AUSTRALIAN asset manager Growth Farms is offloading almost 5000ha of cropping, irrigation and grazing country in New South Wales and Victoria on behalf of an overseas investor.

The seven properties are located near Mullaley in northern New South Wales and Camperdown and Hamilton in south-western Victoria.

David Sackett who manages the institutional investments through Growth Farms, said the properties sit in a fund that is being wound-up after ten years.

“Rather than rolling it over, the overseas entity no longer wants global exposure to agriculture and has chosen to wind-up the fund upon maturity and return the capital to investors.”

Mr Sackett said the plan was to sell the properties, but made it clear it was not a forced sale.

“Growth Farms can easily extend the term of the fund if the price expectations aren’t met, and we will continue to operate them.”

Mr Sackett said the portfolio showcased commodities that Australia produces well on a global scale.

The assets are diverse in commodity spread – producing dryland cropping, irrigation and livestock – as well as location (northern New South Wales and south-west Victoria).

“This has enabled properties within the two aggregations to counterbalance each other – exactly how it was designed to perform,” Mr Sackett said.

Here’s a brief summary of the two aggregations:

Carnarvon Aggregation, NSW

The 2832ha Carnarvon Aggregation is a large-scale dryland cropping and irrigation enterprise on the edge of the Liverpool Plains in northern New South Wales.

Aggregated over two years, it is located near Mullaley, south-west of Gunnedah.

The 1335ha Carnarvon block, which sits on both sides of the renowned Cox’s Creek, was purchased in June 2015 for $10 million.

Today, the aggregation comprises two blocks 7km apart – the 2173ha Carnarvon (1335ha Carnarvon, 540ha Kairi and 298ha Part Tourable) and the 659ha Dunroamin.

The mostly level, black basalt self-mulching country is described as typical, good quality Mullaley district country suited to growing a mix of summer and winter crops including cereals, oilseeds, legumes and cotton.

Across the holding, Carnarvon has 1764ha dryland cropping (750ha of wheat and 160ha of chickpeas – both available for sale), 108ha of centre pivot and 156ha of lasered irrigation underpinned by 1000ML from the Cox’s Creek and 850ML of on-farm water storage.

Moree Real Estate agent Paul Kelly has been appointed to sell the Carnarvon Aggregation.

He said the current management has introduced a simple farming system with optimum crop rotations, soil fertility, paddock sizes and a focus on returns which is attracting good interest, mainly from locals seeking expansion.

Mr Kelly was unable to disclose price expectations for the Carnarvon Aggregation, but said the arable land is being offered for $12,500 per hectare.

Growth Farm’s David Sackett said the three properties are being sold via an expressions of interest process.

“We are flexible, particularly in the timing because the summer crop will be planted in October and the winter crop will be harvested in November and December.”

Mr Sackett said the Carnarvon Aggregation boasts good soils and high rainfall and right now the properties have a full moisture profile and are well set up for summer planting.

The four holdings have been integrated into large, simple farming blocks with control traffic over the aggregation. The soil fertility has been improved and the seed bank of weeds has been reduced.

Mr Sackett said the hard yards had been done in taking four disparate farms and turning them into efficient, high-quality cropping country ready for a farming interest who wanted to take them on.

“Growth Farms is disappointed to be selling these assets which are really hitting their straps now.”

“The winter crops are looking impressive, with cotton likely to yield 3.5t/ha and sorghum around 5.4t/ha,” Mr Sackett said.

Infrastructure

• 1335ha Carnarvon has a three-bedroom home, numerous sheds, cattle yards, a 2800t grain storage complex with a weighbridge, a grain dryer and an elevator, as well as 5000t of lasered grain bunkers and 300t of fertiliser and seed storage.
• 540ha Kairi has a four-bedroom home, a shed and 140t of grain storage.
• 659ha Dunroamin has 555ha of dryland cropping (550ha of canola are available for sale), a three-bedroom home, sheds and 240t of grain storage.

The Carnarvon Aggregation is being sold as a whole or as four separate parcels via expressions of interest closing on October 10.

South-West VIC Aggregation

Meantime, more than $17,000/ha (bare) is anticipated for the vendor’s second aggregation, comprising 2079ha of high-rainfall South-West Victorian country.

Comprising the 799ha Cascaes, 794ha Warrong and 485ha Elwood, the three non-contiguous properties are currently run as three separate livestock holdings.

All are suited to beef, sheep, dairy, cropping and fodder production.

David Sackett from Growth Farms said significant capital had been spent on productivity, including appropriate infrastructure, new laneways and improving pastures.

“The soil fertility on each of the farms is at, or generally in excess of, optimum for pasture production. So, each of those farms is set up for someone to get very high levels of production from day one.”

“Those things can’t be seen, but they make a material difference to the productivity of the farm,” Mr Sackett said.

Elders agent Rob Rickard described the holdings as diverse and close to local abattoirs, milk processing plants, saleyards and regional centres at Warrnambool, Hamilton and Ballarat.

• Cascaes, located near Kariah and five minutes from Camperdown, has gently rolling country with arable clay loam soils and basalt rises. It is reliably watered by dams and bores. Infrastructure includes a four-bedroom home, a three-stand shearing shed, a cattle yard complex, sheds and grain silos. ​
• The 794ha Warrong, 10 minutes from Koroit and 20 minutes from Port Fairy, has grey loam soils to heavier black flats with established shelter belts and is watered by a bore. Extensive infrastructure includes a shearing shed, sheep yards, two steel cattle yards and two sheds.​
• The 485ha Elwood, near Macarthur, has a balance of arable country including sandy loam, clay soils and black flats with established shelter belts. Water is supplied by a dam and a bore. Infrastructure includes a four-bedroom home, a two-stand shearing shed, sheep yards and steel cattle yards.

Cascaes, Warrong and Elwood are being offered for sale by expressions of interest as a whole or as three individual properties closing on October 25.