Big potential for trout mecca block

Mangamawhitiwhiti Station, with an extended frontage of 5.5km to the famous Tongariro River and just east of the trout fishing mecca of Turangi, is to be sold in a mortgagee sale.

The station, which has the Mangamawhitiwhiti Stream, a noted trout spawning tributary, running through it, is being marketed by Colliers International brokers Roger Seavill and Mark Brunton, with tenders closing on July 29.

The large freehold rural block of just over 647ha within sight of Lake Taupo, was formerly owned by Landcorp and, most recently, by Te Whenua Venture Holdings. Four kilometres from the southern end of Lake Taupo, the land sits on the southern side of State Highway 1, with a narrow frontage to the road and on the periphery of Turangi township which is four hours' drive from either Auckland or Wellington and only 40 minutes from the Taupo CBD.

Seavill says there are a number of commercial options open to a purchaser of Mangamawhitiwhiti Station.

The Taupo District Growth Management Strategy document, which provides for future growth in the district, states that "the Southern Growth Area is estimated to accommodate approximately 5 per cent of the district's growth over the coming 20 years, or approximately 340 lots".

The document states that the Mangamawhitiwhiti block is likely to offer "lifestyle and rural lifestyle" opportunities in this growth area, with a particular emphasis on "lifestyle and rural residential development".

The station's potential for tourism was recognised by Te Whenua Venture Holdings which bought the property from Landcorp in 2006. Prior to that, it was owned by the Department of Corrections.

"At the time of purchase, Te Whenua put forward a major, sports-themed residential subdivision proposal that included a fishing lodge, restaurant and 45-hole golf course, golf academy and clubhouse, as well as 2500 homes. Two hotels were also proposed to be built in later development stages," Seavill says.

"The company planned to rezone the land and develop the area through a private plan change application. At the time, spokespersons for the company said the plan would be `environmentally sound' but plans came to a halt before any formal applications were lodged."

Seavill says the value of the property ultimately comes from a combination of its rural value and its development potential.

"As its current zoning allows 10ha lots as a controlled activity, particularly within the southern Turangi growth zone, potential buyers have a combination of short, medium and long-term options available to them."

Seavill says Colliers is targeting a market of farmers, land bankers, developers or adventure/eco-tourism operators, with the district's strength lying in its high tourist numbers.

"The first swing bridge on this property crosses the Tongariro River into the middle of the station. The area is a global destination for fly fishing enthusiasts due to the Tongariro River, which is a world-renowned trout river. As far back as 2003, Statistics New Zealand reported nearby Taupo attracted 725,000 visitors annually, of which almost 80 per cent were domestic tourists." Mangamawhitiwhiti Station is within the area of the Taupo District Council and is zoned Rural Environment under the Taupo Proposed District Plan 2005.

Under the plan, subdivision is provided for on this block with the creation of allotments of 10ha permitted as a controlled activity, with lots of between 10ha and 4ha considered as a "discretionary activity".

The property's location just to the southeast of the Turangi township also means that it sits in an area identified for future residential growth. The property is one of three large blocks identified within the southern area for future expansion _ the other two being nearby Hirangi Rd and Grace Rd.

Seavill points out that Turangi is not just a trout fishing or a summer destination.

"Turangi also provides accommodation during winter months for tourists wanting access to the Whakapapa skifields, as it is only a 40 minute drive to Mt Ruapehu."

Sitting on the banks of the Tongariro River, Mangamawhitiwhiti also has the potential to be used for hunting, fishing, mountain biking, hiking, leisurely bush walks, white water rafting, kayaking and sightseeing activities," he says.

"On clear days you can see all the way to Mt Ruapehu. It is a lovely piece of farmland with magnificent vistas," says Brunton, Colliers' commercial sales and leasing broker in Hamilton.

Currently the farmland is used as a drystock finishing property for 8000 stock units. A range of farm buildings sit on the property, including two houses, sheds and stockyards. A metalled vehicle access runs through the majority of the land across contours that rise at an easy to moderate gradient from SH1 to a small plateau. The land then falls to just above river level, with the balance of the land, comprising 70-80 per cent of the total area, being level to easy rolling hills.

Brunton says environmental regulations would enable a growth in the number of stock units or tradeable nitrogen credits on the farmland.

"Under the current rules, the property has an allowable nitrogen discharge of 14kg per hectare and the Lake Taupo Protection Trust is available to purchase nitrogen credits from properties in the Lake Taupo catchment. A forestry programme initiated for the property would lower the nitrogen discharge from 14kg per hectare to, say, 3kg per hectare, essentially leaving an 11kg per hectare credit available to be sold.

"If, for example, the trust purchased these credits for say $400 per tonne and the whole property was converted to forestry, then a potential $2,850,000 would become available through the sale of the nitrogen credits.

"We have already received unsolicited interest from forestry organisations for this property," Brunton says.

He says under the current proposed carbon trading scheme, trees planted on site could be soaking up 30 tonnes of carbon per hectare out of the atmosphere within four years.

"This carbon credit could potentially be sold for say $25-$30 per tonne, or about $500,000 per annum," he says. "And the Lake Taupo Protection Trust has indicated it may be able to facilitate carbon credit deals for a number of eager organisations within the wider Lake Taupo catchment as, and when, the Emissions Trading Scheme comes into force."