GENERAL: ALF: Allied Farmers Subsidiary Places Property Ventures Limited

5 Mar 2010 5:05 pm

ALF 05/03/2010 GENERAL

REL: 1705 HRS Allied Farmers Limited

GENERAL: ALF: Allied Farmers Subsidiary Places Property Ventures Limited

Allied Farmers Investments Limited today announced that it has placed Property Ventures Limited into the hands of receiver, Grant Thornton in an attempt to recover a loan to Five Mile Holdings Limited (In Receivership). The loan was guaranteed by Property Ventures Limited.

Allied Farmers Managing Director Rob Alloway said that this is the first of many such actions involving borrowers who have failed to meet their obligations. Five Mile Holdings Limited (In Receivership) has an outstanding loan to Allied Farmers Investments of more than $41.5 million as at 28 February 2010 and is now accruing interest at more than $23,000 a day.

Allied Farmers holds a General Security Agreement (GSA) over the assets of Property Ventures, which is owned by a number of investors including high profile Christchurch property developer, Mr David Henderson. Property Ventures has interests in more than 30 subsidiaries, including those associated with Hotel So, and the South Of Lichfield (SOL) entertainment and retail precinct in Christchurch.

"We will use all reasonable means available to us to collect outstanding principal and interest on loans which were entered into in good faith" said Mr Alloway.

Allied Farmers, through subsidiary 5M No.2 Limited now owns part (23ha) of the Five Mile site in Queenstown, following a restructure of the asset by Hanover last November, which included the sale of 4ha of land to Queenstown Gateway Trustee Limited.

ENDS For further information please contact:

Rob Alloway Managing Director Mobile: 021 376 642 End CA:00192169 For:ALF Type:GENERAL Time:2010-03-05:17:05:36

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