Racing: Millionaire's horse venture takes it on the nose

Millionaire Eric Watson is to put up to 250 horses from the showcase Westbury Stud on the market.

The $50 million to $60 million facility at Karaka in South Auckland is NZ's most recently developed thoroughbred stud, opening in December 2000.

Watson's business partner in Westbury, Russell Warwick, yesterday revealed to the Weekend Herald that a substantial number of Westbury horses - believed to be about 250 - will be auctioned at the Karaka mixed bloodstock sale in May. Some Westbury staff have been given notice.

Mr Warwick said the returns made it difficult for a young stud to develop and grow while carrying so many horses.

"Established studs have enjoyed advantageous tax structures and costs more realistic than ACC."

Mr Warwick said he and Mr Watson had been discussing the cutback plan for many months. "We finalised matters when Eric was in New Zealand a short time ago."

Westbury stands eight imported stallions and at this stage that will not change, said Mr Warwick.

Nor are there plans to sell any of Westbury's 253ha. At a conservative $86,000 a hectare, Westbury's holding would be valued at about $22 million, but land has been selling in the area recently for close to $123,000 a hectare.

It is understood that the selloff has nothing to do with efforts by Mr Watson to turn around the British chain PowerHouse, which he is attempting to bring back from the retail graveyard.

Mr Watson, whose wealth was estimated at $275 million in the 2004 National Business Review Rich List, paid $47 million in September 2003 for the 134-store chain through his Pacific Retail Group. However, Powerhouse has yet to turn a profit.

Mr Warwick said Mr Watson remained committed to racing good horses in New Zealand.

"Eric and I are passionate about what we are doing."