goFARM snap up major slice of Lake Boga Ag portfolio from Aware Super

Aware Super’s mammoth Mallee agricultural portfolio has been sold to the major Aussie agricultural developer for about $30m.

Australian agricultural developer goFARM has purchased a major slice of a mammoth Mallee farming portfolio for about $30 million.

goFARM Australia have secured the land, plant, equipment, low reliability water entitlements and a 10,000ML water allocation from Aware Super’s 9000ha Lake Boga Agriculture portfolio.

Aware Super listed the portfolio for sale in September last year with reported expectations of about $150 million, including the value of the high-reliability water entitlements.

goFARM managing director Liam Lenaghan said the 21 employees on the Lake Boga farms would transfer to goFARM as the company aimed to simplify the Mallee operation.

“We see some inherent value in this large portfolio and one that has already been aggregated,” he said.

“With current seasonal conditions and water rights, an irrigated farm is good value.

“We also see the water rights as really valuable with future climate scenarios. That’s the appeal we see in it.”

The entire Lake Boga Agriculture Portfolio was listed for sale in September last year with reported price expectations of about $150 million.

PwC and LAWD brokered the deal.

For the past 15 years Aware Super, in partnership with Kilter Rural, have developed the portfolio, regenerating 38 farms between Lake Boga and Kerang.

After significant development the portfolio is home to a large-scale field tomato enterprise producing about 80,000 tonnes a year, a 50ha Queen Garnet Plum orchard, 1188ha of irrigated certified organic land for the production of winter cereals and organic tomatoes and a 2500-head sheep grazing enterprise.

The 9000ha, 38-farm aggregation had an irrigated footprint of 3651ha and 20,000ML of both high and low reliability water entitlements.

Aware Super’s senior portfolio manager infrastructure Mark Hector said the super annuation giant will be assessing where they can invest their capital next.

“We’re really proud of what we accomplished with this investment over the 16 years,” he said.

“It was always our intention to divest the farmland after a period of transformation and growth, and to redeploy the capital into exciting new investment opportunities that will keep delivering the strong, long-term returns our members expect.

“We know the asset is in good hands with the new owner, who will continue to invest in the business and ensure it has a prosperous future.”

“As was always the intention though, following 15 successful years – and consistent with broader portfolio decisions to sometimes strategically divest after transformation and growth and recycle capital into new value-add investment opportunities.”

There are also 4766ha of native biodiversity zones that offer future carbon offset opportunities with the Lake Boga Agriculture Portfolio.

goFARM has been active in the rural property market this year, selling its 11,260ha Yarrabee Park holding to Canada’s PSP Investments, via, Daybreak cropping, in a $60 million-plus deal.

While in February it also listed its Sandmount Farms aggregation at Cobram for sale for $250 million-plus.