February 14, 2020

By Lynda Kiernan

Daybreak Cropping, a joint venture between Canadian pension PSP Investments and Warakirri Asset Management, established in 2016, has acquired Erregulla Plains, an iconic farming property in Western Australia for A$97 million (US$65 million).

Erregulla Plains is located near Mingenew, in the northern cropping zone of Western Australia. The property’s total acreage is 22,192 hectares (54,363 acres), 18,000 hectares (44,478 acres) of which is used for cropping (wheat, canola, and lupins), while the balance is dedicated to livestock grazing. 

The farm is known for its high-quality soil, reliable rainfall history, high yield potential, and high level of stewardship by Stuart and Cherie Smart who placed the parcel on the market for about A$4,400 per hectare (US$2,954 per hectare).

“Its scale, efficiencies, stage of development and proximity to the port of Geraldton make it a highly attractive asset,” said Will Heath, CEO, Daybreak Cropping. “In addition, it is our first asset in the northern Wheatbelt of WA, and therefore provides important diversification benefits for the business. We look forward to continuing the responsible stewardship of the asset and contributing positively to the Mingenew community.”

Danny Thomas, regional director of CBRE Agribusiness noted to ABC that foreign investors are actively looking to acquire broad acre cropping land, particularly in Western Australia. 

“It is of significant scale and very efficient,” said Thomas. 

“It compares favourably with the divestment of the Nicoletti portfolio and other large deals done on deferred settlement terms in Esperance. It was well marketed, and Ray White, acting for the vendor, was able to bring the obvious buyer into the deal at a very high price, in my view.”

A consortium of local farmers did express interest in the property, but were outbid by Daybreak, making this deal unusual for the region that usually sees farms broken up, or absorbed by other farmers.

Erregulla Plains joins the Daybreak portfolio that currently consists of six other holdings: Bodallin Farms (12,570 hectares) in Western Australia; Caringbah Farms (11,600 hectares) in New South Wales; Catumnal Farms (7,300 hectares) in Northern Victoria; Kinbeachie Farms (7,350 hectares) in Queensland; Orana Farms (10,500 hectares) in New South Wales; and Waddikee Farms (6,500 hectares) on the South Coast of Western Australia. 

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.