This article is from the Australian Property Journal archive
THE Australian government has rejected the $350 million sale of the S. Kidman and Co cattle portfolio to foreign investors on the grounds of national security.
Treasurer Scott Morrison said around 50% of the Anna Creek pastoral lease is located in the Woomera Prohibited Area, the location of Australia’s top-secret missile base.
“The WPA weapons testing range makes a unique and sensitive contribution to Australia’s national defence and it is not unusual for governments to restrict access to sensitive areas on national security grounds.
“Given the size and significance of the total portfolio of Kidman properties along with the national security issues around access to the WPA, I have determined, after taking advice from FIRB, that it would be contrary to Australia’s national interest for a foreign person to acquire S. Kidman and Co. in its current form,” the Treasurer said.
Anna Creek is also the largest single property holding in Australia.
It has been reported China’s Genius Link Group and Shanghai Pengxin were vying for the $350 million Kidman portfolio, but they have since withdrawn their offer.
Kidman is Australia’s largest private land owner and holds approximately 1.3% of Australia’s total land area, and 2.5% of Australia’s agricultural land. It comprises 10 cattle stations stretching across South Australia, Western Australia, the Northern Territory and Queensland covering 101,411 sq km and managing a long-term average herd of 185,000 cattle.
Morrison said it is now a matter for the vendor to consider how they wish to proceed with offering the composite interests of S. Kidman and Co. Limited for sale.
The portfolio could be sold to an unnamed Australian company, which was the under bidder to the two Chinese investors.
“I will consider any such future alternate proposal or set of proposals on its merits, consistent with my obligation to ensure that, any such sale is on terms that are not contrary to the national interest,” Morrison said.
Under the Foreign Acquisitions and Takeovers Act 1975, all foreign investment applications are examined against Australia’s national interest, which includes national security.
Australian Property Journal