"New Zealand Bloodstock's prime objective in establishing a leasing division is to help make it possible for New Zealand breeders to add truly top class mares from overseas, or within New Zealand, to their broodmare bands."
Key Facts & Figures
If a New Zealand breeder identifies a mare, filly, stallion or colt they wish to acquire then, provided the horse meets New Zealand Bloodstock's criteria, including principally "enhancing the thoroughbred bloodstock of New Zealand", New Zealand Bloodstock would agree to purchase the horse on behalf of the breeder (who becomes the lessee) and lease it back to him/her.
For mares/fillies purchased, the standard term of the lease is 36 months. Typically the lessee may make automatic repayments monthly or annually in advance. There will be a residual of 25% of purchase price at the end of the lease period owed by the lessee.
Lease repayments are calculated based on the principal amount plus interest. The interest rate will be fixed for the duration of the lease and will be generally in line with "going market rates" at the time the lease application is made.
For the duration of the lease the horse is officially owned by the lessor (New Zealand Bloodstock Leasing Ltd). Ownership is transferred to the lessee at the conclusion of the lease period, but the lessee assumes full management and responsibility for the horse. Any progeny of the leased horse will be owned by the lessee and the lessee will be regarded as the official breeder of any progeny.
A condition of any lease agreement is that the leased horse is to be insured through New Zealand Bloodstock Ltd's Insurance division.
The breeder can include any costs associated with importing a horse to NZ, for example, airfreight costs, within the lease arrangement.
For stallions or colts purchased, typically the term of the lease is 24 months. The residual amount owed by the lessee at the end of the lease period will be 10%.
Contact Details & Further Information
New Zealand Bloodstock Leasing Ltd has been introduced for the long term benefit of New Zealand thoroughbred breeders and the industry as a whole. Ross Gwyn, Manager of New Zealand Bloodstock Leasing, is available to discuss the details of the service with you at any time, at our Karaka office, on (09) 298 0055 or 0274 509 300.
NZB is a registered Financial Service Provider and is a member of the Finance Dispute Resolution Scheme (FDR). Should there be a complaint in relation to any financial service it should be addressed in the first instance to the Manager, Leasing & Finance on the form which can be provided upon request. NZB agrees to deal with such complaint within three months of receipt. Should the complainant not be satisfied with the response there is a right of appeal to the FDR (the dispute resolution scheme for the finance industry). However, NZB and its employees do not offer financial advice as part of this financial service and recommends that the borrowers seek independent financial, taxation and professional advice if taking out finance when purchasing bloodstock.
