- Alterra (1AG) has entered two contracts to sell part of its Dambadgee Springs property for $3.1 million to a local farmer
- The company is selling 913 hectares of the Western Australian property, which was purchased for $4.2 million in 2017
- Alterra said the funds will be used to advance its south-west projects, such as the Carpenters Project, which is a 300-hectare avocado development
- Alterra remains steady on the market today, selling shares for 3.3 cents each
Alterra (1AG) has entered two contracts to sell part of its Dambadgee Springs property for $3.1 million to a local farmer.
The company is selling 913 hectares of the Western Australian property, which was purchased for $4.2 million in 2017.
Contract one is valued at $1.6 million and is expected to be settled on or before July 10, 2020. Meanwhile, contract two will need finance, land survey and subdivision approval before it can be finalised. This contract is expected to be completed by January 2021.
However, the buyer has agreed to lease the area in contract two for the 2020 cropping season.
The area retained by Alterrawill includes the $2.5 million of contracted income from the Yandin Wind Farm, as well as surface water resources with development potential and areas suitable for livestock, plantation forestry and carbon forestry.
The sale will allow the company to advance development operations at its South-West projects such as the Carpenters Project in Pemberton, which is a 300-hectare avocado development.
Considering the completion of the sale, the Dambadgee Springs property is currently achieving a six per cent internal rate of return (IRR) and 18 per cent return on investment (ROI).
“Alterra is prioritising its development activities in the South West of Western Australia and the majority of capital released from this sale will be redeployed into Alterra’s avocado investment program, including the recently announced Carpenters Project in Pemberton,” said Alterra Managing Director Oliver Barnes.
“Alterra intends to continue adding value to the remaining land at Dambadgee Springs through pasture improvement for grazing as well as carbon and plantation forestry,” he added.
Alterra remains steady on the market today, selling shares for 3.3 cents each at 10:08 am AEST.