T&G Global is selling and leasing back its 484 Nayland Road, Nelson site, in a move which will generate $50,514,000 to support its growth strategy.

The 8.0382 hectare site is being sold to Property Income Fund Limited, a fund recently established by Willis Bond. The property accommodates the majority of T&G’s post-harvest operations in the Nelson region, including its packhouse and most of its associated cool stores. T&G Fresh’s domestic Nelson operations are also based at the site.

T&G Global’s Chief Executive, Gareth Edgecombe, says the transaction will help T&G maximise its capital and fuel its future growth.

“By entering into a sale-leaseback agreement with Property Income Fund Limited, we’ll be able to use the funds to reinvest back into our business and new growth activities, such as building out our global markets, new genetics, and investing in our physical assets and technology,” says Gareth.

“Nelson is a key region for T&G. We have a great team and strong grower partnerships, and we’re committed to the region. Our decision to sell the site and enter into a long-term 15-year leaseback arrangement for the property, enables us to continue to operate our pivotal post-harvest facilities.”

The 15-year leaseback has a commencing annual rental of $2,600,000 plus GST, with annual fixed rent reviews of 2.25%, with an adjustment to market on the seventh anniversary of the lease commencement date.

The unconditional acquisition, which reflects a yield of 5.16% (based on the lease and a small income stream from an existing telecommunications lease) is expected to settle this calendar year. T&G will update the market upon the sale being concluded.

Share this article

Stay informed

Subscribe to receive our T&G news, fresh off the press.

Related stories

T&G’s apple growth strategy is driving higher grower returns

T&G’s apple growth strategy is driving higher grower returns

T&G Global this week announced its grower returns for the 2024 apples season, delivering increased value to its network of Aotearoa New Zealand growers. Returns for its premium ENVY™ and JAZZ™ apple brands are the highest for a number of seasons, delivering over...

T&G Global awards $10,000 horticultural grant to innovative researcher

T&G Global awards $10,000 horticultural grant to innovative researcher

T&G Global is thrilled to share that the recipient of the 2024 Edward Turner Horticulture Futures Grant is Francis Ferrada-Hartley, a Master’s student at Massey University. This prestigious post-graduate grant, valued at $10,000, is designed to support the next...

T&G’s Grace Fulford wins 2024 New Zealand Young Grower of the Year

T&G’s Grace Fulford wins 2024 New Zealand Young Grower of the Year

Grace Fulford, a Quality and Compliance Manager at T&G Global, was awarded the 2024 New Zealand Young Grower of the Year title at last night’s award ceremony. Grace secured this prestigious honour after months of dedicated preparation and hard work, having...

T&G’s apple growth strategy is driving higher grower returns

T&G’s apple growth strategy is driving higher grower returns

T&G Global this week announced its grower returns for the 2024 apples season, delivering increased value to its network of Aotearoa New Zealand growers. Returns for its premium ENVY™ and JAZZ™ apple brands are the highest for a number of seasons, delivering over...

T&G Global awards $10,000 horticultural grant to innovative researcher

T&G Global awards $10,000 horticultural grant to innovative researcher

T&G Global is thrilled to share that the recipient of the 2024 Edward Turner Horticulture Futures Grant is Francis Ferrada-Hartley, a Master’s student at Massey University. This prestigious post-graduate grant, valued at $10,000, is designed to support the next...

T&G’s Grace Fulford wins 2024 New Zealand Young Grower of the Year

T&G’s Grace Fulford wins 2024 New Zealand Young Grower of the Year

Grace Fulford, a Quality and Compliance Manager at T&G Global, was awarded the 2024 New Zealand Young Grower of the Year title at last night’s award ceremony. Grace secured this prestigious honour after months of dedicated preparation and hard work, having...