Nine-figure offers tipped for mammoth Tasmanian farm

The Apple Isle’s largest rural property is for sale again, following the death of its renowned Kiwi owner earlier this year. See all the details.

The late Allan Pye’s 21,744ha Rushy Lagoon, 140km northeast of Launceston, is for sale.

The Apple Isle’s largest farm is back on the market, listed for sale following the death of its renowned owner earlier this year.

Rushy Lagoon, a 21,744ha landholding in Tasmania’s northeast corner, is for sale six years after the late Allan Pye, regarded as one of New Zealand’s richest farmers, last offered the premier dairy, beef and cropping property.

In March this year, Mr Pye passed away aged 83, leaving behind a lasting farming legacy having made his fortune in potatoes.

No price guide has been offered for the mammoth property, which is for sale on behalf of Mr Pye’s estate.

In 2018 Rushy Lagoon, located 140km northeast of Launceston, was listed with price hopes of about $70 million, however, this time around the property is tipped to attract nine-figure offers.

RMS Advisory agents Peter Ryan and Jarrod Ryan are handling the sale alongside LAWD senior director Danny Thomas and director Elizabeth Doyle.

Peter Ryan said he expected a range of buyers to show interest in Rushy Lagoon, with some potentially looking to intensify cattle and agricultural production, while others might be interested in combining the farming with renewable energy projects and, or carbon sequestration.

“Rushy Lagoon is an iconic property in Tasmanian agriculture, with a famed and fabled history,” My Ryan said.

“With its shear scale and scope, at almost 22,000ha, it is a large property anywhere, but in terms of Tasmania it really is huge.”

Rushy Lagoon has conservatively carried thousands of dairy cows and beef cattle in recent seasons, supported by 12,548ML and on-farm water storage of 3935ML.

The Rushy Lagoon has historically been used as a dairy, beef cattle and sheep grazing operation, with 1170ha developed to centre pivot irrigation. It has conservatively carried thousands of dairy cows and beef cattle in recent years.

The late Mr Pye, known as the ‘Spud King’, established his farming empire on his first property located on New Zealand’s South Island in 1961 at the mouth of the Orari River, before expanding to both sides of the Tasman.

In South Australia Allan Pye with his son, Mark Pye and daughter in-law, Fiona Pye established Parilla Premium Potatoes in 1990. The Pye family also owns the Zarella Fresh vegetable brand.

In 1996, Pye struck the deal for Rushy Lagoon, paying $8.6 million in partnership with Timaru financier Allan Hubbard of South Canterbury Finance.

Two significant dairies are part of Rushy Lagoon, Tasmania.

Mr Pye and Hubbard would go on to become large shareholders in Dairy Holdings, considered New Zealand’s largest corporate dairy farmer, and owner of more than 70 dairy farms.

About 15 years ago, My Pye took 100 per cent ownership of Rushy Lagoon, expanding it to 21,744ha following the purchase of the adjoining 1221ha East Wyambi property.

Rushy Lagoon was once part of Naroo Pastoral Company, which was a portfolio of more than 20 properties across Australia owned by British Tobacco (Australia).

Cascade Brewery also previously owned Rushy Lagoon, as did Tasmanian agricultural stalwart Bert Farquhar.

Existing farming infrastructure at Rushy Lagoon includes a 60-stand Delavai rotary dairy, 54-stand Delavai rotary dairy, office, workshop, licensed pit, four cattle yards and various rural shedding as well as ample accommodation.

Plans are also in progress for a 1000MW wind farm on the property.

Rushy Lagoon is the latest premier Tasmanian farm to hit the market this year, following on from Van Dairy Limited’s 9500ha Woolnorth Aggregation, owned by Chinese businessman Lu Xianfeng, the 3368ha Westmore at Marrah and 4626ha Flinders Island Farms.