March 10, 2021

By Lynda Kiernan, Global AgInvesting Media

Tianma Bearing Group (TBG), the investment vehicle of Chinese billionaire Xingfa Ma, has listed the Balfour Downs and Wandaya Stations – a combined large scale breeding and finishing operation in the East Pilbara region of Western Australia. 

Ma expects to fetch between $32 – $40 million for the adjoining stations that operate as a beef breeding enterprise running 16,000 head on a combined total 634,004 hectares (about 1.5 million acres).

The stations have changed ownership four times in the past 100 years. But since their acquisition in 2014, TBG Agri Holdings has invested widely in the land and the herd which is made up mostly of Brahmans.

“Since buying the property, TBG has targeted the genetic improvement of the cattle by infusing high-grade Droughtmaster bulls to join over Brahman, giving a more superior product to local and overseas markets,” said Andrew Blythe, managing director, TBG Agri Holdings. 

TBG has also committed capital to adding water infrastructure and resources including the development of 92 watering points, 48 fully-equipped bores, and multiple permanent and semi-permanent pools across the stations that are about equal in size to one-tenth of Tasmania and include flood plains grassed in Mitchell, Flinders, and buffel grass.

Additional improvements include a new homestead, staff quarters, sheds, and a cattle yard with capacity for 3,000 head. 

“I have seen many stations in Queensland, the Northern Territory and WA and I must say the development of recent improvements on this property, such as water, fencing, yards and overall infrastructure is among the best, right up there with the most productive stations in Australia,” said Bruce Douglas, Queensland director with Ray White Rural, which is handling the sale. 

This sale follows only one year after Ma sold the 705,700-hectare (about 1.7 million-acre) Wollogorang and Wentworth Stations located between Queensland and the Northern Territory along with 30,000 head of cattle on a walk-in-walk-out basis for $53 million.

Ma originally purchase Wollogorang/Wentworth (in 2015) and Balfour, along with processing capabilities and live export infrastructure in Western Australia, to gain a position to supply beef to the Chinese market. But Blythe explained to Beef Central that what started as a “paddock-to-plate” vision wasn’t an easy business to master. 

“Unfortunately, it was difficult to own the whole value chain and as a result, the breeder part of the cattle business is being divested,” he said.

Despite a year of offloading cattle assets, TBG remains dedicated to agriculture, according to Blythe, who said that the company’s remain asset – the 8,000-hectare (19,768-acre) Emu Downs Station which was used to finish cattle from Balfour – will remain in TBG hands.

“It is an asset and the centerpiece of TBG’s agricultural business,” said Blythe. “There are future plans for Emu Downs.”

The window to submit an expression of interest for Balfour and Wandaya closes on April 1.

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.