• Opportunity to secure rental income stream from lease to large-scale solar power generation plant
• Triple net lease, current annual rent $582,209
• Darlington Point Solar Farm is located within historic Tubbo Station, 140km from Wagga Wagga

The rental income generated from New South Wales’ Darlington Point Solar Farm has today been listed for sale by Land, Agribusiness, Water and Development (LAWD), providing a significant opportunity for investors to diversify into the renewable energy sector amid Australia’s energy crisis.

Located in Darlington Point, 140km from Wagga Wagga, the 539ha solar farm is one of Australia’s largest solar power generation plants with connection directly into the power grid. The triple net lease is currently $582,209 (plus GST), and is subject to an annual CPI review, ensuring real returns are protected in the current high-inflation environment.

For LAWD Senior Director, Col Medway, the 35-year lease with 31 years remaining, plus three five-year options, was a valuable opening for interested parties to secure a stable income stream from the rapidly expanding renewable energy sector.

“Renewable energy assets are offering a solution to Australia’s current energy crisis and have strong growth prospects for the future,” Mr Medway said.

“It is particularly attractive, as the infrastructure has direct connection to the grid – a critical aspect that many other solar operations are unable to offer. The arrangement is also protected from high inflation with an annual CPI review built into the agreement.

“Last year during the sale of Tubbo Station, we received great interest in the solar component of the operation, from both graziers and institutional investors. Graziers were attracted to the low risk, substantial annuity and viewed the investment as a hedge against climate and commodity price instability, while institutional investors liked the premium above their cost of capital.

“Following the economic and energy situation that has emerged over the past few months, we expect this demand to have only strengthened.”

The solar farm is situated within the 14,875ha Tubbo Station, which was sold to Hewitt Cattle Australia in 2021 and is operated as a large-scale grazing enterprise.

Hewitt Cattle Australia, Chief Executive, Agribusiness, Ben Hewitt, said the sale of the rental income from Darlington Point Solar Farm would allow the company to re-invest the capital to drive productive outcomes for the sheep division of the company.

“We purchased Tubbo Station as a single asset, including the solar farm, to help secure the grazing property and to streamline the process for the vendor,” Mr Hewitt said.

“Since buying the property, we have reviewed our operations and identified the solar farm lease wasn’t part of our core business. We have made the decision to sell these rights, and to reinvest the capital back into our key operations.”

The solar ground lease is currently under contract until 2053.

For more information on the sale, contact LAWD Senior Director, Col Medway, on +61 428 481 243.