Darlington Point almond enterprise to fetch upwards of 50m at market
Darlington Point almond enterprise to fetch upwards of $50m at market
| 6 October 2020
An irrigated horticulture and row cropping operation in the tightly held Darlington Point district of New South Wales’ Riverina Region has been listed for sale, with price expectations between $50 million and $60 million.
The Darlington Point Aggregation comprises four contiguous properties that have been consolidated and developed continuously since 2003, with a total landholding of circa 2,142ha.
The individual properties include Point Farms (907ha*), Hastings (408ha*) and Cattanach’s (625ha*), which are all fully developed for irrigated row cropping, and Wetareel (202ha*), which is established to almonds and offers expansion potential.
Situated in one of the most highly productive and agriculturally diverse regions in Australia, the land is currently used for a range of operations:
•Flood irrigation, 1,627ha*
•Almond plantings, 104ha* (net)
•Developed for almonds, but not planted, 35ha*
•Water storages, 32ha*
•Dryland and support, 344ha*
The aggregation’s high-quality (both in terms of water use efficiency and ease of operation) irrigation infrastructure, is underpinned by 8,338ML* of groundwater, Lower Murrumbidgee Zone 1; 248ML* of General Security entitlement; 3,370ML* of annual delivery entitlement and on-farm water storages of over 900ML* in combined capacity.
CBRE Agribusiness’ Peter Ryan, Danny Thomas and Jarrod Ryan have been appointed to market the aggregation on behalf of Agrinova Pty Ltd, who has been at the forefront of irrigated and dry land farming within the region for over 50 years.
Peter Ryan said the vendors invited Expressions of Interest from parties interested in providing capital to capture the full development of Point Farms through joint venture, sale and leaseback or purchase.
“Historically, irrigated cotton has been the major cropping enterprise undertaken at Point Farms, as it had the highest profitability,” Mr Ryan continued.
“However, with neighbouring properties having been developed for horticultural production and the value of water entitlement increasing, Point Farms is ideally suited for an investor seeking to develop the property to its full potential—by either expanding the almond plantings or by establishing other permanent plantings, such as grapes or citrus.”
The region has recently experienced intensive land use transformation, driven by the combination of climate, soil types and access to secure water resources, with production moving to permanent plantings (predominately nuts, grapes and citrus) producing high-value crops.
“This shift in production focus, and the corresponding increase in the value of land and water entitlements, makes Point Farms ideally suited to an investor seeking to develop the property to its full potential by either expanding the almond plantings or by establishing other permanent plantings, such as grapes or citrus,” Mr Ryan added.
The property features an array of improvements, including an administration office, a 460sqm* workshop and workers quarters, machinery sheds (one 950sqm* and the other 294sqm*), a 844sqm* grain shed with an approximate carrying capacity of 2,500t and range of sundry structures.
The sale process for the Darlington Point Aggregation will be conducted in two stages. Stage one will seek nonbinding offers by Friday 30 October at 4pm (AEDST).
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), 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 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.