AAM Investment Group is selling its Sunshine Farms Aggregation in NSW's Lachlan Valley, the first strategic land and development acquisition of AAM's Diversified Agriculture Fund.
Tipped to make more than $90 million, the aggregation includes 14,074ha (34,778 acres) of premium irrigated and dryland cropping and grazing country backed by 14,766 megalitres in water entitlements.
The five non-contiguous holdings are located within a 25km radius and comprise of: Bergen Park (2835ha/7005 acres), Warili (1111ha/2745 acres), Glencoe (3666ha/9059 acres), Sunshine (4820ha/11,910 acres) and Round Cowal (1643ha/4060 acres).
The aggregation, which was formed in early 2020, produces a range of high-value crops including cotton, wheat, barley and faba beans, in addition to fodder used for beef, wool and prime lamb production.
There is 2071ha (5118 acres) of laser-levelled flood irrigation, with potential for a further 919ha (2271 acres), 60ha (148 acres) lateral spray irrigation and 6028ha (14,896 acres) of dryland cropping, as well as a jojoba plantation and saltbush grazing.
Sunshine Farms has an impressive 11,556ML of general security water drawn from the Jemalong Irrigation Scheme, 2050ML of Lachlan River general security water and 1160ML of Upper Lachlan Alluvial groundwater. There is also 300ML of on-farm storage.
The planned sale Sunshine Farms Aggregation follows AAM's purchase of the Vickery family's 4053 hectare (10,015 acre) Bective Station near Tamworth for $65m on a walk in, walk out basis including 3000 cattle in October last year.
AAM managing director Garry Edwards said Sunshine Farms was the first strategic land and development acquisition of the AAM Diversified Agriculture Fund in January 2020 and the sale of the extensively developed properties would help fund AAM's continued growth and investment in diverse agricultural assets.
"With access to water entitlements from the Jemalong Irrigation Scheme, the properties offered potential that could be realised through strategic capital development programs and management at scale," Mr Edwards said.
"The aggregation was foundational to the implementation of ADAF's philosophy of diversity across supply chains and geographic locations.
"We believe the development we have undertaken, including infrastructure improvement and change of land use, has resulted in an outstanding asset we are proud to take to market."
LAWD senior director Danny Thomas said historically, the portion of the Lachlan Valley on the west side of the Newell Highway had been undervalued because of lack of scale.
"AAM has created a large aggregation and applied precision development and management strategies to take these properties to their highest and best use," Mr Thomas said.
"I believe any party seeking to acquire an at-scale irrigated and dryland farming opportunity should be looking at Sunshine Farms and am expecting particular interest from institutional investors who are now leading demand for Australian agricultural assets in the greater than $50 million market segment."
The aggregation is described as having excellent structural improvements and operational infrastructure including 2320 tonnes of grain storage, 360t of seed storage, fertiliser storage, a 1250 head lamb feedlot, and multiple shearing sheds, sheep and cattle yards as well as five main residences, office and staff accommodation.
Sunshine Farms is also well located to cotton gins at Carrathool, Hillston and Trangie, grain receival sites at Forbes, West Wyalong and Parkes, livestock markets at Forbes and Wagga Wagga, and abattoirs at Cootamundra, Young and Wagga Wagga.
Sunshine Farms is being sold through an expressions of interest process, which closes on October 5.
Contact Danny Thomas, 0439 349 977, or Ian Robertson, 0429 939 949, LAWD.
