MURRAY River Organics Group Limited (MRG) has sold its 113-hectare citrus and wine grapes property at Nangiloc to a subsidiary of Costa Group Holdings Ltd for $4.5 million.
Coupled with surrounding vacant land, the sale comprises 390ha of MRO’s 3040ha Nangiloc property.
The parcel includes citrus and wine grape plantings with final settlement of the sale subject to registration of a plan of subdivision, which is anticipated to be complete in early 2021.
MRG managing director Valentina Tripp said the sale was another important milestone for the group to realise its vision to become a leading integrated organic-branded food business.
Ms Tripp said the funds would be used to pay down debt and allow the business to focus on growth in its branded portfolio.
Under the terms of the sale, Costa will take responsibility for the operations and management of the parcel to be sold, including responsibility for operational costs and entitlement to crops.
MRG will lease the property to Costa until the sale is finalised.
The remaining 2650ha of the Nangiloc property is the subject of a feasibility study — Project Magnum — focusing on optimum crop combinations and a potential localised desalination plant water solution.
As previously announced, MRG has shortlisted parties for the sale of the Fifth Street property and is in the final stages of the sale process.
The feasibility scoping study commissioned in 2019 was initiated to create a vision for the future of the Nangiloc vacant organic certified land.
The opportunity to extend organic farming into a range of crops at Nangiloc was examined and a short list of potential crops developed.
The project team was reviewing alternative water access solutions including a potential localised water desalination plant on the balance of the Nangiloc property.
The proposed solution involves drawing ground water and reducing its salinity content to make it suitable for irrigation at economically viable rates.
The scoping study is undertaking further financial and technical analysis and is securing regulatory approvals to proceed to the next stage.
