Banker who invested in Tassal acquires over 700 hectares of farmland on River Derwent

The investment banker who bought Tassal out of receivership nearly two decades ago has acquired 718 hectares of farmland on the banks of the River Derwent. PROPERTY DETAILS >>

THE investment banker who bought Tassal out of receivership nearly two decades ago has acquired 718 hectares of farmland on the banks of the River Derwent.

David Williams, founder of corporate advisory firm Kidder Williams, bought the Sorell Creek property, situated diagonally opposite the Boyer paper mill in the Derwent Valley, for $3 million.

The Melbourne-based Mr Williams is the largest private water-holder in Tasmania, leasing his 10,000 megalitres to farmers.

He told The Mercury he bought Sorell Creek because he “thought it might be a good land bank”.

“I bought it really without having a clear intention of what I wanted to do with it,” Mr Williams said. “Except for the fact that Tasmania’s hot as hell at the moment in terms of its appeal to people like winemakers.”

Profile photo of investment banker David Williams of Kidder Williams at his office in Melbourne on Friday 2 November 2018. Photo Luis Enrique Ascui.

“When I bought [Sorell Creek], it already had a planning permit to put 55-acre blocks on it or something. But I’ve let that lapse and I’m not interested in property development. I just thought it’d be good to have and maybe I’ll put some sheep or cattle on it.

“I wouldn’t rule out viticulture, because Tasmania is so hot, all the major wineries in this country, and some overseas, want to be in Tassie. Because the cool climate fruit for chardonnay and for sparkling wines, in particular, are great for Pinot.”

In 2003, Mr Williams bought Tassal for $42.5 million and immediately floated it on the ASX, leaving himself with a 20 per cent stake in the company. He then bought Webster Ltd, a food and agribusiness group, for $30 million in Tassal shares, setting the stage for a merger of the two companies.

Walnut pods are swept up from under the trees at Webster Ltd's Walnuts Australia farm near Leeton NSW.

Mr Williams’ purchase of Sorell Creek comes as the Tasmanian rural property market scales dizzying heights.

Two properties - one at Lemont in the Southern Midlands and the other at Mount Morriston in the Northern Midlands - recently sold for a combined $68 million, amounting to the biggest rural property sales in the state for decades.

Margate retail development no closer to fruition nine years later

NINE years after a permit was first granted for a major retail development south of Hobart, the project remains at a standstill, with the council unable to force progress.

In July 2012, the Kingborough Council granted local developers the Kalis Group, which was also behind the Myer Hobart redevelopment, a planning permit to build a shopping complex on the Channel Highway in central Margate.

The proposed two-storey centre would include 16 shops and offices, including one large commercial tenancy with floor space of about 2500m2, a carpark with more than 200 ­spaces, plus access roads and services.

Artist’s impression of the proposed Margate shopping centre from 2014.

It had been close to six years since the Margate Hardware store was demolished, to make way for the complex, but locals are still no closer to getting their promised multimillion-dollar shopping centre.

On a recent council meeting agenda, in response to a question from a member of the public about improvements to Margate, a council staff member noted “as the development has substantially commenced (as defined in legislation) and the permit remains valid there is no ability for council to force progress on their development.”

The site today. Picture: CHRIS KIDD

Local Government Association of Tasmania chief executive officer Dion Lester said once a development had been substantially started as required under the law, it could then “effectively sit there indefinitely.”

“There are currently no tools available to councils to compel a developer who has met the legal requirements of substantial commencement – and that can be a simple a pouring a slab – to progress the project,” he said.

Mr Lester said the secondary issue of land banking – where a land owner with vacant land they choose not to develop, typically for market based reasons – also needed addressing.

He said LGAT would like to see work done to determine the extent of land banking around the state and look at what tools and incentives state and local government could use to get some of the land to market.

The vacant Margate site today. Picture: CHRIS KIDD

“It’s hard to quantify how prevalent it is – the state government has data of vacant residential land, but the extent to which people are banking it is hard to be precise on,” Mr Lester said.

The Kalis Group did not respond to requests for comment.