Allied Farmers confirms Five Mile sale

Alliled Farmers' Rob Alloway. Photo / Greg Bowker

Troubled Allied Farmers has confirmed the unconditional sale of the Five Mile project in Queenstown, but the buyer remains a mystery.

In an announcement to the Stock Exchange this morning Allied Farmers managing director Rob Alloway said the company had received a "compelling offer" for the property that was "nearing the upper end of the valuation scale".

The 23.3 hectare property is adjacent to Queenstown Airport and represents the second stage of the Five Mile property development.

"We've always said that, given time, we could realise value from the former Hanover assets for our shareholders and indeed this has proved to be the case with Five Mile."

Alloway said the buyer wished to remain anonymous, but that the
company was familiar with the Queenstown District and had previously done development in the region.

"They came late to this negotiation with a pretty compelling offer and we are very pleased to be able to have concluded such a significant deal."

"When both the buyer and seller are happy then the deal is usually about right" Alloway said.

Settlement is scheduled for mid November.

Five Mile was originally owned by Christchurch property developer Dave Henderson, who won drawn-out battle with the Inland Revenue Department which was turned into a film, and was put into receivership by Hanover in July 2008.

The first stage of the development was sold in November last year to Queenstown Gateway Trust.

Alloway earlier said Five Mile's sale was part of a strategy that Allied had to realise assets and quit non-performing loans.

Allied is dogged by a range of problems and has had to write down the value of the loan book by almost a third this year alone.