New Zealand Rural Land Company Completes First Tranche Of Orchard Land Acquisition In Otago

In the first of two neighbouring land acquisitions, New Zealand Rural Land Company (NZL.NZX) has purchased 47 hectares of prime horticultural land located in Roxburgh East, Central Otago that will yield an annualised income of $635k in the first year.

The initial purchase was settled on Friday 8 November in part with $3.5m of NZL shares, issued at $1.58/sh (net asset value per share following the sale of a 25% interest in NZL’s portfolio) - 2,215,190 shares.

Co-founder and New Zealand Rural Land Management director Richard Milsom says the investment will strengthen NZL’s recent entry into the horticultural sector, bringing yet another experienced, well-capitalised tenant.

“The orchard will be leased to SI Orchards for a 30-year term with a year one income of ~$1.13m.

“The 30-year lease term materially increases NZL’s weighted average lease term, increases the frequency of rental reviews and increases the portfolio’s gross yield.

“The orchard land features high-quality soils well-suited to intensive horticulture and enabling a range of alternative uses.”

Following the settlement of the second and final tranche in September 2025, NZL will own a total of approximately 126 hectares of horticultural land in Central Otago, of which 83 hectares are planted in a range of apple varieties.

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