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Lockdown auction achieves record sale price

The rural property has also set an agency record as the most expensive property sold by Bayleys via live virtual auction since lockdown restrictions were put into place more than two weeks ago.

Alert level four lockdown restrictions didn’t allow Bayleys country real estate agent Mike Fraser-Jones much time to come to grips with the technological nuances of live virtual auctions.

Though, the industry veteran has just shown how he earned the title ‘rural real estate’s billion-dollar man,’ setting a new record of $120,000 per hectare for a dairy supply farm in Morrinsville.

The 50ha farm at 224 Maungakawa Road, Morrinsville was sold by live virtual auction yesterday for $5,950,000 to a local investor.

Bayleys Waikato general manager Mark Dawe says the result demonstrates strength in the rural market, with New Zealand’s recent scale-up of the alert level system failing to overcome current demand.

“Rural sales, especially for farms in preferable locations with family benefits continue to provide welcome options for Kiwi buyers,” he notes.

In addition to the modern 16-aside dairy supply farm, the property comprises a 250sq m (more or less) three-bedroom brick and tile home with a view northeast to the Kaimai Mountain Range.

A calf rearing and implement storage shed are located adjacent to the main dairy shed.

In addition to this, there is an in-shed feeding system with a 16-tonne silo and pit area with rubber matting for milker comfort.

Water is sourced from a bore with submersible feeding to a manacon tank, and pressure pumped around the farm to troughs in each paddock.

Land contour is a mix of flat-to-gently rolling pastures with the soil being mostly fertile Kereone loam.

Fraser-Jones who marketed the property for sale, says its greatest asset is the link with the Tatua Dairy Co-Operative, which last year paid its 106 shareholder milk farms $1.51 more than their Fonterra counterparts.

The company, based in the Matamata-Piako district achieved group earnings of $151 million in its financial results for 2019/20.

“Only a few farmers in the Waikato dairy district supply the Tatua Dairy Co-operative in exclusive agreements,” says Fraser-Jones.

“The opportunity to supply Tatua means virtual certainty for income, with the benefit of belonging to a high-value, niche company,” he adds.

The supply farm is presently share-milked with 170 cows, and production last season noted just over 82,000 milk solids.

The property was sold inclusive of 75,000 Milk Solid Entitlements (MSEs), and Tatua Shares equating to this season’s production.

Fraser-Jones notes the property is superbly located within the North Island’s economic ‘golden triangle’ of Auckland, Hamilton and Tauranga, contributing to its appeal to a variety of buyers.

Three bidders appeared by virtual link and over the phone in an auction that lasted less than 10 minutes.

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