Te Awamutu-based Property Brokers rural sales consultant Dave Peacocke says the buyers were all farmers or farming businesses based in the area.
He says in autumn this year Property Brokers had five properties, four dairy farms and one drystock operation available for tender. That process was interrupted by the covid lockdown but one of the dairy farms and the drystock farm were sold in October, although the prices are confidential at this stage.
The remaining three dairy farms went to auction on November 6. Each property was inspected by between six and eight qualified parties.
On the day there were four bidders for a farm known as Tokoroa Downs, while Twin Lakes farm and another farm at Whakamaru had three bidders each.
All the farms contain areas of forestry under forestry right. Tokoroa Downs has a total area 593ha, with the dairy platform 546ha. The sale price per dairy hectare was about $27,500 for a total of just over $15m for the dairy platform.
Twin Lakes has a total area 482ha, with the dairy platform 367ha. The sale price per dairy hectare was about $25,600 or $9.4m for the dairy platform.
The Whakamaru farm’s total area is 494ha, with a dairy platform of 470ha. The sale price per dairy hectare was about $24,400 or just under $11.5m for the dairy platform.
The prices quoted are for the dairy platform only, with the forestry value deducted.
The dairy platforms included the complete package of effective pasture area, sheds, houses and races.
Two of the farms sold to neighbouring farming families, while the third sold to a south Waikato-based multi-farm owner.
Peacocke says there was strong competition in the bidding.
He says the prices paid show that banks are willing to lend money to support dairy farm purchases if the farmers wanting the money are in a strong financial position.