MRG sells citrus assets to Costa Group
Murray River Organics Group has announced it has signed an agreement for the sale of 113ha of planted conventional citrus and wine grapes at its Nangiloc property to a subsidiary of Costa Group for $4.5m.
Coupled with surrounding vacant land, the sale comprises 390 ha of MRO’s 3040 ha Nangiloc property, which is effective from 1 October 2020.The parcel includes citrus and wine grape plantings with final settlement of the sale subject to registration of a plan of subdivision, which is anticipated to complete in early 2021.
MRG’s Managing Director, Valentina Tripp said, “This is another important milestone for the group to realise its vision to become a leading integrated organic branded food business. 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.
MRG will lease the property to Costa until the sale is finalised. The remaining 2650 hectares of the Nangiloc property is the subject of a feasibility study, Project Magnum, focusing on optimum crop combinations and a potential localised desalination plant water solution.
As previously announced, MRG has shortlisted parties for the sale of the Fifth Street property and is in the final stages of the sale process."
Source: Costa Group