Allied Farmers in Five Mile bid

Five Mile could soon have a new owner after Allied Farmers yesterday launched a $400 million bid to buy the property and loan assets of Hanover Finance, the owner of the Frankton land.

Hanover Finance took ownership of the 31ha site, valued at $37.4 million, when developer Dave Henderson went into receivership last year.

It has been on the market since February.

Allied Farmers will take over Five Mile and Kawarau Falls Station if Hanover Finance investors approve a shares-for-debentures deal.

Allied Farmers chairman of directors John Loughlin said yesterday the company would "not be desperate" to sell Five Mile if it took ownership of the site.

There was a possibility Allied Farmers could develop it but it was more likely it would be sold, he said.

"We see it as a high-potential site.

"We think there's a lot of interest in it and, properly managed, it could be sold well for development."

He would not put a figure on how much he thought the land was worth.

The Southland Times reported on Wednesday that the Queenstown Lakes District Council had lifted a caveat on part of Five Mile following discussions with a party last week.

The caveat had prevented the sale of the land.

Allied Farmers also stands to buy Hanover Finance loans that were made to receivership-hit companies linked to Kawarau Falls Station.

Hanover Finance is owed $19 million as second mortgagee by Melview (Kawarau Falls Station) Investments and Melview (Kawarau Falls Station) Development.

Asked about his hopes for Kawarau Falls Station, Mr Loughlin said Hanover was only a "minor player" in the development.

"The way we would benefit the most was if development proceeds, but we won't be the driver of that."

- © Fairfax NZ News

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