Significant Eyre Peninsula cropping aggregation announced for sale
Elders Real Estate, together with Hassad Australia, has announced the sale of a significant South Australian aggregation located on the highly productive Eyre Peninsula.
Comprising some 7,106 hectares spread across 11 dry land cropping farms, the sale of the Cummins/Ungarra aggregation represents a rare opportunity to acquire a quality aggregation of scale in the South Australian market.
Elders Real Estate General Manager, Tom Russo, says that the national Elders Real Estate network continues to receive strong interest in highly productive cropping land, particularly for aggregations of scale.
“The South Australian market typically remains fragmented with large scale aggregations being difficult to acquire. The Cummins/Ungarra aggregation is expected to receive significant interest from domestic and foreign corporate buyers seeking large scale farmland investment opportunities, together with significant local operators looking to expand their operations and achieve further economies of scale,” Mr Russo said.
“The portfolio will be offered to the market for sale by way of an expression of interest process for all or part of the aggregation.”
The Eyre Peninsula is a renowned grain growing region, accounting for between 30 and 40 percent of South Australia’s wheat production each year. After above average rainfall in the 2016 season, the market for cropping country in the region has experienced significant value growth. A limited supply of land for sale and ongoing demand from both primary producers and farmland investors has further strengthened the market.
Hassad Australia Chief Executive Officer John McKillop said the sale marked the implementation of the next phase of the company’s investment strategy which included the planned expansion into post farm gate operations.
“Hassad Australia’s future lies in a balanced portfolio including farm operations, value adding and the creation of a global export business capable of taking Australian food and fibre to the world,” Mr McKillop said.
“The sale of the Cummins/Ungarra aggregation will allow us to rebalance our portfolio by further diversifying and strengthening our Australian operations, and providing an opportunity for the production, processing and marketing of premium agricultural products.”