Two-thirds of Kilter Rural’s 1,858-hectare KAF Portfolio in Victoria’s Goulburn Valley has now been sold, or is under offer, with strong demand expected for the remaining high-quality irrigated assets.
Brought to the market late last year by LAWD and Kevin Hicks Real Estate, multiple offers were received on various components of the Portfolio through an Expressions of Interest campaign, which allowed buyers to purchase in one line or any combination of individual holdings. The eight properties sold so far, or that are currently under offer, have returned more than $13 million, with four more currently for sale.
The full Portfolio consisted of an amalgamation of 12 properties across four aggregations known as Northern (520ha), Eastern (431ha), Southern (610ha) and Central (297ha). Each aggregation had benefited from extensive capital expenditure to modernise the irrigation systems and improved soil fertility, which has resulted in world-class crop yields.
Over the past 18 months, Kilter Rural has rotated crops including maize, faba beans, azuki beans, buckwheat, hard and soft wheats, and canola. This diversified rotation has driven significant gains in soil health and excellent yields.
Strong interest expected for remaining parcels of land
With four of the 12 parcels of land remaining for sale, LAWD Sales Executive, Patrick Kerr, said he expected to see a high level of interest as buyers sought land with water security to mitigate against unseasonally dry conditions.
“The sale prices already achieved on properties within the KAF Portfolio are an excellent indication of the appetite from buyers to acquire additional land where there is guaranteed water security and well-established assets,” Mr Kerr said.
“Buyers have come from a combination of local farming families, as well as farming groups from other regions in Victoria, and we expect to see that trend continue with the remaining parcels of land.”
Of the initial Eastern Aggregation, two irrigated properties remain located at Girgarre near Kyabram – ‘Morgans’ (193ha) and ‘Butler’s’ (114ha) – and are expected to sell for $2.5m and $1.8m respectively.
The flood irrigation layouts at both properties have been redeveloped to support more efficient water use and improved yields. The properties are bordered by the Goulburn Murray Water number 8 Channel, which provides secure high volume water delivery directly into on farm irrigation infrastructure.
Also located at Girgarre, is the 464ha ‘Rendell Dairy’, which was part of the Southern Aggregation and is expected to sell for more than $5.5m. It features fully automated pivot irrigators, which have been significantly improved with new electric drivelines, new fertigation systems and new piping. Capital expenditure has also been allocated to the flood irrigation area with new bays and outlets.
The final block is 227ha ‘Pykes’ property is close to Tongala. The property includes 167ha of fully redeveloped, highly efficient and fully automated sub-surface drip irrigation as well as a 250 megalitre turkey nest dam. This dam not only provides water security but also enables the capture of seasonal flows to supplement water deliveries from Goulburn-Murray Water.
Capital expenditure on the irrigation system has also been a key feature, and the property has market expectations of $3.4m.
Responsible investment drives world-class yields
Vendor, Kilter Rural, is renowned for their philosophy of responsible investment, deploying scaled capital to create strong investor returns and significant, measurable environmental outcomes.
Kilter Rural General Manager Farmland, Angus Ingram, said this was achieved through strategic, long-term farmland management where innovative practices were applied to enhance natural capital, while producing high-quality commodities.
“Our significant capital expenditure program at the KAF Portfolio has focused on boosting efficiency and sustainability,” Mr Ingram said.
“We redeveloped flood irrigation, installed new sub-surface drip tape, and upgraded pivots, enabling remote operation for all irrigation, with the investment primarily aimed to maximise water use efficiency, minimise labour, and reduce OH&S risks.
“When combined with sound crop rotation and agronomy, these upgrades delivered world-class average field yields, such as 9.2 tonnes per hectare for H2 wheat, 20.5t/ha for maize grain, and 4.5t/ha for canola on our drip tape fields.”
Mr Ingram said the Goulburn Valley had offered Kilter Rural a compelling long-term investment opportunity due to its highly productive soil types and reliable water access via a world-class delivery system.
“Beyond its agricultural strengths, it boasts proximity to regional centres for logistical support,” he said.
The remaining parcels within the KAF Portfolio are being offered for sale by Private Treaty. For more information, contact LAWD Sales Executives, Patrick Kerr on +61 451 142 791 or Nathan Cleeland on +61 497 114 568, or Kevin Hicks Real Estate Directors, Kevin Hicks on +61 428 271 270 or Lochlan Hicks on +61 458 216 577.
