Record grain farm prices means it's time to cash in

Record grain farm prices means it's time to cash in 49 farms

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TIME TO CASH IN: Many of Corinella Farm Group's 49 farms are grain growing operations.

TIME TO CASH IN: Many of Corinella Farm Group's 49 farms are grain growing operations.

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A US investment company has decided to offload its big Australian farm portfolio.

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A US investment company is offloading its big Australian farm portfolio.

With farm prices reaching breath-taking records this past year, Proterra Investment Partners is selling 49 farms across south-eastern Australia.

The Corinella Group Pty Ltd of farms is scattered across more than 22,500ha but are mostly grain growing operations in western Victoria and the Wimmera.

All up price is about $350 million but Melbourne-based selling agents LAWD said the portfolio is being offered as a single portfolio or as individual farms.

A simple breakdown of the offer shows the land has been priced on average at $15,555 per hectare.

Similar prices have already been recorded at stunning Wimmera farm land sales earlier in the year.

It remains to be seen whether such a large number of properties will flood the market to impact on spring sale prices.

MORE READING: Supercharged ag investors see value in more than farmland.

Almost all those Proterra farms have been bought up over the past five years at a fraction of today's market prices, meaning a likely massive windfall for the investment group.

Outside of Victoria there is one large irrigation property at Naracoorte in South Australia with a 5778 megalitre water right.

Proterra Investment Partners was launched in 2016 as an investment manager focused on global food and agriculture and a private equity fund.

Corinella Farms has farms in Lake Bolac, Donald, Navarre, Lake Batyo Catyo, Donald and Naracoorte.

They are being sold as four aggregations.

  • Lake Bolac aggregation with five properties.
  • Stawell aggregation with five properties.
  • Donald aggregation with four properties.
  • Naracoorte aggregation.

Some of the properties in the aggregations also include multiple farms to reach the 49 number.

No official reason has been offered for the sale although several property experts say it is an opportune time to cash in at a peak in the market.

A price record of $23,582ha was reached for 179ha of farmland near Ararat earlier in the year as property prices stunned everyone.

High grain prices, a run of good seasons and low interest rates have combined into a heady mix for farm land, especially for neighbouring farmers looking to expand.

LAWD has also been involved in the sale of Macquarie Bank's Lawson Grains business across 105,000ha in Western Australia and NSW.

The sell off has already been likened to mining magnate Gina Rinehart's impending sale of seven big stations in Western Australia and the Northern Territory covering some 1.876 million ha.

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