According to the report in the Australian Financial Review , Dashang Group, Hailiang Group, Fucheng Group, Tianma Bearings Group and New Hope are some of the leading Chinese investors who made investments worth AU$260 million since March in Australian farms [Xinhua]Chinese investors are on the verge of securing the purchase of one of Australia’s largest grain farming properties in the wheatbelt north of Perth in Western Australia (WA).
In July and August alone last year, China invested 120 million Australian dollars in rural properties across Australia.
The deal between John Nicoletti, once regarded as Western Australia’s biggest grain grower, and Hong Kong-based CK Life Sciences was finalized on Thursday pending approval from the Foreign Investment Review Board.
CK Life Sciences is expected to pay close to $24 million for Nicoletti’s farms in the eastern wheatbelt, near Mullewa in the mid-west region of WA. At 70,000 hectares, it is the biggest single offering of freehold land in the state’s history.
CK Life Sciences already holds large investments in Australian agriculture, being a majority shareholder in the Challenger Wine Trust, which has interests in a string of vineyards, and the owner of Cheetham Salt, Amgrow (farm products) and Accensi (crop protection).
Nicoletti told the Western Australia newspaper on Thursday that a string of poor harvesting seasons had left him heavily in debt.
“This deal sets the land value at that close to $208/ha,” he said.
Nicoletti produced about 1.2 tonnes of wheat per hectare in the harvesting season just completed.
CK Life Sciences has strong links to the family of Li Ka-shing, one of Asia’s richest men.
Analysts says more than AU$1 billion worth of deals are in the pipeline for Chinese investors in the Australian farm sector.
A Australian Financial Review reports says Dashang Group, Hailiang Group, Fucheng Group, Tianma Bearings Group and New Hope are some of the leading Chinese investors who made investments worth AU$260 million since March in Australian farms.
Source: Agencies
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