Water-rich orchards across three states picked for sale by US owner

Agents expect Folium Capital's sale will attract international interest.

Folium Capital's Avomond portfolio is across 4360 hectares (10,773 acres) in three states - Atherton Tablelands (Queensland), Riverina (NSW) and Sunraysia (Victoria).

While total plantings involve 817ha planted to almonds and 304ha to avocados, there will also be a lot of interest in the portfolio's water entitlements.

Little Jalisco at Arriga in Queensland involves three properties across 1106ha with 304ha of Hass avocado orchards with 7627 megalitres of water entitlements.

The 2940ha Thurla farm at Mildura has 583ha of almond orchards and 8249 megalitres of water entitlements.

Information on the water entitlements of the 314ha Wallaroo farm with its 234ha of almond orchards near Griffith is unavailable other than the property is a "first-class irrigation development" with water sourced from a nearby Coleambally Irrigation Co-Operative supply channel and two bores.

Colliers Agribusiness agents say the Avomond portfolio is an institutional grade horticulture portfolio which offers strategic diversity across multiple commodities and locations in some of Australia's best-known corporate farming regions.

"The Avomond portfolio features significant water entitlements and diversification across domestic and export markets for almonds and avocados, with all properties boasting first-class irrigation development, high-quality structural improvements, fit-for-purpose operational infrastructure and proximity to commodity processing facilities," agents said.

Colliers said the portfolio includes irrigated cropping of 614ha and additional plantable land.

All properties have production upside for the incoming purchaser/s with younger plantings nearing maturity, and further orchard development potential, instrumental to long term underlying asset appreciation, they said.

Folium Capital is taking three properties from its agriculture fund to market after seven years of development.

Agents said the sale is targeted at large scale investors looking for a single transaction to gain scale in two of the country's most successful horticultural crops.

Folium Capital aims to develop and financially optimise orchard holdings before selling them to longer duration asset owners with a desire for immediate positive cashflows.

Folium Capital managing partner Oliver Grantham said: "We have a long fund life and very patient investors, but we like to reward patience with results and some liquidity, and this portion of our fund is ready to go to buyers looking for strong and diversified operating cash flows."

"What has been really satisfying is seeing how well our assets have stood up in the flood events in North Queensland and the Riverina over the last year."

Mr Grantham said the company was transitioning from development managers to operating managers as the rest of the fund's Australian assets move into their peak productive years.

Colliers national director Duncan McCulloch said while offers for individual properties may be considered, the combination of three properties in three states brings a diversified whole "that is rarely available and which will likely generate significant interest".

"The diversification of water sources, and across domestic and export markets for almonds and avocados makes this a particularly attractive offering", Mr McCulloch said.

He said the Little Jalisco avocado orchard in North Queensland benefits from exceptional growth conditions, abundant water resources, accessible labour, and is expected to be among the top yielding properties of its type.

The early season production captures better pricing in domestic markets and as access to Asian markets further expands, this property is ideally positioned to take advantage, he said.

The Thurla almond orchard in the Mildura region is approaching peak yields with a modest area of older almonds, a core, large holding of recent plantings of excellent varietals, and a residual 100ha wine grape vineyard offering further room for more almonds.

The smaller Wallaroo almond orchard in the Griffith area has younger plantings offering first harvests in 2025.

"Australian horticulture assets always attract interest internationally when at sufficient scale", Mr McCulloch said.

"Last year was a bit muted as investors digested the rise in interest rates across most of the globe, and with almond prices hitting cyclical lows in global trade.

"But this year already feels different with almond prices on an upward price trend, and a widely-held view that California's limited water resources would continue to constrain further growth in the world's largest supply region."

Mr McCulloch said avocado consumption on a per capita basis is still low in most Asian countries, compared to Australasia, the Americas, and Europe.

Folium has set up for the early season markets in Australia and especially for the Asian export opportunity.

For further information, please contact Duncan McCulloch on 0416 047484, Rawdon Briggs on 0428 651144 and Jesse Manuel on 0421 550242.

The Avomond Portfolio is being offered for sale by Colliers as a whole or as separate assets with expressions of interest closing on Thursday, June 6.

A final bidding process for shortlisted parties will be held in July.