Allied Farmers has reached a conditional agreement to sell the second stage of the Five Mile property development in Queenstown.
The 23 hectare site was part of the assets Allied Farmers took over from Hanover and United Finance in December.
The land was once owned by Christchurch property developer, David Henderson, who planned to use it build a boutique town centre and residential development, but the company was later put into receivership.
No sale price has been given, but Allied Farmers says it's more than what the property was valued at in the company's half year accounts.
Managing director Rob Alloway has previously said he is confident the development will fetch up to $40 million.
Shares in Allied Farmers rose rose 0.2 cents to 4.7 cents on Thursday.
