Mortgagee farm sale no bargain, says auctioneer

Press, 21 February 1986, Page 3

Mortgagee farm sale no bargain, says auctioneer

A Canterbury sheep farm sold for less than half its Government valuation at an auction in Christchurch yesterday. The 248 ha farm, near Rakaia, fetched $156,500 at the auction, arranged as a mortgagee sale by the Rural Bank. Its Government valuation (1983) was $349,000 (land $270,000; improvements $79,000). The successful bidder was a Christchurch businessman who intends to farm the property. He did not wish to be named. Although the farm had realised less than expected it was not really a bargain, said the auctioneer, Mr Hugh Morrison, of Dalgety Crown. The condition of the property, with its light land and minimal improvements, meant that the price represented about $lOO a stock unit

That was comparative with today’s market prices, he said. Bidding was surprisingly subdued. Mr Morrison said he had expected more enthusiasm in view of the interest shown in the property before the sale. The auction, by Dalgety Crown, was at the request of the Rural Bank, which is first, third, and fourth mortgagee for the farmer, Mr F. H. Valpy. The property, which has a new three-bedroom house, is on the corner of Sharlands Road and Ardlui Road, Te Pirita, 14km from the Main South Road and 16km from Rakaia. Mr Morrison said he thought that although the sale would cover the Rural Bank mortgages, it would not cover all loans, as he believed there were six mortgages.