Today's AFR. Just the fun bits. Google for the full article.
Ag investors go nuts for farms
A large-scale almond orchard and land portfolio in South Australia’s Riverland region has hit the market with expectations of $50 million or more as horticultural assets attract increasing interest from agricultural investors.
Rijami Farms at Paringa, near the Victorian border, is made up of 326 hectares of almond plantings, 56 hectares of wine grapes and more than 1500 hectares of undeveloped land.
Its landholdings include four individual properties on Murtho Road. Among its neighbours are some of the country’s largest fruit and nut producers, including Select Harvests and the Costa Group.
Owner Richard Smart said he and his family were comfortable that the timing was right to divest the assets.
‘‘We’re really pleased with the productive capacity and presentation of the orchards and how our management team and staff continually strive for improvement,’’ Mr Smart said.
‘‘We also own a lot of water, and my preference would be to keep that and lease it to whoever buys the almonds; but at the end of the day everything is negotiable.’’
ASX-listed Select Harvests struck a $129 million deal to acquire the Piangil Almond Orchard in the Sunraysia district, in north-western Victoria.
Rijami Farms’ two developed properties and two greenfield sites are being offered collectively or individually. Interest is expected from almond growers and producers of other crops, such as citrus and table grapes, looking to take advantage of the scale of the undeveloped parcels, which have easements to the River Murray for pipeline access.
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Ash here. SHV may or may not be interested. It has in the past shown steely resolve in not over-paying and knows exactly the value of land, plantings and water rights.
It could probably fund the ~$50m internally, with debt and a small placement. Adding 326 hectares of planted almonds and a landbank of 1500 hectares (not all may be suitable for almonds) would be a welcome addition to SHV's 9262 hectares of planted almonds.
Ash
SHV Price at posting:
$6.20 Sentiment: None Disclosure: Held
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