In a thrilling duel, Ellis outbid Ireland's powerful Coolmore Stud to secure the half brother to the group one racemare King's Rose for a sale-topping $1.75 million.
Ellis joined the bidding late in the piece at $1.45 million and thought that he might have to stretch to $2 million.
"If this colt can win group one races, he's worth real money," he said.
A quarter share has yet to be syndicated, "but I don't think that's going to be a very difficult thing to do", said a bullish Ellis. "I think he'll sell very quickly, this colt.
"I think it's absolutely essential that we retain horses like this to race in New Zealand and then represent New Zealand and Australia and further overseas."
As for the bidding duel with Coolmore Stud, delighted vendor Sir Patrick Hogan said that Te Akau Stud was equal to any stable in the world.
"The New Zealand industry are so lucky and fortunate that David Ellis was able to step up and be able to buy this horse."
However, Hogan said the thoroughbred industry deserved "a hell of a lot more credit" than it currently got from any political party.
"I don't think they recognise or acknowledge the worth of the thoroughbred industry to the overall economy."
According to the NZ Racing Board, the local industry generates around $1.5 billion annually in GDP, creates 18,300 full-time jobs, and generates more than $130 million in exports.
Hogan said Winston Peters was the only member of Parliament "who shows an interest". Peters was responsible for increased stake money and improved depreciation for stallions and broodmares during his time as Racing Minister. But Hogan said he was not after handouts.
"Sometimes support goes a long, long way and it doesn't have to be dollars and cents."
Among other top lots yesterday, Cambridge bloodstock agent Michael Wallace said he "pushed the boat out" when he paid $675,000 on behalf of an undisclosed Australian breeder for the filly by Stravinsky from the group one winning mare Marquise. It was a rare opportunity to buy into Cambridge Stud's famous Eight Carat family.
"We were a little bit over budget, but with fillies like this they're once in a lifetime," said Wallace."She's come from one of the best farms in the world."
Shooting for his 32nd straight year as leading vendor, Hogan said it had been a tough market and vendors had struggled to clear the bottom 20 per cent of yearlings.
"It has been a hard sale, so in view of that the prices of my horses that have sold I couldn't be more happy."
Toward the end of the premier session, the average price had climbed to $160,000 - still down 8 per cent on last year - but a significant improvement on the first day average of $145,000. The clearance rate had also climbed from 70 to 73 per cent.
The Select Sale starts today and action concludes on Sunday with the Festival Sale.
