Today's AFR:Pelligra acquisitions to kick-start Vic...

Today's AFR:

Pelligra acquisitions to kick-start Vic projects

Melbourne-based developer Pelligra has acquired more than 560 hectares of land near Avalon Airport and Geelong from ASX-listed Ridley Corporation with plans to develop the infrastructure to support aquaculture projects.

The first project will be a $70 million land-based sustainable fish farm to be developed at the 96-hectare Avalon site by the Melbourne-based offshoot of Danish aquaculture company Aqua-Partners ApS. The facility will initially process up to 2400 tonnes of fresh seafood, including barramundi and ocean trout, with the capacity to expand to 12,000 tonnes a year.

With debt funding already lined up, Aqua Partners Australia managing director Dan Callaghan told The Australian Financial Review the company was seeking to raise $20 million in equity from investors – down from an original $65 million – and next year begin construction of its recirculating aquaculture system (RAS) developed by founder Bent Urup.

‘‘We’re having a fair crack at raising equity and talking to a number of parties. We’re close to having everything in place,’’ Mr Callaghan said. ‘‘Pelligra is keen for us to get to full capacity on their site.’’

Pelligra, which last month acquired the Wakefield Hospital site in Adelaide for $30 million and the Rydges on Swanston Hotel in Melbourne, paid Ridley Corporation $2.1 million for the Avalon site and an undisclosed sum for the 465-hectare Moolap wetlands and former saltworks site near Geelong.The Moolap site was previously the subject of a $4 billion residential and marina proposal called Nelson Cove.

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Ash here.

Not announced by RIC. These sites have been distracting RIC for too long. I don't know if this is a good price. Good simply to be out, with $2m off the debt. Now to focus on feed mills and Novacq.

Ash