The Gunn Agri Cattle Fund has held its first close and has been able to successfully fully invest this capital across several transactions. The Fund, which is advised by Gunn Agri Partners, is preparing for a second close and is targeting AUD300 million.
Operating the assets solely through Cunningham Cattle Company, the Fund recently purchased the North Queensland Cattle Station, Esmeralda, South of Croydon. The deal was worth around $40 million, reports Beef Central, and the 406,000 hectare property is able to carry 20,000 breeders annually.
Cattle at the Esmeralda cattle station in North Queensland.
The Fund currently owns and operates assets in three separate aggregations in different climatic zones of Eastern Australia, with a land area of greater than one million acres. Cunningham currently has a carrying capacity of approximately 40,000 head of cattle and has been operating one aggregation in the Maranoa region, Southwest of Roma in Central Queensland, since December last year. The Fund has also acquired assets in Southern Queensland, near Goondiwindi.
Properties have been acquired by private treaty and Gunn Agri Partners are currently in discussions with vendors of other properties within the target regions.
The strategy of the Fund is to acquire and operate cattle production assets in Australia and is targeting properties in Queensland with scope to include Northern NSW and the Northern Territory. The investors participating in the first close of the Fund are institutions experienced in investing in agriculture in Australia and other markets.
Bill Gunn, Chairman of Gunn Agri Partners and Cunningham Cattle Company said, "the strategy is supported by the fundamentals of strong demand, Australia’s competitive advantage as a low cost producer of quality beef and the opportunity presented by the relatively weaker Australian dollar”.
Gunn Agri Partners was formed by experienced investment managers and agricultural operators who have extensive individual track records in operating and managing agricultural assets on behalf of investors.
Bill Gunn was a founder CEO and director of Gunn Rural Management, one of the first agricultural asset management companies in Australia which was founded in Queensland in the 1960s.
Jim Sutcliffe, Vice Chairman of Gunn Agri Partners said, “Gunn Agri’s focus is on developing platforms that align the interests of investors and management. We aim to achieve this through transparent cost structures that don't levy management fees for ongoing operations.
Jim Sutcliffe is currently the Chairman of Sun Life Financial, a Canadian asset manager with AUM of over CAD800 million, director of Lonmin and Liberty and previously was Group CEO of South Africa’s
Old Mutual and held roles with Prudential PLC and the Financial Reporting Council in the UK.
Alan Hoppe, CEO said, “the Cattle Fund portfolio has scale and diversification in both climate and endmarkets with assets suited to breeding, growing out and fattening cattle. The Fund plans to expand the portfolio with assets identified by Gunn Agri as additional funding is deployed.
Alan Hoppe has had an extensive career managing livestock, permanent and annual crop assets in Australia and countries in South America and Africa. Founder and Chairman of Australian Rural Exports Pty Ltd (Austrex), Richard Trivett, is an Independent Adviser to Gunn Agri Partners and Independent Director of Cunningham Cattle Company. Trivett is a former Chairman of the Australian Livestock Export Council (ALEC), former Director of LiveCorp, member of the Queensland Department of Primary Industries Animal Welfare Advisory Committee and Member of the Livestock Export Research and Development Committee (LERDAC).
Trivett said, “The strategy of acquiring and operating beef production assets with capacity to supply diversified markets provides investors with a potential attractive source of capital appreciation and yield.
The Fund has secured an operating team with deep experience in the beef industry including Ross Peatling, previously manager of NAPCo’s Alexandria Station, Australia’s second biggest cattle station and current Cattle Council Board member.
The Fund, through its operating business Cunningham Cattle Company both owns and operates the properties employing management and station personnel directly and is currently recruiting for some roles.
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To reach Gunn Agri for media inquiries: +61 404 210 293