Kotahi Farm - 708 Five Rivers-Lumsden Highway, Northern Southland

Kotahi Farm 708 Five Rivers-Lumsden Highway, Northern Southland Information Memorandum For sale by Deadline Private Treaty closing 4pm, 29th April 2021 (unless sold prior) Accelerating success.

Contents Introduction 3 The Property

4

Location 7 Key property information

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Farm characteristics

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Improvements

10

Production

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Five Rivers Retreat

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Due diligence & contact information

16 Appendices 17

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Colliers International, as sole marketing agent, is pleased to present Kotahi Farm, at 708 Five Rivers-Lumsden Highway, Northern Southland to the market for sale (unless sold prior).

The property is offered for sale by Deadline Private Treaty closing 4pm, 29th April 2021 This Information Memorandum provides information to assist interested parties with their assessment of the property, is produced as a general guide only and does not constitute valuation advice nor an offer for sale or purchase. All parties should undertake and rely on their own due diligence investigations and not rely on the information contained in this document to make their purchasing decisions.

This document is CONFIDENTIAL to the recipient and information contained herein may not be disclosed to any other party and may not be used or reproduced either in whole or in part without the written consent of the Vendor or the Selling Agents. All areas, dimensions and measurements referred to in this Information Memorandum are metric and are subject to purchasers own survey.

Ruth Hodges National Co-Director Mobile: +64 27 309 0334 ruth.hodges@colliers.com

Mike Eyles Rural Sales Mobile: +64 21 875 533 mike.eyles@colliers.com

Kotahi Farm | Information Memorandum

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The Property

Kotahi Farm epitomises a productive farming model with its balance of flats, downs and medium hill country and a focus on improved yields and pasture redevelopment over the past 15-17 years. Add its potential for diverse income streams and you have a family farm that makes an ideal add-on or standalone business.

Located in the picturesque Five Rivers region in Northern Southland, Kotahi Farm is not just your average grazing property. Often admired, this farm has an excellent mix of heavier flats, rolling downlands and approximately 115 hectares of medium hill included in its 305 hectares. It is well improved with a substantial two storey 5 bedroom, 4 bathroom homestead (approximately 270sqm); excellent woolshed and covered yards, deer shed and yards plus a full range of other farm facilities.

It currently has diverse income streams with its consented accommodation business that has been running profitably for over the past 5 years. There is also a 100sqm building with a wide array of potential uses including a function centre, retail outlet, or home business of any description from which additional income would be derived from.

Environmentally sensitive to its surrounds, much has been done around improving paddock drainage and creating wetland filter systems – the next custodian will reap the rewards of these improvements particularly under the new environmental rules.

Our vendors have made the difficult decision to pass on the baton to the next custodian after many years of enjoyment. Seldom do properties like Kotahi Farm come to the market, so act fast or you may miss out!

For sale by Deadline Private Treaty closing 4pm, 29th April 2021 (unless sold prior)

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Kotahi Farm | Information Memorandum

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Location Click on the boundary outline to view the property in Google Earth. (Boundary lines are indicative only)

Auckland

Gisborne New Plymouth Napier

Nelson

Wellington Blenheim

Greymouth

Christchurch

Queenstown Te Anau

Cromwell Lumsden

Dunedin

Gore Invercargill

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Key Property Information Address

Regional authorities

708 Five Rivers-Lumsden Highway, Northern Southland

Southland District Council

Land area

Climate

Total legal title area is 305.1110 hectares

The climate is classed as mild and generally warm temparature with significant rainfall throughout the year (approximately 1300mm p.a).

Approximately 294 hectares effective

Google co-ordinates -45.5883424, 169.216988

Property description Kotahi Farm is an intensive deer, sheep and beef property located just 5 minutes north of Lumsden. Good balance of flat, rolling hill and medium hill country plus excellent range of improvements |suitable for other income streams.

Legal description Lot 1 DP 485044 as comprised in Title Identifier 688573 (freehold title)

Rateable value $4,380,000 dated 1 September 2018 $900,000 - Improvement Value $3,480,000 - Land Value

Rates $5,909.86 per annum - Southland District Council $2,386.55 per annum - Environment Southland

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Environment Southland (Regional Council)

Services Lumsden is located 7km away and provides a full range of community services including a grocery store, medical centre, farm supply store, mechanical and engineering services and schooling (both primary and secondary). Queenstown (92km) and Invercargill (80km) are also within an hour’s drive of the farm.

Zones District Plan - Rural/Mountains Overlay (the property is adjacent to the Rural Zone outside the Mountains Overlay).

Physiographic Zone – Gleyed (lower farm) and Bedrock/Hill Country (hill areas) Freshwater Management Units – Oreti

Locality The Five Rivers region is located in Northern Southland and is handy to a range of towns including Lumsden, Te Anau and Gore as well as being handy to both Invercargill and Queenstown. Renowned as a productive farming region plus is accessible to a range of tourism activities.

Farm Characteristics Vegetation Good pasture development on all of the flats and rolling hills with 16 hectares of winter crops grown comprising of a mix of fodder beet, swedes and kale. Medium hill country cover is mainly native pastures with some matagouri.

Limited areas of weed that are regularly sprayed.

Paddock subdivision Range of smaller more intensive paddocks on the flats increasing to larger block on the higher altitude country.

Total of 33 paddocks which includes 6 larger paddocks on the hill.

Fertility Regular annual applications of fertiliser (typically 300kg per ha of Super Ten 20S) to the flats/downs with additional fertiliser applied to newly sown paddocks. Note: 1 tonne per hectare of Lime was applied to the hill 7 years ago.

Nutrient management Farm Environment Plan is in process. Overseer Report (version 6.2.3) shows N loss of 10 and P loss of 10.6 (kg/ ha/year).

Soils The flatter areas of the farm are made up of a combination of the below soil types. (The Hill area and southern part of the farm is not currently mapped).

Longridge – Shallow, poorly drained, silt Lintley – Shallow well drained, silt Pukemiku – Shallow, imperfectly drained silt Hokonui – moderately deep, poorly drained, silt over clay Benrock – shallow, well drained silt (60/40 mix) [Source of soil information: smap.landcareresearch.co.nz]

Contour Good mix of flat to rolling hill, with medium hill to the rear of the property.

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Improvements Homestead

Other

Constructed in the 1980’s, this substantial twostorey homestead provides for ideal famiy living and has also been used for bed and breakfast accommodation. Expansive living areas provide the ultimate space for entertaining with its stepdown separate lounge with bar, plus large living room that flows from the kitchen/dining areas.

Five bedrooms (two with ensuites) plus two separate bathrooms, large separate laundry, office and outdoor entertaining areas make for easy living. Weatherboard cladding, single glazed aluminium joinery (with some windows double glazed) and fully insulated including underfloor insulation, wool batts in ceilings and walls. Log burner (wetback) and open fire plus electric underfloor heating in guest bathrooms.

Range of other farm buildings including 2 hay sheds plus skyline garage and workshop. Electric fence units (2) are located in the woolshed servicing the front and hill property.

The “Store” Large separate building originally constructed as a “Store”. Approximately 100m2 with kitchen and bathroom with its own septic tank. Includes a large storage area which has options for a mezzanine floor.

House water is supplied via a natural spring which is fed into a tank which then feeds into the house/Store. Stock water supply to lower paddocks is reticulated from a spring source.

The downs are a mix of reticulated and natural springs. Hill blocks are via a natural water supply via springs and dams.

Access Excellent standard of formed farm access throughout the lower paddocks. Well maintained tracks to the steeper faces and tops.

Fencing A mix of deer fencing and permanent post and wire.

Cottage/sleepout

Forestry

Weatherboard cottage handy to the “Store” with verandah.

Approximately 5 hectares of Douglas Fir between 12 and 15 years old.

Woolshed

Drainage

3 stand with approximately 1200 night pen capacity. Large covered sheep yards attached to the woolshed wih 1/3 of these yards used as an implement shed. Could also be converted to larger deer handling facilities.

Extensive drainage has been developed over the past 15-17 years with nova flow installed where required. Multiple wetlands have also been established.

Deer shed Smaller but adequate shed and yard.

Cattle yards Good standard of cattle handling facilities in the northern end of the farm, with load out ramp and head bail.

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Water supply

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Production Past stock carried Stock carried

2020

2019

2018

2017

2016

2015

2014

Sheep

951

927

937

1209

1221

1280

1226

Cattle

81

41

68

45

74

60

80

Deer

535

549

545

567

540

554

596

Total stock

1567

1517

1550

1821

1835

1894

1902

*As provided by the vendor. Numbers are total carried stock not stock units.

Previously the property carried significantly greater numbers of stock but in recent years there has been a change in policy to focus of weaning weights and higher levels of lambing and calving percentages.

Production parameters

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Lambing percentage (Ewes)

164% (Spring 2020)

Lambing percentage (Hoggets)

90% on average

Wool production

approx 5kg per ewe - average micron 36

Kill weights

2019/20

2018/19

Lambs

18.3kg

17.8kg

Yearling Deer

56.6kg

61.9kg

Velvet

93kg

123kg

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Five Rivers Retreat Bed and Breakfast Five Rivers Retreat Bed and Breakfast has been operated out of the main home and has welcomed guests from all over New Zealand and the world. As an additional income stream the bed and breakfast accommodation is set up in two generous rooms on the ground floor of the main home both well appointed with ensuites. Guests enjoy their own external access and have a cosy lounge and dining area with a large open fireplace to sit back and relax following a day of exploring Northern Southland.

The majority of the guests have been international with multiple night stays. This has been heavily impacted by Covid-19 prior to this the bed and breakfast averaged 90 guests per year with an average gross income of $23,530 from the accommodation.

The accommodation is consented under Resource Consent 05/129 issued in June 2005. This consent allowed for the owners to establish and operate a commercial Bed and Breakfast accommodation facility in the existing “dwellinghouse” on the site for a maximum of 4 guests. Also included is the ability to erect one advertising sign along the western side of State Highway 6 directly opposite the vehicle accessway to the property and establish on-site vehicle parking.

Alongside the bed and breakfast accommodation the farm has also run Group Farm Visits usually in small groups with the option of lunch or morning tea. These visits vary depending on bus numbers and are detailed below. The farm visits since 2017 have averaged $16,208 per annum in gross income with an average of 21 groups or 347 guests.

Total amount of revenue from these two businesses average $40,000 gross per annum.

Year

Guests

Meals

Gross Income

Farm Visit Groups

Meals

Gross Income

2017

110

222

$25,023

19

396

$11,687

2018

75

210

$24,774

17

333

$14,265

2019

67

206

$24,510

23

292

$19,585

2020

48

109

$19,799

27

367

$19,294

Average

*75

187

$23,527

22

347

$16,208

*Note: The guest figures are total guests not number of nights stayed. Most guests stayed multiple nights

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Due diligence & Contact information Additional information is available for download from a secure electronic dataroom operated by Colliers International through iDeals.

Parties wishing to access the dataroom are required to ask the Agent for access. They will be emailed and asked to make an account with iDeals which will then provide access to all additional information held.

Additional information may be added to the dataroom from time to time so interested parties should refer to this regularly.

For sale by Deadline Private Treaty closing 4pm, 29th April 2021 (unless sold prior)

Ruth Hodges National Co-Director Mobile: +64 27 309 0334 ruth.hodges@colliers.com

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Mike Eyles Rural Sales Mobile: +64 21 875 533 mike.eyles@colliers.com

Appendices

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