August 26, 2024

By Gerelyn Terzo, Global AgInvesting Media

In a deal that brings Macquarie’s agriculture arm full circle, Viridis Ag is looking to unload the aggregation assets representing its maiden Australian farm acquisition from six years ago. Viridis Ag, which is supported by Macquarie Agricultural Funds Management, has put Western Australian dryland cropping asset Alcheringa Aggregation, located in the Northern Wheatbelt region, on the block. Alcheringa was Viridis Ag’s first Australian acquisition, which it purchased back in 2018 at an A$32 million (US$25 million) price tag. According to reports, Macquarie is looking for more than A$30 million (US$20 million) for the assets, which span over 13,000 hectares (32,123 acres), nearly three-quarters of which is considered arable land.

The opportunity is being presented by LAWD, which describes it as a “a highly efficient and productive cropping opportunity” comprising four semi-contiguous holdings. Among them, Alcheringa boasts 3,343 hectares (8,260 acres), Wandoo Park 1,878 hectares (4,640 acres), Moodjar Downs 3,183 hectares (7,865 acres) and Victoria Springs 4,623 hectares (11,423 acres), which combined are currently producing high-yielding crops such as cereals, oilseeds and pulses. With an average annual rainfall of 392 millimeters, the assets have the advantage of mixed soil types, uneven topography and desirable climate conditions, complemented by half-a-dozen weather stations situated across the aggregation.

At first glance, Australian farmland values have been on the rise, as evidenced by interrupted growth over the past decade, according to the 2024 Rural Bank Australian Farmland Values Report. However, while the national median price per hectare rose by 6.4 percent in 2023 to A$9,575 (US$6,490) per hectare, that pace of growth has since slowed. Demand headwinds have included lower livestock prices in 2023 coupled with weakening commodity prices exacerbated by drier conditions.

Rural Bank Head of Agribusiness Development Andrew Smith stated, “The key drivers of farmland values look set to remain in a holding pattern in 2024. It is increasingly likely that the market will now see a plateau in farmland values.”

Despite the pivot in momentum, Western Australia remains out front for farmland value growth in the country, with a median price increase of 32.6 percent last year for a five-year CAGR of 25.6 percent. Victoria is next in line with a five-year CAGR of 17.2 percent. Smith continued,

“A continuing tightening in the number of transactions is helping to drive price growth across the nation’s 39 regions with 44 percent recording growth of more than 20 percent in 2023. With eight of the top 10 growth regions in 2023 recorded in Western Australia, South Australia or Tasmania.”

Macquarie’s Viridis Ag’s aggregations are being offered in one line or as individual assets. LAWD agents Danny Thomas and Simon Wilkinson are accepting expressions of interest through Sept. 27.

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