The liquidator KordaMentha has reached an agreement to sell the assets to the incumbent farm manager, Boundary Bend, for $59.5 million. The sale, which is subject to regulatory approvals, may take three months to complete.

In the past month KordaMentha has sold Timbercorp's vast blue-gum plantations to a US company, Global Forest Partners, for about $345 million, and its almond assets to Olam International from Singapore for $128 million. Creditors and growers are due to negotiate on how the Olam money will be split.

Timbercorp collapsed in April, owing creditors $900 million, after more than 18,000 growers invested $1.5 billion through managed investment schemes in its wood lots.

The asset sale to Boundary Bend covers 6012 hectares of olive groves - 3235 hectares near the Murray River at Robinvale in north-west Victoria and 2777 hectares at Boort, further south.

Also included are 26,000 megalitres of water rights on the Murray and Goulburn river systems, an olive processing plant at Boort, and Timbercorp's 19.4 per cent equity interest in Boundary Bend.

Within three months of completing the sale, Boundary Bend will offer the olive growers a priority allocation to subscribe for shares in the company.

Mark Korda, of KordaMentha, said growers who wanted to continue investing in the Australian olive industry would be able to do so but there would be no obligation.

Boundary Bend's executive chairman, Rob McGavin, said if all Timbercorp olive investors took up their entitlements, they would get 100 per cent of the equity Boundary Bend intended to raise.

After the acquisition, Boundary Bend will have 6532 hectares of irrigated olive groves.