Rural Equities sells two more properties for $8m
The farming group controlled by the Cushing family sold two properties for almost $8 million as part of last year's strategic review.
BUSINESSDESK: Rural Equities, the farming group controlled by the Cushing family, sold two properties for almost $8 million as part of last year's strategic review.
The Hastings-based company agreed to sell a 237ha arable block in mid-Canterbury to its existing tenant, and a block of land near the Manawatu Gorge to a separate buyer for a gain of some $475,000 above their 2011 valuations, Rural Equities said in a statement on the Unlisted platform, where its stock trades.
Both sales will settle on June 28 next year, with the properties leased by the buyers until that time.
"The directors are pleased with the strategic review undertaken which has enhanced the overall quality of the portfolio, released capital for the continuation of our capital expenditure programme and strengthened the group's balance sheet even further," executive chairman David Cushing said.
The review had already seen Rural Equities sell its Ngaruawahia forestry assets for some $3.8 million at a loss of $640,000 and two other blocks for $6.9 million at a profit of $1.16 million.
At the start of this year Sir Selwyn Cushing handed over the reins of Rural Equities to his son David, though remained on the company's board. The Cushing's investment vehicle H&G Ltd owns about 55% of Rural Equities.
The shares last traded on July 4 at $3 apiece, valuing the company at $115.2 million.
Paul McBeth
Wed, 18 Jul 2012
Wed, 18 Jul 2012
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Rural Equities sells two more properties for $8m
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