IT was a neighbour who came to the fore at last week’s successful auction of a 135-acre residential dairy farm 20 miles west of Cork city.
With three bidders in pursuit, it made €1.37 million, or just over €10,000 an acre – the guide price had been a “realistic” €11,000 an acre with a willing vendor who was changing careers.
The buyer is well established with an adjoining dairy farm and several other farm holdings – an important requirement at a time of tight bank credit and scarcity of bridging finance.
The farm in question is at Deermount, Lissarda, off the Cork-Macroom road, owned by the Roche family since 1976, and all in one block.
It has just 100 metres of road frontage, so it was offered in one lot, and the gent with the hammer on Thursday last in Ballincollig’s Oriel House was Mike Brady of the Brady Group.
He had five contracts for sale gone out, and three active bidders, two of them professionals acting for undisclosed clients. But the expectation was that the genuine interest was locally rooted.
The residential farm (with a ‘70s bungalow) has a milk quota of over 600,000 litres, and might now need some capital spending, but is capable of producing up to €90,000 per annum, and has a single farm payment of €25,000.
The price guide was €1.5m, and it made just €25k short of the €1.4m mark, so total acquisition costs will top €1.5m, when stamp and other costs are factored in.
Given a setting just 20 minutes from Cork city, near Kilmurray village, this place might have sold in the €2m to €2.5m price bracket a few years ago, at the peak. But then the cash might have gone into an overseas property syndicate, bank shares, or another over-priced property. Now, €1.35 million will buy a lot. Little wonder Mike Brady says the successful auction reflected pragmatism on all sides.
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