Sharechat Logo

Allied Farmers Limited (NZX: ALF) NZ Rural Land Co. Conditional Agreement for Dairy Assets

Friday 30th April 2021

Text too small?

Allied Farmers Limited welcomes New Zealand Rural Land Company Limited’s (NZX: NZL ) NZX announcement today of its conditional agreements to acquire fourteen large scale dairy assets in South Canterbury and North Otago, for an aggregate purchase price of $114 million (subject to final adjustments), and related potential acquisitions.

This follows the announcement by NZL on 15 March 2021 of NZL’s first purchase of a 456 hectare dairy farm in Southland for a purchase price of NZ$10.373 million.

Allied Farmers owns a 50 percent interest in New Zealand Rural Land Management Limited Partnership (NZRLM), which is the external manager of NZL.

The Management Agreement permits NZRLM to charge the following fees:

• Management Fee of 0.50% per annum of NZL’s Net Asset Value (NAV);

• Transaction Fee of 1.25% on all NZL land and improvements acquisitions and divestments;

• Lease Fee of $30,000 per NZFL lease signed/renewed; and

• Performance Fee of 10% of NZL’s NAV growth, paid in NZL shares at NAV (50% escrowed for 5 years).

The Southland acquisition became unconditional on 23 March 2021. In accordance with the terms of the Management Agreement, and as disclosed in the NZL IPO documentation, NZRLM is now entitled to charge Management Fees. Shareholders are reminded that NZRLM pays all costs of due diligence on potential and completed NZL acquisitions and property management. These costs are funded from both the Management Fee and Transaction Fees (if any) paid by NZL.

Should NZL’s conditional acquisitions complete, Allied Farmers intends to update the market on the likely earnings impact as a 50% shareholder of NZRLM.

Please see the link below for details:

NZRLC conditional acquisition of Fourteen Large Scale Dairy Assets

Source: New Zealand Rural Land Company Limited

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Pacific Edge Limited (NZX: PEB) Placement Upsized Following Strong Demand
24th September 2021 Morning Report
23rd September 2021 Morning Report
Pacific Edge Limited (NZX: PEB) Dual Lists on ASX; Announces Capital Raise to Accelerate
Tower Limited (NZX: TWR) Updates Guidance
South Port New Zealand Limited (NZX: SPN) 2021 Annual Report
22nd September 2021 Morning Report
Kathmandu Holdings Limited (NZX: KMD) FY21 Annual Results Announcement
Stride Property Ltd & Stride Investment Management Ltd (NZX: SPG) Update on Demerger and Office Fund
21st September 2021 Morning Report