Webster Nolan Property & Livestock Newsletter

   

September - October 2018

Welcome to our property and livestock newsletter, proudly brought to you by: 

David Nolan | 0447 278 236

david@websternolan.com.au

Webster Nolan Real Estate - Sydney

LEADERS IN RURAL PROPERTY MARKETING

 

Carrington House
596 Crown Street,
SURRY HILLS NSW 2010
 

 

 

Please read the article below from our valued contributor:
 
David Williams  
Founder & Director
Kidder Williams Limited - Melbourne
 

 

We have seen a wall of money coming from offshore to invest in Australian Food and Agriculture this past three years from countries we have rarely or ever seen invest in Australia. Some of this is money escaping from what Family Offices and Pension Funds see as a crisis in the Euro and Eurozone. Some of it backing and chasing the new found understanding of the growth prospects in food to feed the growing middle class in Asia, and some of it coming here as a means of getting access to food to fill existing channels to market in Asia.

The largest investors (by value) have been institutional funds managers managing money for endowment funds (e.g. Harvard University), foreign governments and pension funds. Australia is attractive to them as we produce high quality product; have reliable infrastructure and low sovereign risk and corruption. Their interest in our assets and our products is likely to continue as their alternatives in places like South America, Asia and Eastern Europe sometimes don’t offer each of these qualities in the one package.   

There have been a few hiccups along the way with respect to Australian government policy on foreign investment. There is speculation now that the gravy train might be slowing, some of this because it is getting harder to get money out of China and other countries to buy assets and some because it is getting harder to get it in to Australia even if you have funds at the ready. Elsewhere investors from some jurisdictions have come, fully invested and gone home probably never to return for 5 to 10 years. The Finns or the Greeks might be here today but once invested we might not see them again for several years.

This trend of money coming in to Australia from new jurisdictions should be of intense interest to agents selling properties especially with regards to partnering with investment bankers and accounting firms. 

To our mind this trend is not a coincidence but more a reaction to the wall of money trying to find a home here and an acknowledgement that Investment Bankers and others can tap new networks of investors on the road to maximizing prices received on rural assets.

Read more from the September - October Edition of our newsletter here

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