Sixteen years after the sudden death of the highly respected South Island entrepreneur Howard Paterson, members of his immediate family are still among the largest and wealthiest landowners in the deep south.
Described by The Times newspaper as “a visionary” in the realms of agriculture and biotechnology, Paterson was a founding shareholder in A2 Milk, Botryzen and PharmaZen – and he created the world’s largest deer farming and dairy businesses in NZ Deer Farms and Tasman Agriculture respectively.
Paterson’s widow, Lee, his two brothers, Greg and Grant (pictured), and his three sons (Matt, Rupert and Harry) now own more traditional property investments, collectively valued at more than $85 million.
As the main investment vehicle, the Otago Trustee Company owns four large dairy farms valued at $40m, while the Lee Paterson Family Trust holds assets worth $22m, including a 3400ha farm at Bucklands Crossing in Central Otago. Perhaps for sentimental reasons, there’s also a 5% stake in PharmaZen worth a modest $1.5m.
One of the more interesting family companies is the aptly-named Three Brothers Partnership, which owns the historic Eureka House in Queenstown’s Mall. Valued at almost $11m, it has been home to many popular restaurants – the latest being The Fat Lamb.
Of Paterson’s sons, Matt (from Howard’s first marriage) has been by far the most active investor, with interests in a $50m property portfolio that includes a $30m commercial retail block in downtown Queenstown. He lives on a $10m lifestyle block situated on the highly desirable Arrowtown-Lake Hayes Road, where fellow NBR Rich Lister Sir Michael Hill lives.
Matt also owns a 10% stake in the Good Group, which operates a string of popular bars and restaurants in Auckland and Queenstown, including Bardeaux, Barmuda, Harry's Pool Bar, Harbourside, Botswana Butchery and White + Wongs. And there’s a small interest in the International Trading Cartel Ltd, which sells Stolen rum.
Dunedin-based Greg Paterson, as co-executor of his brother Howard’s estate, controls a wide-ranging portfolio of property investments on his own account, which includes dozens of residential properties as well as a large number of commercial and industrial sites and rural land worth more than $50m.
Among his more interesting projects in recent years has been the redevelopment of Dunedin’s historic Central Hotel and the Captain Cook Hotel. However, he also has a tiger by the tail with his ownership of the old Mataura paper mill, which has been used to store hazardous waste and is now at the centre of a legal dispute over who is responsible for its removal.
Last but not least is Howard Paterson’s other brother, Grant, who is a joint shareholder/trustee of several family companies and who owns large tracts of rural land, including a 472ha pastoral block worth $9.2m on the Clutha Valley Road.
As one of New Zealand’s largest independent milk producers – with 18 farms and a herd of 11,000 cows at one point – Grant formed a 50/50 joint venture with the Sutton family in 2011 to build the Gardians dairy processing business, which was later sold to Danone for an undisclosed sum.
While the Paterson brothers call Dunedin home, and Lee lives on a 10,000ha dairy farm at Waikouiti, Howard’s sons have chosen to live in Queenstown and Arrowtown.
Photo: Otago Daily Times