HUNDREDS of hectares of prime land swallowed up for forestry investment in the 1990s could be cleared and changed back to farming in the next decade after the final holdings of failed Timbercorp are sold this year.
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A total of 30 plantation properties covering 11,000 hectares including 3556ha in south-west Victoria and 6985ha in south-east South Australia are being advertised for sale by tender. It is expected they will sell for between $35 million and $40m.
They are being advertised as a single entity, but could be broken up into smaller lots.
The holdings include Bessiebelle, Branxholme, Simpson, Glenthompson, Tyrendarra, Digby, Homerton, Glencoe, Ripponhurst and Penola.
They are owned by Plantation Land of Melbourne which was owed $341,000 in rent by Timbercorp, which went into receivership in April last year, while blue gums on the properties are leased by US-owned Australian Blue Gum Plantations which bought them from Timbercorp liquidator KordaMentha last year.
The trees will be ready for harvest within the next two years.
According to Hamilton-based Landmark agent Philip le Plastrier if the plantation company could not renew its lease on "favourable terms" there could be opportunity for the landowner to clear the tree stumps and turn the land back to general farming.
"My guess is the Simpson district is too far from Portland harbour for more tree plantations and they will let that go for farming after the first harvest," Mr le Plastrier said.
He said since the sale was announced on Monday there had been at least 40 inquiries, including one from the USA.
"One West Australian agricultural group is keen to buy just the Victorian portion.
"I would expect Australian Blue Gum Plantations would also make an offer.
"Our first priority is to sell the whole lot in one go, but we may have to sell it in sections.
"The landholdings and associated lease with a multinational tenant represent a tremendous opportunity."
Australian Blue Gum Plantations purchased a large chunk of other Timbercorp land in the past month. Tenders close on June 25.
According to KordaMentha spokesman Mike Smith there is still a long way to go before the entire Timbercorp mess is sorted out.
When the company was placed in administration it had $800m in debts.
More than 20,000 grower investors had invested nearly $2 billion in managed investment schemes in forestry and horticulture which provided tax deduction.
A year later major assets were sold for $540m, but more than $200m of that is being held in trust pending court proceedings, including a class action by 2748 growers over loans they claim are not repayable because they were duped by Timbercorp.
Several former growers are from south-west Victoria.
A court hearing on the issue is scheduled for July.
Water rights totalling 9600 megalitres not attached to land being sold are also being sold through tender.
