Foreign investors made further forays into NSW property ownership during 2017, but on a lesser scale than in previous years, reflecting the higher land values now obtaining.
They were outbid for many choice properties by cashed-up local buyers determined to seize opportunities for expansion while the three “stars” of seasons, interest rates and commodity prices aligned.
Local buyers adding more land to an existing enterprise – especially when bringing a son or daughter into the operation - could afford to be less mindful of the yield potential of a new purchase than, say, a fund manager investing other people’s money.
Farmland purchases by foreign interests were nonetheless substantial in 2017, led by the US-based TIAA-CREF Westchester group’s swoop on the Sustainable Agriculture Fund’s portfolio.
The global asset management group picked up three farming aggregations from Sustainable Agriculture – at North Star, Darlington Point and Lake Bolac (Victoria) – for a sum believed to be in the order of $110 million.
High-quality cropland was also in the sights of Union Agriculture, the Chinese brewery subsidiary, which in 2016 paid close to $40m for the Minnamurra Pastoral Company’s 11,331 hectare Glenrowan Aggregation at Gunnedah. Last year Union emerged as the $11.4m buyer of the nearby 1354ha “Leandah”/“Wyangan” cropping aggregation at Mullaley, marketed by Elders on behalf of the Swain family.
Another Chinese investor, Rifa Salutary, added to its portfolio of 13 NSW and Victorian farms with the $9m purchase of two properties in Victoria’s Mallee region.
Closer to home, the listed Webster Ltd agricultural group in March last year snapped up a 250ha walnut farm at Tabbita for a reported $23.1m, adding to a pastoral empire in NSW that already includes “Kooba”, “Bengerang”, “Tandou” and “Darling Farms”. Australia’s richest woman, Gina Rinehart, added the 2500ha “Hiddendale” to her Mendooran beef aggregation as well as picking up Willeroo Station in the Northern Territory.
