Media Release - 27 January 2010

 

MyFarm has conditionally purchased the high performing Kaiangaroa station near Taihape for establishment of a heifer grazing and lamb finishing syndicate.

The Kaiangaroa syndicate will buy the 1278Ha property plus a nearby 987Ha support farm, giving it scale to finish 22,000 lambs and graze 750 dairy heifers annually.

Kaiangaroa is in the top 10% performing farms in the Taihape region and is ideally located close to Taihape township and State Highway One.

MyFarm project manager, David Marshall says the reliable income from contracted heifer grazing and forward lamb supply will appeal to investors.

“With the focus on a high proportion of contracted income, we are forecasting cash returns of 6-7% per annum.”

The cornerstone investors in the new syndicate include a current owner and an equity manager who have a strong record of generating profits from beef and lamb finishing.

Kaiangaroa has been purchased for $4000/acre which is considerably lower than traditional finishing land.

Kaiangaroa is MyFarm’s second large-scale grazing syndicate. Koromiko Grazing Limited was successfully established on a 3138ha King Country property in May 2008.