Foreign investors show Lactanz interest

25 Sep, 2014 02:00 AM
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"This time, somebody can come along and step straight in and have cash flow from day one,"

THE large Lactanz Dairy operation in Scott River is again on the market, with foreign investors being courted as potential buyers.

Serious investors from Malaysia, Indonesia, Japan, Singapore, Hong Kong and mainland China have visited WA to inspect the dairy with new selling agent CBRE Agribusiness conducting site tours and presentations.

This latest attempt to sell the 2208 hectare holding of four properties and dairy herd of more than 4000 cows comes just 12 months after a failed attempt to sell the operation for $30 million.

CBRE Agribusiness regional director Danny Thomas said the inclusion of the cow herd, which had previously been owned by dairy processor Brownes until it sold this asset in June, put Lactanz in a much better position to be sold.

"This time, somebody can come along and step straight in and have cash flow from day one," Mr Thomas said.

However, an exclusive milk supply agreement for Brownes, which is also reported to be attracting interest from foreign investors as owner Archer Capital seeks a co-investor, remains until June 30, 2015.

"The market is in a much better position than it was, the money is back in the industry and there is a fairly decent milk price attracting buyers," Mr Thomas said.

"Foreign investors are being attracted to the whole package.

"The big vote of confidence is that management and staff is already in place for the four really productive farms."

Lactanz is being offered for sale as a whole entity, or as four separate farms and expressions of interest are being taken until the end of October.

It has been in receivership with Ferrier Hodgson for the past 12 months.

Mr Thomas said in addition to the several groups of foreign investors that had already toured the site, more visits were planned in the next fortnight.

He also said he was planning a trip to Asia before expressions of interest closed at the end of October to initiate further talks with interested parties.

These recent site tours coincided with the Department of Agriculture and Food (DAFWA) hosting an international dairy company in a visit to the South West last week.

DAFWA said it regularly assists businesses that are interested in investigating trade or investment opportunities with the WA agrifood sector, by providing information and facilitating meetings with members of industry.

It said it had assisted an international dairy company visit and meet with producer and processing businesses in Perth and the South West region, to gain an overview of the industry and business opportunities.

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READER COMMENTS

City farmer
29/09/2014 8:46:03 AM, on Farm Weekly

The dairy producing export kings couldn't make this farm viable in the tough wa dairy industry. the best of luck to the next people who buy this farm.

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