This article is from the Australian Property Journal archive
THE Diprose family has split and sold the southern portion of its Simpson Dairy Aggregation to two separate groups, while the northern portion remains up for sale.
Traversed by Boorook Road, the 854-hectare Boorook Road Hub was divided into two evenly sized properties with the south side of 421 hectares to continue dairying, while the north side, of 429 hectares, has been purchased by an investor with nearby holdings for alternate use.
Located to the north of Simpson, the 423-hectare Conveys Road Hub remains available on its own as a stand-alone operation with an estimated milking capacity of 750 cows. It offers a turnkey dairy platform, self-contained through a modern 60 bale rotary, and with a new purpose-built calf rearing shed, and multiple residences.
JLL Agribusiness Chris Lawlor and Jock Grimshaw agents sold the property and said the price and details of the purchasers remain undisclosed noting confidentiality, however it is understood the properties transacted in-line with initial price expectations. The aggregation was put to the market in September with hopes of $35 million-plus.
Lawlor said the Boorook Road Hub attracted interest from both institutional and local agriculture investors.
He said it was split in order to achieve the best outcome for the vendor.
“Dairy has continued to perform amongst a changing economic landscape and commodity cycle as competition from processors to secure milk supply has helped to underpin strong sale results for quality farms with scale,” he said.
“Arguably there has never been a better time to buy or expand dairy property and those doing so are able to lower their offtake risk by establishing greater bargaining power with milk processors.”
The vendors, John and Helen Diprose, and their son Gerard and his wide Kirsten, made the strategic decision to refocus the time and capital towards their core farming practices and existing operations located at Caramut.
Grimshaw said the Conveys Road Hub presents an opportunity to both industry operators, and also investors given potential sharemilking arrangements available, to secure a highly developed dairy platform in a first-class dairy region.
One of Australia’s biggest dairy operations – Chinese billionaire Xianfeng Lu’a Van Dairy company in Tasmania’s north-west – was put up for sale this week following a major supply contract cut earlier this year.
On offer is the 9,500 hectares of farmland at Circular Head, including 4,207 hectares of dairy area, making up the nearly 1827-established Woolnorth farming aggregation. Van Dairy sold a 700-hectare farm that was previously part of the aggregation last month to Prime Value’s Prime Dairy Fund for $15 million.
