Premium Bay of Plenty kiwifruit listings could exceed $100 million
Several desirable Bay of Plenty kiwifruit properties have listed for sale recently and are set to change hands for a combined value that could exceed $100 million.
Stan Robb and Dave McLaren of PGG Wrightson Real Estate, Te Puke have listed 10 orchards between them this month. Comprising some 67 canopy hectares, mostly planted in gold kiwifruit, the properties will almost certainly sell in the coming weeks, setting the market for the rest of the season.
Stan Robb is expecting some of the orchards to sell at or above benchmark values.
“Property planted in gold kiwifruit vines in the most sought after Bay of Plenty districts has sold recently at $1.8 million per canopy hectare. Orchards selling now have the fruit set and ready for harvest in a few months. That adds further value to an already highly sought after asset. Demand is vigorous. All properties are set to receive multiple offers. Some of these orchards will sell at new record levels,” he said.
Dave McLaren is selling the largest of the 10 listings, a Pukehina orchard planted in 21.26 hectares of fully producing gold kiwifruit, which is for sale by tender closing on 10 February.
“Some of these orchards achieve between $250,000 and $300,000 per hectare orchard gate return, almost double the Zespri 2020/21 average, driving demand for them to exceptional heights.
“With a range of potential buyers showing keen interest we are confident all will sell. Local growers are paying close attention, with several considering forming syndicates, while corporate investors are making inquiries, including some who are traditionally not orchard owners though motivated to buy based on the scale and quality of these properties.
“Now is the optimum time to sell an orchard, with the crop just hanging there,” he said.
Tenders for five of the orchards, listed by Stan Robb, close on 3 February, with the outcome of these sales likely to influence the market, including on subsequent kiwifruit properties offered for sale in the next few months.
Dave McLaren says the quantity of orchards currently available will not negatively affect prices.
“These orchards have come to the market for differing reasons. Although they are all for sale at once, present demand for premium properties with documented orchard gate returns is so strong that values will remain firm,” he said.
Zespri announced significant changes to its 2022 release of licences to grow gold kiwifruit, halving the total area available to 350 hectares and capping the total licence size per grower to ensure a greater spread of licences. Zespri’s 2021 tender set the gold kiwifruit licence price at $550,000 per hectare, up from $400,000 per hectare last year. Based on heavy over-subscription of previous licence issues, and the reduced quantity available this year, that price is likely to increase yet further.