SEK
18/12/2015 13:35
ASSET
NOT PRICE SENSITIVE
REL: 1335 HRS Seeka Kiwifruit Industries Limited
ASSET: SEK: Seeka acquires a new head office site
Seeka acquires a new head office site on land currently occupied by Kiwi360
Te Puke, 18 December 2015 - Seeka Kiwifruit Industries Ltd [NZX:SEK] has
announced a series of property transactions.
These include the acquisition of land currently leased by Te Puke kiwifruit
tour operator Kiwi360, which will be used as the site of Seeka's new
corporate head office, and the sale and sublease of properties no longer
meeting the company's requirements.
Seeka has confirmed the purchase of a 7.44 hectare property and a 5.44
hectare kiwifruit orchard adjacent to the property, for $4.2m, with the
purchase to be completed on 20 January 2016. The 7.44 hectare property is
leased to Green Circle Limited, the Kiwi360 business operator, who will stay
on site until 20 April, 2016.
The 5.44 hectare orchard is directly across the road from Seeka's Transpack
Packhouse in Young Road, Maketu corner, and is adjacent to its Transcool
coolstore, and KKP Packhouse.
The company advises that it has also reached an unconditional agreement to
sell its New World building in Te Puke, across the road from its current head
office. This property will settle in February 2016 and was sold at its 2014
purchase price of $1.2m. The company had originally intended to relocate its
head office to the New World building.
Seeka Chief Executive Michael Franks said he was delighted with the purchase.
The properties were offered to Seeka on the basis of a friendly deal that
suited the Kiwi360 business, which intended to relocate, and an owner that
was looking to sell.
A deal had been struck that allowed Kiwi360 to continue with its own
relocation plan, and importantly would enable it to meet its cruise ship
commitments in the current year.
Mr Franks said Seeka planned to relocate its head office to the Kiwi360 site
in the middle of 2016. Local Te Puke Architects Page Henderson have been
commissioned to help with planning the conversion from tourism operation to
Seeka's kiwifruit headquarters.
"Seeka's commitment to the area remains strong and the linkage between the
site and kiwifruit has been preserved," said Mr Franks "The deal is a good
one for everyone concerned."
Seeka has also sublet two vacant properties in Totara Street, Mount
Maunganui. These properties, which are adjacent to its Huka Pack sites, were
on long term leases as part of Seeka's purchase of Huka Pack in 2010 from Te
Awanui Huka Pack. From 2016, they have been subleased for 14 years to an
independent third party. The annual sublease value will fully offset Seeka's
head lease cost.
While not having an immediate impact on earnings, Seeka believes the purchase
of the two properties at Maketu will position the Company for future
expansion in that area.
For further information please contact:
Michael Franks 021356516
End CA:00275416 For:SEK Type:ASSET Time:2015-12-18 13:35:01
