Sharechat Logo

Seeka enters into conditional sale and lease back of Australian Kiwifruit Orchards

Wednesday 20th May 2020

Text too small?

Seeka Limited [NZX: SEK ] advises that it has entered into a conditional sale and lease back of three of its Australian owned kiwifruit orchards – Austral, Lakes and Hayward. The orchards with a total land area of approximately 199 hectares has sold for AUD$26.5m subject to the approval of the Foreign Investment Review Board and will be leased back for up to 30 years with two initial terms of 10 years followed by two terms of 5 years. The sale price is for the orchards with a separate additional component to fund and lease water shares.

The sale by Seeka follows its strategy to investigate selling the orchards and leasing back, with the proceeds to be used to repay debt and accelerate further kiwifruit orchard developments in Australia. The properties had been widely advertised publicly in Australia earlier in 2019. Michael Franks, Seeka Chief Executive advised that Seeka was satisfied with the sale and the project team has done a good job with the sale. The transaction introduces a new partner to the Company and releases cash for debt reduction and to complete further developments. Seeka has not advised the market of the earnings impact from the transaction as the implications of NZ IFRS 16 Leases is still to be considered and would be advised to the market when the sale went unconditional – expected in the second half of 2020.

Source: Seeka Limited



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

Rio Tinto decision following strategic review of Tiwai
Contact says smelter closure is ‘disappointing’
South Port (SPN) Statement on NZAS Tiwai Point Aluminium Smelter Closure
Rio Tinto announcement on Tiwai Aluminium Smelter
Me Today announces equity raising to accelerate growth
Scott Technology Trading Update; Rising to the COVID Challenge
New non-binding indicative offer received from apvg, shareholder meeting deferred
U.S. Added 4.8 Million Jobs in June as Reopened Businesses Rehired
Auditors have a duty to be alert to fraud
Strong sales recovery but uncertainty remains over economic outlook and potential second wave of COVID-19

IRG See IRG research reports