Australia’s highly touted agriculture property market will receive an early litmus test, with a Goulburn Valley dairy farm put up for sale.
The 1263ha farm owned by Rendell Dairies, near the rural hubs of Echuca and Shepparton, will be sold via expressions of interest as father and son operators Spencer and Geoff Rendell lead a groundswell of farms set to capitalise on investor demand for cattle-focused farmland.
Big year ahead: Beef top of the menu for agriculture sector
The large dairy operation currently milks about 1200 cows, is located close to processing facilities, including Fonterra in Stanhope and Murray Goulburn in Rochester, and features 300 hectares of centre pivot irrigation and 450 hectares of flood irrigation.
Improvements to the property include two dairies, five dwellings and numerous sheds and workshops.
CBRE’s Agribusiness regional director Danny Thomas, Duncan McCulloch and James Beer have been appointed to sell the property, with Thomas saying he expected both local and foreign interest in the Timmering farm.
“The opportunity to acquire a premium dairy asset in a proven location such as the Goulburn Valley is expected to attract significant buyer interest from both domestic and international investors looking to secure a highly productive dairy enterprise, underpinned by excellent irrigation infrastructure and high quality improvements,” Thomas says.
The sale comes after Thomas earlier this month predicted huge volumes of beef-producing land sales throughout 2016, as domestic and US investors seek to take advantage of favourable financial conditions.
AWX labour hire CEO Tom Strachan paid $14 million for the 7300ha Lighthouse station west of Brisbane late last year, while farm management consultants Gunn Agri Partners bought a portfolio of three substantial cattle stations in Queensland from owners Ekari Park Pty Ltd for more than $11 million in December.
“Investment in Australia’s agricultural sector is approaching unprecedented levels and dairy assets, amongst others, are expected to be highly sought after throughout 2016 and beyond,” Thomas says.
“In the current climate, the lower Australian dollar and stable commodities forecast is driving international interest, and as a consequence of this we are seeing an increasing sense of urgency amongst domestic investors looking to secure a range of high value assets.”