Solid Energy sells Southland farms

COLLETTE DEVLIN
Last updated 19:00 08/05/2014

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Solid Energy has sold its Southland dairy farms, but the state-owned company is yet to release the price it got.

About 2,000 hectares of the Eastern Southland rural property was sold by tender.

The properties included three dairy farms, two dairy support or conversion farms, and four properties considered as dairy support farms.

The farms, ranging from 33ha to 399ha, were within a 5-kilometre radius between Mataura and Gore.
Solid Energy bought the properties to secure access to the large lignite coal resource in the district, but no longer required the land.

Solid Energy spokesman Bryn Somerville said there was strong interest in the land, with multiple offers.
He would not say how much had been paid for the farms but Solid Energy was pleased with return, he said.

There were a variety of selling dates and all the money was not yet ‘‘in’’ so he could not give a total value.
However, it planned to report the vale of the sales at a later date.

‘‘[Solid Energy] is satisfied with the price and believed it got good value,’’ he said.
PGG Wrightson Real Estate marketed the farms.

General manager Peter Newbold said the land sold at the upper end of the market and the properties met or exceeded price expectations.

Interest in the properties was strong and the company received 100 requests for information packs, viewing the farms or attending open days.

It received a total of 38 tenders for the farms.

‘‘Offering a number of farms for sale all at once like this can potentially cause an imbalance of supply and demand, therefore harming values. In this instance, that has not happened, and the prices offered were favourable, indicating the strong demand for Southland rural property is not letting up,” he said.

Newbold said interest in the farms came from a broad range of potential buyers.

“It was pleasing to see interest from potential buyers. In particular, the level of local interest demonstrated the strength of demand for dairy and dairy support property within the district, which was reinforced by corporate and international purchasers who also enquired after the farms,” he said.

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- Fairfax Media

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