Optifarm sell Gundaline Station in $120m deal to China’s Smart Shirts Limited

One of Australia’s largest irrigated farming enterprises has been sold by Dutch agricultural investors in a whopping deal. Find out who the buyer was.

A Chinese clothing manufacturer has purchased one of Australia’s largest irrigated farming enterprises in a deal worth about $120 million.

Dutch agricultural investors, Optifarm, have almost doubled their money in five years after selling the prized 14,916ha Gundaline Station, located at Carrathool in the Murrumbidgee irrigation area of NSW, to China’s Smart Shirts Limited.

According to its website, Smart Shirts “is one of leading apparel groups with garment manufacturing in the world”.

The $20 billion Zhejiang-based Youngor Group is a minority shareholder in Smart Shirts Ltd but it has no operational role with the new owner of Gundaline Station.

LAWD selling agents Danny Thomas and Elizabeth Doyle managed the sale after strong interest from local and international buyers.

Mr Thomas said Gundaline’s infrastructure and water access made it a very attractive prospect.

China’s Smart Shirts Limited have purchased NSW cotton powerhouse Gundaline Station.

“The location, property development, quality of infrastructure and water security makes Gundaline an A-Grade agricultural asset,” Mr Thomas said.

“Demand was fuelled further by favourable global economic conditions, including current high commodity prices, and with Australia’s exchange rate at sub-USD 0.70, our properties are very attractive to overseas buyers.”

Six thousand hectares at Gundaline are first-class flood irrigation land and secure access to surface and groundwater entitlements, as well as substantial water storages (in excess of 17,000ML).

It is understood the deal includes 12,500ML of Lower Murrumbidgee groundwater, 690ML of low-security river water and 2329ML of Murrumbidgee River supplementary water.

Regarded as one of Australia’s largest irrigated farming enterprises, Optifarm has almost doubled its investment after purchasing the property for a reported $65 million in 2018.

Optifarm acquired Gundaline from Southern Agricultural Resources, which had purchased the property in 2014 from the Twynam Agricultural Group for a reported $25 million.

The property was listed for sale in July 2020, but taken off the market before it was listed once again last year with offers tipped to reach more than $100 million.

The property has undergone significant development since 2014, when Customised Farm Management were contracted.

Gundaline Station spans 14916ha near Carrathool, NSW.

CFM’s managing director Andrew Parkes said there is now a greater cotton growing area, increased water storage capacity and the ability to grow additional crops including soybeans, wheat, canola and fava beans.

“When we took over, Gundaline had circa 2800ha of flood irrigation in relatively small fields of around 60ha,” he said.

“Between 2014 and 2017, we developed around 3200ha on a much bigger scale – between 180 and 250ha per paddock – which has made operations much more efficient.

“Gundaline was one of the first properties to achieve carbon neutral accreditation for its cotton production, and the new owners are keen to continue that.

“They’ve made a commitment to supporting local communities and rural life, as well as the current team of staff.”