Murray River Organics Group (MRO) has signed an agreement for the sale of 113ha of planted conventional citrus and wine grape at its Nangiloc property to a subsidiary of Costa Group.
The deal is worth A$4.5m and is effective from 1 October. It comprises the aforementioned 113ha, plus surrounding vacant land, taking it to a total 390ha of MRO’s 3,040ha Nangiloc property.
The remaining 2,650ha at Nangiloc will be subject to the feasibility scoping study, ‘Project Magnum’, which was commissioned by MRO in 2019. The aim of the study is to create a vision for the future of the Nangiloc vacant organic certified land.
The final settlement of the sale is subject to registration of a plan of subdivision, which is anticipated to be completed in early 2021.
MRO managing director, Valentina Tripp, said the sale is an important milestone for the group. “[It helps] realise the group’s vision to become a leading integrated organic branded food business,” said Tripp. “The funds will be used to pay down debt and allow the business to focus on growth in our 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.
MRO will lease the property to Costa until the sale is finalised.