The owner of the US-based HNB National Bank, Dean Phillips, has found a buyer for his cotton property “Koramba” on the NSW-Queensland border for a price believed to be more than $100 million.
Renowned farming operator Australian Food and Fibre (AFF) has been in negotiations to buy the property with a partner likely to include listed agricultural player Webster – backed by businessman, Christopher Corrigan.
The farm, near Goondiwindi, is one of Australia's largest integrated irrigation and dryland cropping enterprises.
Mr Phillips, who is also president and chairman of T&C Bancorp in Missouri, bought “Koramba” in 1985 and converted it into a massive cotton irrigation operation and then later established a vertically integrated business with four cotton gins.
The overall aggregation covers 14,166 hectares of farmland including 5400 hectares of developed flood irrigation land.
Corporate accounting firm BDO was appointed to sell the four adjoining properties in April last year.
BDO's website said the property could sell for more than $120 million with non-binding bids due mid-May.
At the time BDO executive director of corporate finance Margaux Beauchamp said the sale of the border rivers property was significant for the industry as its owners were key pioneers of cotton.
"`Koramba's’ owners are among the Americans credited with the establishment of Australia's modern cotton industry," Ms Beauchamp said at the time.
She, along with the buying and selling parties were unavailable to comment on the latest deal.
The “Koramba” business has water licences totalling 31,105 megalitres and its gin capacity is about 140,000 bales a season.
Several interested farming groups had inspected the property, including the well-regarded Reardon Farms operation at Talwood and Worrall Creek west of Goondiwindi in southern Queensland.
Reardon Farms' Rob Reardon was unavailable for comment.
AFF is the largest tenant of US financial services giant TIAA's Westchester in Australia.
Last year it reported a full-year net loss of $9.7m, down from the previous year's $13.3m profit.
However, the result was not a true reflection of the company's performance as it actually had a very strong year with cotton crop yields as high as 15 bales/ha – well above the top 20 per cent of Australian growers.
AFF also has a major stake in the listed Webster.
Webster's 2016 financial results included an underlying 158pc increase in operating profit before tax to $14.9m.
Webster acquired 220,000ha of farmland and 150,000 megalitres of water entitlements from southern Queensland to the NSW Riverina in short period of time in 2015 and has been looking to expand.
While there have been several opportunities in the southern Queensland area to purchase large cotton properties there have only been very few major cotton property sales in the area including Orient Agriculture's purchase of farm “Undabri” for $30 million in 2014 and the famous Cubbie Station for $232m in 2012.
Other significant cotton farming interests up for sale include Eastern Australia Agriculture's portfolio which comprises the properties “Kia Ora” and “Clyde” south of St George totalling 37,590ha made up of 12,800ha of irrigation land with further areas of development potential.