Your email address will not be published. Required fields are marked *
Name *
Email *
Save my name, email, and website in this browser for the next time I comment.
Comment *
Your comment will not appear until it has been moderated. Contributions that contravene our Comments Policy will not be published.
Δ
, and the Riveren/Bunda/Inverway aggregation (7342s qkm in total), have attracted inspection interest since January.</p>
<p>
A successful sale of these holdings would offer a valuable benchmark for current land value in the region for corporate-level properties, given a realistic number of inspections, Mr Peacocke said. More sales would be needed to establish price levels for secondary, family-enterprise scale holdings, however.</p>
<p>
A trend towards subdivision of some larger properties in the NT (the process for which started gaining momentum during the peak of the price boom in 2007/08) had also produced limited sale results, as buyer numbers had declined over the past few years due to finance constraints. The fact that many of the subdivided properties offered little in the way of improvements may have deterred greater interest, in some cases.</p>
<p>
“Turn-key pastoral leases with established production history appear to be easier to gain finance for, compared to those development blocks which appear to be viewed at a higher risk by the banks at present,” Mr Peacocke said.</p>
<p>
Foreign investment vehicles were likely to be the dominant purchasers in the region’s corporate property sector in 2011, the HTW briefing was told.</p>
<p>
While there had been no significant sales to offshore interests since Terra Firma’s acquisition of 90pc of Consolidated Pastoral Co two years ago and RMW Agriculture’s more recent purchase of La Belle Downs and Welltree, there was “definitely still offshore interest around,” Mr Peacocke said.</p>
<p>
“Overseas investors have been doing a lot of looking, but nothing has recently been converted into a sale. Food security in some overseas countries appears to be one of the drivers behind that interest,” he said. “I would expect to see more of that inquiry converted into sales as land prices in the NT ease a little, once a few more indicator sales are produced. Also, the buying process for an offshore buyer takes a lot longer than for a domestic land investor.”</p>
<p>
“But if food security is the major driver behind a prospective overseas buyer, then price is often not really the main issue – they see a need for a resource, and are prepared to pay for it, as seen in several examples, provided that asset can be properly managed.”</p>
<div id=)
