August 13, 2020

By Lynda Kiernan, Global AgInvesting Media

Harvest Agriculture, an Australia-based wholly-owned subsidiary of Guangxi Investment Co. Ltd, has acquired the 5,071-hectare Yaloak Estate for A$60 million (US$43 million) – approximately A$10 million (US$7 million) more than what the property was expected to fetch. 

The estate had been owned by businessman, corporate lawyer, and winery owner Peter Yunghanns for 50 years prior to being placed on the market last year.

Months after being listed with Duncan McCulloch and James Beer of Colliers International and David Williams and Tim Faulkner of Kidder Williams, Harvest Agriculture placed a caveat over the property in July, having first issued shares totaling A$32 million (US$23 million) in March and $37 million ($26.5 million) in April – it is assumed to fund the acquisition.

Although an impressive homestead built in the 1890s, seven additional houses, a wind farm with 14 turbines, and a polo club are included in the deal, the real draw of Yaloak was its potential as an agricultural hub, David Williams, the founder of Kidder Williams, told RealEstate.com. 

Currently used as a mixed farming operation for dryland cropping and grazing for sheep, it is understood that as the new owner, Harvest Agriculture will continue to run the enterprise as a farming operation, despite it being a rather diversified acquisition, and that approval for the deal has already been secured from Australia’s Foreign Investment Review Board (FIRB).

David Williams noted to RealEstate.com that there is still considerable interest in agricultural properties from overseas buyers – particularly from the U.S. and Canada, while interest from Chinese buyers is waning as Chinese companies are rethinking their investments amid weather and seasonal challenges, such as Rifa Salutary that placed its five-property portfolio of cattle stations for sale last year. 

However, the sale of Yaloak is the second sale of a major agricultural property in the state of Victoria to Chinese buyers this year. In March the 2,349-hectare Mawallok sheep station in Western Victoria was acquired by Chinese wool trader Qingnan Wen. 

The sale was managed by Nick Myer of Elders Real Estate on behalf of Indago Energy chairman Stephen Mitchell and his wife, Serena, who have pursued a range of activities at Mawallok under the name Mawallok Pastoral Company including wool, lambs, cattle, and cropping, since gaining ownership in 1980. 

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.