Want to buy land in New Zealand?

The thought of buying land in New Zealand is very appealing, especially at the moment! With views of mountains and rolling green hills, it would be a great place to escape to and possibly build a new business.  Many New Zealand expats have decided to hang up their travelling boots and head home in 2020. If you want to buy land, have a look at this beautiful farm – or what’s called a large scale dairy portfolio. It comprises six pastoral dairy farms and three dairy support blocks across a a total farm area of 3,668 hectares. (That’s around one twentieth the size of Singapore!) This gorgeous land is set in the beautiful South Island of New Zealand between Christchurch and Dunedin. You can buy it as a whole or as an investment option.

Current owners the Van Leeuwen Group have exclusively appointed Colliers International to market the portfolio. Prospective purchasers have several options: they can either own and operate the farms outright, or buy them as a passive investment, with external operational management via a long-term leaseback.

The owners, Aad and Wilma Van Leeuwen, have grown their business sustainability over the years. Now, they’re looking to pass this legacy on to the next generation. Along with a capital restructure, they recently finalised a new version for the business that’s primarily focused on optimising and growing their robotic barn farming operations. The nine farms for sale are traditional, pasture-based dairy farms and non-core support farms that don’t fit strategically with this vision.

The portfolio comprises six pastoral dairy farms and three dairy support blocks with a total farm area of 3,668 hectares:

• 1,973ha of dairy farm land, including 1,708ha of milking platform;
• 159ha of leased land; and
• 1,536ha of dairy support land.

There are three options for buying this land in New Zealand:

Option 1
Sale of the entire property portfolio including the land, buildings, associated lease land, irrigation shares and water supply, stock, items of plant and equipment, and supply contract to Oceania Dairy.

Option 2
Sale of the entire property portfolio including the land, buildings and irrigation shares with external operational management via a long term lease-back (passive investment).

Option 3
The individual sale of each property and their associated leases.

The Van Leeuwen Group has invested heavily in eradicating Mycoplasma bovis from all its farms since the initial outbreak in July 2017. All nine farms for sale have been cleared of M bovis for more than a year and a half.

New Zealand’s dairy industry has shown its resilience with less impact than other sectors at present. Historically, during times of crisis, food production remains absolutely core; investment flows to these types of assets. The long-term outlook for dairy proteins is still very strong. New Zealand’s production is not increasing, meaning supply in the future will remain tight and prices firm.

Prices of farmland at present represent some of the best buying and yield opportunities for a very long time.

The due date for submitting expressions of interest is 4pm on 25 June 2020. Shortlisted parties will then be invited to participate in a second stage; this includes due diligence and submission of a binding sale and purchase agreement.

Want to know more? Contact Ruth Hodges (Queenstown) on +64 27 309 0334 or Richard O’Sullivan (Christchurch) on +64 272 923 921.

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Rebecca Bisset

Heading up Expat Living, Rebecca started off in photography and video. A bit of a nomad before Singapore, she likes to travel when she can but she finds looking at properties as exciting! One day she's going to build her own house...