Tasmania rural assets becoming a top target: HTW

Corporate activity in the Tasmania rural scene is heating up as many pension funds, high net worth investors and corporate buyers continue to seek out affordable rural assets with reasonable return parameters, according to the valuation firm, Herron Todd White (HTW).

It noted recent activity can be evidenced by Laguna Bays recent purchase of a number of dairies in the north-west of the state.

It also paid attention to Farmright/PSP’s purchase of Sustainable Agri Funds Cradle Coast dairy asset for a reported $25 million and TRT Pastoral’s purchase of SAF’s King Island Aggregation for $45 million.

"The grazing and dairy space are not the only sectors of corporate interest in Tasmania at present with berries and permanent plantings such as cherries and vineyards also seeing growing enquiry and due diligence as a result of Tasmania’s ever-improving irrigation schemes and security of water, in addition to a lower more attractive price point relative to the mainland, ultimately improving investor returns," the report said.

"Current corporate listings of note in Tasmania include the 21,861-hectare Rushy Lagoon dairy/grazing enterprise with a price tag of circa $70 million and the 8,580 hectare RMS forestry portfolio which both provide great opportunities for corporate level investment in an improving market," Anusg Shaw from the valuation firm noted.

"On a more local front, our recent attendance at AGfest, Tasmania’s largest rural field day, further confirmed the buoyant local attitude in the Tasmanian rural economy which has been backed up by evidence of strong value improvement in many recent smaller local transactions, especially in the irrigation sector."