July 1, 2024

Photo credit: LAWD

By Lynda Kiernan-Stone, Global AgInvesting Media

With expectations of attracting both domestic and global interest, LAWD is managing the sale of Proterra Investment Partners’ (Proterra) One Tree Portfolio targeting collective returns of more than A$250 million million.

Consisting of three aggregations across some of Australia’s highest-quality agriculture zones, the 23,595-hectare portfolio is an amalgamation of 21 properties spanning the North Star Aggregation (5,694 hectares) in northern New South Wales, and the Umbercollie Aggregation (7,934 hectares) and Jandowae Aggregation (9,966 hectares) in southern Queensland, which are available to acquire either separately or as a whole. 

A full 92 percent of this institutional grade, predominantly dryland cropping portfolio (585 hectares of the Jandowae aggregation are irrigated) is arable and made of mostly self-mulching black brigalow soils, with climates ideal for the production of high-yielding wheat, barley, chickpeas, canola, mung beans, cotton, and sorghum. 

“Opportunities for dryland cropping properties offering economies of this scale and strategic investments in infrastructure and land management rarely come to market,” said Danny Thomas, senior director, LAWD. 

“Its capacity to produce large amounts of grain will appeal to domestic and international institutional investors and corporate farming groups, local cropping businesses seeking expansion, or syndications of local family farmers.”

After being spun out from Black River Asset Management, a wholly-owned, independently managed subsidiary of Cargill, Inc., on January 1, 2016, Proterra today has offices in Minneapolis, London, Sao Paulo, Singapore, Shanghai, and Sydney, focusing on private equity investments in the natural resource sector of agriculture, food, and metals, and mining. 

Proterra has been actively developing agricultural investments in Australia since its first investment in BFB Pty Ltd in 2009. Over the years it has exited several investments, including recently its majority stakes in BFB Pty Ltd, the Corinella Group, and Vaucluse portfolios.

The firm first began acquiring One Tree Agriculture in 2014 – a process that was carried out over a period of five years. During its ownership, the firm leveraged its partnership operating model to transition these individual farms into highly productive, revenue generating aggregations utilizing the latest agricultural technologies to ensure the most sustainable management practices. 

“The One Tree Agriculture portfolio brings to market a geographically spread, well developed scale operation where infrastructure investments have been focused in order to meet strategic customers requirements,” said Becs Willson, managing director, Proterra. 

The portfolio has also benefited from significant infrastructure improvements made by Proterra including multiple dwellings, top line operational infrastructure, and substantial grain storage in excess of 48,500 tons combined, and the further enhancement of on-farm efficiencies.  

“Given the extensive investment that Proterra has made developing each of the individual properties, and the flexibility offered through the sales process, the campaign would draw significant interest from a diverse group of potential buyers,” noted Thomas. 

Willson added, “Last summer set us up well. We have just under 17,000 hectares of well-established crops and this is looking to be our biggest winter cropping season ever.”

“This planting program is supported by the considerable investment we made in building a silo complex capable of drying, blending, and storing 32,000 tonnes of grain, which has allowed access to contracts with key strategic partners.”

Interested parties are advised that the window for submitting Expressions of Interest for One Tree closes at 12 p.m. Wednesday, August 14, 2024. Anyone seeking further information may contact Danny Thomas, senior director LAWD, at +61 439 349 977, or Elizabeth Doyle, director, LAWD, at +61 400 102 439.

~ 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. She can be reached at lkiernan-stone@globalaginvesting.com.

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