Booster fund's vineyards lose $3.1m in value

Booster Investment Management, the manager of the Private Land and Property Fund (PLP), has announced a valuation decrease of $3.1 million for its three vineyards in Marlborough.

The properties, which represent about 13% of the fund's total asset value, are now valued at $25.9m.

This is an 11% reduction in value and a 1.4% decrease in the net asset value of PLP.

The decrease in valuation is attributed to the difficult conditions in the New Zealand wine industry, including changing demand for wine and high variability in harvest sizes.

The vineyards are on a grape supply agreement, meaning their returns are directly impacted by grape prices and harvest size.

However, the fund said the most recent forecast for the vineyards' harvest is positive, with improved grape volumes.

The valuation decrease will be reflected in the 24 February 2025 unit price.

Investors can continue to purchase units in PLP on the NZX or subscribe for units in the fund.