If the map on the Seven Fields website is accurate then it looks very much like it is those same orchards, well 515 hectares out of the 800 hectares that Seven Fields owns.
The age, location, lack of water rights, mix of almond varieties, etc, all point to these being the same orchards. Good pick up Rosy.
Lake Powell Orchards (the name of the orchards owned by Seven Fields) had a valuation of $8.5m as at 31/12/08 according to Orchard Primary Infrastructure Fund's accounts. Presumably the remainder of the Seven Fields orchards consist of Lake Carpul Orchards, valued at $13m.
Digging a bit deeper and I've found that the Lake Powell orchards are actually owned by Arena Primary Infrastructure Fund (formerly Orchard Primary Infrastructure Fund), leased to Seven Fields and managed by Select Harvests.
The Lake Powell orchards (presumably 800 hectares) was valued in 2010 at $17m which would equate to about $11m for the 515 hectares that are up for sale. The drop in value presumably is due to the sale of the water rights.
APIF needs to refinance their existing debt which has a maturity date of 31/7/12 and skimming their releases it appears that their banker wants the debt levels reduced as part of the refinancing.
Given that it appears to be a distressed seller and the orchards are newly matured I'd like to see SHV buy as long as it is at a bargain price. Of course to buy them would require finance and at these depressed share prices I'd hate to see another CR and I'm not that keen to see SHV take on more debt.
Given that settlement terms are: Cash 30 days for settlement by 30th June 2012 then the buyer must already be known, presuming they were bought.
SHV Price at posting:
$1.39 Sentiment: Hold Disclosure: Held
