Wednesday, December 6, 2023

Mahia station for sale offers options

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The opportunity to invest in valuable finishing country close to the coast and well positioned to strong breeding country has arisen at Mahia, north of Wairoa.
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Faithfully farmed as a dairy unit for the past 25 years, Pahnui Station provides a number of options and opportunities given its blend of largely productive flat country and rolling steeper land, located 75 kilometres south of Gisborne and well positioned near the Mahia coast.

The 592-hectare station at 330 Hahanga Road includes a generous 300-hectares of productive flat country sharing a coastal boundary, along with 190-hectares of rolling to steeper country that has lent itself well to running young-stock over the dairy farm’s history.

Bayleys Gisborne agent Simon Bousfield says he is anticipating a healthy level of interest in Pahnui given its proximity to strong hill country breeding units in the district, and the finishing options the flat country provides.

“The opportunity to procure some quality flat country in this part of the world does not come up that often. We expect to see a lot of interest in Pahnui’s tender from local farmers wanting to put more emphasis upon the finishing side of their business, whether that is cattle, sheep or both. Tenders close on November 7,” Bousfield said.

The district’s reliable 1400mm of rainfall a year and convenient coastal location mean it is also expected to hold strong appeal to buyers out of the region seeking to de-risk their existing property’s weather risk by locating in another district.

For the past 25 years, Pahnui has been a dairy operation, initially milking around 1200 cows but more recently reducing numbers to 850 at peak period, averaging 259 kilogrammes of milk solids a cow last year of 290-hectare of milking area on the flats.

Expectations are for this season to average 280 kilogrammes of milk solids a cow, with good results from lowered cow numbers on the milking platform. Pahnui’s dairy history means it comes with a strong fertiliser history, reporting at or near optimal phosphate and pH levels on the milking area.

The farm’s dairy infrastructure includes a 1990’s 44 bail rotary dairy shed equipped with Pro-Track drafting system and automatic cup removers, two calf sheds and a converted wool shed, along with a 160sqm workshop facility.

The farm has been running an un-shared supply agreement with Fonterra, expiring in May 2022 with a three year right to renewal.

The property has until recently also grazed a neighbouring leased block of about 120-hectares, since expired. Other lease blocks include 110-hectares due to expire in December this year – the opportunity to pick up and continue with this lease adds a valuable additional flat grazing area to the property.

Having been run as a dairy operation means Pahnui is also accompanied with a generous water use allowance with consent to take 74,0000 cubic metres of water a year from the Kopuawhara Stream, flow permitting.

Pahnui also comes complete with three well-kept houses including a substantial 305-square metre homestead with full open-plan kitchen-dining area. The other two dwellings are quality 1970s weather board homes, one of which has been recently refurbished.

Located 46 kilometres from Wairoa and 12 kilometres from Nuhaka and Te Mahia schools, the property is part of a vibrant coastal rural community. With that come a range of recreational activities right at the door, from hunting in the back country to surfing at one of the country’s premier breaks around the Mahia Peninsula only eight kilometres away.

The vendors have completed the initial work in laying out a riparian planting plan for the property, working closely with local iwi, Department of Conservation and the regional council to future proof the farm’s environmental footprint and significantly improve its aesthetic appeal.

Pahnui can offer a range of land use options, with the steeper country providing the opportunity for forestry plantation, at a time when funding for afforestation and retirement is generous.

Meantime on the flat country a small area of Pahnui could provide a useful horticultural income area, backed by the property’s generous water take allocation.

“Pahnui is quite unique in terms of its location, bordered by the coast and hills behind, it is well positioned for buyers seeking to bring more flexibility into their existing hill country operation, or wanting to capitalise on the opportunity to expand either their finishing or grazing options on very accessible country,” Bousfield said.

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