Foreign corporate adds to ag portfolio
Mollie Tracey13 Apr 2020, 6 a.m.
KLK Farms Pty Ltd is a Malaysian-owned company which
operates a large scale mixed farming enterprise in Western Australia and
recently purchased a premium Badgingarra property. In the Dandaragan Shire.
It's understood KLK paid about $6 million for a 1148 hectare
mixed enterprise farm situated at Badgingarra, Dandaragan Shire
MALAYSIAN-owned company KLK Farms Pty Ltd has added to its
vast Western Australia farmland portfolio by purchasing a property at
Badgingarra.
Farm Weekly understands KLK paid in the vicinity of $6
million for 2150 Badgingarra Road, Badgingarra, of 1148 hectares in the Dandaragan Shire
While Elders real estate sales specialist and selling agent
Kris Teakle declined to confirm the sale price, she said "it is a
magnificent farm where someone could just walk straight in and continue on
farming".
"It was a very well presented and top selling property
in the Badgingarra/Dandaragan area," Ms Teakle said.
"The property is so versatile that it really lends
itself to any type of operation.
"The vendors previously had a Poll Dorset stud and I
believe the buyers intend to run cattle, so the only thing they would really
need to add would be cattle yards."
The property was marketed as a 'jewel in the crown' with
good soil types, quality pastures and good infrastructure, including a stunning
rammed earth house.
As well as having an average annual rainfall of 550
millimetres, the property had abundant water.
Ms Teakle said she received strong enquiry from local buyers
and some from South Australia and Victoria.
All of KLK's Australian agricultural land investments are in
WA and including this recent purchase, it's freehold landholdings total
58,555ha.
According to the company's 2019 annual report, it has no
leasehold investments in Australia.
Despite the head office of its parent company Kuala Lumpur
Kepong Berhad being in Malaysia, the company has an extensive history of
farming in WA, having owned land in the State for more than 40 years and has
been steadily growing its portfolio over the past several years.
As outline in its latest annual report, KLK's WA farmland
investments include:
Cattle and grain property Chilimony Farm, at Northampton, of
16,189ha;
Erregulla Farm, Mingenew, measuring 10,238ha for sheep and
grain production;
Grain and cattle property Wyunga Farm, Dandaragan, spanning
14,418ha;
Jonlorrie Farm, at York, of 4927ha, which is a sheep and
grain property;
Warrening Gully Farm, Williams, covering 5119ha for sheep
and grain production; and
Grain and sheep property Tatchbrook Farm, Arthur River,
measuring 6516ha.
KLK's other investments around the world include the
manufacturing, plantation and property industries throughout Asia and Europe.
It is regarded as a palm oil producing giant, which is its
core product.
KLK reported that in FY2019 its Australian farming
businesses "improved substantially", with a profit of $10,500,372
compared to profits in FY2018 of $1,260,045 by increasing crop production with
higher yields and a larger cropped area.
Both the vendor and buyer declined to comment on the sale, I
wonder why?
