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Seeka completes further Northland orchard sales
25 February 2020

Seeka Limited [NZX:SEK] advises that it has today completed further property sales of its Northland orchard portfolio totalling $10.1m. The sales completed today brings the total gross sales completed to date to $51.7m and the gain on sale to $6.1m. Seeka notes that the adoption of NZ IFRS 16 Leases has the impact of reducing the reported gain on sale by $1.3m to that which would have been reported pre NZ IFRS 16 Leases.  All sales to date have included a term supply commitment back to Seeka.

The strategy of divesting the Northland orchards with committed supply was enacted when Seeka purchased the Northland kiwifruit orchards and related post-harvest business from T&G Horticulture in April 2018 for approximately $40m. Since that acquisition, Seeka has embarked on a strategy of refurbishing the orchards and sale with committed supply, alongside a significant rebuild of the post-harvest facility with $27.4m invested in the facility to date including original acquisition costs. This investment has created a world class post-harvest facility in Northland handling kiwifruit, avocados and citrus. The company has received strong local support and increased demand for its services as a result.

Seeka advises it still has a small number of Northland orchards to sell and is working through the process with the expectation to substantially complete the strategy in 2020.

Proceeds from the sale will be used to reduce debt. At December 31 2019, net debt totalled $116.8m and this will be reduced by the $10.1m completed today and another $4.95m from an unrelated unconditional sale which settles on April 9 and was included in the 2019 Financial Accounts.

Seeka advises that it continues to work through its Australian orchard sale and lease back project and will report in due course.

Seeka expects to announce its full year 2019 audited Financial Statements on 26 February 2020.



Michael Franks
Chief executive
+ 64 21 356 516

Stuart McKinstry
Chief financial officer
+ 64 21 221 5583

Seeka Key