The collapse of apple exporter Kiwi Crunch has drawn NZ Rural Land Co into the fallout.
In a market announcement on Thursday morning, the rural property owner said it was directly affected by the voluntary administration and receivership of one of NZ’s largest fruit exporters.
Shares fell more than 5% in trading after the announcement to 91 cents on almost $100,000 volume.
The company said New Zealand Rural Land Investments Limited Partnership (NZRLIP), in which it holds a 75% interest, has leases linked to Kiwi Crunch that account for about 5.8% of its total rental income.
Further, the listed company said it had two further leases in the partnership vehicle owned or controlled by Kiwi Crunch's director, Wade Glass.
More than 7% of the partnership’s total rent income was derived from these two leases.
"We are advised these additional entity groups are currently not impacted by the appointment of external administrators to the entities under the Kiwi Crunch umbrella."
However, it said NZRLIP was monitoring the situation closely.
As a result, NZ Rural Land Co said it would suspend its earnings guidance.
The company said at its annual meeting in May it expected adjusted funds from operations (affo) would be between $8.25 million and $8.75m for the 2026 financial year.
In the 2025 financial year, the firm reported affo of $7.9m.
Securing ownership
On Thursday, the company said that as the Kiwi Crunch Farms and additional leases remained in effect, all outstanding and future rentals remained payable.
Rural Land Co co-founder and director Richard Milsom said there was a lot of interest in the properties and "we're lucky that apples are having such a good year and has such a good outlook".
NZRLIP had already received strong interest from third parties in relation to any opportunities that may arise relating to the impacted leases, the firm said.
It would update the market when further information became available, and intended to settle an Otago orchard purchase to secure its ownership rights.
The Otago purchase was announced in 2024. The company bought 126ha of horticultural land in what it said was one of Central Otago’s prime growing districts for $13.3m to be leased to SI Orchards.
SI Orchards leased the land under two agreements.
In February of the same year, it said it would acquire a 97ha horticultural property in Hawke’s Bay which was leased to Kiwi Crunch.
Receivership
ASB Bank has appointed receivers to several Kiwi Crunch entities under the power of a General Security Deed dated March 1, 2024.
Related companies in receivership include Kiwi Crunch Farms, Kiwi Crunch Hawke's Bay, Kiwi Crunch Nurseries, Kiwi Crunch Orchards, Kiwi Crunch Exports, KC IP and Crasborn Fresh Harvest.
Calibre Partners receivers Neale Jackson, Daniel Stoneman and Brendon Gibson were appointed to the companies on July 7.
Major fruit grower and exporter parent company Kiwi Crunch Hawke's Bay went into voluntary administration on July 7.
Kiwi Crunch said it managed 450ha of fruit-growing land across multiple orchards in Hawke’s Bay and was the region's leading fruit exporter.
Kiwi Crunch Hawke's Bay is a shareholder of 12 companies, many of which were also tipped into voluntary administration on the same day.
Subsidiaries of the Hawke's Bay company that have also been put into voluntary administration are: Kiwi Crunch Nurseries, Kiwi Crunch Exports, Kiwi Crunch Farms, Kiwi Crunch Orchards and KC IP.
Former accountant and entrepreneur Glass is the director of all the companies.
Ecovis director Gareth Russel Hoole was appointed as voluntary administrator of Kiwi Crunch Hawke's Bay on July 7.
The parent company of Kiwi Crunch Hawke's Bay is Consolidated Fruits Limited, a large holding company for several orchards and brands across New Zealand.
Crasborn liquidation
Crasborn Fresh Harvest was tipped into liquidation by Inland Revenue over $19m of debt on July 3.
Associate Judge Helen Wild concluded she was left “with no option but to liquidate the company” after a previous judgment noted no more adjournments were to be had in the case.
The ultimate holding company for the business is Kiwi Crunch Hawke's Bay.
“It is against the integrity of the tax system not to liquidate this company,” Inland Revenue barrister and solicitor Cloete van der Merwe told the High Court at Auckland on July 3.
KPMG liquidators Leon Francis Bowker and Kristal Pihama were appointed to the company.
The collapse of the companies will have a big impact on the Hawke's Bay region, where it employs hundreds of people across its orchards and exporting businesses.