Australia’s biggest banana grower, Mackays, has purchased Elders’ timber properties Gold Tyne and Mount Ray outside Cooktown in far north Queensland for more than $10 million. Sources: The Land, ABC News
Mackay Bananas has purchased 3200 hectares in far north Queensland for significantly less than the $16 million paid by Elders only five years ago at the height of the MIS land grab.
Forestry companies purchased more than $100 million of high-quality land in north Queensland during 2007.
The Ark Fund, Great Southern and Elders-owned ITC Timberlands were the main buyers, contributing to what valuers at the time said were 20% premiums to market prices.
Mackays director Barrie Mackay said his family’s banana-growing company had been looking to buy the properties for 10 years but the prices had been unreasonable.
This purchase is part of a strategy to diversify the geography of the company’s banana-growing operations to avoid cyclones, which can put entire regions out of production. It intends to grow 250 hectares of bananas on the property but is limited by the amount of water available there.
“Our banks are very happy. We have got a pretty good asset base and we are a well-established business and I think that made it easier for the banks.”
Elders has classified forestry operations as a discontinued operation and, as such, results from them are included in their statutory profit but excluded from underlying profit.
Recently Elders sold $29 million worth of Indian Sandalwood projects on behalf of managed investment schemes for which Elders Forestry Management was the responsible entity.
