The KAF Portfolio covers 1856ha in the Goulburn Valley. Photo: LAWD and Kevin Hicks Real Estate

DEMAND for high-quality irrigated assets has driven $13 million worth of sales in Victoria’s Goulburn Valley.

Brought to the market late last year by Kilter Rural, the 1856ha KAF Portfolio comprises 12 properties across four aggregations:  Northern of 520ha; Eastern 431ha; Southern 610ha, and Central 297ha.

Each has had extensive capital expenditure to modernise irrigation systems and improve soil fertility and yields.

Over the past 18 months, Kilter Rural had rotated a diverse range of crops across the holding, including maize, faba beans, adzuki beans, buckwheat, hard and soft wheats, and canola.

LAWD and Kevin Hicks Real Estate report multiple offers were received on various components of the portfolio through an expressions-of-interest campaign, allowing buyers to purchase in one line or any combination of individual holdings.

To date, the eight properties that have sold or are currently under offer have returned more than $13M, with strong demand expected for the remaining four irrigated assets.

LAWD agent Patrick Kerr said buyers were seeking to secure land with water security to mitigate against unseasonally dry conditions.

“The sale prices already achieved are an excellent indication of the appetite from buyers to acquire additional well-established land with guaranteed water security,” Mr Kerr said.

“Interest has come from farming families and groups, both locally and across Victoria, and the trend should continue with the remaining parcels of land.”

Two irrigated properties listed for sale formed part of the Eastern aggregation.

Located at Girgarre near Kyabram, the 193ha Morgans and 114ha Butler’s are expected to sell for $2.5M and $1.8M respectively.

Both are bordered by the Goulburn Murray Water number 8 Channel, which provides secure high-volume water delivery directly into on-farm irrigation infrastructure.

Layouts have been redeveloped to support more efficient water use and improved yields.

Also at Girgarre, the 464ha Rendell Dairy, which formed part of the Southern Aggregation, is expected to sell for more than $5.5M.

It features fully automated pivot irrigators which have been significantly improved with new electric drivelines, new fertigation systems, and new piping.

Capital expenditure has also been allocated to the flood irrigation area with new bays and outlets.

The fourth and final block is 227ha Pykes, located close to Tongala.

It includes 167ha of fully redeveloped, highly efficient and fully automated sub-surface
drip irrigation.

A 250ML dam not only provides water security, but enables the capture of seasonal flows to supplement water deliveries from Goulburn-Murray Water.

Expected to achieve around $3.4M, a key feature of the property has been capital expenditure on the irrigation system.

Kilter Rural

Vendor Kilter Rural is renowned for their philosophy of responsible investment, deploying scaled capital to create strong investor returns and significant, measurable environmental outcomes.

Farmland general manager Angus Ingram said this was achieved through strategic, long-term farmland management where innovative practices were applied to enhance natural capital, while producing high-quality commodities.

“The significant capital expenditure program at the KAF Portfolio has focused on boosting efficiency and sustainability,” Mr Ingram said.

“Redeveloping flood irrigation, installing new sub-surface drip tape, upgrading pivots and enabling remote operation for all irrigation has maximised water-use efficiency, minimised labour and reduced OH&S risks.”

When combined with sound crop rotation and agronomy, Mr Ingram said these upgrades delivered world-class average field yields, such as 9.2 tonnes per hectare for H2 wheat, 20.5t/ha for maize grain, and 4.5t/ha for canola on drip-tape fields.

Mr Ingram said the Goulburn Valley had offered Kilter Rural a compelling long-term investment opportunity due to its highly productive soil types and reliable water access via a world-class delivery system.

“Beyond its agricultural strengths, it boasts proximity to regional centres for logistical support.”

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