AAM Investments to sell Sunshine Farms aggregation for $90m-plus

An Australian agriculture investor with almost $900 million in assets has listed a massive 14,075ha central west NSW aggregation for sale.

One of Australia’s largest agricultural investment groups has listed its sprawling 14,075ha five-farm aggregation, located near Forbes in central west NSW.

AAM Investment Group, which owns almost $900 million in Australian agricultural assets, is selling the Sunshine Farms aggregation, where it is expected to receive offers worth more than $90 million.

AAM managing director Garry Edwards said the group was ready to sell Sunshine Farms after undertaking an “extensive development” program of the aggregation over the past three years.

“Sunshine Farms was the first strategic land and development acquisition of the AAM Diversified Agriculture Fund (ADAF) in January 2020,” Mr Edwards said.

“With access to water entitlements from the Jemalong Irrigation Scheme, the properties offered potential that could be realised through strategic capital development programs and management at scale.

AAM’s Sunshine Farms aggregation spans 14,025ha across five farms.

“The aggregation was foundational to the implementation of ADAF’s philosophy of diversity across supply chains and geographic locations, and we believe the development we have undertaken, including infrastructure improvement and change of land use, has resulted in an outstanding asset we are proud to take to market.”

The Sunshine Farms aggregation comprises five properties within a 25km radius, including Bergen Park (2835ha), Warili (1111ha), Glencoe (3666ha), Sunshine (4820ha) and Round Cowal (1643ha).

AAM paid $16 million for the Sunshine and Round Cowal properties, including a 925ML river water licence in February 2020.

AAM Investment Group managing director Garry Edwards. Picture: AAP/Ric Frearson

Water is a key feature at the Sunshine Farms aggregation with 11,556ML of general security water drawn from the Jemalong Irrigation Scheme, 2050ML of Lachlan River general security water and 1160ML of Upper Lachlan Alluvial groundwater along with 300ML of on-farm storage.

In recent seasons the property has grown cotton, wheat, barley and faba beans crops as well as fodder to support beef, wool and prime lamb ventures.

LAWD senior director Danny Thomas and director Ian Robertson are handling the sale, with expressions of interest closing October 5 at 12pm.

“This is a special aggregation that has been put together to provide extensive options for primary production, supported by significant water entitlements,” Mr Thomas said.

“Historically, the portion of the Lachlan Valley on the west side of the Newell Highway has been undervalued because of lack of scale. AAM has created a large aggregation and applied precision development and management strategies to take these properties to their highest and best use.”

The Sunshine Farms aggregation is expected to attract offers worth more than $90 million.

AAM have more than $887 million invested across beef, lamb and wool, cropping, poultry and timber supply chains across 27 sites in four states and territories.

Last year it purchased the 4053ha Beactive Station from the Vickery family, while also acquiring 3000 head of cattle, paying more than $50 million.

Meanwhile, more recently Dutch agricultural investors Optifarm sold the renowned 13,498ha Jemalong Station located near Forbes, with Canadian-backed Lawson Grains purchasing the property for $85 million, subject to FIRB approval.