GIO Trust's sale opens farm doors, The Australian, 2 March, 2001.
GIO Trust's sale opens farm doors: [1 Edition]
Stapleton, John. The Australian [Canberra, A.C.T] 02 Mar 2001: 37.
Abstract
The AMP group of companies assumed management of the GIO Rural Trust in December 1999 and said the sale of its NSW properties was a strategic move to reweight the portfolio towards more liquid assets.
* Milchengowrie at Boggabri is a 7274ha irrigation cotton farm with Namoi River and Cox's Creek frontage. The Boggabri cotton gin is located on the western boundary. The country is generally flat with some of the best soils in NSW. Tenders close April 11.
Peter Crossing, a senior member of UBS Warburg's property team, said agricultural properties were businesses that did not fit into the listed property trust sector of mainly commercial, retail and industrial properties, which provided reasonable certainty of income. He said big rural properties like those being sold by GIO's Rural Trust rarely changed hands.
Full Text
GIO Rural Trust has placed more than $35 million worth of rural properties on the market in a major shift in asset classes.
The AMP group of companies assumed management of the GIO Rural Trust in December 1999 and said the sale of its NSW properties was a strategic move to reweight the portfolio towards more liquid assets.
The sale is expected to raise significant interest among agricultural investors as it presents an opportunity to own developed Australian agricultural properties on some of NSW's most productive land.
The three prize properties are:
* Kerarbury at Darlington Point, a 6988-hectare citrus, rice and sheep property, is in the heart of the Riverina, close to Griffith and with Murrumbidgee River frontage. It goes to auction on April 4.
Most of the flat Riverina plains have been cleared for cropping and irrigation, leaving stands of wilga and grey box trees in low- lying areas and red gums along the Murrumbidgee River.
More than 2600ha is under flood and spray irrigation. Improvements include a modern grain-handling and drying facility, a substantial homestead and three other modern homes.
* Milchengowrie at Boggabri is a 7274ha irrigation cotton farm with Namoi River and Cox's Creek frontage. The Boggabri cotton gin is located on the western boundary. The country is generally flat with some of the best soils in NSW. Tenders close April 11.
* Cooplacurripa at Mt George in the Upper Manning River Valley is a 24,431ha property that goes to auction on April 4.
It is the largest cattle run in south-east Australia and is being sold with its 10,000 head of cattle.
Located at the headwaters of the Manning River north-east of Wingham, the property's topography varies from creek and river flats to undulating hills and timbered mountains. Cooplacurripa means running waters.
First settled in 1856, it has a large homestead, seven cottages, stables, sheds and 11 sets of cattle yards.
Peter Crossing, a senior member of UBS Warburg's property team, said agricultural properties were businesses that did not fit into the listed property trust sector of mainly commercial, retail and industrial properties, which provided reasonable certainty of income. He said big rural properties like those being sold by GIO's Rural Trust rarely changed hands.
"The rural sector is at a good stage, wool prices are up, cattle prices are up, cotton is doing well," he said. "There is likely to be a good deal of interest because of the buoyancy in the rural markets."
Richard Shields, institutional business executive with AMP Henderson Global Investors, said the company's investment objective was to manage any credit exposures.