Going back on history the initial purchase was a mortgagee auction and the discounted price at the time was due largely to the run down state of the farm and there were no other genuine bidders at the auction, they even used the Vendor bid approach to try and solicit other buyers. It was recognised back then that capital required to bring the farm back up to a minimal (compliance and WHS standard) was going to be intense let alone any reparation of paddocks; water capture, retention and distribution; fencing; lane & access ways; shelter blocks & belts etc. even though the farm was only a fodder farm with no expensive dairy assets like feed pads, milking sheds, vats, heating and cooling facilities etc.. So the actual purchase price and current for sale price are not reflective of the true costs to AHF by a long shot.
I agree, anything that comes out of this sale will go in to reducing the short term debt used to acquired the organic-to-be farm nearer the coast given the shortfall that occurred in the last capital raising. So no capital windfall to redeploy to anything else they may need or wish to do. Just shuffling the debt burden from one paddock to another it appears.
AHF Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
(20min delay)
