ONE of Australia’s biggest dairy farms is for sale as receivers look for a buyer for the founders’ failed foray into mega dairying.
Coomboona Dairies near Shepparton, owned by retailing giant Harvey Norman and businessman Alex Arena and comprising 1816ha and a 2500 cow milking herd, went into voluntary administration in March after major financial losses.
The administration leaves dozens of unsecured creditors owed in excess of $4 million.
The NAB was owed $36 million but this was transferred in May to Network Consumer Finance, a Harvey Norman subsidiary. Harvey Norman is claiming it is owed another $37.9 million.
Elders Real Estate is offering the farm on a walk in, walk out basis, including the land, all facilities, plant and equipment, a Holstein herd originating from some of the world’s highest profile registered Holstein genetics and 3461 megalitres of water entitlements and 650 ML of dam storage.
SALE: Expressions of interest closing August 16
CONTACT: Nick Myer, 0427 610 278, or Anthony Stevens, 0417 822 356
The joint venture set up in 2015 with issued capital of $68 million is 49.9 per cent owned by Harvey Norman through its subsidiary HNM Galaxy and 50.1 per cent owned by Mr Arena’s Eternal Sound Limited.
Coomboona has continued to trade since going into administration, as the receivers Ferrier Hodgson seek a buyer for the business.
“It is very rare for an asset of this scale and quality to be offered for sale,” Elders Real Estate state manager Nick Myer said
“The existing owners have implemented a vision which positions an incoming purchaser to fully realise the potential of this unique asset.”
Elders agent Anthony Stevens said the sale was an opportunity to acquire a genuine state of the art operation, enjoying the efficiencies of a modern dairy and economies of scale that could not be achieved through any other current opportunities.
Mr Myer would not comment on what the expected price was for the business.