Sharechat Logo

Seeka considers sale and leaseback of Australian orchards

Monday 29th July 2019

Text too small?

Kiwifruit grower and marketer Seeka said it is looking at a potential sale and leaseback on some or all of its orchard portfolio in Australia.

Funds would be used to accelerate orchard development and repay debt, it said. 

Seeka Australia currently holds over 273 hectares of orchards in production or development, with approximately 278 hectares available for new development.  The portfolio includes 163 hectares of kiwifruit and 110 hectares of European and Asian pears, of which 21 hectares are new variety pears yet to come into full production.

Seeka has approximately $49 million invested in Australia across both the post-harvest and orcharding business.

The strategy is consistent with Seeka’s recent approach in New Zealand where orchards were purchased in Northland and sold to third parties with a secure term packing commitment, it said. 

In March it said that as of Dec. 31 it had made a $600,000 gain on $7 million of sales from its Northland orchard portfolio. Last week it said in the six months to June 30 it had sold and settled $5.4 million more, with a $1.2 million gain on sale.  This month, it has sold and expects to settle another $11.7 million, with a $1.5 million gain on sale. In addition, $7 million in conditional sales have been agreed and are expected to settle before Dec. 21. These sales will result in a gain of $1.6 million when completed, it said.

Seeka still holds $21.6 million in orchards for sale and is actively engaged in sale negotiations.

It also confirmed it expects earnings before interest, tax, depreciation and amortisation are likely to range from $32.5 million to $33.5 million in the 2019 calendar year. Ebitda before impairments and revaluations was $26.2 million last year.

USX-listed Seeka shares last traded at $5.15 and have gained about 21 percent so far this year.


Father's Day SOON! Crazy Deals on ALL IRG Yearbooks - More than 50% OFF - $19.99 for 44th IRG Yearbook 2018-2019

  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:

NZ dollar rises after Orr talks up the economy
Comvita posts $27.7m net loss on goodwill write-downs
Buyers emerge for Denton Morrell client book
WEL reviewing capital structure of fibre business
Cavalier announces strategic collaboration with NZ Merino Company
Delegat continues to invest after record year
Kiwibank's annual profit eases as fee income drops
TIL lifts operating earnings, watching for slowdown
Vector profit slides 44% on struggling HRV writedown
Steel & Tube returns to the black but says margins are squeezed

IRG See IRG research reports