October 13, 2020

By Lynda Kiernan, Global AgInvesting Media

Just days after GAI News shared that Harvard’s $41.9 billion endowment is spinning off its natural resources portfolio and team to launch Solum Partners – an independent management firm – the endowment is now selling its Western Rosella Farming portfolio in New South Wales with expectations of fetching A$120 million (US$85.88 million). 

Situated in the Riverina region, Western Rosella (total 13,652 hectares/33,735 acres) consists of three farms within a radius of 95 kilometers:

– Moora (524 hectares/1,295 acres) in Hillston – Of Moora’s total 524 hectares, 435 are planted in almonds, with a 7,145-megaliter Lachlan Groundwater Entitlement.

– Euroley (2,419 hectares/5,977.5 acres) in Euroley – which consists of 376 hectares (929 acres) of almond orchards planted this year, with two kilometers of frontage on the Murrumbidgee River and five kilometers of frontage on the Sturt Highway.

– And Newmarket (10,708 hectares/26,460 acres) in Maude, which has 1,281 hectares (3,165 acres) under overhead irrigation, 729 hectares (1,801 acres) of laser-leveled flood irrigation, 425 hectares 1,050 acres) of flood irrigation, and another 1,201 hectares (2,968 acres) approved for development with ample water entitlements.

The sale of the aggregation is being managed by Danny Thomas with CBRE Agribusiness, who noted that the sheer scale of the offering would make it appealing to both domestic and international bidders, but is being offered in its entirety or as separate parcels.

This deal is reminiscent of another in the early part of this year when Harvard sold its Wyadra and Cowl Cowl properties – two contiguous almond and cotton farms – to Hancock Agricultural Investment Group (HAIG) – also for A$120 million (US$85.88 million). At the time, Newmarket was supposed to be included in this sale, however, was held back by Harvard until now.

HAIG also went on only months later to acquire the Mooral almond orchard in New South Wales from Rural Funds Management for A$98 million (US$70.3 million).

Although the decision by Harvard to sell the Western Rosella aggregation was not revealed, it has come to light only days after Harvard announced the spin out of its natural resources portfolio and team into independent management firm Solum Partners amid further reorganization.

Coinciding with the announcement of the launch of Solum Partners is the announcement that the firm has acquired, with the backing of HMC affiliates and AIG, select investment assets that had been managed by the team while at HMC, including avocado, olive oil, apple, blueberry, and soybean production assets, as well as stakes in Westfalia, a global avocado distribution company, and California Olive Ranch, a U.S.-based producer of extra virgin olive oil.

HMC only acquired its stake in Westfalia in January of this year. Established 70 years ago, and specializing in avocados, WFI’s estates represent the largest avocado-growing footprint in the world, with operations in all major growing regions including southern Africa, Mexico, Chile, Peru, and the state of California.

This spin-out of its natural resources unit and formation of Solum Partners completes a strategic reorganization of HMC first begun in 2017 by N.P. Narvekar with the goal of phasing out in-house buyers in favor of shifting the fund’s assets to outside managers to handle. 

Now on its own, Solum is looking to raise under $1 billion for continued investments in the ag and food spaces, and expects to advise the Harvard endowment on the sale of remaining natural resource assets in its portfolio.

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.