Sale set to increase Craigmore’s apple portfolio to almost 700ha
The sale of two apple orchards owned by Scales subsidiary Mr Apple to Craigmore Sustainables has been settled.
The purchase, which was initiated in July, was awaiting approval from the Overseas Investment Office and settled on 30 September.
Te Papa orchard in Central Hawke’s Bay and Blyth orchard in the Heretaunga Plains have a combined total area of 234ha and will increase Craigmore’s apple portfolio to almost 700ha once development is completed.
Che Charteris, Craigmore chief executive, said the opportunity to expand Craigmore’s apple footprint aligns with the company’s strategy to help reinvigorate the rural economy and communities by investing in sectors in which New Zealand has a long-term comparative advantage.
“New Zealand’s apple sector is facing a very difficult period and requires significant amounts of new capital to transition 30-50-year-old orchards into modern properties with a greater density of trees per hectare and into new, premium varieties,” Charteris said.
“In a country with such limited pools of domestic capital, it is crucial we find sources of offshore capital that share our values and are willing to be subject to the control of New Zealanders who are closer to the impacts of any investment.”
Blyth orchard will be leased back to Mr Apple until the end of the 2027 season and Mr Apple will provide management services for Te Papa orchard over the near-term to assist with the orchard transition.
As part of the transaction, applicable fruit from both orchards will be supplied to Mr Apple for packing, storage, and marketing under a long-term agreement.
