China investors eye Undabri

17 Feb, 2014 07:00 AM
Comments
6
 
Receivers were appointed over the farming operation consisting of the farms Undabri and South Giddi Giddi.
Any sale to Chinese investors would not require FIRB approval as it falls below the $248m threshold
Receivers were appointed over the farming operation consisting of the farms Undabri and South Giddi Giddi.

CHINESE buyers are in negotiations to buy another well-known south-west Queensland cropping property for more than $36 million.

Undabri, formerly owned by real estate and agricultural land identity Craig Doyle, was placed on the market after Mr Doyle had several of his companies placed into receivership last year because of high debts and damaging floods. The 11,935-hectare property 30 kilometres north of Goondiwindi has been on and off the market with expectations of around $50 million.

The potential new owner has been dealing with receivers Deloitte and could soon join the growing list of Chinese buyers who have snapped up cheap agricultural land in Australia. Unconfirmed reports surfaced that Zhejiang RIFA Holding Group, one of China's biggest textile makers, purchased several wool producing properties in Victoria's Western District.

This follows the Chinese and Japanese-backed consortium Shandong Ruyi, which purchased Australia's largest cotton farm, Cubbie Station, and late last year the Dirranbandi ginnery, owned by Singaporean trading house Olam International.

Deloitte receivers declined to comment on the sensitive negotiations with the Chinese investors.Water licences

Several parties have shown competing interest in the Undabri property, which also carries 11,250 megalitres of water licences.

Last year, the neighbouring property Mobandilla was purchased for about $12 million. A collapsed managed investment scheme and very high debt saw that 5400-hectare cotton property also fall into the hands of receivers.

Elders Queensland state manager John Burke and Clayton Smith are marketing Undabri but declined to comment on the progress of the transaction.

Deloitte receivers were appointed by National Australia Bank, which is the mortgagee of the freehold property. The property has a livestock carrying capacity of 3000 head of cattle and there is potential for a 10,000 head feedlot.

Any sale to Chinese investors would not require Foreign Investment Review Board approval as it falls below the threshold of $248 million.

AFR
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READER COMMENTS

Rob Moore
17/02/2014 8:47:01 AM

"10 green bottles - hanging on the wall ............" All the best ones go first. They are going broke because of lack of farmgate returns or competition. Vertical integration leaves Australia as nothing more than a rental pad.- no doubt the receivers and commissioned salesmen love it all though .
wtf
17/02/2014 2:46:31 PM

maybe they don't need us to produce the food if they buy the land and use state backed finance disguised by private enterprise. perhaps that's why china has not paid my interest bill as told to me by the big end of town spruikers. those who set our policies are fools, this is not the same as vesteys, its a one sided playing field.
Jock Munro
18/02/2014 8:23:04 PM

When is this going to stop? How will we pay off the Government debt if we keep selling our key strategic assets to foreign governments? Why isn't this property being split up for Australians to purchase?
wtf
20/02/2014 6:25:18 AM

hi jock, I thought the same, if u get time use this link and read earthjade (bloggers name) comment. they dont want to pay back the debt, they need it. http://forums.silverstackers.com/ topic-48120-australia-no-longer-h as-a-debt-ceiling.html this monetary system has some fundamental flaws. I know these ideas sounds alarmist and paranoid (people think im nuts), but its worth looking at. ps I wish I knew more bout the awb, it was before my time and don't know much bout it. dad use to try to get me into it but I wasn't interested, now because this is my business I see it all different.
wtf
20/02/2014 10:33:54 AM

if the above doesn't work try www.silverstackers.com aust and nz forums markets and economies page 4 aust no longer has a debt ceiling comments by earthjade
ros
1/04/2014 9:14:26 AM

Aussie farmers could well wait for local buyers who have the capital and willing to buy languishing farm business. With global warming, farm land will get cheaper. Japanese who invested in the 1970s incurred huge losses.

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