One of the country's largest farm offerings is on the market
in Southland, the more than 2000ha made up of nine farms held
by state-owned enterprise Solid Energy.
Solid Energy had purchased masses of Southland land covering
millions of tonnes of lignite, but in 2012 came close to
collapse under debt and accumulated losses, before being
bailed out by the Government in a refinancing package with
its banks. PGG Wrightson real estate general manager Peter
Newbold said the properties were likely to be well received
by the market as in recent months demand for dairy land had
He did not believe the nine-farm offer would flood the
market, noting farm listings had been tight in recent times.
''Investors are motivated to take advantage of the
international market for milk powder, which is driving up the
forecast dairy payout. For the same reasons, dairy farm
owners are reluctant to sell,'' Mr Newbold said. The farms
were all within a 5km radius between the Mataura and Gore
townships, and located close to Fonterra's Edendale
The farms were on ''favourable soils'' and, if developed
further by new owners, productivity could be increased. The
farms, either individually or as a whole, were for sale by
tender, closing on April 3.
Its nine Southland properties are. -
• Three dairy farms milking 2015 cows; targeting 785,000kg of
milk solids this season.
• Two dairy conversion properties, totalling 550ha.
• Four dairy support properties totalling 580ha.
• The nine farms range in size from 33ha to 399ha, and total
SOURCE: PGG WRIGHTSON