Orchard Funds Management has finally sold a rural asset out of its $50 million agricultural land divestment plan in another sign that the rural market is starting to turn a corner.
Orchard chief executive David Hinde said the sale of Chookstations Farm in Lethbridge, Victoria for $2.6 million showed that confidence in the rural sector was coming back despite higher risks having being factored in over the last year, reports The Australian Financial Review.
"This sale is part of an ongoing capital management strategy which started last year in order to reduce debt in the Primary Infrastructure Fund," Mr Hinde said.
Orchard had purchased the farm on a yield of 9.5 per cent but this sale is expected to show a yield of about 10 per cent.
Colliers International rural and agribusiness investment sales executive Jesse Manuel negotiated the deal. Monarto Broiler Farm in Monarto, South Australia sold for $3.75 million.
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