January 23, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Excel Farms, a farming business run by the Paterson family and backed by Fiera Comox, has expanded into Western Australia while setting a record at the same time by acquiring Cherylton Farms for more than A$100 million (US$69.74 million) on a walk-in, walk-out basis. 

Self-described as a “new and fast-growing agriculture company on behalf of a joint venture with Australian and international investors”, Ararat-based Excel Farms launched in 2020, and now controls a diverse portfolio of properties throughout Victoria and South Australia, with an ultimate goal to expand its reach across the country focusing on grain, wool, and livestock production.

Danny Thomas, rural property specialist and senior director of LAWD, the exclusive selling agent of Cherylton Farms, commented that this record-breaking sale reflects the ongoing trend of investors being drawn to assets in Western Australia that offer quality along with scale. 

“We experienced exceptionally high levels of participation from institutional investors in the sale process for Cherylton Farms,” said Thomas. 

“We have seen both direct foreign investors and domestic institutions recognise the significant value offered in WA in comparison to east coast Australia and overseas land markets.”

Totaling 8,554 hectares (21,137 acres) in the Great Southern Region, 23 kilometers south west of Kojonup, Cherylton Farms’ operation is highly diversified, including livestock grazing, cropping – focused on the production of high-yielding crops such a barley, oats, wheat, and canola – as well as the management of Merino and composite sheep flocks. 

Initially, the property was listed at A$90 million – an already impressive price. But in the end, it wound up fetching $10 million above asking.

A large reason for this has been the exceptional effort and investment made on the part of the vendor and farm manager Mike Cameron in developing what were the original six or seven properties into an efficient aggregation. 

“The new owners will benefit from the strategic farming practices implemented by Mr. Cameron, who is well regarded for his ability to develop agricultural farmlands into high performing assets, through a careful combination of scale, precision management and a strong focus on team culture,” said Simon Wilkinson, director, LAWD.

Wilkinson went on to add that the successful purchasers share these core values, and will continue supporting the Cherylton Farms team. 

“As the exclusive selling agent, LAWD are not only proud to be involved in the sale of such a high-quality asset but are also delighted that we were able to match Cherylton Farms with a new owner with the same commitment to maximizing operational efficiency, productivity, and sustainability, along with the retention of the existing staff,” said Wilkinson. 

LAWD stated their belief that demand for assets such as Cherylton Farms will not cool down, and will in fact drive land values to new highs. 

“Any Western Australian vendor looking to divest a high-quality, large-scale asset in the current market will see that asset met with very high demand noting accepted district land values are likely to be eclipsed. LAWD expects to see this trend continue to strengthen through 2023.”

~ Lynda Kiernan-Stone is editor in chief 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.