T&G mulls property sale and leaseback, writes off $28m
Turners & Growers may sell and lease back some of its property portfolio and to sell non-core activities as it chases greater profitability.
BUSINESSDESK: Fresh produce distributor Turners & Growers is looking at options to sell and lease back parts of its property portfolio and to sell non-core activities as it chases greater profitability after the takeover of 73% by Germany's BayWa last year.
At the firm's annual meeting in Auckland today, chairman Klaus Josef Lutz said T&G would also examine local "add-on" acquisitions to consolidate the New Zealand grower market, packaging and production facility investments, and opportunities in international growth markets.
The group chief executive of the German fresh produce distributor, Mr Lutz pointed to plans to find synergies with BayWa's activities as it seeks growth in Asian and South American markets and to diversify out of the relatively stagnant German market.
Also addressing the meeting, local director Rob Campbell said revaluations of orchards and biological assets had led to a writedown of $27.8 million in capital values, reflecting ongoing poor pipfruit returns and the impact of the PSA-V virus on the kiwifruit industry.
T&G had also been forced to write off $8.5 million of tax benefits sitting in the books of Inglis Horticulture, because T&G's takeover of the company had broken continuity of ownership rules which must be observed for tax losses to remain available for future claims.
He also disclosed a $3.1 million transaction fee has been provided for as part of the strategic review process the company has been undertaking.
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T&G mulls property sale and leaseback, writes off $28m
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