An aerial shot of LIC's facility at 140 Riverslea Rd, which is home to world-beating agricultural research and development. Photo / Supplied
An aerial shot of LIC's facility at 140 Riverslea Rd, which is home to world-beating agricultural research and development. Photo / Supplied
The Livestock Improvement Corporation's (LIC) Hamilton property is for sale, with the owners seeking a lease-back arrangement.
LIC is one of the oldest farming co-operatives in New Zealand and, for more than a century, has provided services and solutions to the country's dairy farmers to help them improve productivity and prosperity.
Home to world-beating agricultural research and development, the property at 140 Riverlea Rd, is being marketed by for sale through Bayley's Hamilton with tenders closing on June 23.
The property is described as being "well located" at the southernmost extremity of the Riverlea industrial area, southeast of Hamilton.
A Bayleys information memorandum (IM) promoting the sale, says LIC is a co-operative with more than 10,500 dairy farmer shareholder owners, "and to put this in context, there are 11,400 dairy farms in New Zealand".
Investment highlights outlined in the material give LIC's assets as $323 million; it has $200m-plus revenue and more than 800 staff.
About three-quarters of the national herd is sired by LIC bulls, while about 90 per cent of Kiwi dairy farmers use LIC's identification and information management system.
A subsidiary business, LIC Automation, provides automation and milk sensor technology for the dairy shed, according to the IM.
The LIC reception area of 3626sq m main building, which sits upon on about 10,079sq m of industrially-zoned land. Photo / Supplied
It is estimated 10.7m milk samples are analysed by LIC's herd testing service each year, having been collected from 8100 herds.
However, spokesperson Geoff Corbett explains that LIC is seeking to sell and lease-back its Hamilton property to provide for the continued operation of the company's herd testing and diagnostic services at the site.
"The current move comes as LIC looks at every part of its business and how it operates and is making changes to improve the performance and profit for its farmers.
"We are looking at how we do things and whether we are making the best of our resources," says Corbett.
"We are determined to keep delivering on our promise to advance the dairy industry through financial and efficiency improvements. Selling the Riverlea Rd site is one way we can release funds, which can be better utilised in providing services for farmers."
Corbett explains that the sale will also allow LIC to be more adaptable to changes in technology.
The site contains two single-level buildings housing administration offices and laboratories. Photo / Supplied
The site at 140 Riverlea Rd sits in Hamilton's Industrial (A) Zone, and contains two single-level buildings housing administration offices and laboratories.
The 3626sq m building sits on about 10,079sq m of industrially-zoned land.
The promotional material contains "proposed rental expectations" with the term of the proposed lease given as 10 years, commencing on settlement, at a proposed rental of $497,500 per annum net.
The proposed rental expectations include three further rights of renewal of five years each. Total rates are said to be $35,175.
The site has recently been redeveloped (2015) to a high standard with the addition of the Herd Testing building, complementing the existing Diagnostic Building.
There are two separate areas of operation, the laboratories with support offices, including a reception area located on the southern side of the property. On the northern side, the modern designer building (completed in 2015) houses the new operation in several areas covering offices, environmental loading bay and test laboratories. There is also generous parking, according to Bayleys' IM.
