Select Harvests eyes off Riverina almond orchard

Australia’s second biggest almond producer has revealed its interest in a Riverina almond orchard, which is for sale with a price tag of more than $100 million.

Large appetite: Select Harvests has bought five mature almond orchards in the past six years.

ALMOND giant Select Harvests has flagged its interest in a Riverina farm listed for sale for more than $100 million.

Australia’s second-biggest almond producer has a long-term leasing arrangement over part of the 3841ha Hillston property currently owned by Rural Funds Group.

In an update to investors last month, Rural Funds Group said the impetus to put the Mooral orchard on the market followed recent favourable comparable sales.

If the property sells, the proceeds are earmarked to fund the purchase of new assets with a higher earnings potential and further diversity Rural Funds Group across different climactic regions, with purchases mostly likely in northern Australia in the macadamia and cattle sectors.

Select Harvests managing director Paul Thompson said the ASX-listed almond company had always made its intentions to seek out mature orchards “at the right price” and with suitable land for planting orchards clear.

“Our strategy is to grow via acquiring mature almond orchards or developing greenfield orchard,” he said.

“We are obviously very familiar with Mooral orchard as we lease 215ha. Potentially it is good fit for our portfolio.”

Select Harvests has bought five mature almond orchards in the past six years, with the most recent being a 465ha orchard in SA from Jubilee Almonds for $26.4m in 2017.

Mooral consists of 808ha planted to almond trees, which are established at 12-13 years old, and is being offered for sale by CBRE.

Mooral’s water entitlements include 10,350ML of lower Lachlan River groundwater, of which 3225ML is subject to a lease, 470ML of Lachlan River regulated high security and 1443ML of Lachlan River regulated general security surface water.

Rural Funds Group owns a diversified portfolio including beef stations, almond and macadamia orchards and vineyards, which are leased to operators including Treasury Wine Estates and Olam International.

— with SHANNON TWOMEY

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