The $120,000 a hectare is a record for a Waikato dairy farm though the buyer, who is a neighbour, intends decomissioning the dairy operating to focus on horses run in conjunctionwith his existing equine operation, PGG Wrightson Real Estate agen Martin Lee said.
The farm, between Maungatautari Road and the Waikato River, was owned by one family for 120 years.
It attracted considerable attention, Lee said.
“Previously the highest price paid on land and buildings for a Waikato dairy farm was a May 2016 transaction when a 107 hectare Clevedon property changed hands, also for $11.1m. That equates to around $104,000 per hectare making this sale a clear record for a Waikato dairy farm.
“Interest in this farm covered a range of different parties. We had more than 70 people in a packed auction room.
“This property’s appeal was increased by its proximity to Cambridge and its potential for development,” he said.
PGG Wrightson Real Estate North Island auctioneer Sloane Morpeth, who conducted the sale, said “We started the auction at $4m and bidding progressed at a healthy pace. After our vendor confirmed the property was definitely for sale, at $7m, the intensity raised another notch.
“By the time the hammer fell we had received 55 bids from four different bidders,” he said.
“We received plenty of interest from local dairy farmers.
“Sitting so close to Cambridge developers were also in attendance and that potential is still on the table for the farm in the long term.
“However, the new owner intends to continue farming this property, albeit decommissioning the dairy shed and shifting its focus to horses,” he said.
PGG Wrightson Real Estate general manager Peter Newbold, who attended the sale, said it reflected the underlying strength of the rural property market despite the various challenges facing the dairy sector.
“Mycoplasma bovis and changes to overseas ownership regulations are making decisions around investment in dairy more complex, which is holding that part of the rural property market back as farmers work their way around those issues.
“However, good sales like this one demonstrate that the positivity in the wider rural sector remains, with excellent demand for properties with the right characteristics,” he said.
