For fresh produce marketing in Australia and New Zealand
Matthew Jones



Seeka profits from Northland strategy

Leading kiwifruit and avocado company uses proceeds from orchard sales to repay debt

Seeka profits from Northland strategy

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Seeka has returned over NZ$45m from the sale of orchards in New Zealand’s Northland region.

The orchards formed part of a portfolio the Australasian fresh produce company acquired through the purchase of T&G Global’s KeriKeri post-harvest and orchard business

“In line with Seeka’s Northland strategy Seeka embarked on a process of rejuvenating those orchards and selling them, with a long term fruit packing commitment to Seeka,” the company told investors via a release on the New Zealand Exchange (NZX).

During the year ending 31 December 2018, Seeka sold and settled NZ$7m of its Northland orchard portfolio, releasing a NZ$600,000 gain on sale.

In the six months ending 30 June 2019, Seeka settled sales for a further NZ$5.4m of its orchard portfolio, a NZ$1.2m gain on the purchase price of this parcel of properties.

Since 30 June 2019, Seeka has sold and settled NZ$28.75m of its Northland orchard portfolio, releasing a NZ$1.79m gain on sale. This includes a recently settled NZ$15.5m sale to Booster’s PLPP, with this property to be leased back to Seeka.

The company said a further NZ$5m in conditional sales have been agreed, with settlement expected before 31 December 2019.

Consistent with its Northland strategy, Seeka intends to use proceeds from the orchard sales to repay debt.

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