This article is from the Australian Property Journal archive
UK-based Hands Family-backed Consolidated Pastoral Company (CPC) is re-entering the Australian sheep industry with the acquisition of Rawlinna, Australia’s largest sheep station which is so vast, it operates on different time zones.
CPC has acquired Rawlinna from Jumbuck Pastoral for an undisclosed price, on a going concern walk in walk out basis, including the sheep flock.
The station was previously on the radar of billionaire Andrew Forrest’s mining company Fortescue, however it shelved plans to develop a renewable energy project on the station.
As a result, the property was put back on the market in November last year, and the land component was reportedly expected to sell for in excess of $20 million.
CPC CEO Troy Seter said the acquisition of Rawlinna will see CPC return to large scale sheep and wool production, and the new owners have no intention of converting Rawlinna away from sheep production.
“Our owners, the Hands family, have held significant sheep production properties in the UK and we believe now is a good time to invest in Australia’s sheep and wool industry. Rawlinna represents an opportunity for us to re-enter the Australian sheep production space at scale and accelerate our ambition of building out a quality diversified portfolio by both geography and production type. We now have assets in cattle, goat, sheep and wool production, natural capital and over 20,000 hectares of cropping capacity.
“We have no intention of converting Rawlinna away from sheep production. We will aim to build on the legacy of Jumbuck Pastoral by further developing Rawlinna to increase its sheep and wool production capacity in the years to come,” he added.
CPC owns and operates a portfolio of nine station aggregations in Australia and two feedlots in Indonesia, spanning 3.2m hectares of land.
CPC owns the iconic Isis Downs Station, which was previously one of Australia’s largest sheep stations, today runs 31,000 cattle and 45,000 goats.
“Rawlinna Station occupies an important space in our family’s history. We are delighted that it will be passed to a custodian the calibre of CPC, with a strong record of sustained investment in our industry and whose owner takes a multi-generational view. We look forward to seeing CPC invest in the next stage of Rawlinna’s development and the career opportunities that will be provided to the Rawlinna management team,” Jumbuck Pastoral’s Jock MacLachlan said.
The agreement is conditional upon CPC receiving Foreign Investment Review Board (FIRB) approval for the acquisition of the station, and the customary Western Australia government approval to the transfer of the pastoral lease.
Elders executive general manager Tom Russo negotiated the transaction and said the sale process drew significant interest from the market, including large sheep production enterprises from both the east and west coast, new entrants and international investors.
“It was excellent to see the confidence in the industry,” he added.
Jumbuck Pastoral is one of the largest livestock production enterprises in Australia. Established in 1888, it is a family owned company with vast land holdings throughout the country.
Rawlinna Station is the largest sheep station in Australia, occupying 1,046,323 hectares with a boundary exclusion fence that spans some 400 kms in length. The property is so vast it operates on a different time zone to WA.
“The portfolio of agricultural assets that has been acquired by Jumbuck over many years of sustained investment is truly extraordinary”, said Russo. “Whilst the divestment of Rawlinna constitutes a significant sale, in the context of their overall portfolio, this is merely a refinement to better align the asset base with Jumbuck’s strategy moving into the future. Jumbuck’s intention is to continue to invest in the improvement and growth of their proudly Australian family-owned agricultural enterprise,” said Russo.