Grape harvest driving activity in Mildura, Sunraysia: HTW

Activity in the Mildura/Sunraysia rural scene over the past month included the completion of the wine grape harvest while the fresh fruit table grape harvest is nearing completion with only the final pick of the later varieties remaining to be harvested.

The weather throughout the picking season has been one of the best for many seasons, Herron Todd White noted.

With the heat now dissipating after a relatively hot summer in this region, local dryland farmers are looking to the skies for some significant rainfall to kick start their cropping campaigns and while some significant areas have been dry sown, traditionally growers tend to use Anzac Day as the point in time to commence sowing.

Interest has not waned from international corporate entities investing in fresh fruit, dried fruit and citrus holdings as an attractive medium to long term strategy.

HTW noted confirmed reports of several significant transactions in recent weeks with sales generally structured on lease back arrangements to provide corporate buyers with a regular rental income stream.

Sales and pending sales we are aware of include:

• A 300 hectare table grape holding(244hectares planted) in the Euston region on a long term lease back arrangement. There is no water entitlement included in the sale. The property is planted predominantly to Crimson Seedless vines. The land and plantings show around $60,000 per hectare;

• Four holdings in the Mildura/Karadoc/Nangiloc area totalling approximately 200 hectares of citrus and table grape plantings have been contracted
by the same interest to the above pending Euston sale for in excess of $10 million on a long term lease back arrangement. No water entitlement is included but applicable AUL applies;

• A large citrus holding in the Riverland region of South Australia comprising over 100 hectares of good standard predominantly navel oranges has reported sold, with the plantings expected to show levels in excess of $25,000 per hectare