New Zealand Rural Land Company (NZL.NZX) has entered into agreements to acquire three apple orchards and forestry land for a total cost of approximately $27.6 million.
The orchards, located in the Hawke's Bay region, will be leased to Kiwi Crunch for 30 years, with an initial annual income of about $1.4m.
The 97-hectare orchard land, which is not inclusive of the trees, features high-quality soils suitable for horticulture.
As for the forestry land, spanning approximately 1,119 hectares and in close proximity to NZL's existing estates, it has been leased to New Zealand Forest Leasing for 16 years.
The acquisitions are expected to be settled in March 2024 and were said to diversify NZL's portfolio while increasing its weighted average lease term and portfolio yield.
The funding for the purchases will be done through equity, with NZL contributing 75% and Roc contributing 25%.
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