The agreed sale price for seven dairy farms and three support farms north of Twin Bridges on the Mangakahia River towards Kaikohe is $42.7 million.
The farms cover 3000 hectares freehold and 300ha leasehold, and contain 3900 milking cows producing about 1.2 million kilograms milksolids annually.
This makes the sale price an average of $14,200/ha and $35.60/kg MS.
Shanghai Pengxin said it was making the purchase through a majority-owned subsidiary called Dakang New Zealand Farm Group, part of the Shanghai-listed Hunan Dakang pig farming company.
Shanghai Pengxin owner Jiang Shaobai also owned 55% of Hunan Dakang.
The Pinny farms purchase was subject to Overseas Investment Office approval, along with three other applications made by Shanghai Pengxin to transfer ownership to Dakang of the 16 former Crafar dairy farms; to buy Lochinver Station for $88m; and to buy another large Taupo farm from Fleming and Co for $22.75m.
If approved Dakang NZ would have nearly 30 dairy and dairy support farms in the North Island and the big job of converting parts of Lochinver and the Fleming stations to dairying.
Shanghai Pengxin said Dakang shared its commitment to development as evidenced by $12m worth of capital expenditure on the Crafar farms improve productivity, environmental enhancements and better living and working standards for staff.
“The Pinny farms have the potential to be highly productive but are currently under-capitalised and have been managed remotely,” Dakang NZ chief executive Andrew Macleod said.
The centrepiece of the group is Ngatitara Farm on the Mangakahia Rd, which includes a 15ha lake that offers irrigation opportunities.
All seven dairy farms have consecutive Fonterra supply numbers and either adjoining or within a few kilometres, while the three support farms are nearby.
The properties were marketed internationally by Bayleys.
