Coonawarra sale offers premium opportunity in red wine capital
SA horticulture assets first pick for agribusiness investors
| 15 December 2016
South Australia’s esteemed reputation as one of the country’s leading horticultural hotspots has underpinned the sale of a cherry farm and olive grove for a combined $2.975 million.
Highlighting the strong level of buyer interest, CBRE Agribusiness’ Phil Schell recently negotiated the $1.275 million sale of Karte Olives - a premium olive grove in the state’s Murray Mallee region.
The 1,699 hectare mixed horticultural property at Karte comprises 80,000 trees planted to various varieties including Frantoio, Kalamata, Banea, Piqual and Manzanillo.
The property also features centre pivot irrigation and includes a 2,172 megalitre water allocation utilised for potato production with potential for irrigating lucerne.
Selling agent Phil Schell said the property, which was surplus to the owner’s requirements, attracted strong buyer interest during the sale process.
“The opportunity to acquire an existing horticultural operation generated interest from a wide range of groups looking to establish or expand their existing horticultural operations,” Mr Schell said.
“The purchaser – Mallee Orchard Pistachios - already owns and operates an existing olive grove and pistachio plantation within the Murray Mallee region, so the addition of this property provides greater economies of scale.”
Further evidencing the strength of South Australia’s horticulture industry, an overseas buyer recently purchased Kersbrook Cherry Farm in the Adelaide Hills for $1.7 million.
Located approximately 34 kilometres from the Adelaide CBD, the 41 hectare property accommodates a well-established and mixed variety cherry orchard with over 17,000 trees covering 22 hectares, 2,200 pear trees and two hectares of wine grapes.
The property also includes a fully operational packing shed and substantial 152 megalite ground water and surface catchment water allocation.
Mr Schell said the Adelaide Hills sale further highlighted the investment appeal of quality horticulture assets.
“There is a strong level of interest from investors seeking agricultural business operations by purchasing on a walk- in- walk out basis. Their mandates include the associated plant and equipment, existing contacts supporting sales and distribution of the product and continuation of current employees,” Mr Schell said.
“We have also seen increasing demand for South Australian grown products for both the domestic and the export markets – a trend underpinned by the state’s reputation as a quality horticultural producer.”
For further information, contact CBRE Agribusiness’ Phil Schell on 0418 809849.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.