Australia’s largest genetics supplier Genetics Australia Co-operative has confirmed the $14.65million sale of one of its major property holdings.
The 125ha Parwan Park South near Bacchus Marsh will be sold to a property developer after the sale received strong support from shareholders.
A five-year settlement will allow Genetics Australia to plan its transition from the site. Proceeds from the sale will be used by GA to invest in new technology and research to benefit shareholders and the Australian dairy industry.
The property was purchased by GA in 1986 and has been used as a quarantine facility for bulls before their admission to the co-operative’s main collection and EU facility Parwan Park.
The sale was overwhelmingly supported by members and endorsed by the GA board, with 98.5 per cent of the responding shareholders voting in favour of the sale.
Chief executive officer Anthony Shelly said the opportunity to sell the property emerged from land use changes in the Moorabool Shire and presented an opportunity too good to ignore.
‘‘The co-operative is in a strong position and wants to create a positive future by accessing new technology,’’ Mr Shelly said.
“This opportunity to reinvest in research and technology will set a positive path for the next two decades.
‘‘It will allow the co-operative to invest in developing the next generation of the best bulls and genetics to deliver profitability for our farming family members.’’
GA chairman Trevor Henry said he was pleased with the strong interest from shareholders.
‘‘We were very pleased with the response from shareholders who were keen to find out more details and be part of the ballot,’’ Mr Henry said.
Mr Shelly said GA had capability on its remaining properties to cover the loss of Parwan Park South while it evaluated other options over the next five years.
‘‘We can manage long-term without that property, but we need to transition those activities to either our Birregurra property or potentially a new greenfield site,’’ he said.
‘‘Nothing is locked in and we will continue to evaluate the current main farm site on the outskirts of Bacchus Marsh and other options.’’
Genetics Australia recently celebrated its 60th anniversary. It owns a herd of 350 bulls.