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NZ: Kiwifruit orchards being sold, Seeka selling $16 million worth of orchards

New Zealand‘s largest kiwifruit producer, Seeka, has agreed to sell five Northland kiwifruit orchards for nearly $16 million. Seeka said the agreements include the purchasers entering into long-term supply contracts for each of the orchards, which Seeka will manage on their behalf.

It told the New Zealand Stock Exchange the total sale value of $15.9 million exceeds the purchase price plus holding costs for the orchards.
Seeka said the sale agreements were conditional on the purchasers completing due diligence within 20 days.

It said it remains in negotiation for the sale of other orchards in its Northland portfolio and these would be announced as and when completed.

In other news, the hammer slammed down at $6.1 million on a Te Puke orchard sold at auction, marking what agents believe to be the largest sale of a gold kiwifruit orchard in the area.

The 6ha premium orchard property with 5.03 canopy hectares of G3 kiwifruit on new Agbeam structures sold under the hammer for $6.135m - or $1.18m per canopy hectare - last Wednesday. The sale price also allowed $200,000 for the 23.625 per cent shareholding in the amenities block.

The sale of the north-facing block, which produced 20,000 trays per hectare last season, also included the vendor's share (23 per cent) and capital account in the Oasis Kiwifruit Partnership.

Zespri communications manager Oliver Broad said Zespri reported an average orchard gate return of $5.47 per tray and $64,127 per hectare for green kiwifruit last month. The average orchard gate return for gold kiwifruit was $10.28 per tray and $137,865 per hectare.

"These forecasts reflect strong performance across all markets as we strive to meet growing consumer demand," he said. Broad said the long-term outlook was positive and was reflected in kiwifruit investments.

"At the same time, investors will know that in our sector and across all primary industries, risks such as those posed by weather and biosecurity need to be considered and factored into any future business planning."

New Zealand Kiwifruit Growers Inc chief Nikki Johnson said orchard gate return for green kiwifruit had increased to $59,981 from $30,067 per hectare in the last 10 years and to $114,345 from $60,885 for the gold variety.

Source: Herdon Gazette and NZ Herald

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