The portfolio, Ellis Lea, consisted of two large dairies – Grandview Farm, which occupies 420 ha and Lamorna, which spans 524 ha – and Collett Farm, a 249 ha support block.
It was bought by a foreign investor.
Collier’s rural adviser George Morris, who negotiated the sale with Mark Parry, said the portfolio’s size was so large that it was unlikely a local buyer would buy it.
“We were confident that the likely buyer would come from a group of players active in the market – including corporations, institutional funds and large-scale families that we knew were genuine and qualified,” he said.
“Given the complexity of the transaction and the required due diligence, it took almost five months from the beginning of the expression of interest process to the confirmation of the contract.”
Morris said Ellis Lea’s assets are attracting great interest from corporate buyers and that the owners, David and Karen Ellis, are industry leaders with an excellent reputation.
Mark Parry said Canterbury’s agricultural market and the dairy market in particular were strong.
“Farm profitability is very healthy and a renewed confidence in food production and healthy nutrition in a post-pandemic world seems to encourage smart buyers,” he said.
“Commodity prices, as well as futures markets, remain strong and continue to bolster buyer confidence and create a healthy margin for returns.
“It’s good to see the investment sector returning to the dairy market after a notable absence – it has always been an important source of capital.”
Parry said the number of transactions in Canterbury has increased recently, compared to the past three years, and there has been a growing amount of investment from local rather than foreign investors.
Colliers predicts an estimated $380 million worth of irrigated dairy products will be traded in Canterbury for the 2021-2022 season, with about 34 sales.