Apple Land Acquisition

TRANSACT

Fri, Nov 08 2024 04:58 pm

8 November 2024

Apple Land Acquisition

New Zealand Rural Land Company (NZL.NZX) has settled the first of two contiguous horticultural land acquisitions announced to the market on 29 August 2024. www.nzx.com/announcements/437146.

The orchards are located near Roxburgh East in Central Otago and feature high quality soils well suited to intensive horticulture. They also offer a range of alternative uses.

This initial purchase consists of approximately 47 hectares, with an annualised year one income of $635k. Settlement of the property includes consideration of $3.5m worth of NZL shares issued at $1.58 per share - 2,215,190 shares. The next property is scheduled for settlement in September 2025.

Following the settlement of both properties, NZL will own a total of approximately 126 hectares of prime horticultural land in Central Otago, of which 83 hectares are planted in a range of apple varieties. The land will be leased to SI Orchards for a period of 30 years with a total year one income of ~$1.13m.

This acquisition builds on NZL’s recent entry into the horticultural sector and serves to diversify the portfolio by geography and asset type, while partnering with an experienced and well capitalised tenant. The 30-year lease materially increases NZL’s weighted average lease term, the frequency of rental reviews and the portfolio’s gross yield.

For further information please contact:

Richard Milsom - Director, NZRLM
Mobile: 021 274 2476
Email: [email protected]