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Tasmania’s largest farm projecting to sell for $70 million
February 22, 2018

Overseas buyers have already flagged their interest in snapping up Tasmania’s largest farm, which hit the market this week.

The property Rushy Lagoon spans nearly 22,000 hectares in the far north-eastern tip of the state and is owned by Alan Pye, one of New Zealand’s richest farmers.

He purchased the farm in 1997 and has since expanded the holding to include adjoining properties Red Hills and East Wyambie.

There is extensive irrigation infrastructure on the property, which grows pasture for 4,000 dairy cows, 8,000 beef cattle and 7,000 sheep.

“I think Mr Pye likely looked at the current market situation and thought it was a good time to sell really,” said Peter Ryan from CBRE Agribusiness.

“Given he has a lot of other interests and over the course of his long and distinguished career in agriculture, he has bought and sold very well with the ebb and flow of the market.”

Overseas interest likely
Mr Ryan said it is likely a corporate player will secure the farm which is expected to fetch more than $70 million.

“Strangely enough there’s been some New Zealand interest, who are already buyers and operators of dairy farms in Tasmania.”

“New Zealanders have long liked Tasmania as an operation.

“The others that have tapped us on the should are dinky di Aussies.”

New regulations are in place
Earlier this month Federal Treasurer Scott Morrison announced new regulations around the sale of Australian farmland to international buyers.

Farms worth more than $15 million would need to be advertised locally for 30 days before it could be sold to an overseas buyer.

It is part of guidelines the Foreign Investment Review Board (FIRB) considers when assesing the sale of farmland.

Mr Ryan said it will not be a problem for parties interested in Rushy Lagoon.

“Alan had decided to take the property to market well before we were surprised by Treasurer Morrison’s decision with regard to the new regulations.

“People are used to these days the requirements for foreign buyers to go through the Foreign Investment Review Board procedures.

“That seems to work well for most people.”

The property is being offered for sale on a walk in/walk out basis.

 

Source: ABC Rural



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