Barfoote seeks concrete offers to raise capital

Whangarei firm Barfoote Construction has so much work it recently hired another six workers and expects to hire another six - but in a surprise move the Barfoote Family Trust is selling the land and buildings.

The firm designs and manufactures concrete and steel products from a 2.6ha industrial site at Limeburners St, Morningside, which runs parallel to Port Rd on the other side of the railway line.

Managing director and founder Trevor Barfoote said the trust was looking to raise capital so the group could expand into a new market.

He declined to name a price but said the trust had a figure in mind. There was no urgency and no financial pressure beyond wanting to explore expansion opportunities. "We are quite relaxed about this and we are waiting to see how the market responds," he said.

He said most of this year's work had been generated in the agricultural sector (feed-pads, irrigation, milking sheds) but the company was preparing to tender for contracts in the recently-approved $365 million four-year CCR (Continuous Catalyst Regeneration platformer) project at Marsden Pt.

Trevor Barfoote carried out his first overseas contract, and his first trip overseas, not long after starting the company in the early 1990s, building a concrete cowshed in Spanish-speaking Chile using a team of 11 locals.

The business expanded rapidly, building cowsheds in Spain, Germany, France and the United States, as well as in New Zealand. The company developed a large manufacturing plant from a green field site in Limeburners St, became lead sub-contractor for the Ngawha prison project and employed about 120.

A speed wobble in 2004 saw former Trade NZ manager and NZ Yachts CEO Dennis Maconaghie brought in to address cashflow problems caused by the company's rapid growth. He arranged a substantial injection of capital from shareholders; introduced new processes and systems and cut the workforce.

This was managed without reducing on-site production. Numbers have gradually increased since then and a full order book for 2012 has seen Barfoote take on six new staff over the past few weeks, bringing the workforce to about 40. The firm expects to employ another six before mid-year.

Major contracts completed in 2011 were a large rotary cowshed in Missouri, US, and the concrete flumes for a new water ride at Rotorua's Rainbow Springs.

The water ride contract was won through an innovative bid, which included Barfoote making a flume mould in Whangarei and casting it on-site to tight specifications, disproving the contracting company's assertion this couldn't be done.

The Barfoote Group's site is zoned Business 3 Environment, which is a business zoning incorporating some sensitivity to nearby living environments, and features controls relating to noise levels. All current uses are permitted activities. About 80 per cent of the site is in a flood susceptible area requiring minimum foundation levels stipulated by a registered engineer. The area has already been extensively filled and compacted, and culvert pipes installed, to engineering specifications.

The buildings are custom-made for the manufacturing, storage and transport of heavy concrete construction materials.

They include a precast manufacturing building with extended gantry load bay; an auxiliary workshop; offices and staff amenities.

Market Ross Blomfield of Bayleys Northland said the size of the site offered exceptional flexibility to vendors and potential buyers.

Sale arrangements could include buying part or all of the site and construction of new buildings for new tenancies or the existing owner.

Capital value at September 2009 was assessed at $3.4 million (improvements, $1.425 million, land, $1.975 million).

The ANZ Bank has a registered interest in the property as mortgagor.