Flurry of interest tipped as Lactanz Dairies hits the sales block

A flurry of local and offshore investor interest is expected when Western Australia’s largest dairy enterprise, Lactanz Dairies hits the sales block next month.

The business consists of four state-of-the-art developed properties totalling more than 2,208 hectares in the state’s Scott River region. The properties vary in size from 283 hectares for the smallest property to 834 hectares for the biggest.

Rawdon Briggs and Tim Altschwager of Colliers International Rural & Agribusiness Australasian have been appointed to sell the properties. They will be sold via four concurrent international tender campaigns, running in two rounds. The first round of tenders for Lactanz Dairies will close in October and the second round will close in November.

It is understood the properties were previously listed for sale by another real estate firm for about $27 million.

“Currently, there is $4 billion being moved by a number of different agriculture-exposed companies and funds for investment in Australian agricultural assets,” said Mr Briggs.

“Australian agricultural land and logistics assets are moving to the top of investors wish lists now that hard commodity mining assets have lost favour. It is about food security and portfolio diversification.”