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:
JPMorgan's NZ branch gets formal warning from central bank over lack of risk assessment plan in 2013
MARKET CLOSE: NZ shares fall; Meridian, MRP, DNZ drop on weakening yield demand
NZ dollar little changed as Australian GDP shows healthy household consumption
AsureQuality posts 5% drop in 1H profit as costs rise; expects to beat FY target
Carter Holt cladding 'inherently defective', appeal court hears
Kordia turns to profit in 1H as Australian business improves
Rex Bionics widens full-year loss as commercialisation costs rise
NZ government launches Ageing Well, the latest national science challenge
NZ residential building activity rises 4.3% in 4th-qtr, driven by Canterbury
Spark sells Telecom Rentals for $106M to Australia's FlexiGroup