14 May 2010

Allied Farmers waits for best price for properties

9:56 am on 14 May 2010

Allied Farmers says it's in no rush to sell some of Hanover's more lucrative assets, despite another fall in value.

The finance and rural services firm bought Hanover's loan book in December last year.

The properties put up for sale make up about half the equity of the former Hanover loan book and are typically the higher value developments.

A recent valuation found that those properties had since fallen in value by 17% to $87.5 million.

They include developments at Jack's Point and Five Mile in Queenstown, as well as properties in Auckland and the Coromandel.

Allied Farmers managing director Rob Alloway says Five Mile has actually increased in value by 30% since the company acquired it in December, and although he's in negotiations with potential buyers, he's prepared to wait further to get the best price possible.