July 31, 2016

Only days after it was announced that Gina Rinehart’s Hancock Prospecting acquired the Inverway and Riveren cattle stations in the Northern Territory, it is announced that MH Premium Farms (MHPF), the Australian agricultural investment group of Sir Michael Hintze, has acquired the 2,573 hectare Deltroit Station in New South Wales from Australian Pastoral Group.

Hintze is head of the $12 billion, London-based hedge fund, CQS, and with a fortune estimated at $1.3 billion, Hintze is on the BRW Rich 200 List and one of the top pastoral landowners in Australia.

The purchase price of the station was not disclosed, however, Property Observer reports that Inglis Rural, the agent managing the sale, was expecting between $18 million and $20 million for the property. In contrast, AFR states that the sale price was “less than $17 million”.

Deltroit will be added to MH Premium’s extensive agricultural portfolio of 14 properties totaling 65,000 hectares – ten of which are mixed grazing and cropping properties, stretching across New South Wales and Queensland. Previously used to fatten up to 4,500 steers per year, the station will be used by MH Premium to raise prime lambs, cattle, and crops.

“As one of Australia’s fastest growing farm portfolios, the exchange represents a wonderful addition for MH Premium Farms in securing a highly productive beef, sheep and cropping property which complements their existing operations,” Inglis director, Jamie Inglis told the Weekly Times.

Deltroit has been owned by the Australian Pastoral Group (APG) since 2013 when it bought the property from the chairman of Lumley Insurance, Anthony Chrichton-Brown for $15 million.

Together with two other properties in Queensland – the 143,000 hectare Neumayer Valley and the 5,902 hectare Kinbeachie, APG initially had plans to build a diversified agricultural land portfolio. However, the group divested all three properties this year for a total consideration of approximately $70 million after APG chairman and former Macquarie Group agricultural executive, Alan Hayes said there was “substantial interest and widespread purchase inquiries.”

Indeed, Inglis selling agent, Sam Triggs  noted that the agency had strong interest in the property from five bidders, including bidders from China who were looking for high-quality farmland due to strong beef and lamb markets.

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Lynda Kiernan