Apple Fields faces $50m tax loss
By Chris Hutching
Corporate orchardist-turned-property company Apple Fields is contemplating its future as it finalises the refinancing the last of its properties owed to the Rural Super Bond superannuation scheme (RSB).
Over the past year the former orchardist was forced to sell its properties faster and for lower prices after the trustee of the RSB, Tower Trust, last year appointed receivers to the properties secured to the scheme.
The sales are nearly complete except for one 41ha block of land near Christchurch airport called the Noble property, also secured to the scheme.
Managing director Tom Kain said a joint-venture partner was lined up for the Noble property and a first mortgage was being arranged to satisfy the amount owed to the RSB.
The structure of the deal is similar to others involving blocks at Johns Rd, Wigram and Shands Rd where Apple Fields retains a joint venture interest.
"Essentially we sell the interest in the land to investors who supply the funding and we complete rezoning plans and share part of the final profit."
Once the sale of the Noble block is completed the company will have no debt compared with $75 million two years ago, no fixed assets, four executives and $50 million in tax losses available against future income.
Mr Kain said the tax losses might be regarded as contingent assets. There were no plans to delist from the Stock Exchange.
A possible windfall profit may come from a pending court ruling about the $13 million disputed sale of the Styx block of land on the northern periphery of Christchurch.
Comments from our readers
No comments yet
Add your comment:
Minister to take back inquiry appointment powers for EEZ applications
Government unveils RMA reform package with enough support to become law
Energy Mad nearly halves first-half loss by slashing staff costs, sales commissions and fees
China pips Australia as New Zealand's top annual export destination
Former Fonterra director Ralph Norris spells out reasons for his departure
Arvida posts first-half profit of $7.4 mln, expects to beat full-year prospectus forecasts
Kirk Hope rumoured front-runner for top job at BusinessNZ, replacing O'Reilly
Xero directors Drury, Winkler and Morgan cash in on 35% share price rally
New border levy to deter tourists and dampen economic growth, NZIER says
Gentrack full-year revenue misses prospectus forecast, while jump in profit exceeds target