PLP’s Hawke’s Bay Assets Valued at $8.2 Million Amid Lease Exit Proposal

Booster Wines Moves to Restructure Hawke’s Bay Operations

Booster Wines Limited (BWG) is proposing to exit its vineyard and winery leases in Hawke’s Bay, including those held from the Private Land and Property Portfolio (PLPP), managed by Booster Investment Management Limited (BIML). This move comes amid a sustained drop in demand for Hawke’s Bay grapes, prompting BWG to seek a significant reduction in its operational obligations.

BWG’s proposal involves a lease termination payment to PLPP, structured as a convertible debt instrument. However, the payment is offered at a substantial discount to the present value of the contracted lease obligations extending to 2038. The arrangement remains tentative, with BWG’s proposal yet to be finalised or agreed upon, and similar exit terms expected to be proposed to other Hawke’s Bay landlords.

Asset Valuation and Income Impact on PLPP

The Hawke’s Bay properties include 52 hectares in the Bridge Pa Triangle subregion and a 4,600m² winery building. Acquired in 2018 at a historical cost of $8.0 million, these assets were independently valued at $8.2 million as of October 2025, representing roughly 4% of PLPP’s gross asset value. The leased vineyards and winery contribute between 5% and 10% of PLPP’s current income returns.

Of the valuation, approximately $4.5 million is attributed to land and improvements, $2.9 million to buildings, and $0.7 million to vines, trellis, and frost fans. BIML has commissioned an updated valuation to assess the current market conditions and will provide further updates once available.

Stable Marlborough Operations and Land-Use Changes in Nelson

PLPP’s arrangements with BWG in Marlborough are expected to remain unchanged. BWG has previously implemented market-based price and volume controls under the existing long-term Grape Supply Agreement, which BIML confirms generated broadly cash-neutral returns following the 2026 harvest from PLPP’s Awatere Marlborough vineyards.

Meanwhile, BIML is actively reviewing PLPP’s asset base for alternative uses. Notably, 46 hectares of vineyards previously leased to BWG in Nelson are being converted into apple orchards. Further assessments of potential land-use changes and redevelopment opportunities in Nelson are underway, with discussions planned with BWG regarding other leases.

Investor Access and Fund Positioning

Investors can continue to acquire units in PLP on the NZX or subscribe through the fund’s Product Disclosure Statement. The Private Land and Property Portfolio remains focused on land and property-based investments within New Zealand, with its Hawke’s Bay holdings representing a relatively small but notable portion of its overall portfolio.