China’s Rifa grows in Victoria
Rifa Salutary, the Australian arm of China's Zhejiang Rifa Holding Group, has bought two more properties in Western Victoria’s Wycheproof district, "Kulwin Park" and "McNicholl's" for about $9 million.
The Southern Mallee acquisitions cover more than 4500 hectares and include 3000 sheep and 600 steers for fattening.
In two years Rifa has bought 15 individual properties with its holdings now totalling about 52,630 hectares across its five aggregations in NSW and western Victoria.
Rifa's foray into rural Australia began with the purchase of “Blackwood” in Victoria's Western District, and has since included significant acquisitions such as a portfolio of properties south of Tamworth in NSW, worth about $50m, and another worth about $60m around Warialda and Gloucester which included Cooplacurripa Station.
Norco banks on ice cream growth
The Norco co-operative heads into the new financial year with a new banker after signing off on a $14.1 million expansion for its ice cream business unit.
The NSW North Coast dairy processor has moved a big portion of its business from St George Bank to Rabobank after weighing up financing needs required to fund its extra ice cream capacity.
It approached several lenders as part of a bank review earlier this year.
St George, which has banked Norco for 11 years, continues providing transactional banking services.
The two-year ice cream plant upgrade includes installation of a spiral freezer so product can be frozen faster, new conveyors and packing lines, and the improved capacity to run its Lismore factory around the clock.
Norco chief financial officer, Cam Hogan, said a strong capital expenditure payback and profits were expected to flow from the efficiencies and new products made.
MG board downsizes
Farmer director numbers on the financially troubled Murray Goulburn board have shrunk from nine to seven as part of the review into the co-operative’s management and costs.
Supplier directors still hold the majority of board positions.
MG chairman, John Spark, said seven farmer directors were permitted by the dairy company’s constitution and downsizing would help cut board costs and lift decision making efficiency at a critical time when a variety of key business issues confronted the co-operative.
DomaCom’s biogas move
Fractional investment fund manager, DomaCom, is moving into the energy sector with plans to crowdfund the purchase of land and development of a $4.3 million biohub in northern NSW at Casino.
The crowdfunding-style investment outfit, which was a left-field contender keen to give small investors a share in last year’s S.Kidman and Company pastoral sale, also has ownership joint ventures with Queensland beef producers.
The “new-age” energy project aims to raise $4.3 million for the land and the development costs, after which the Brisbane-based specialist developer, Utilitas, will lease and operate the biohub for 10 years.
Rental income is expected to give investors an annual eight per cent yield.
Utilitas will use European-style tanks to digest organic waste and convert it into electricity, servicing the energy needs of the local sewage wastewater treatment plant and food processing industries.
DomaCom managing director, Arthur Naoumidis, said the move was “an exciting opportunity” merging a socially responsible energy investment in rural Australia with a projected healthy yield for investors paying in a minimum of $2500 each.