Ace Dairy Holdings sell Gippsland dairy farm portfolio for about $70m

International investment fund Ace Dairy Holdings has sold its huge Gippsland dairy portfolio – with four different buyers securing a slice.

The final segments of a premier Gippsland dairy farm portfolio have been sold with an international buyer and separate farming families snapping up pieces of the aggregation.

All seven of the Ace Dairy Holdings’ Gippsland dairy portfolio, located between Fish Creek, Maffra and Heyfield have been sold with the total sale price of the aggregation undisclosed.

When the farms were listed for sale the properties were expected to fetch about $70m and it is understood they have been sold for a combined figure in this vicinity.

Of the seven farms, Aurora Dairies, backed by Canadian superannuation giant PSP, has secured four, with two pending FIRB approval.

The 290ha Donahoes farm at Maffra and 314ha Whites farm have been purchased by Aurora Dairies, pending FIRB approval. Aurora Dairies previously bought the 198ha Wheelers and 191ha Denisons farm in November 2021.

The 427ha Hill Farm was purchased by the McDonald family, from Victoria’s King Valley, in February 2022, while the largest property in the portfolio, 487ha Pilkington farm at Fish Creek, was bought by the Wade family.

Four different buyers secured a slice of the Ace Dairy Holdings’ Gippsland dairy portfolio.

Finally, the Caravan Park property at Valencia Creek was sold in an off-market deal to an undisclosed buyer.

PwC, together with LAWD, handled the sale of the Ace Dairy Holdings Gippsland dairy portfolio.

LAWD director Tim Corcoran said the portfolio attracted a range of different buyers.

“The process had broad engagement from a range of different buyer sectors with participation from investors ranging from existing family-owned and operated dairy and beef enterprises to institutional fund groups and management companies,” Mr Corcoran said.

Most of the properties are expected to continue as dairy farms, with one family planning to convert one property into a beef farm.

Ace Dairy Holdings, predominantly owned by Deutsche Bank’s DWS Global Agricultural Land and Opportunities Fund, Dutch government and education pension fund Stichting Pensioenfon ABP and Duxton Asset Management, listed the portfolio for sale in May last year.

The former Ace Dairies seven-farm portfolio produced about two million kilograms of milk solids each year.

Ace Dairy Holdings had built its portfolio over the past seven or eight years, creating a 2040ha aggregation, including 1049ha of irrigable land with water from the Macalister Irrigation District.

PSP’s latest acquisitions, via Aurora Dairies, adds to its existing four dairy aggregations spanning 10,670ha across Victoria.

Late last year, Aurora Dairies purchased another Gippsland dairy farm from Gray Wigg Gault, paying about $20m for the 1237ha Clydebank aggregation.

Aurora Dairies also paid more than $55m for 2500ha worth of dairy farms owned by Gray Wigg Gault in October last year.