Van Leeuwen Group to lease back farms under deal

Wilma and Aad van Leeuwen pictured in 2014.PHOTO: ODT FILES
Wilma and Aad van Leeuwen pictured in 2014. PHOTO: ODT FILES
A major corporate farming company has begun the process of purchasing the high profile Van Leeuwen Group's assets after it was placed into receivership last week.

However, under the deal companies owned by VGL would lease back the farms.

New Zealand Rural Land Company (NZL) announced to the NZX this morning it will acquire 14 dairy farms in South Canterbury and North Otago for a purchase price of $114 million.

The Otago Daily Times reported last week, VGL had set up multiple companies at a Waikato address just before going into receivership.

NZL also announced three of those companies have entered into separate lease agreements for the 14 farms, with a total annual rent of  just under $6 million a year.

Three will be leased to Sustainable Grass Dairy Limited, five will be leased to Performance Dairy Limited, and six will be leased to Performance Livestock Limited.

Those three companies are all companies owned by the Van Leeuwen Group, which according to the companies office is still in receivership.

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