Wednesday, April 15, 2020

Foreign Corporate Buys more Dandaragan Land


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?