This article is from the Australian Property Journal archive
THE agriculture sector continues to attract investors looking for alternative assets.
Colliers International rural and agribusiness investment sales executive Jesse Manuel sold two poultry assets in South Australia and Victoria.
Monarto Broiler Farm in Monarto, South Australia fetched $3.75 million and Chookstations Farm in Lethbridge, Victoria has sold for $2.6 million in a deal that excluded plant, equipment and shed fit-out.
Manuel said the results show, is that traditional commercial property investors are starting to make headway into the sector, a trend he believes has emerged because of the diversification on offer within agribusiness.
“Of course, the global demand for poultry products is also helping to drive industry growth with the continued investment being made into poultry production improving the efficiency of production, making chicken the preferred and affordable option for consumers.
“The sale of Monarto Broiler Farm in SA is a great example as it was purchased by a local syndicate of commercial investors who were attracted to the returns achieved by chicken meat production.
“As an owner occupier, this sale represents a very attractive return on investment,” he added.
Manuel said the regular and consistent cash flow also plays an integral role with these recent opportunities bringing a number of parties to the forefront; including handful offshore investors.
Chookstations Farm in Lethbridge Victoria was sold off market to an owner occupier and based on the $2.6 million price it represents a return of around 10%.
Australian Property Journal
