Published 31 December 2009
Rural Equities Ltd said on 23 December it had an unconditional agreement to sell Fox’s Peak Station, a 4799ha high-country sheep & beef property near Fairlie in South Canterbury. Settlement is scheduled for Friday 22 January.
The company expects gross proceeds from the sale, including livestock, farm plant & machinery, to be about $6.3 million, close to the 30 June book value. Fox’s Peak has been owned by the NZ Rural Property Trust for about 20 years and is one of 30 farms in its portfolio. It also owns a pine forest near Ngaruawahia. The trust merged at the end of November with its parent, Rural Equities Ltd, the merged entity taking on the company name. Chairman Sir Selwyn Cushing commented after the merger: “The long-term outlook for profitability & valuations of quality agricultural properties in New Zealand is outstanding, due to positive demographics together with New Zealand’s favourable & temperate climate. Rural Equities is well placed, with a $200 million diversified portfolio of quality rural properties combined with a very strong balance sheet. In our view, the company’s portfolio of farms is the best largescale diversified rural property investment available in New Zealand.”
Want to comment? Go to the forum.
Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.