Stock station sells for $7.8m

Substantial Central Hawke's Bay sheep and beef station Oueroa has sold.

Substantial Central Hawke's Bay sheep and beef station Oueroa has sold for $7.8 million.

The sale was confirmed yesterday by PGG Wrightson Real Estate agent Doug Smith and followed an auction on April 29, attended by about 100 people and involving four bidders.

Oueroa, a 1400-hectares property between Waipukurau and the coastal attractions of Blackhead, Pourerere and Aramoana, had been in the Greenwood family for 80 years.

Mr Smith said 16 "parties" inspected the farm in the run-up to the auction, including some from the South Island moving north "in transition" to dairy farming.

But, with the market starting at $6 million, the hammer of auctioneer Sloan Morpeth fell to the 17th bid, from "a substantial farming family" with several holdings in Hawke's Bay.

Equating to between $750 and $800 per stock unit carrying capacity, the sale demonstrated the current strength of the local market, Mr Smith said.

"At present relatively few farms are for sale in Hawke's Bay," he added.

"Although vendors are reluctant to come forward, purchasers are highly motivated to acquire high quality farms, as was evident at this auction. The auction itself shows considerable unsatisfied demand.

"Stock from the farm was historically held in the highest regard," he said.

"Oueroa's excellent productivity and presentation is a credit to the management of the past 14 years or so, which has made the most of the farm's favourable location, broad scope and easy contour."

The property includes almost 90ha in pine plantation and 35ha QEII open spaces estate.

Elsewhere, a significant Hawke's Bay Dairies block at Crownthorpe, near Hastings, is set to be divested of cows over the next two years as it makes way for vineyards. It was sold by Manawatu-based Hopkins Group to wine company Delegat in a $29.3 million deal revealed last week.