WHEATBELT farming operations Giovi Ltd, formerly Wellard Agri Ltd, has sold its Watheroo farming operations.
The 13,350 hectare operation was set up for grain production by Wellard's chief executive officer Mauro Balzarini's private company, WGH Holdings.
Farm Weekly understands the Watheroo farms were sold as a package to global agricultural investor Westchester Agriculture Asset Managers Group for $15 million.
The Illinois-based group has more than $8 billion of assets, with a portfolio that includes more than 350 farmland properties in seven countries, including Australia.
A Giovi Ltd spokesperson confirmed the sale but not its details.
The properties involved are Bobawina, Westwood, Gunyidi and Yo Espro farms, located 230 kilometres north east of Perth.
The company purchased the cropping properties, which were on the market in 2008 through Landmark Real Estate, for $7.2m, $4.8m and $3.5m respectively.
Giovi also operates in Kojonup and The Grange (Dongara) and has not ruled out also selling those properties or assets owned by the company.
"Giovi is evaluating all options for its properties and other investments," the spokesperson said.
In 2008/2009 the company went on a spending spree and purchased six WA properties, including well-known holdings Hyfield and Crossburn at Kojonup and three broadacre farms at Watheroo.
The Hyfield sale included the Hyfield Poll Merino stud, which last year announced it would only breed rams for its own use from 2017.
The company bought the properties to diversify the portfolio of its then Wellard Agri Ltd branch by investing in broadacre farming land.
This gave the company a property portfolio of 37,801ha of prime farmland owned and located throughout WA, producing grain, wool, sheep meat, cattle, beef and legumes.
Giovi was renamed in 2015 from Wellard Agri Ltd after Mr Balzarini's wife, as part of a corporate reorganisation to prepare the company's flagship trading division for a capital structure and later float Wellard Ltd on the Australian Securities Exchange (ASX).
But Giovi continued to run as 100 per cent owned by the Balzarini family.
While the move was designed to open up new opportunities for exposure and development of the companies, Wellard Ltd experienced a year of disappointing results.
The move to sell assets from both companies was its latest attempt to improve Wellard Ltd's position.
The exporter has had potential buyers interested in its Beauford River meat works near Kojonup.
"Wellard is a trading company," a Wellard spokesperson said.
"The company is continuously assessing the value of its biological and infrastructure assets, including whether their value is best realised or retained to generate future value.
"A sale will only occur if the company likes the price."
The Perth-based company, Wellards Ltd which listed on the ASX late 2015, suffered a string of incidents last year, including a $7.5m ship breakdown in February.
Tough trading conditions and ship breakdowns have contributed to a series of profit downgrades and a large slide in its share price to about 22 cents last week from $1.39 when it floated.
Westchester Group was contacted for a comment, but were unable to respond by time of publication.