ONE of Australia’s largest free-range chicken producers, Southern Cross Farms Portfolio, is on the market after being placed into voluntary administration last month.

Under instruction from Glenn Franklin of accounting firm PKF, Colliers has been appointed as exclusive selling agent for the portfolio which rears chickens in South Australia’s Lower North for the Lilydale brand.

The portfolio comprises four contiguous broiler farms and was listed for sale by JLL Agribusiness in October last year with price expectations in excess of $20 million, but failed to find a buyer.

The portfolio features 29 free-range poultry sheds with a total floor area of approximately 61,109m2 supporting a batch capacity of nearly 950,000 birds.

Fully converted to free-range production in 2015, the farms have been progressively upgraded with modern management systems, a 500KW solar installation, and a large-scale desalination plant that ensures secure, low-cost water supply.

The portfolio is one of the largest suppliers of free-range chicken to leading poultry processor Baiada Poultry Limited, and offers long-term potential and alignment with a leading national brand.

With development approval in place for eight additional sheds totalling 24,480m2, the operation could expand by 40 percent.

Colliers’ national director transaction services – agribusiness Jesse Manuel said the portfolio offered an incoming buyer an investment with growth potential alongside immediate cashflow.

“Southern Cross Farms presents an opportunity to acquire a large-scale broiler farming, enterprise with immediate cashflow and a clear path to growth,” Mr Manuel said.

“Southern Cross Farms combines scale, experienced management and a potential future relationship with one of Australia’s largest chicken processors.”

Colliers’ national director transaction services – agribusiness Duncan McCulloch said the portfolio was ideally located.

“South Australia’s Lower North is a proven performer in agricultural production,” Mr McCulloch said.

“This portfolio benefits from proximity to Adelaide, secure water access, and extensive infrastructure that may also suit alternative uses such as egg production.

“It’s also a strategic investment in one of Australia’s most resilient and future-focused regions.”

The Southern Cross Farms Portfolio is being offered for sale via a forthcoming expression-of-interest campaign.

Source: Colliers, JLL