April 13, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

S. Kidman & Co. has completed the sale of four stations located in Queensland and the Northern Territory as part of an ongoing portfolio sell-down. 

In March 2021, Hancock Agriculture, the second largest producer of beef in Australia, and S. Kidman and Co. – its joint venture with China’s Shanghai CRED – appointed Elders to market a portfolio of seven of its Northern Australia beef production assets. 

The move led to more than 1.8 million hectares (about 4.5 million acres) of prime Australian grazing land hitting the market, reflecting nearly 20 percent of the total 10 million hectares owned by Hancock Agriculture and S. Kidman, in which Hancock Agriculture Executive Chairman Gina Rinehart owns a majority stake in partnership with China’s Shanghai CRED following its acquisition for A$386.5 million in 2016. 

The most recent development involving divestments being made by S. Kidman & Co. is the sale of four more properties brokered by Geoff Warriner of JLL in conjunction with RPL:

~ Durrie, Naryilco, and Glengyle Stations in Queensland – acquired by Appleton Cattle Company, which has significant existing beef production interests in eastern Australia. 

~ And, Brunchilly Station (including Banka Banka East) located in the Northern Territory – acquired by the Harris family, which has substantial beef production interests across Australia. 

All transactions associated with the sales of these assets have been granted all necessary statutory approvals and have proceeded to the handover to the new owners, however, the financial details of each transaction remain confidential.

Hancock Agriculture explained that the sale of these holdings aligns with S. Kidman’s strategy of divesting properties after significant investment into essential maintenance, improved animal welfare, employee safety, and the implementation of technology and innovation across the herds has led to their improvement. 

Upgrades at the aforementioned stations included developing and expanding water infrastructure – critical in the face of drought or long musters – cattle handling equipment and employee safety, shading for cattle and horses, and the investment in widespread, extensive communication networks to aid in safety, data collection, and analysis.

With the proceeds from these sales, Hancock Agriculture explained that S. Kidman & Co. will have the additional capital needed to purchase and improve other properties as it builds out its agricultural operations. 

Included in this strategy are plans to expand its grain-fed Santa Gertrudis and Kidman Premium beef brands, which utilize a combination of Santa and Wagyu genetics, both served at premium domestic and international restaurants. 

Meanwhile, Hancock Agriculture stated that it intends to retain and grow its portfolio, which currently includes holdings in Queensland, New South Wales, West Australia, and the Northern Territory. 

Hancock’s east coast Wagyu operations currently represent the largest Fullblood and Purebred Wagyu herd in the world, and the company noted that it will continue to grow through additional production and the addition of broadacre cropping properties. 

~ 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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