A carefully planned auction has brought together the aspirations of two Northern Southland farming families, providing a smooth pathway for one to downsize while enabling the other to expand and strengthen their business.
Darrin and Robyn Day have farmed in Acton, between Mossburn and Lumsden, for 22 years. Specialising in trading livestock, through the winter they decided they were ready to downsize, and sought to sell their farm, including a 166-hectare home block, and another adjoining property of approximately 100 hectares.
Darrin and Robyn entrusted the sale to Jim Fortune and Sandra Macnamara of PGG Wrightson Real Estate, Te Anau.
“With the market for sheep and beef properties trending up, no shortage of willing buyers, and premium quality farms of this stature guaranteed to attract solid attention, an auction shaped up as the most efficient way to motivate buyers,” says Jim.
A string of other local farms has sold well at auction in recent years, and interest in the Days’ farm was guaranteed from several well positioned neighbours.
“With some strong neighbours keen to buy, we were determined to show no favouritism. An auction was the best way to give them all a fair shot,” says Darrin.
Pictured: Jim Fortune of PGG Wrightson Real Estate.
He was correct, as Jim recounts.
“We fielded more than 20 enquiries, which quickly transformed into several serious, motivated buyers. All held their cards close to their chest, so it was a typical auction situation,” he says.
Purchasing the property in 2003, after an earlier career managing several different farms, since then the Days have focused on redevelopment, upgrading the whole property. They re-fenced it for deer, also installing irrigation and a new stock water system.
“Previously used mainly for dairy support, we wanted to improve its capability to trade in any type of stock, including deer, lambs and cattle. Latterly as well as deer, we’ve focused on smaller scale dairy grazing and fattening our own cattle, reared from calves,” says Darrin.
Pictured: Amy and Denis Heenan of Mahoe Dairies.
Come auction day in early November, with PGG Wrightson Real Estate specialist auctioneer Sloane Morpeth wielding the gavel, motivated local bidders included Denis and Amy Heenan, who farm in partnership with Denis’s father Mike, operating as Mahoe Dairies. If they follow their parents and grandfather’s footsteps, Denis and Amy’s four boys, aged nine to 17, will become the sixth generation of Heenans to farm in the district.
Mahoe Dairies milks 1800 cows, also growing wheat and barley and trading stock. Denis says the Day’s farm ticked all the right boxes for the Heenans to further consolidate, diversify and future proof their business: growing lucerne, providing a cut and carry option, along with dairy support, and the option to winter stock.
“In a good location, with water rights and wintering rights, everything we were looking for has already been done on this farm. The pasture is less than three years old, and the soil phosphorus levels are excellent,” says Denis.
On behalf of Mahoe Dairies, Amy assumed the responsibility of bidding.
Pictured: Sandra Macnamara with Robyn and Darrin Day.
“A good deal of strategy was prepared. Although there was strong competition in the room, the farm didn’t sell under the hammer, in which case our plan was to ensure we were the first to negotiate, which is how it played out,” says Denis.
Darrin wasn’t too nervous.
“Although the property was passed in, by that point we knew a sale was in hand. We had our price, which we weren’t going to back away from,” he says.
Sloane took the two parties aside, and five minutes later they had agreed on a $6 million transaction.
“We couldn’t recommend Sloane and Jim any more highly. They were calm and reassuring throughout the process. It was a great outcome for us, both the sale and the purchaser. Having inter-generational farmers like the Heenans take it on, with every prospect for it to carry on for another generation, is highly satisfying for us,” says Darrin.
After taking possession in mid-January, the Heenans are equally delighted.
“Darrin and Robyn have developed the property to the level of a Canterbury farm, though located in Northern Southland. It was just what we wanted to make our boat go faster. All we need to do is turn the key and start farming,” says Denis.
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