Landcorp has bought a 1270 hectare property near Feilding, which was owned by Tawera Land, which is in receivership.
The sale was another step in the process of selling the former farming interests of bankrupt businessman Ken Thurston.
The sale attracted bids from about 30 groups, in what was the biggest land-holding sale by one owner in the district.
I wonder how the under bidders felt about being beaten by an SOE?
Meanwhile, Landcorp chief executive Chris Kelly said the corporation planned to invest “significant capital” in the Feilding properties bought from Tawera’s receivers. The land was earlier reported to lack fencing and water systems.
Landcorp already makes a pitiful return on capital.
The last annual report (to June 30, 2010) showed the company made only a $10 million net profit from $1.52 billion of assets.
Buying more land and pouring money in to develop it won’t do anything to improve that.