Gerry Harvey sells Victorian dairy farm

Billionaire investor Gerry Harvey sold his disappointing Victorian dairy farming venture to the Sydney billionaire father and son combination Tony and Michael Perich.

They have bought his company’s rural holdings for more than $40 million.

The pair, together with NSW-based dairy operation Moxey Farms, have purchased Harvey Norman’s Coomboona dairies.

It spans a 2000 hectare operation north-west of Shepparton in Victoria, with Goulburn River frontage.

Harvey Norman told the ASX the property had been sold.

The sale price didn't cover full outlay of Harvey Norman’s $75 million exposure.

Harvey Norman took an “impairment loss” of $28.78 million on the venture’s debts in June and said it had recognised a total of $54.01 million in losses in the last financial year.

Harvey Norman put the Coomboona dairies operation on the market in July after the company fell into the hands of administrators Ferrier Hodgson and receivers McGrathNicol, who were appointed by National Australia Bank in March.

Elders’ Nick Myer and Anthony Stevens sold the property which milks about 2500 Holstein cows and produces more than 30 million litres of milk. 

The Perich family has a 54% stake in the listed Freedom Foods which has a Shepparton dairy plant near Coomboona.