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Murray River Organics sells Nangiloc property to Costa Group

Murray River Organics has sold part of its Nangiloc farm to another listed agriculture business. Find out the details, and which Sunraysia property could be next.

Murray River Organics’ 2020 grape harvest. Picture: Supplied
Murray River Organics’ 2020 grape harvest. Picture: Supplied

Murray River Organics has sold 113ha of planted conventional citrus and wine grapes at its Nangiloc property to Costa Group, the company has announced.

In a statement to the ASX, Murray River Organics said the deal with a Costa subsidiary included surrounding vacant land and in total comprised 390ha of the company’s 3040ha at Nangiloc.

The deal was valued at $4.5 million and takes effect on October 1.

Final settlement of the sale, subject to registration of a plan of subdivision, was anticipated early next year.

Murray River Organics last month reported a $39 million loss for the previous financial year.

The business is in the midst of a turnaround plan that has included efforts to sell non-care farming assets.

A deal involving a Fifth Street table grape property in Merbein was said to be in “final discussions” last month.

Murray River Organics chief executive Valentina Tripp said funds from the Nangiloc deal would be used to pay down debt and allow the business to focus on its branded portfolio.

Several branded products have been rolled out at major Australian supermarkets this year.

“This is another important milestone for the group to realise its vision to become a leading integrated organic branded food business,” Ms Tripp said.

Costa will take responsibility for operations and management of its parcel, with Murray River Organics to lease the property to Costa until the sale is finalised.

The remaining Murray River Organics land at Nangiloc was subject to feasibility study the company called “Project Magnum”.

This has included a pilot program to grow low-THC cannabis organically.

The project was also said to be looking at alternative water access solutions, with a groundwater desalination plant on the Nangiloc property under consideration.

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Original URL: https://www.heraldsun.com.au/leader/mildura/murray-river-organics-sells-nangiloc-property-to-costa-group/news-story/8d82aa935b9f87ef1590cb2b56b34e77