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NZL acquires prime Otago apple orchards in $13M deal, secures 30-year lease

The New Zealand Rural Land Company (NZL) has finalized the acquisition of a 47-hectare tract of premium horticultural terrain situated in Roxburgh East, Otago. This parcel, which is currently utilized for apple orcharding, has been leased to SI Orchards under a 30-year agreement. This transaction marks the commencement of a two-part acquisition strategy by NZL, aiming to secure a total of 126 hectares for a cumulative price of $13 million. The lease arrangement involves an experienced tenant with substantial capital resources.

The acquired land features 86 hectares dedicated to a diverse selection of apple varieties. The initial acquisition phase was concluded on November 8, with the transaction partially facilitated through the issuance of $3.5 million worth of NZL shares, priced at $1.58 each, reflective of the current net asset value.

In its semi-annual financial report ending June 30, NZL reported total assets valued at $423.5 million, with a gearing ratio of 30% and a net asset value per share of $1.55, distributed across 143 million shares. The trading price of NZL shares has experienced a slight increase over the last year, moving from 84c to the current price of 92c.

Source: FarmersWeekly

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