Proterra Investment Partners’ Corinella Group of farms attract huge interest

A huge number of potential buyers are circling one of the biggest-ever offerings of prime farmland in southeast Australia.

US private equity firm Proterra Investment Partners listed its 22,500ha Corinella Group of properties in Victoria and South Australia as part of what is understood to be one of the biggest-ever offerings of prime farmland in southeast Australia.

Demand for Australian rural property has reached fever pitch, with a US private equity firm reporting an “unprecedented level of interest” for its massive cropping portfolio, which is on the market for $350 million.

Proterra Investment Partners listed its Corinella Group of almost 50 farms covering 22,500ha in Victoria and South Australia in August.

Expressions of interest for the massive portfolio, which includes water entitlements of 5778 megalitres, closed on October 7.

Proterra managing director Becca Willson said the sales process involved 260 enquiries and 100 property inspections which resulted in 63 formal expressions of interest.

In a statement, Ms Willson said there was an “unprecedented level of interest from institutional investors and family farmers alike” which reflected the quality of the assets.

The Corinella farms are located around Lake Bolac in Victoria’s Western District, north of Ararat and Stawell, around Navarre in the Wimmera and at Naracoorte in South Australia.

Proterra first agricultural investment in Australian farmland was in 2009 when it was part of Cargill at Black River Asset Management. Black River was a majority investor in BFB, a family-owned cropping and grain storage operation covering 44,000ha in the Riverina, which sold to Canada’s PSP Investments in January 2019.

Ms Willson said the BFB exit “generated a significant premium over the assets and demonstrated the value that prudent institutional investors place on Proterra’s approach of hands-on management overlayed by strong governance principles”.

The Australian rural property market has hit record levels this year, driven by low interest rates, strong commodity prices and improved seasonal conditions.

Other major assets on the market include Aware Super’s farming portfolio around Lake Boga in northern Victoria, which is expected to fetch $150 million.

More recently US-backed Laguna Bay Agricultural Fund listed its 3353ha Woorndoo cropping operation near Lake Bolac in the Western District with expectations of more than $70 million and American teacher superannuation fund TIAA-CREF offered Cobran Station – one of Australia’s best-known irrigation farms – for $40-$50 million.

Not included in that price are the property’s significant water titles, expected to be worth a further tens of millions of dollars.