Posts filed under ‘Rural Market’

Patoka Dairies (In Receivership)

Auction held at Bayleys Napier office 6 Dec 2013

Ben Alpin and Trig Downs were taken to auction by Receivers PricewaterhouseCoopers on Dec 6 2013.  The auction created significant interest attracting a good turnout.  The properties are situated at Patoka, northwest of Napier City; Hawke’s Bay and have been on the market for the last two years under forced circumstances.

Ben Alpin comprises 351 hectares in total including 290 grazable hectares consisting of some 241 dairy platform 49 hectares of steeper grazable area, the balance including 50 hectares of QEII Bush.  Best production to date includes 209,126 KgMs produced in the 2011/12 production season and is on target to produce 218,000KgMs this season.  A sale price of $5,020,000 was achieved with a number of interested parties bidding, analysis shows a net sale price of $24/kgMs based on best production of 209,000KgMs.

Trig Downs sold after stopping at $7.4M; agents negotiated with the highest bidder and offered the property back to the auction finally selling at $7,500,000.  Analysis of this sale shows a net sale price of $27/KgMs based on best production of 282,000Kgms. The property consists of some 468 hectares with grazable areas of approximately 346 hectares.  These sales are consistent with previous sales in the area, the most recent being other properties sold by the Receivers.

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December 9, 2013 at 2:14 pm

Hawkes Bay Rural Property Market Report Spring 2013

Download a detailed synopsis of the current rural property market with trend graphs showing historical property values.Key highlights

  • Sales of farms greater than 50ha in the Hastings and Central Hawke’s Bay districts are proving particularly slow for 2013 to date and are currently half the total volume experienced in 2012.  The drought at the start of the year had a significant effect on sales turnover.  Average sale price per hectare is slightly back from the buoyant 2012 year.
  • Gisborne and Wairoa sales are relatively slow with sales volume back from 2011/12 that was driven by the forestry industry.
  • Outlook for orchard properties remains in fine balance with long term profitability still the main issue facing growers.  Seven sales to date in 2013 are similar to total sales volume for 2012.  The average land and tree value per hectare has increased some 15% from 2012.
  • Four sales of lower grade cropping properties in 2013 with an average land value of some $37,800.  Prime cropping land still around $55,000 – $60,000/ha.  High demand for bare land orcharding properties to plant new high performing trees.
  • Lower number of viticulture sales in 2013.  The current outlook is positive.
  • 2013 dairy market affected by widespread drought conditions.  The most recent sale is a Patoka property indicating a net sale price per hectare of $16,114 and $21/MS.  Positive market on account of the increased forecast of $8.30 m/s and expected dividend of $0.32 m/s for the 2013/14 production year.
  • Strong demand for mature forestry woodlots on the back of positive log export market.  Log prices are some 12% higher than 2012.  Opportunity exists to reduce contingent liabilities from NZU’s sold by acquiring ERU’s.

November 5, 2013 at 12:26 pm

Hawkes Bay Rural Property Market Report Autumn 2013

Download a detailed synopsis of the current rural property market with trend graphs showing historical property values here.

Key highlights

  • Number of farm sales in the Hastings and Central Hawke’s Bay District for properties greater than 200 hectares are the lowest since 1998.
  • Gisborne and Wairoa Districts farm sales during 2012 again was high with a substantial increase in the average land value per hectare, generally due to higher quality properties being sold.
  • Some recent transactions of dairy properties including a resale in Norsewood equating to a 38% decrease in land and building value over a four year period.
  • An increase in the number of orchard sales near the end of 2012 resulting in a drop in market values with average land and tree values per hectare now around $55,000.
  • Eight cropping sales in 2012 compared to thirteen in 2011 with a slight reduction in land values.
  • 2012 viticulture sales resulted in some forced or near forced sales, particularly of smaller contract grower blocks, which lowered the average land and vine value. The 2013 harvest is looking promising with an estimated 17% increase from 2012 production levels.
  • Land acquired for carbon farming is in minimal demand, with NZU’s reaching an all time low of $1.50 during February. ERU’s are the carbon credit of choice for industrial emitters and foresters with liabilities currently trading at $0.14.  Limited pre 1990 sales.
  • Outlook for 2013 is projected to be steady for most sectors.

April 30, 2013 at 3:14 pm

“KINDAR” Sale

The property of “Kindar” located on State Highway 50, Onga Onga, sold at auction Wednesday 24 April 2013.  “Kindar” comprises a 150ha dairy runoff block with a good level of improvements including a 5 bedroom homestead, woolshed, implement shed, 2 haybarns, and sheep and cattleyards.  Some 30ha of land is able to be irrigated.  Irrigation and stock water is provided from a 200mm bore.  Land comprises 45ha of undulating flats, 34ha of river flats with the balance being cropping land including Hastings, Poporangi and Argyll soils.  The property sold for $2.63M, which is some 18% less than its last sale price at the peak of the market in 2008 of $3.2M.  Analysed land values for the irrigated Hastings silt loam soils equate to $20,500/ha which is similar to other sales on the Ruataniwha Plains over recent times.  This property is located in the proposed irrigation area of the Ruataniwha Plains Dam, and this sale suggests that no premiums are yet being paid to secure land within this area.

April 30, 2013 at 11:25 am

Methlem – Gwavas Road, Tikokino

An auction recently held in March 2013 for a sheep and beef property of some 406ha was well attended.  The auction held at the Waipukurau Club saw bidding by 3 – 4 parties with the property reaching $3.950M before being passed in.  The property located at Gwavas Road, Tikokino, west of Waipukurau, enjoys a balanced aspect with contour described as flat to easy/medium hill with some steep country to the rear of the property.  This quality property has a scattering of Totara and native bush.  Improvements include an established four bedroom dwelling and quality farm infrastructure.

March 11, 2013 at 2:30 pm

CROPPING BLOCK – 41 RICHMOND ROAD, HASTINGS

A recent sale of a well located cropping property in close proximity to Hastings sold under tender in December 2012 for a sale price of $1,050,000.  Soils consist predominantly of Hastings silt loam.  The 16.43ha property has a cottage in fair condition, bore and a number of sheds of limited value.  The sale equates to an average gross sale price per hectare of $63,890.

January 22, 2013 at 1:17 pm

RAWHITI DAIRY SALE – TAKAPAU PLAINS

A significant sale of a large scale dairy unit recently occurred.  Rawhiti Dairies is located in the Ashcott district of Central Hawke’s Bay, 18km northwest of Waipukurau.  The property consists of 464ha of dairy farm and 150ha of support block across the Tukituki River.  Rawhiti was converted to dairy from cropping and dry stock with milk production commencing in the 2008/2009 season; production for 2011/12 of 604,200kg MS was achieved and continues to trend upwards with targets of 620,000/650,000kg MS set for the 2012/13 season.  The sale price of $14,500,000 includes land and buildings, excluding dairy company shares.  Major improvements include 5 dwellings, 60 bail Waikato rotary dairy shed with in-shed feeding system, Protrack automation, and other auxiliary infrastructure.  The property is partially irrigated covering 332ha via one fixed and one moveable centre pivot irrigator with 80ha covered by 2 gun irrigators.  Based on last year’s production this sale price equates to some $24/kg MS.

January 22, 2013 at 1:16 pm

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