Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Major Te Puke kiwifruit orchards marketed to foreign buyers

Major Te Puke kiwifruit orchards marketed to foreign buyers

By Paul McBeth

March 19 (BusinessDesk) - A block of three kiwifruit orchards in Te Puke is being marketed to foreign buyers, despite the new Labour-led government's plans to restrict overseas investment.

Bayleys Real Estate is marketing the Te Matai, Pacific Gold and Coachman orchards in Te Puke, spanning 98 canopy hectares in an international tender, closing on May 3, the realtor said in a statement. The three privately owned orchards are on track to produce 1.2 million-to-1.3 million trays of SunGold G3 and Hayward kiwifruit in roughly equal percentages, or about 0.9 percent of Zespri Group's total supply. That implies payments from Zespri of between $11.4 million and $12.3 million based on the 2017 payment of $9.76 per tray.

Kiwifruit orchard prices have soared since the government and industry response to the Psa bacteria incursion developed a resistant strain, and recent sales of land producing SunGold G3 varieties have gone for between $900,000 and $1 million per hectare, while green kiwifruit orchards able to be converted to gold have sold at $450,000-to-$500,000 per hectare. At an equal split, that implies a sale price of between $66 million and $74 million, not including 102 hectares of grazing land, two residential buildings, plus the option to buy $5.2 million of Zespri shares.

"The sheer scale of this Te Puke portfolio puts the trio of orchards among the biggest commercial kiwifruit operations in New Zealand and is certainly one of the largest that has ever been taken to market in one portfolio," Bayleys managing director Mike Bayley said. "The economy of scale delivered by purchasing this collection of orchards, which are all in close proximity to each other, allows for any new owner to maintain the corporate approach to crop management and production."

Australasia's biggest kiwifruit grower is NZX-listed Seeka, which produced 8.5 million trays in 2017 from its New Zealand orchards. The company last traded at $6.67, giving it a market value of $116.9 million.

The sale comes as policymakers hear submissions on amendments to the Overseas Investment Act bringing residential property and forestry cutting rights into the screening regime and after the government issued a directive to the Overseas Investment Office reducing the size of farms covered by OIO applications.

Bayley said buyers can bid for the entire portfolio or any of the individual properties.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>