Nericon Citrus has been offered for sale, with EOIs closing this week. Photo: realcommerial.com.au.
Expressions of interest are soon closing on the sale of one of Australia’s largest citrus orchard businesses, which could net a price of more than $60 million.
Nericon Citrus, owned through Australian-based investment fund Granite Capital, is a 557-hectare property located 10 km north of Griffith.
It is being offered as a fully set-up operation that includes 2717 megalitres of high security water, plus 5775 of tradeable delivery entitlements, which gives the owner the right to deliver the water through the irrigation system.
The property includes two nearby farms located within four kilometres of each other, five machinery sheds, two workshops, a chemical storage shed, a fertiliser shed, an office and a residence (house).
About 468 hectares of the land are already planted with citrus fruit sold for Australian and overseas markets, including navel oranges (314 ha), red flesh navel oranges (84 ha), Afourer mandarins (51 ha) and seedless lemons (18 ha).
The different fruit types were chosen because they grow well in this area and allow fruit to be harvested and sold over a longer period.
Frost fans are included. Photo: realcommerial.com.au.
The sale is being managed by land real estate agency LAWD and its agribusiness consultant Danny Thomas.
“Nericon Citrus is one of Australia’s largest and most strategically positioned citrus orchards, with a highly experienced management team, which has developed and managed the asset for the past seven years,” Mr Thomas said.
“Collectively they bring 50-plus years of operational farm management experience and strong networks in the supply chain, providing investors with the option of a seamless turn-key investment opportunity.
“In addition, the investment in extensive capital expenditure projects to reposition the orchard into a premium fresh-citrus operation is delivering high-yield varietals and an extended harvest window to maximise operational efficiencies, and unlock broad, higher value market access.”
According to LAWD, production is expected to increase significantly as the trees reach full maturity. The orchard is forecast to grow from about 6150 tonnes of fruit in 2025 to about 23,600 tonnes by 2030. By the 2030 financial year, earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to be around $13 million.
Real estate website Real Commercial says the aggregation is expected to be sold for more than $60 million.
The orchard has about 89 hectares covered with protective netting to protect trees from weather and pests. It also has 29 automated frost fans to reduce damage from cold temperatures.
There are plans to add more protective netting in three stages, along with upgrades to machinery and equipment to improve efficiency.
The Nericon Citrus aggregation is being offered for sale by expressions of interest closing at noon on Thursday 5 March. For more information, contact LAWD.
