Australian investment group Prime Value Asset Management has acquired eleven ‘outside the gate’ dairy farms from the Van Dairy Group in northwest Tasmania, as it continues to grow its investments into premium Australian farmland.
Melbourne-based Prime Value Asset Management is a long standing, boutique fund manager, which in addition to its dairy farms manages agriculture, equities, income securities, direct property and other alternative investments. Its Prime Value Emerging Opportunities Fund was the second highest performing equities fund in Australia for the 2020 calendar year.
Prime Value began investing in Australian agriculture more than five years ago with the acquisition of citrus farms across the Sunraysia region.
The latest acquisitions add to Prime Value’s growing stable of dairy farms, which offer reliable income from milk production along with capital growth for investors. Existing dairy assets include two farms in southwest Victoria, and another farm in northwest Tasmania.
The group is proud to have the opportunity to acquire these historical assets and looks forward to making a strong and positive impact on the environmental outcomes for the farms and the surrounding areas.
Elizabeth Blackhurst, a portfolio manager of Prime Value’s alternative assets, says “We believe the Circular Head region of northwest Tasmania offers some of the best farmland in Australia, and with consistent rainfall and a temperate climate, it is ideal for sustainable and profitable dairy farming.
“We also believe by focussing on our environmental and social responsibilities, and the welfare of our animals, we can create a farming portfolio that delivers long term benefits to the community and strong, consistent returns for our investors, many of which are self-funded retirees and SMSFs.
“Our Prime Value Dairy Trusts are attracting more interest from investors who are looking for reliable and diversified sources of income.”
Kirsti Keightley, Dairy Investments Manager for Prime Value, has a long background in successful dairy farming and says, “Prime Value is a hands-on manager willing to take the time to acquire, turn around and build quality assets. We already manage a farm in Tasmania near these farms, so this acquisition makes perfect sense for us.
“We’re excited by the potential of these farms and with a falling national herd and falling national milk production, we believe this is the right time to be expanding our portfolio.
“We have been in dialogue with the Tasmanian Dairy Industry Authority, EPA Tasmania and Circular Head Council and we look forward to working with them, the community and local businesses to transform these assets. We welcome new investors as we build our agricultural portfolio.”