Racing: Masters of the sales

The New Zealand racing industry can thank two people for the ongoing success of the Karaka yearlings sales - Peter and Philip Vela.

Nine years ago a group of prominent New Zealand thoroughbred breeders approached the Velas voicing their support if the then Hamilton-based businessmen would purchase Wrightson Bloodstock.

Peter and Philip Vela were prominent owners racing thoroughbreds from the Cambridge stable of Laurie Laxon and were also leading players in the breeding industry through their stud farm, Pencarrow Stud.

Wrightson Bloodstock handled the New Zealand thoroughbred yearling sales and an Australian-based company was also interested in purchasing the struggling company.

"We did an investigation into purchasing Wrightson Bloodstock and at that point in time (1997) we paid a lot of money to take over running the company," said Peter Vela.

"When you had leading breeders like Sir Patrick Hogan voicing his support of this idea we then thought long and hard about it and decided to buy the company.

"We knew we had the support of a large number of the major players in the New Zealand breeding industry and it has been a long hard ride for all the team in the company.

"We renamed the company New Zealand Bloodstock and by putting in place a thorough business plan and competent management team we have turned things around for the benefit of the New Zealand breeding industry.

"When we first took over the company the total aggregate from the yearling sale was less than $30 million and last year that figure was in excess of $60 million.

"With the interest in the stock of Danehill this year, plus the outstanding catalogue we have assembled, I think the aggregate for the premier session alone could jump well over $50 million this year.

"Our job each year is to find homes for yearlings that go through the sale ring.

"In 1996 the clearance rate for the sale was 75 per cent and last year that figure had improved to 84 per cent.

"In 1996 the average price at the premier sale was just over $50,000 and last year that figure was $110,000.

"We have a massive infrastructure within the company which swings into overdrive for a week of yearling sales.

"The costs involved in running New Zealand Bloodstock are massive. We had to focus on breaking down the various sections of the company and developing them to their full potential.

"Bloodstock insurance is an important part of this industry, particularly at the yearling sales - as well as the airfreight business and leasing and finance components of the industry.

"By having a good team running each of those sections of the company we have been able to provide a thorough service to all of our customers from the buyer to the vendor."

NZ Bloodstock has become a major player in racing sponsorship. The company sponsors three Group One events, one Group Two event, a $500,000 two-year-old event at Te Rapa as well as the three-year-old Filly of the Year Award.

The Velas applied a number of the same basic business principles into NZ Bloodstock that they used when building their massive Hamilton-based Vela Fishing Limited.

Breeding racehorses was initially a hobby that started back in 1970 when the Velas borrowed a broodmare from a breeder.

"Way back in 1970 we borrowed a broodmare off Tim Fowler and from that initial entry into the breeding industry we became involved as owners and then breeders developing Pencarrow Stud.

"What that does show everybody is the fact that we started out at the bottom end of the breeding industry and, with careful management and hard work, we've developed an outstanding stud farm.

"We started Pencarrow Stud in 1980 and it's now a 250 acre breeding property where we base our broodmare band and yearlings.

"We have a similar property in Te Kowhai where our racehorses spell when they're not racing and a lot of our broodmares are based there in the off season."

The Geneva-based businessmen return to New Zealand each Christmas.

The Hamilton-based Vela Fishing Limited is one of New Zealand's largest privately-owned fishing companies.

Last Saturday, at Avondale, Peter Vela arrived on-course in a helicopter to watch Abbey Drive, a striking two-year-old son of Zabeel he and bother Philip part-own, score an impressive debut win.

Abbey Drive is named after a drive the Vela's regularly commute down when arriving in London, England.

The Vela brothers enjoy a lifestyle that would be the envy of most New Zealanders but are very private people when it comes to discussing their current financial worth.

"We've got a great management team in place that runs New Zealand Bloodstock and Vela Fishing so it means that we can take a backward step from a lot of the day to day running. Philip and I have a succession plan in place with members of both of our families involved in NZ Bloodstock and Vela Fishing."