Thursday, 19 December 2019 09:55

Farmlands quits real estate

Written by  Nigel Malthus
Farmlands chief executive Peter Reidie claims the new partnership with Property Brokers is a great result for shareholders. Farmlands chief executive Peter Reidie claims the new partnership with Property Brokers is a great result for shareholders.

Farmlands cooperative has sold its nationwide real estate business to the Property Brokers chain.

The sale, for an undisclosed sum, means Farmlands’ real estate offices and staff are now under the Property Brokers umbrella and branding. However, Farmlands says it will maintain a relationship with Property Brokers under a long-term deal that preserves member benefits for its shareholders. 

The two parties are calling it a “long-term strategic partnership” with about 20% of the rural property market and aspirations to lead the sector.

Farmlands’ director of agri products and services, Andrew Horsbrugh, said the co-op brought its great knowledge of rural people and the land to the deal while Property Brokers brought its specialist real estate knowledge. He believed their combined skills would “achieve something pretty special”.

Horsburgh said the Farmlands brand will remain linked to Property Brokers’ rural advertising. 

“We want the market to understand that this is the Farmlands real estate offer provided by Property Brokers and there’ll be joint branding in rural real estate.”

The rural co-op will receive a contribution on future land sales, while shareholders using Property Brokers services will still receive special offers including discount on commission and the co-operative’s customer loyalty scheme. 

Farmlands had about 110 real estate staff across 40-odd offices, some standalone and some situated in its retail stores. There were redundancies “but very few,” Horsburgh claimed. 

The deal took effect in mid-November except for the West Coast, where the two companies’ combined market share requires Commerce Commission approval, now applied for.

The two companies said in a statement that the deal provides a broader footprint, increased scale, more resources and improved service for customers, including Farmlands’ 70,000 shareholders and Property Brokers’ provincial client base. 

Property Brokers now owns and manages the day-to-day real estate business, while Farmlands will continue to support real estate through its network, events, customer loyalty programme and shareholder discounts. 

“Farmlands Co-operative has a strong network, highly regarded brand and expert knowledge of the rural sector. 

“Property Brokers is a business that solely focuses on real estate: we know and understand provincial property and real estate agents,” said Conrad Wilkshire, Property Brokers general manager, rural.

“We are a growing business, and our real estate track record is backed up with strong training, systems and marketing support.” 

Farmlands chief executive Peter Reidie says the partnership is a great result for shareholders. 

“More customers up and down the country will now have access to specialist rural, lifestyle and residential real estate services and property management.” 

The new partnership will take Property Brokers to over 700 staff across 64 locations from Kaitaia to Invercargill.

More like this

Johnstone bows out on top

When Lachie Johnstone first started on the board of Farmlands 19 years ago the rural services cooperative ran 32 stores with a turnover of $280 million.

Hewett to take charge at Farmlands

The intended chairman of Farmlands Co-Operative, Rob Hewett, expects to take over a business in good heart and well-placed for the future.

Changes ahead for Farmlands

Shareholders in the farm services co-operative Farmlands will be voting on the first big change to its constitution since 2013 at the annual meeting to be held in Hokitika on November 23.

Featured

 

‘Cows can help reverse global warming’

Cows and pasture are not the villains in climate change, but could instead be our saviours, says Hawke’s Bay farmer, soil scientist and consultant Phyllis Tichinin.

Pork industry scholarships available

Massey University students looking to fund their studies in the pork industry have until March 10 to apply for up to four New Zealand Pork Industry Board scholarships.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Biased?

Your old mate was disappointed, but not surprised to see a ‘study’ out of Otago University – quoted all over…

A dilemma

Your canine crusader reckons the fiercely anti GE, but pro sustainability Green Party has a dilemma on its hands, following…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter