A substantial Waikato rural property is for sale with a new 15-year lease to New Zealand Dairy Goats, which is investing $8 million in a state-of-the-art new goat feeding and milking facility on an adjoining site.
The 62.99ha property at 1291 Alexandra Road, Waharoa, will supply feed to New Zealand’s largest planned dairy goat herd, comprising more than 6,000 milking goats.
Conrad Headland, Rural Sales Specialist at Colliers International, says it is an ideal chance for a passive investor to capitalise on the growing global popularity of goat milk.
“This a rare opportunity to secure a prime rural investment with tidy returns and locked-in annual rental growth.
“Goat milk is a high-value dairy product that is sought after in the export market for its sustainability and nutritional benefits.
“New Zealand Dairy Goats is tapping into this demand by establishing what will be one of the most commercially efficient and environmentally friendly goat farming operations in Australasia.”
The property for sale comprises two top-quality blocks of flat, fertile and free draining land. The titles of 24.28ha and 38.71ha each are for sale either together or individually.
Tenders close on Thursday 18 June, unless the blocks are sold earlier by private treaty.
Headland says the blocks are currently being converted from cropland to grazing, in order to supply New Zealand Dairy Goats’ new indoor goat feeding and milking facility.
The land will have the security of a new 15-year lease from settlement to New Zealand Dairy Goats, returning $206,940 plus GST in net annual rent, with the added benefit of guaranteed rental growth over the term of the lease.
The lease provides fixed rental reviews of 2 per cent, plus market rental reviews on renewal, capped at 10 per cent. There are three rights of renewal, with final expiry 30 years from settlement.
“This will be a hassle-free investment, with the lessee responsible for all farming and cropping inputs like fertiliser, fencing, drain maintenance and general pasture care,” Headland says.
“Rarely do such long-term rural investments come available in this highly sought-after region. Just sit back and reap the cash returns while you wait for the long-term capital gains.”
Conrad says goat milk is increasingly popular as an alternative to cow’s milk.
“Consumers are turning to goat milk as it is predominantly A2 and may be better tolerated than cows’ milk.
“It is also more environmentally friendly, as dairy goat farming has a 75 per cent lower carbon footprint per kilogram of milk solids compared with dairy cows.
“The global goat milk market is estimated to reach $15 billion by 2024, growing at a compound annual growth rate of 7 per cent.
“New Zealand already exports some 90 per cent of its goat milk products, predominantly to Asian markets.
“With an estimated 66,000 milking goats in New Zealand, New Zealand Dairy Goats sees an early adopter advantage to entering the global dairy goat market.”
Headland says the new facility will cater for more than 6,000 milking goats, reaching full production after five years. It is forecast to produce a minimum of 630,000kg, of milk solids per year.
The two blocks for sale are located in Waharoa, some 7km north of Matamata.
Waharoa is within the Matamata-Piako District, which has some of the best quality soils in New Zealand and is considered a cornerstone of the country’s dairy industry.
The town is forecast to undergo solid population, dwelling, job and GDP growth in coming years.The Government’s Provincial Growth Fund has earmarked $800,000 to transform Waharoa into a major industrial, food and logistics centre. Significant businesses are also investing in the area including the Port of Tauranga, Open Country Dairy and Ingham’s Chicken.