ASX-listed agribusiness developer, Alterra’s sale of the final sections of its “non-core” Dambadgee Springs farming property in Dandaragan north of Perth has gone unconditional. The final tranche of the overall transaction, which incorporates the rights to income from the nearby Yandin wind farm, comprised two blocks of land that fetched $2.8 million, following the $1.6 million sale of the first block back in July.
The property was sold to a local farmer for the total price of $4.4 million.
Settlement is scheduled for mid-next month and Perth-based Alterra says $1.4 million of the Dambadgee Springs proceeds will go towards retirement of the debt left to be paid on the property.
Alterra Chief Executive Officer, Oliver Barnes said: “The sale of this property is a major milestone in the company’s plan to divest legacy assets and concentrate on its core business of developing premium horticultural projects through the repurposing of land and water.”
The company recently planted an initial five hectares of avocado trees at its planned 300-hectare Carpenters avocado development in Pemberton in the south-west of WA, while a feasibility study on the project is well advanced.
Alterra says water capture and storage capacity are critical elements in the successful conversion of Carpenters from its former incarnation as a blue gum plantation to an avocado-producing plantation.
The WA Department of Primary Industries and Regional Development has estimated that approximately 7.5 megalitres of water per hectare would be required to produce avocados in Pemberton.
One of the two proposed dams at the property – the smaller no. 2 dam – has been prepared to hold an initial 30 megalitres of water in the medium term, which Alterra says will be sufficient to fulfil the requirements of the initial five hectares.
Should the first five hectares of avocados hit the mark, the company hopes to plant a further 90 hectares of avocado trees next year as part of the proposed phase one development of Carpenters. The Dambadgee Springs sale will help Alterra fund phase one.
Ultimately Alterra aims to put together a development syndicate of potential investors in Carpenters, co-invest alongside the syndicate and also manage the operation for a fee.
The project has been housed in a special-purpose corporate vehicle known as Carpenters Beedelup.
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