July 17, 2015

In a move to increase agricultural investment in the state, Western Australia’s government is considering selling more freehold farmland.

“One of the signals that industry are putting to us is that having the pathway to freehold is a big incentive for investor interest and banks, said Minister for Regional Development, Terry Redman, “so therefore that is something that is a potential barrier if we don’t have that pathway.”

Two pieces of land, the Ord West Bank and Mantinea, totaling 5,000 hectares are being offered with certain development criteria requirements attached as a path to freehold ownership. The government is also considering other freehold land offerings both in the Ord and among other pastoral land with the potential for irrigation throughout the Ord Valley.

Kimberly Agriculture Investments (KAI), the major agricultural player in the Ord that is currently targeting the development of a major sugar industry in the irrigation project, is working to gain federal and state approvals for the 6,000 hectare site known as Knox Plains, which is being offered as a leasehold. KAI has stated that it would be interested in the Ord West Bank and Mantinea properties if they are offered on a freehold basis.

The government is also considering offering Knox Plain as freehold, and KAI has stated that the government’s decision on the matter will have a definite effect upon the group’s decision to proceed with its development of the property.

“What we’re looking at now with the expressions of interest for the Ord West Bank and Mantinea is that there’s effectively no infrastructure going alongside that, so whoever the proponent is will have to put that infrastructure in place,” said Terry Redman. “Therefore we thought it was appropriate right up front to say there’s the potential to move to freehold on this as a further incentive.”