This article is from the Australian Property Journal archive
New York-based MERS Global Investments LLC is divesting its Merrowie and Sunland Aggregation, with offers expected in the order of $200 million for the institutional-scale, diversified irrigated and dryland cropping, grazing and horticulture aggregation in the highly regarded Lachlan Valley region of NSW.
Underpinned by 35,938 megalitres of secure water entitlements sourced from regulated water sources including Groundwater and the Lachlan River, the aggregation spans 34,523 hectares across contiguous aggregations Merrowie (spanning 32,778 hectares) and Sunland (1,738 hectares) and Merrowie Grain Facility (seven hectares,).
The aggregation currently produces cotton, vegetables, grains and cereals, and almonds, in addition to beef, lamb and wool.
Selling agents LAWD would not be drawn on an expected sale price. Market sources suggested to Australian Property Journal a figure of $200 million.
LAWD senior director, Danny Thomas said the aggregation presented an attractive value proposition to the market given its size, location, flexible income streams and the production of commodities supplying growing domestic and export markets.
“The Lachlan Valley is renowned for being a highly productive agricultural region with water security and access to major commodity processing centres, which is exemplified by the significant institutional investor footprint in the immediate surrounds,” Thomas said.
Nearly a year ago, AAM Investment Group offloaded its 14,074-hectare Sunshine Farms mixed-farming aggregation in the Lachlan Valley to the world’s largest farmland investor, the US Teachers Insurance and Annuity Association of America and College Retirement Equities Fund’s Nuveen Natural Capital.
MERS has made significant investment into developing the productive capacity of the aggregation, including the conversion of dryland areas to irrigation, with the current operation comprising 195 hectares of precision GPS-levelled bankless channel irrigation, 5,244 hectares of laser-levelled flood irrigation, 2,966 hectares of lateral move and centre pivot irrigation and 3,323 hectares of dryland cropping.
The aggregation produced more than 33,000 bales of cotton in FY24, as well as 25,000 tonnes of winter crops, 18,000 tonnes of beetroot and sweet corn, and 290 bales of wool.
Recent development of a 450-hectare almond orchard will see commercial almond production commence this year. An additional 335 hectares is earmarked for future almond and pistachio production, of which 250 hectares is already significantly developed in preparation for almond tree planting in 2025.
“The current vendors determine the crop mix across the aggregation by seasonal water availability, contracted volumes, commodity prices and agronomic benefits,” Thomas said.
“This means the vast range of commodities produced each year provide diverse income streams, mitigating single commodity risk.”
The livestock enterprise is managed across 18,949 hectares of grazing land on Merrowie and includes a self-replacing Merino flock and Angus herd.
Grain production on Merrowie and Sunland is complemented by the Merrowie Grain Facility, with a storage capacity for up to 32,100 tonnes of grain, including 5,400 tonnes of grain silo storage and 26,700 tonnes of bunker storage, as well as 260 tonnes of fertiliser storage.
There are machinery sheds, shearing sheds and yards, cattle yards, packing sheds, air strips, a weighbridge and ample accommodation options from homesteads through to modern casual staff accommodation across the aggregation.
The Merrowie and Sunland Aggregation is being offered for sale by expressions of interest closing Thursday, April 17th.
