This article is from the Australian Property Journal archive
ASX-listed Duxton Farms is offloading its large-scale dryland cropping property Timberscombe for $70 million as it looks to foster growth strategies in the Northern Territory, Victoria and NSW.
Timberscombe spans 8,432 hectares in the South West Slopes region of NSW and was offered with vacant possession.
The purchaser is Altora Ag, the cropping arm of Canadian pension fund PSP Investments.
Settlement is due within four weeks, subject to FIRB approval.
“Timberscombe has been a significant part of Duxton’s broadacre farming portfolio since 2008, and it has been a fantastic asset for us,” said Duxton Farms chairman Ed Peter.
“This sale allows us to redeploy capital into growth and development projects that are better suited to the company’s expanding strategic scope, and to pay a small distribution to investors as a thanks for their support so far.”
Duxtons Farms said the proceeds from divesting Timberscombe will be used for investment in growth strategies in the Northern Territory, Victoria and NSW in the form of both direct and equity investment; debt reduction; and a distribution to shareholders.
“The divestment of Timberscombe is intended to rebalance the portfolio and shift the centre of focus from traditional largescale broadacre cropping in NSW to new growth opportunities in Australian agriculture that will require an ongoing capital outlay, which it is anticipated will put some pressure on earnings in the short term, but which the board believes will build significant value in the long-term by elevating and stabilising the company’s earnings profile,” Duxton Farms said in a statement to the ASX.
Timberscombe was billed by selling agents LAWD as “one of the largest contiguous cropping holdings in southern NSW, offering a high quality turn-key operation”. Most recently it has been utilised as a large-scale dryland cropping operation, ideally suited to a range of broadacre agricultural pursuits including high-yielding crops such as wheat, barley, canola and chickpeas.
Soil types include black self-mulching clays and brown clays which feature high moisture retention capabilities, coupled with good climate and reliable annual rainfall of 464 millimetres.
An internal roadway system provides access for the movement of machinery and heavy transport, along with Newell Highway frontage.
Structural improvements and operational infrastructure extensive grain storage of 8,498 tonnes, an 80-tonne weighbridge, machinery sheds, workshop, chemical storage shed and fill points, 1,400-metre earthen airstrip, manager’s residence and two additional dwellings, utilised for contractor accommodation.
Timberscombe is the latest major NSW agricultural property to change hands in recent weeks.
AAM Investment Group has offloaded its 14,074-hectare Sunshine Farms mixed-farming aggregation in the Lachlan Valley – which was tipped to net more than $90 million – to the world’s largest farmland investor, the US Teachers Insurance and Annuity Association of America and College Retirement Equities Fund’s Nuveen Natural Capital.
Meanwhile, sheep and cattle enterprise Paraway Pastoral Company offloaded its 14,400-hectare Borambil Station in NSW’s Central West, for which $60 million was expected, and marking the second second sale of three properties it lobbed to the market last year with expectations of $180 million combined.
Australian farmland total annualised returns came in at 11.29% at the end of 2023, with the December quarter seeing a return to positive performance after two consecutive periods of negative results, according to ANREV. Contributions included income return of 5.15% and capital growth of 5.93%.
