Click photo to enlarge
Hillend Station occupies the flanks of Mount Alpha,
overlooking Wanaka. Inset: Sam Morgan
TradeMe's founder Sam Morgan is now the proud owner of an
iconic high country sheep station near Wanaka.
Infinity Investment Group said the sale of Hillend Station to
JIT Hillend Investment Ltd, a company controlled by interests
associated with Mr Morgan, settled today.
The price was $25 million plus goods and services tax. Mr
Morgan did not return messages and the vendor is not saying
what his plans are for the property.
Mr Morgan said in a statement issued by Infinity that he was
delighted to have secured ownership of the station.
"It's an exciting new challenge for me and I look forward to
investing further in the region, while continuing all of
Infinity's good work in preserving the unique beauty and
character of the area," Mr Morgan said.
Infinity owned the property for nine years and had it valued
at $33m. It has two consented development options. One is 41
lot farmpark and the other a subdivision into 31 titles of
20ha.
Mr Morgan could pick up either option or continue to run the
station as a high country property.
"It is a very exciting opportunity for him. What we have got
here is an iconic South Island property," said Infinity's
general manager Marc Bretherton.
He said $25m was a fair price in the current climate.
Hillend is 2665ha and is on the lower slopes of Mt Alpha.
Earlier this month the Government purchased St James high
country station in North Canterbury for $40m and it plans to
open the station to recreational users.
Infinity has about $1.6 billion of property developments in
the South Island, including the Pegasus township near
Christchurch.
Property developers around the country are under severe
pressure as funding becomes harder to source as global
financial markets meltdown and as property prices decline.
Investors who are cashed up are in a good position in the
current climate to take up opportunities.
Mr Morgan is estimated to be worth about $260m after TradeMe
was sold to Fairfax Media for $750m. He is now chairman of
the company.
The Otago Daily Times has reported that the Hillend
development projects have projected revenue of $67m.
Mr Morgan's other business interests include Jasmine
Investments, a company set up to provide cash for smaller
technology companies.
