The income generated by the colossal solar farm at the heart of Tubbo Station in the NSW Riverina is up for sale.
The 539-hectare Darlington Point Solar Farm is one of Australia's largest solar power generation plants with connection directly into the power grid.
According to Edify Energy, the farm has 1 million solar panels that can generate 685,000 megawatt hours per annum, enough energy to power 115,000 homes.
Neither the land, the infrastructure or the lease itself are on the market, only the income it generates, meaning there is no maintenance involved for the buyer.
The triple net lease is currently $582,209 (plus GST).
There's still 31 years remaining of the 35-year lease and Land, Agribusiness, Water and Development (LAWD) senior director Col Medway said it was subject to an annual consumer price index (CPI) review, so real returns were protected from inflation.
He expects it to attract offers of more than $10 million.
"Renewable energy assets are offering a solution to Australia's current energy crisis and have strong growth prospects for the future," Mr Medway said.
"It is particularly attractive, as the infrastructure has direct connection to the grid - a critical aspect that many other solar operations are unable to offer."
Tubbo Station was sold to Hewitt Cattle Australia, backed by a Canadian superannuation fund, only late last year.
The 14,875-hectare (36,757 acre) historic property was sold on a walk-in, walk-out basis by LAWD for what Mr Medway could only confirm was more than the $40 million price guide.
"Last year during the sale of Tubbo Station, we received great interest in the solar component of the operation, from both graziers and institutional investors," he said.
"Graziers were attracted to the low risk, substantial annuity and viewed the investment as a hedge against climate and commodity price instability, while institutional investors liked the premium above their cost of capital.
"Following the economic and energy situation that has emerged over the past few months, we expect this demand to have only strengthened."
Hewitt Cattle Australia agribusiness chief executive Ben Hewitt said the sale of the rental income from Darlington Point Solar Farm would allow the company to re-invest the capital to drive productive outcomes for the sheep division of the company.
"We purchased Tubbo Station as a single asset, including the solar farm, to help secure the grazing property and to streamline the process for the vendor," Mr Hewitt said.
"Since buying the property, we have reviewed our operations and identified the solar farm lease wasn't part of our core business.
"We have made the decision to sell these rights, and to reinvest the capital back into our key operations."
The solar ground lease is currently under contract until 2053.
Expressions of interest close on July 28. Contact Mr Medway on 0428 481 243.
Marian Macdonald
Writing for farmers in the Stock & Land, The Land, Queensland Country Life, Stock Journal and FarmWeekly, farming in Gippsland.
Writing for farmers in the Stock & Land, The Land, Queensland Country Life, Stock Journal and FarmWeekly, farming in Gippsland.
