October 19, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

LAWD is currently accepting expressions of interest for an enormous agricultural holding in Western Australia’s Kimberley region that is nearly as big as the country of Belgium. 

Being Marketed as the Kimberley Cattle Portfolio, the assets are being sold by dual Australian and Chinese citizen Hui Wing Mau, the founder and head of Hong Kong-based property group Shimao Group Holdings.

It was back in 2017 that Hui entered into the Kimberley cattle industry, when he acquired the Bulka, Yougawalla, and Margaret River stations and 45,000 head of cattle in Western Australia through his Archstone Investment Group for approximately A$70 million (US$44.36 million). He also acquired the Argyle Cattle Company and is majority owner of Bindaree Beef, which was acquired for approximately A$120 million (US$76.04 million) in 2017. 

Now, the Kimberley Cattle Portfolio offers potential buyers a rare combination of large-scale breeding capacity and irrigated fodder production. Carrying a Droughtmaster/Brahman cross herd, the portfolio spans more than 2.9 million hectares (7.1 million acres) and includes more than seven pastoral leases totaling 1,828,692 hectares (4,518,796 acres), five sub-leases totaling 924,325 hectares (2,284,057 acres), and an agistment agreement over 153,475 hectares (379,245 acres).

The holding runs up to 50,000 breeders, claims land types ranging from red Spinifex to black soil grasslands, and river frontage, and sits within a 350 kilometer radius, a proximity that portfolio general manager Haydn Sale noted “delivered marked management efficiency, supported by execution of an extensive development  program”. 

“This business was essentially built around putting together an aggregation of properties that were  close enough to work together to create key efficiencies, with potential to develop in a way that  would escalate production,” said Sale. 

The portfolio also boasts abundant water throughout the holdings with frontage on the Margaret River, Mary River, Louisa River, and Christmas Creek, along with extensive ground water resources. Approximately 210 hectares have been developed to center pivot irrigation, with approval in place for another 294 hectares underpinned by a 9,500 megaliter license on “Shamrock Station” from the Broome Sandstone aquifer. 

No price has been officially attached to the listing. However, earlier this year, Rabobank concluded that high commodity prices, favorable weather, and positive financial performance for the country’s farming industry led to its forecast that Australia was on pace to see “double digit” percentage growth for its agricultural land prices this year, but easing off the almost 30 percent jumps seen in 2021 and 2022. 

Vitor Pistoia, agriculture analyst with RaboResearch and author of the report, noted that on the heels of three favorable seasons, average farmland prices in Western Australia increased by 22.5 percent in 2022, leading to a valuation of a little more than A$6,000 per hectare. 

“Over the past seven years we have put in place strategic watering points, fencing, yard, road and  accommodation infrastructure to increase carrying capacity and create an entity that does not  require management on every property, but can be run from a centralized management group, with  teams deployed as needed,” noted Sale.

“There is, however, still scope to further grow efficiencies and water development – and again  increase the number of stock that can be run across the aggregation.” 

But that’s not the only future potential for the portfolio, Sale explained that the aggregation is unique in that it is a pastoral operation that can breed weaner and feeder cattle, but also has the option, given further investment, to take on a feedyard production model as well. 

“The beauty is everywhere we go we can find good water,” said Sale. “This, combined with the reliability of the  Kimberley region wet season, has allowed us to carry a significant number of cattle.”

Danny Thomas, senior director with LAWD, added that another unique feature of the Kimberley Cattle Portfolio is its scale and ability to service such geographically diverse livestock markets. 

“This aggregation is special in that you can breed, background and finish, and the owners have done  an excellent job in putting together a significant landholding that can be run as a single entity,  including irrigated land to finish stock,” said Thomas. 

“It is very rare to find a property in the region at this scale that can so easily pivot between live  export to the north and the southern markets.” 

Interested parties can obtain further information by contacting Danny Thomas, senior director with LAWD, at +61 439 349 977, or Simon Wilkinson, director with LAWD, at +61 456 758 341. All expressions of interest are due by 12 p.m. (AWST) on November 9, 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.

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