Seeka, New Zealand’s biggest kiwifruit producer, has leased the orchard and will continue to run it.
The fund paid $15.5 million for the 20-hectare property and its outlay is expected to rise to $22m as it pays for planting more gold kiwifruit over the next year. There is also provision for a further $1m payment in five years, based on orchard production.
PLP is managed by Booster Investment Management, part of the Wellington-based KiwiSaver and investment group Booster Financial Services (BFS).
The latest acquisition lifts the value of PLP’s properties to $60m, and the borrowings now total $24.5m.
The Northland kiwifruit block is added to PLP’s three vineyards in the Awatere Valley in Marlborough with 111ha planted , Nelson, 105ha, and Hawke’s Bay, 36ha. The Awatere Valley and Nelson vineyards are planted mainly in sauvignon blanc and the Bridge Pa, Hawke’s Bay, property in pinot noir, pinot gris, syrah, and chardonnay.
The new Northland block also has an area planted in citrus, which can be converted to other use.
PLP was set up by BFS two years ago and listed on the NZX in mid-September. The Booster group will remain a major investor in the listed fund including for KiwiSaver clients. The fund has a seven-year investment timeframe.
PLP is an chance for retail investors to invest in productive provincial and rural NZ land, BFS chairman Paul Foley said. There might also be investments in industrial, commercial and retail properties. PLP listed with just over $50m of investments.
The fund unit price, though there had been no trades at time of writing, is $1.04, close to the asset backing after allowing for PLP’s borrowings. The market capitalisation for the small fund is just over $32m.
All the shares are still owned by Booster group or associated interests. BSF has said it will buy units from the fund as new units are issued monthly and they will be made available to NZX investors at the net asset backing price.
Seeka’s kiwifruit orchard is among the large block of assets it bought from T&G Global early last year. The 288ha includes 80ha of producing kiwifruit land.
Seeka’s main interest is T&G’s Kerikeri post-harvest operations, which have since been expanded with plans to on-sell the orchards to buyers who will commit the fruit-packing to Seeka.
Seeka has sold $46.2m of orchard land including the PLP deal.
Another $5.05m of agreed sales are expected to settle before the end of the year.
Seeka told the NZX that left $9.54m of orchards to sell, with negotiations under way.
It will use the proceeds to repay debt.
