October 13, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Consolidated Pastoral Company (CPC) acquired the 17,638-hectare Jimarndy aggregation in the Fitzroy region of Queensland for a record-setting A$48 million (US$30 million) after securing Foreign Investment Review Board (FIRB) approval. 

Managed by David Goodfellow, managing director at CBRE Agribusiness, along with CBRE’s Edward O’Dwyer, and assistance from Nutrien Harcourts at Rockhampton, the deal includes multiple pieces of machinery, and represents a record of A$7,650 (US$4,801) per Adult Equivalent (AE).

The Simon family, which sold the aggregation, initially purchased the Jimarndy (3,646 hectares/9,009 acres) and Tawarri (9,500 hectares/23,475 acres) in 1997, followed by the acquisition of Tandarra (4,402 hectares/10,878 acres) in 2003.

Comprising the adjoining properties known as Jimarndy, Tawarri, and Tandarra, the aggregation is located 245 kilometers northwest of Rockhampton and 208 kilometers southwest of Mackay, providing access to at least two major livestock selling and export centers.

The asset also offers 16 kilometers of river frontage on the Isaac River and its tributaries, which run through the aggregation, resulting in a balance of deep alluvial soils on the river side, and red loam soils toward the plateaus of grassland. 

The property also includes areas of dense timber coverage, especially toward the western boundary abutting the Junee State Forest.

Over the course of their ownership, the Simon family made investments in improvements to the water infrastructure on the properties, as well as to the handling yards, and pastures, which now have 680 hectares currently planted in Leucaena.

“It was a privilege to work with the Simon family through this process, and we are delighted to have achieved a very good outcome for them,” said Goodfellow.

“We understand and respect that many families are going through succession planning right now, and these processes can sometimes be quite emotional, so to achieve each vendor’s expectations in a timely way is very important and is what we always strive hard to achieve.”

Competition among the buying pool for this property was intense, according to Goodfellow, who cited continued strengthening in Australia’s rural property market, a return to more normalized seasonal conditions, and ongoing confidence in commodity prices as drivers.

“Competition came from a range of agricultural corporations, financial institutions and large-scale private investors, each of them looking to expand their existing operations,” said Goodfellow.

“Demand for good quality cattle properties is very strong right across the country at the moment, and we expect this to continue while commodity prices remain firm and as Australia continues to rebuild its cattle numbers.”

Over the course of the two and half years of drought suffered by the country, Australia’s cattle population fell by about 29 million head to 24 million head – and has only re-established itself back to little more than 26 million.

“We have at least two years of further rebuilding to reach 28 million cattle in Australia, let alone reaching 29 million,” noted Goodfellow.

“This, combined with growing Asian demand for beef products, is underpinning confidence in the outlook for both domestic and global beef prices over the next few years.”

He concluded, “This confidence, combined with many innovations in animal production techniques across Australia, is what we’ve been looking for many years and is why both the corporate and the family farming sectors are keen to acquire more land.”

~ 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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