CANBERRA -(Dow Jones)- Carrington Farms, one of Australia’s biggest farming operations, was Thursday offered for sale by tender, likely in a range of A$300 million to A$400 million.
The farming and grazing property is one of several up for sale in the region, fortuitously after some heavy drought-breaking rains in recent months.
Carrington Farms is privately owned and operated by RMI Pty. Ltd. and has been in the same family and aggregated for over 25 years.
It comprises 16 dryland and irrigated properties in six groupings covering 57, 370 hectares of land stretching for 80 kilometers along the Macintyre River, according to a statement issued on behalf of RMI.
The properties are licensed to store 85,000 megaliters of water in 29 dams, one of the largest irrigated holdings in Australia, and have the capacity to produce almost 30,000 metric tons of cotton and 42,000 tons of winter and summer grains a year, though the infrastructure means the crop mix can be varied depending on the market, according to the statement.
Grazing capacity with irrigation infrastructure provides for 6,000 cattle or 30,000 sheep, while plans are approved for two further feedlots for a further 27,000 cattle.
News of the planned sale comes after diversified global business John Swire & Sons Pty. Ltd. announced Feb. 23 it intends to sell by tender its agricultural business in Australia, Clyde Agriculture Pty. Ltd., which it has owned since 1988.
Clyde owns and operates 13 farms in northern New South Wales state and one property in Queensland, a holding that includes Darling River Cotton Pty. Ltd., which operates a cotton gin at Bourke. The properties produce wool, lambs, beef cattle, cotton and grain, and are expected to fetch more than A$300 million.
Cubbie Station in southern Queensland was placed in administration in October 2009 after it failed to attract a bid that would cover the debt of the 93,000 hectares property, making it potentially the nation’s biggest irrigator.
Advisors on the Carrington Farms sale, Falcon Corporate Advisory, report the asset performed solidly during difficult times and has enormous continued commercial potential.
Falcon Executive Director David Wells said Carrington offers superior long- term returns through freehold ownership and the opportunity to acquire one of the Australia’s largest water licenses.
The owner wants to pursue other interests.
“This is simply a generational change,” Wells said in the statement. “The owner wants to move on with other things in her life.”
SOURCE: By Ray Brindal, Dow Jones Newswires; 612-6208-0902; ray.brindal@dowjones.com nasdaq.com
Property Investment News – Australia
