November 9, 2021

Photo credit: Oxley Capital Partners

By Lynda Kiernan-Stone, Global AgInvesting Media

It was on August 23 that GAI News shared that Ben Craw, managing director of Sydney-based Oxley Capital Partners, had been tasked by a European family office with the divestment of the ‘THF Portfolio’ – a 21,900-hectare (54,117-acre) beef cattle and irrigated fodder aggregation located in Central Queensland, Australia.

Made up of five highly productive grazing and fodder cropping operations, Oxley Capital Partners has been appointed to offer the portfolio either as a whole, or in individual parcels through a two-stage expression of interest (EOI) program.

Included in the sale were:
~ The Pocket: 1,917 hectares (4,737 acres) with 5,364 megaliter water allocation in Gogango, Queensland.
~ Mostowie: 3,859 hectares (9,536 acres) with 688 megaliter water allocation in Baralaba, Queensland.
~ Bindaree: 3,168 hectares (7,828 acres) with 1,135 megaliter water allocation in Moura, Queensland.
~ Karamea: 3,744 hectares (9,251 acres) in Moura, Queensland; and,
~ Lucie Station: 9,212 hectares (22,763 acres) in Bluff, Queensland.

An interesting factor connected to the THF Portfolio is the Rockwood Weir – a A$367 million (US$264.7 million) water infrastructure project being built on the Fitzroy River with joint funding from the Australian Federal Government and the Government of Queensland.

At only 66 kilometers southwest of Rockhampton, and in close proximity to the THF Portfolio property known as The Pocket, once the 16 meter-high weir is complete it may provide additional water security enabling a land use conversion toward higher-value agricultural use.

Likewise, the “Bindaree” and “Mostowie” properties are contiguous, divided only by the Dawson River, presenting a buyer with the ability to aggregate the two into a single formidable operation of more than 7,000 hectares (17,297 acres) with nearly 300 hectares (741 acres) under center pivot irrigation and 1,800 megaliters of water allocations.

Handling the sale, Oxley Capital Partners is an independent corporate advisory and investment firm specializing in agricultural assets and raising alternative forms of debt and equity capital with family-owned and corporate food and ag operations along the supply chain.

The properties had been owned by European family office THF Finance Pty Ltd for 10 years, over which time the portfolio saw extensive investment into upgrading water infrastructure, with three of the properties having center pivot irrigation. In addition, a portfolio-wide pasture improvement program was undertaken that included blade ploughing, and spraying for regrowth and aerial seeding.

However, through land use conversion, the redirection of the strategic focus of the holdings, and diversifying cattle operations, the water allocations connected to THF provide the new owners with opportunities to develop permanent crops or cotton production on the holdings.

Sold!

It has since been announced that five separate parties consisting of corporate and local families have acquired the five properties making up the THF portfolio for a combined A$100 million (US$73.80 million). 

The identity of four of the five buyers has not been released, however, it is known that Rural Funds Management (RFM), manager for the ASX-listed Rural Funds Group, has acquired the aforementioned parcel known as The Pocket for A$13.8 million (US$10.2 million).

The newly acquired asset is adjacent to another RFM-owned, 7,600-hectare cattle property known as Comanche, where the asset manager recently began developing macadamia orchards.

Last August, RFM also acquired 5,409 hectares (13,366 acres) of sugar cane farms in Queensland from MSF Sugar Pty Ltd. for A$81.1 million (US$58.44 million). 

The deal included the associated plant and equipment, along with 8,060 megaliters of water entitlements, with the opportunity to acquire additional water rights in the future.

RFM stated at the time that it intended to undertake a conversion on the land, shifting production to approximately 2,200 hectares (5,436 acres) of macadamia orchards, with a significant portion of the balance of the land being used for cropping.

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.