas Station, some 50km west of Hastings comprising some 1000ha of freehold land and a further 178ha of leasehold land was king pinned by the purchaser at the auction after a recess was called with bidding at $6m. After a delay in proceedings, the auctioneer returned to bidding stating the that he held a bid at $9.2m and the property was on the market. No further bids were received, so Gwavas was sold for $9.2m. Carrying capacity is arbitrary due to the amount of trading stock carried, but at 10,400su on the freehold equals $885 per stock unit. On the Freehold land area, the average sale price is $9,136/ha and land value of $7,520/ha. We call this a very good sale and shows that there is life out there after all.

Both properties sold to Hawke’s Bay farming identities.

Entry filed under: Rural Market.

Hawkes Bay Rural Market Report February 2011 Hastings and Napier commercial property market update


February 2011

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