Shares in Allied Farmers rose almost 18% on Thursday after the company announced the unconditional sale of the second stage of its Five Mile property development in Queenstown.
The 23-hectare site of bare land was part of the assets Allied Farmers took over from Hanover Finance last December.
Managing director Rob Alloway will not reveal the purchase price but says he is very pleased that it's near the upper end of its valuation.
He has previously said he was confident the development would fetch up to $40 million.
Mr Alloway says the buyer doesn't want to be identified, and would say only that the company has previously done development work in the Queenstown District.
Shares in Allied Farmers have lost more than threequarters of their value since December, and reached a record low of 3c earlier this month. They rose 0.6 of a cent on Thursday to close at 4c.