Plenty left over for Allied Farmers if Five Mile sale goes through

Allied has secured a buyer for the 23.4 hectare piece of land, and though managing director Rob Alloway said the offer was north of the $23.2 million valuation and would easily cover the prior-ranking mortgage with Stephen Lockwood's Uno Finance, formerly known as Lockwood Finance. The mortgage had been organised by previous owner Hanover, and Alloway said it had not been paid earlier because early repayment would force a lump sum payment of the interest for the entire term.

Alloway said he could not name the bidding party, who wants the contract to move along a little further before coming out, though the deal would not need approval from the Overseas Investment Office.

Allied Farmers has had a tough time since taking on board the Hanover assets, writing down the value of the loan book by almost a third this year alone. Rating agency cut the credit rating on its finance unit, Allied Nationwide Finance, two notches to a B, and it hasn't secured protection from the government's extended retail deposit guarantee.

Alloway said after missing out on entry to the government's extension to the guarantee, Allied Nationwide is now operating as though it will not gain entry, and with an upgrade to a BB rating a distant possibility, gaining access to the scheme is not a priority for the company.