One of Australia’s largest irrigation properties has been listed for sale – unlocking almost 15,000ha of prime rural land fronting the Murrumbidgee River in NSW.
Gundaline Station – located in the highly regarded Southern Riverina region of NSW – comprises a circa 15,000ha rural property suited to growing a combination of irrigated cotton, cereals/oilseeds/legumes and permanent crops such as almonds.
Gundaline was acquired in 2014 by an institutional investor consortium led by Southern Agricultural Resources. Over the past three years, they have more than doubled the land area under irrigation, significantly expanded and improved the water storages and irrigation infrastructure, as well as upgrading the existing irrigation land.
The property consists of more than 6,000ha of highly developed furrow irrigation (over 3,500ha of new development), with the balance comprising land suitable for development to permanent plantings and additional furrow irrigation, and grazing land.
With the next phase of development into permanent plantings now intiated, the current owners wish to explore a sale, and the potential for new owners to take the property through this next stage.
Kidder Williams’ Tim Faulkner and CBRE’s Danny Thomas have been jointly appointed to oversee the sale via an International Expression of Interest campaign.
Mr Thomas said the opportunity to acquire a large scale, institutional grade irrigated asset of this scale along the Murrumbidgee River would generate strong buyer interest from domestic and international investors.
“The vendors have strategically acquired and diligently developed the property since purchase to create a world class asset,” Mr Thomas said.
“The development has been executed to an extremely high standard, with significant investments made in land forming, irrigation infrastructure and soil improvement.”
He added: “Post development, which is now ostensibly complete, the property is expected to grow more than 30,000 bales of cotton each year in a steady state.”
The holding benefits from significant water entitlements - 16,000 megalitres of Murrumbidgee Zone 2 Groundwater Entitlement, 4,515 megalitres of Supplementary Entitlement and direct access to the Murrumbidgee River to procure either annual surface water allocation (colloquially referred to as temporary water) or to purchase either High Security or General Security Water Entitlements; over 17,000 megalitres of water storages (being completed over the next months), new and renovated irrigation infrastructure, productive soil types and high quality structural improvements.
Mr Thomas said the property also presented an opportunity for future development.
“There is significant upside for an incoming investor, for either further development to row cropping, or to take the land and water entitlements to its highest and best use - permanent plantings. Noting the activation of the circa $200 million development being undertaken by Olam and RFM on nearby Kerabury, Gundaline will similarly appeal to a number of investors seeking a large scale development opportunity for edible nuts, avocado and citrus.”
The property is being offered for sale either as land, structures and water entitlements only, or WIWO. Alternatively, a sale of shares will be considered.
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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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.
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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.
