Allied Farmers shares up on property sale

Shares in Allied Farmers have risen 7.3 per cent to 7 cents in NZX trading this morning on news that was booking $3.4 million from the successful sale of properties in Queenstown, New South Wales and one undisclosed location.

"A number of other transactions for the sale of properties are close to being completed," said chief executive Rob Alloway in a statement to NZX.

"A number of sections" had been sold in Queenstown and there was strong inquiry in what Alloway described as "a return to confidence in well located developments such as Jack's Point."

The funds will be applied to reducing debt, a key priority for the company as it struggles to cope with the ongoing discovery of poor quality debt in the Hanover Finance and United Finance loan books, which Allied purchased in December 2009.

"Significant progress is being made in the realisation of a number of other assets acquired from Hanover," said Alloway. The company hoped to make further announcements "in the near future".