Murray River Organics is selling part of its 3040ha citrus and grape-growing land to Costa Group, using the proceeds to pay down debt.
The sale, worth $4.5 million, comprises 390ha of farm land, 113ha of which are planted with conventional citrus and wine grapes.
“This is another important milestone for the group to realise its vision to become a leading integrated organic branded food business,” said Valentina Tripp, MD at Murray River Organics. “The funds will be used to pay down debt and allow the business to focus on growth in our branded portfolio.”
The group recorded a loss of almost $40 million in the latest financial year.
The remaining 2650ha of the property will be used for Project Magnum, a feasibility study focusing on optimum crop combinations and a potential localised desalination plant water solution.
Under the agreement, Costa will oversee the operations and management of the parcel to be sold, including operational costs, and entitlement to crops.
Murray River Organics will lease the property to Costa until the sale is finalised.