T&G Global sells Nelson site for $50m in leaseback deal

Fruit and veg company T&G Global has entered a sale and leaseback agreement for its Nelson property. Photo / Hawkes Bay Today

NZX-listed fruit and veg company T&G Global said it had entered into a $50.5 million sale and leaseback agreement for its 8 hectare Nelson property.

The company said it was selling and leasing back its 484 Nayland Road property to generate cash to support its growth strategy.

The site is being sold to Property Income Fund Limited, a fund recently established by Willis Bond.

The property accommodates most of T&G's post-harvest operations in the Nelson region, including its packhouse and most of its associated cool stores.

T&G Fresh's domestic Nelson operations are also based at the site.

Chief executive Gareth Edgecombe said the transaction would help T&G capital fuel its future growth.

"Our decision to sell the site and enter into a long-term 15-year leaseback arrangement for the property enables us to continue to operate our pivotal post-harvest facilities," he said.

The 15-year leaseback has a commencing annual rental of $2.6m plus GST.

The unconditional acquisition, which reflects a yield of 5.16 per cent, is expected to settle this calendar year.