ASSET: ALF: Allied Farmers enters agreement to sell Queenstown property

10 Jun 2010 11:02 am

ALF 10/06/2010 ASSET

REL: 1102 HRS Allied Farmers Limited

ASSET: ALF: Allied Farmers enters agreement to sell Queenstown property

Allied Farmers Limited today announced that it has entered into a conditional agreement for the sale of the second stage of the well known "Five Mile" property in Queenstown.

The site comprises 23.4 hectares of bare land situated on the gateway into Queenstown. Adjacent to the airport and industrial park, it is thought to be suitable for future commercial and residential development.

Allied Farmers Managing Director, Rob Alloway said today "We have been working with a number of interested parties for some time and are pleased to have an agreement secured on terms and conditions which meet our expectations. We always knew this site had strong strategic value, and the sale price achieved, which is in excess of the value attributed to the property in the half year accounts, reflects that".

"Whilst conditional, we are pleased with the timing of this sale, as it is near our financial year end and coincides with the negotiation of our banking arrangements for the next financial year" said Alloway.

The Five Mile property was once owned by Christchurch identity, David Henderson, who through the entity Five Mile Holdings Limited, unveiled plans to build a boutique town centre and residential development on the site. Five Mile Holdings Limited was placed into receivership by Hanover Finance in July 2008. The first stage of Five Mile, consisting of circa seven hectares, much of which has been excavated for an underground car park, was sold in November 2009 by Hanover Finance to Queenstown Gateway Trust Limited, led by well known Auckland developer, Anthony Gapes.

The sale is subject to various conditions and approvals which will be sought over the next month and Allied Farmers will keep the market informed once these conditions are met.

For further information please contact:

Rob Alloway Managing Director Mobile: 021 376642 Email: rob.alloway@alliedfarmers.co.nz End CA:00195938 For:ALF Type:ASSET Time:2010-06-10:11:02:35

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