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Early settlement of Five Mile sale

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Sept 10 NZPA - Allied Farmers has announced an earlier than expected settlement of the sale of its Five Mile property, which it took over as part of the purchase of Hanover Finance late last year.

The company had confirmed an unconditional sale of the 23.3ha property near Queenstown Airport in July, and settlement was scheduled for December.

Allied Farmers said the proceeds have been used to reduce term debt to Westpac from $14.2m to $5.4m.

Though managing director Rob Alloway has not revealed how much was paid for the land, he has said it was "nearing the upper end of the valuation scale.

"This is a good outcome, given we achieved a price for Five Mile that was within range of the valuation," he said.

"Concluding the Five Mile deal early and winning the judgment on the MAC Reeves property will bring senior term debt down to less than $2 million, and gives significant impetus to our debt reduction programme."

Allied Farmers shares were up 11.11 percent at 30.

NZPA WGT pmm gt

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