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5900% rent rise if farm not sold

Rural News
5900% rent rise if farm not sold

The lessees of St James Station in North Canterbury faced a 5900% increase in rent should they have opted not to sell the property to the Crown reports the ODT. Figures requested from Linz revealed the authority proposed to increase rent on the 23,783ha property from $6750 a year to $400,725 a year, after an 11-year review. The change in value was due to a new rent-setting methodology and an increase in land values. Sources said the old rent was based on the value of land exclusive of improvements (LEI), of $300,000. The new LEI value was $17.8 million and included amenity values and land in its natural state. Based on 16,000 stock units, the rent has increased from $19 a stock unit to $1100 a stock unit. St James ran mostly cattle and horses. The Stevenson family last month sold the historic property to the Nature Heritage Fund for $40 million, but they told farmer representative groups that the threat of a nearly 6000% increase in rent was not the reason they sold.

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