GO.FARM has purchased Dellapool for what seemed to be a bargain price. Photo: Global Commercial Real Estate Services, CBRE Australia.
Agricultural investment firm GO.FARM has purchased the 2666-hectare Dellapool property, near Narrandera, with the intention of transforming it into a super-high-density olive grove.
Italian multinational Ferrero Group, which makes Nutella and Ferrero Rocher chocolates, sold GO.FARM the property after deciding to abandon its million-tree hazelnut farm.
The Dellapool development, which included 11,361 megalitres of water entitlements, was advertised for $80 million.
The eventual sale price has not been disclosed but the Australian Financial Review has reported it sold for about $60 million – 25 per cent less than the asking price.
Ferrero Group originally bought the property from local potato farmers in 2011. It received taxpayer money to get the project off the ground, but state and federal government departments have refused to reveal how much.
In October 2023, the chocolate-making giant announced it would discontinue its venture, claiming the Riverina’s climate was not suitable for hazelnut production. The company mulched its million trees and cleared the land for the sale.
Liam Lenaghan, founder and managing director of GO.FARM, said the organisation’s goal for the land was to produce high-value, water-efficient horticultural operations.
“We will unlock the full potential of these assets using technology and sustainable water management to deliver both strong financial returns and tangible benefits for regional communities,” he said.
GO.FARM is a Melbourne-based agricultural investor backed by the Costa Group, Australia’s largest horticultural company.
It had also bought the Victorian Murray Valley property Sandmount North, which spans 1556 ha and includes 3211 ML of water entitlements, where it plans to expand its almond and tomato operations.
Corporate superannuation fund Qantas Super recently invested $200 million in GO.FARM, which the agricultural investment firm said “cornerstoned” its purchase of the Narrandera and Murray Valley properties.
Andrew Spence, chief investment officer at Qantas Super, said the fund had been impressed by GO.FARM’s approach to creating value through asset improvement.
“Their excellence in execution, combined with their deep understanding of agriculture and commitment to sustainable practices, sets them apart as an agricultural manager,” he said.
”Backing GO.FARM in these acquisitions aligns with our mission to deliver strong, long-term returns for our members through high-quality investments in sectors poised for growth.”
GO.FARM told Region it had expanded its portfolio of assets under management to $1.3 billion with the acquisition of more than 5000 ha of farmland “primed for productivity uplift”.
In December 2023, it purchased three large irrigation properties near Griffith, which it is converting into almond orchards – a 700-ha Stephendale Vineyard at Yenda, the 585-ha Greenview Farms at Tabbita and another nearby property primarily for its water entitlements. These investments were worth a total of $120 million.
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