Portfolio of seven cattle stations hits the market
Elders has been appointed by Hancock Agriculture and its S. Kidman and Co joint venture partner to market a significant portfolio of northern Australian beef production assets.
The portfolio to be offered to market comprises seven individual stations occupying approximately 1,876,000 hectares across Western Australia and the Northern Territory, and presently carrying a beef cattle herd of approximately 108,500 head, plus progeny. It also includes a strategically located feeding, export depot and farming operation located near Katherine in the Northern Territory.
The portfolio has the capacity to turn off up to 45,000 head of cattle per annum.
Since acquiring each asset, Hancock Agriculture has undertaken a comprehensive capital works program. This has focused on water storage and distribution infrastructure, deploying innovative technology (including digital communication networks and improved connectivity) employee safety, animal welfare and improving cattle herd quality (particularly through the significant reduction in the age profile of the breeder herd).
With this development significantly advanced or completed, Hancock Agriculture is now looking to complete its investment cycle.
“This represents a rare opportunity to acquire a strategically constructed portfolio of assets at scale during a period of unprecedented growth in demand for quality Australian protein,” Elders general manager real estate Tom Russo said.
“The addition of the Phoenix Farm feedlot and export depot is highly strategic, assisting with the wet season growing program, providing flexible market timing options and allowing for sale weights to be maximised.”
A staged expression of interest process began this week and Elders head of agribusiness investment services Mark Barber said offers for all or part of the portfolio are invited.
“Given the strategic advantages and operational efficiencies that can be achieved by operating the portfolio as an integrated beef production enterprise, we anticipate receiving offers for a whole of portfolio sale from both domestic and international investors,” Mr Barber said.
“Having said that, there will undoubtedly be strong interest from parties looking to acquire individual assets or larger components of the portfolio, particularly from existing operators seeking to expand their holdings or achieve geographic diversification.
“The flexible EOI structure will therefore allow all interested parties, from single asset buyers to whole of portfolio investors, to participate in the process.”
Hancock Agriculture intends to retain and grow its remaining substantial portfolio, which includes operations in Queensland, South Australia, New South Wales and the Northern Territory.
Hancock’s east coast Wagyu operations will continue to grow through additional production and broadacre cropping properties.
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