Victorian permanent water entitlements fail to sell at auction

About 1040 megalitres in a Goulburn Valley permanent water entitlement has been passed in through auction for millions. See how it happened.

1043.30ML of high reliability 1A Greater Goulburn Permanent Water Entitlement was passed in through auction last week.

More than 1000 megalitres of Goulburn Valley permanent water entitlements have failed to sell via auction after they were offered for sale last week.

Last month 1043.30ML of high reliability 1A Greater Goulburn Permanent Water Entitlement in a single Water Entitlement Entity (WEE) Holding were listed for sale, offered via an online auction which closed on Friday, October 11.

Bidding on the water entitlements started at $4.1 million, before rising to $4.15 million following a vendor bid.

A bid of $4.16 million followed before the water entitlements were ultimately passed in through auction after failing to reach the reserve price.

The top bid was equivalent to $4022 a megalitre.

Colliers Agribusiness water advisory and transaction services and selling agent Matthew Tolmachoff said he was in negotiations with interested parties for a private sale of the water portfolio post-auction.

“Horticulture producers showed interest in the water entitlements, but bidding was also supported by those from the beef and grazing industry,” Mr Tolmachoff said.

The water portfolio is offered for sale by Rocsange Pty Ltd, a holding company of Shepparton-based owners and directors Robert and Patricia Bryant.

“The area is transforming, moving from dairy farming to permanent plantings focusing on fruit and nut production,” Mr Tolmachoff said when listing the portfolio for sale.

“The increased demand for permanent plantings will lead to more water use, which

makes this an opportunity for investors to improve the reliability of their farms by securing more water entitlement.

“Market interest and prices for permanent water entitlements are gaining momentum as interest rates stabilise in the second half of this year.

“The investment sector is aligning its strategy with predictions of lower rates next year and a stable BOM weather forecast.

“Investing in water now, prior to the announced Commonwealth buyback program takes full effect, will take advantage of a long-term repositioning of increased demand for limited supply of water licences.”