Farm Source for sale

farm-source

Eight well established rural supply stores, strategically positioned in key New Zealand North Island provincial locations are up for auction early next month and are being promoted as offering passive investors the chance to gain low-risk exposure to the agricultural sector. Source: The New Zealand Herald

The Farm Source stores located in the Waikato, Hauraki Plains, Bay of Plenty, Taranaki and Horowhenua are being sold on behalf of RD1 Limited, a wholly owned subsidiary of Fonterra.

All but one of the properties is for sale with initial eight-year leases to RD1 plus rights of renewal.

The properties are being marketed jointly by Bayleys and CBRE with Bayleys individually auctioning the properties.

Richard Graham, Bayleys Bay of Plenty, Waikato and Taranaki commercial manager, says the well maintained and newly branded properties are all located in provincial towns and are strategically positioned to service surrounding rural catchments.

Mr Graham says the properties will not be sold prior to auction and they offer an exceptional opportunity to acquire high yielding, affordable investment properties with the security of new long-term leases to New Zealand’s largest agricultural group.

Established in 2002 with the consolidation of the trading store networks of both the New Zealand Dairy Group and Kiwi Co-operative Dairies Limited, RD1 has an established track record of supplying and retailing to rural communities throughout New Zealand, says Jeremy Keating, CBRE’s director of agribusiness.

“As part of a transformation initiative, RD1’s 71 stores are being progressively transitioned to trade as New Zealand Farm Source, with any remaining works on the properties for sale to be completed prior to settlement.

“The aim is to establish rejuvenated Farm Source branches as ‘one stop’ farm services retailers selling animal feed, shed supplies, hardware, fencing, clothing, animal husbandry and stock management equipment, agri-chemicals, machinery, fertilisers, livestock and nutritional supplements.

“Staff will also provide advice and support to rural communities,” Mr Keating said.

“With many of the stores in the nationwide network now trading as Farm Source outlets with long-term leases, the opportunity is being taken to free up capital to redeploy within the business – providing the chance for investors to secure well leased and located rural properties which otherwise would be very difficult to obtain.”