Rural land supply tightening globally, Westralia spending more than $40 million investing in agricultural property: WA, QLD, SA, VIC
Posted by gasweek on 17 October, 2007
The listed Westralia Property Trust was planning to transform itself into the only vehicle on the Australian Stock Exchange specialising in the emerging asset class of rural property, wrote Matthew Cranson in The Australian Financial Review (15/10/2007, p. 62).
$40 million in cash available: The directors of the Westralia trust were betting on the potential of agricultural property as an investment class and they expected it to perform strongly in the long term due to structural changes in demand and supply. “Rural land supply is tightening globally as a result of increased demand for biofuel feedstock production, resistance to deforestation and the introduction of reforestation,” Westralia’s Peter Zachert said. He said the trust had about $40 million in cash available to fund the land purchases, with the remaining finance to come from one of Australia’s major banks.
Buying land across Australia: The land would be sourced from the Futuris-owned company Integrated Tree Cropping, Australia’s largest hardwood timber processor, which controlled 150,000 hectares of timberland across the country. The trust intended to buy land across Australia, including in south-western areas of Western Australia such as Esperance and Albany, as well as land in Queensland and the Green Triangle covering south-eastern South Australia and south-western Victoria.
The Australian Financial Review, 15/10/2007, p. 62