Unconditional sale of Five Mile development

Mystery surrounds the identity of the new owner of the 23.3ha Five Mile property, near Queenstown. Allied Farmers yesterday confirmed the unconditional sale of the land it took over as part of the purchase of Hanover Finance late last year.

Allied Farmers managing director Rob Alloway said the buyer did not wish to be identified but was "familiar with Queenstown district and had previously done development in the region".

Neighbouring developer Alastair Porter, of Remarkables Park and Shotover Park, said he had not bought the land.

"If it was me, I would say I couldn't comment, but I can tell you it wasn't me," he said.

He said the new buyer had informed him of the purchase but told him to keep quiet until they were ready to make an announcement.

Allied Farmers managing director Rob Alloway did not say how much was being paid for the bare land, which was the second stage of the Five Mile development, other than that it was "nearing the upper end of the valuation scale".

Last month when first announcing the sale, which at that time was conditional, Mr Alloway said the price was above the value of the property as recorded in the half-year accounts of $23.2 million. Yesterday he said it was "a reasonable amount" more.

Mr Alloway said a deal of the size of the Five Mile sale could have a substantial impact on the balance sheet of Allied Farmers, which also recently notified the market it had a $16.5 million loan facility outstanding to Westpac.

The Five Mile sale was just the first of what he expected would be many larger property deals in the future.

The property market looked to have "a little more" confidence, although for now the value of cash could not be overestimated, and Allied Farmers was looking at restoring liquidity to its balance sheet, Mr Alloway said.