This article is from the Australian Property Journal archive
THE Saudi Agricultural and Livestock Investment Company (SALIC) and Perth-based PenAgri Farms have brought to market the largest corporate broadacre landholding in Western Australia, with expectations of almost $200 million.
The Merredin Farms Wheatbelt Portfolio offering comprises 77,954 hectares of freehold agricultural land, including 66,159 arable hectares.
Colliers’ Rawdon Briggs and Duncan McCulloch have the listing of the broadacre grain growing enterprise on behalf of the Saudi Arabian government’s SALIC Australia and PenAgri Farms.
“Possessing critical mass and with economies of scale the vendors have created an incredible platform for low-cost, high-volume grain production,” Briggs said.
PenAgri Farms managing director Greg Harvey described it as a “globally significant landholding and agribusiness offering” and said, “Our team see this combined offering to be a spectacular agribusiness opportunity with huge upside for the new owners at settlement”.
PenAgri Farms is being advised by Pendulum Capital Pty Limited, a specialist WA agribusiness advisor, who will provide assistance to Colliers.
SALIC Australia CEO and Merredin Farms GM, William England said, “The Merredin Farms Wheatbelt Portfolio presents a rare opportunity to take a substantial position in the Western Australian agricultural sector that continues to strengthen. The portfolio offers a turnkey corporate farming operation inclusive of world-class governance, HR, procurement and WHS systems all focused on growing wheat, canola and barley sustainably.”
England said SALIC Australia’s intent to be present in the agricultural space, with the offering of Merredin Farms Wheatbelt Portfolio aimed at reshaping its strategic focus on various agricultural value chains in the region.
Briggs noted the significant additional annual Australian carbon credit units earnings drivers “that will soon be unlocked across Merredin Farms Wheatbelt Portfolio via carbon farming and large renewable projects in additional to core grain production attributes”.
McCulloch said the portfolio is a significant grain production operation underpinned by dual avenues of growth, earnings and land appreciation.
“The low-cost, high-volume business model is well supported by a quality management team, an operationally efficient hub and ideal wheatbelt location close to numerous grain handling terminals allowing efficient production and logistics.”
Elsewhere in Western Australia, Chinese-Australian billionaire Hui Win Mau just sold his near-three million hectare Kimberley cattle station portfolio in a $300 million deal with Canada’s Alberta Investment Management Corporation and New Agriculture, part of New Forests.
Australian farmland brought in a negative return over the third quarter, with income returns continuing a downward trend.
