ARK gets sour deal on strawberry farms

Receivers acting on behalf of the ARK Fund are reported to be selling strawberry farms in Queensland for almost 40% less than what the delisted agricultural investment company paid for the properties in 2007.

ARK bought the properties north-west of Caboolture for $11.2 million four years ago, and sources have told the Australian Financial Review that they are likely to be sold for about $7 million.

The fund went into receivership in June 2010, after ceasing trading four months earlier, in February 2010. ARK tenant Rewards Group, which has now also collapsed, failed to pay rent on any of the 32 properties it leased from ARK, which began the fund's money woes, according to The West Australian.

When ARK purchased the strawberry farms, it issued a statement to shareholders saying that the properties had potential for subdivision and residential development becuase they were within the "under investigation" area of the South East Queensland Regional Plan.