Foreign ownership: Three NSW farms to be sold under new rules

THE first sale of Australian farmland under a new government rule ensuring local buyers get an equal chance to bid against foreign investors is under way.

Significant interest: Merrowie Station, at Hillston, is one of three NSW properties being sold by Twynam Agricultural Group.

THE first sale of Australian farmland under a new government rule ensuring local buyers get an equal chance to bid against foreign investors is under way.

Twynam Agricultural Group, owned by the Kahlbetzer family, is selling three of its NSW farms comprising 47,000ha of dryland and irrigated grazing and cropping country on the Lachlan River worth more than $100 million.

The new rule requires any rural property worth more than $15 million to be widely advertised nationally in a 30 day marketing campaign before it can be sold to a foreign investor.

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But Twynam’s chairman Johnny Kahlbetzer is unhappy about the new rule saying they had already had an offer for the properties they had accepted.

“ We were about to sign contracts with a foreigner when the new law came in.

“A public campaign was an option from the start but we had a very good offer and had accepted it.

“The problem with the way the law came in, is that we had to in effect start again.

“The extra cost to us in advertising, agents, and lost interest will be over $500,000 so unless we get a much higher offer I will be far from happy,” Mr Kahlbetzer said.

The sale by expression of interest campaign is being handled by Ray White Rural International and Johnston Rural Group and closes on March 12.

Ray White agent Bruce Gunning said he believed Twynam was the first vendor to be affected by the new rule.

The public marketing campaign had generated significant interest from local buyers as well as overseas since it began.

“Within hours of advertising the properties through national media we had an inquiry from Hong Kong but also there had been strong interest from local and other Australian investors,” Mr Gunning said.

“There have already been a number of farm inspections and requests for the memorandum of information.”

These were substantial and significant and properties with exceptional soils, location and water entitlements, he said.

Many of the buyers were interested in establishing permanent plantings of tree crops such as citrus and nuts because of the water entitlements.

The properties include:

TWYNAM’S flagship 13,387ha Jemalong Station near Forbes with 2,384ha of irrigation, 8,885Ml general security water, 3,107Ml of groundwater and carrying around 5500 Angus cattle.

THE 361ha Jemalong Citrus with 215ha of orange trees, 750Ml general security water, 1,000Ml of groundwater.

THE 32,730ha Merrowie Station at Hillston, which has 9,906ha of irrigation, 6,689Ml general security Lachlan Water, 10,528Ml of groundwater and currently growing 2500ha of cotton and running 10,000 sheep.

The properties are for sale as a whole or individually.

Twynam Agricultural Group was at one point NSW’s biggest single land holder but has since been selling down its Australian portfolio to concentrate on its other Australian investments.

Mr Kahlbetzer said they had no plans to sell any more of their rural assets.