New Zealand Rural Land Company buys six South Island dairy farms for $61.4 million

NZRL announced to the market this afternoon that it had entered into a unconditional agreement to purchase the farms, totalling 3500 hectares, from Dairy Farms Partnership. File photo / Alex Burton

NZX-listed New Zealand Rural Land Company has bought six dairy farms in Maniototo for $61.4 million.

NZRL announced to the market this afternoon that it had entered into a unconditional agreement to buy the properties, totalling 3500 hectares, from Dairy Farms Partnership (DFP).

There are 17 houses, five dairy sheds and multiple ancillary buildings on the farms.

The properties will be leased back on a short-term deal to the vendor until May 31, 2022.

The following day, HL Capital Ltd will take over the lease for an initial term of 10 years with two 10-year rights of renewal.

Today's announcement is NZRL's second major purchase of South Island farms.

In April it bought 14 South Canterbury and North Otago farms after the receivership of high-profile dairying Van Leeuwen Group (VGL) for $114m.

NZRL has been granted a waiver by NZ RegCo from being required to obtain shareholder approval for the transaction.

This afternoon the company's share price was trading around $1.120/share.

The sale is expected to settle on November 10.