May 31, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Packhorse Pastoral Company Australia (PPCA) launched in Australia in 2021 with its eye set on building a $1 billion portfolio of regenerative cattle properties by 2027 that would play a critical role in carbon sequestration and addressing climate change. 

The plan called for properties to operate mostly under a service delivery model and non-ownership of cattle – meaning the properties will be rejuvenated and leased out to top beef producers for cattle feeding. Through this model, the company aimed to repair the soil with the help of cattle to restore grassland, and by doing so, targeting an IRR of between 8-10 percent (3-4 percent from yields and 5-6 percent from appreciation).

The restoration of these assets would not only improve the carbon content of the soil, but enable PPCA to sell carbon credit offsets at scale in a market expected to be valued at $8.25 billion by 2027, positioning the company as the world’s leading land steward, restorer, and beef supply chain.

However, tragedy struck when Thomas Strachan, Packhorse’s co-founder and executive director, his son Noah, and their pilot Garry Liehm, died in a plane crash, sparking the decision by Packhorse Pastoral leadership to list a collection of three prime regenerative cattle stations strategically acquired by the late Strachan over the past three years. They include:

~ Moolan Downs: a 10,029-hectare (24,782-acre) property in Southeast Queensland acquired by PPCA in an off-market deal. Moolan comprises four properties: Moolan Downs, Cressy, Allambee, and Old Southwood, of which Moolan Downs, Cressy, and Allambee are Australian Certified Organic (ACO) and certified U.S. National Organic Program for cattle.

~ Ottley Station: an 8,371-hectare (20,685-acre) station in New South Wales acquired by PPCA in early 2022. 

~ And Stuart’s Creek Station: located in Queensland, Stuart’s Creek was the first property acquired by PPCA in a $30 million deal. 

Now it has been shared that Gina Rinehart’s Hancock Prospecting Group has acquired Moolan Downs and Ottley Station for approximately A$80 million (US$52 million) as it looks to expand its Wagyu beef operations as part of a wider restructuring of the group’s portfolio and focus. 

In line with this plan, in April of this year, Hancock Agriculture’s partner S. Kidman & Co. completed the sale of four stations located in Queensland and the Northern Territory as part of an ongoing portfolio sell-down.

Brokered by Geoff Warriner of JLL in conjunction with RPL, this sale consisted of:

~ Durrie, Naryilco, and Glengyle Stations in Queensland – acquired by Appleton Cattle Company, which has significant existing beef production interests in eastern Australia. 

~ And, Brunchilly Station (including Banka Banka East) located in the Northern Territory – acquired by the Harris family, which has substantial beef production interests across Australia. 

Hancock Agriculture explained that the capital gained through these divestments will be used to purchase and improve other properties as it builds out its agricultural operations. 

Currently, Hancock’s east coast Wagyu operations represent the largest Fullblood and Purebred Wagyu herd in the world, and the company noted that it will continue to grow through greater production and the addition of broadacre cropping properties.

~ 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.

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