Page 19 - Queensland Country Life Spring Property Guide

. Thursday September 30, 2021 SPECIAL PUBLICATION 19
NEWS
Farmers turned corporate

BY MARIAN MACDONALD comprising mostly sheep
and beef.
NOT all corporate agricul- Another $200m is in irri-
ture investors wear suits and gated cropping, primarily
many enjoy spending regular cotton and sugar and there's
time out in the paddocks get- $150m of rain-fed cropping,
ting their hands dirty. dominated by wheat, canola
"They all would visit and chickpeas throughout
their farms," Growth Farms the higher rainfall areas of
Australia portfolio manager eastern Australia.
Jon Harpley said. "Growth Farms was start-
The conduit between cli- ed by farmers who were
ents and farm managers, Mr involved with cropping and
Harpley said Growth Farms livestock operations," Mr
delivered constant reporting Sackett said.
and welcomed close connec- "That's where we came
tions. from and that's why our
"Some investors regularly strength tends to be in the
come out and tree plant and broadacre sectors."
do different things, others
will do it two or three times Permanent questions
a year, so it just varies de- While business does have
pending on their interests in some involvement with per-
agriculture." manent crops, it's limited.
It might well be a re- Mr Sackett said that per-
flection of Growth Farms manent crops tended to
Australia itself, which was require heavy spending on
founded in 1999 by a group infrastructure whereas most
of farmers who were looking returns come from apprecia-
to expand by leasing and NOT PITT STREET FARMERS: Growth Farms Australia director David Sackett said the firm was founded by farmers tion of the land.
ended up managing other who were looking to expand by leasing and ended up managing other people's assets. "Permanent crops give you
people's assets. higher operating returns but
"We understand agricul- GROWTH FARMS AUST IN NUMBERS improved productivity. lower exposure to the land
ture, we're not Pitt Street or Whichever the approach, component of agriculture so
Collins Street farmers who ■ Established 1999 a long-term view of at least it's a different sort of asset or
might have been in oil and ■ $500 million assets under management 10 years was important and risk profile," Mr Sackett said.
gas but now think agriculture ■ 62,000 hectares in Qld, NSW, Vic,Tas, SA Growth Farms managed the "Some would say it's risk-
is the next big thing," director ■ $150m livestock acquisition, operations, ten- ier because if you get citrus
David Sackett said. ■ $200m irrigated cropping ants and exit. canker or something and
Growth Farms now man- ■ $150m rainfed cropping Clients could also choose you've got 10-year-old citrus
ages more than 62,000 hec- ■ Total portfolio CAGR of 9.5pc (net of fees) to purchase individual assets trees you spent a fortune
tares valued at over $500 or invest in commingled getting to where they are,
million in Queensland, funds, which offered ex- then suddenly, the tap can
NSW, Victoria, Tasmania and "It's driven by how much It offers stable cash returns posure across a number of be turned off on you."
South Australia. the client has to invest, the of 2.5-3.5 per cent gross rent- properties. Growth Farms was still
level of risk they're happy al income plus 5-7pc land CONNECTIONS: Growth The total Growth Farms interested in investigating
Scaled but personal with and their preferences appreciation. Farms Australia portfolio Australia portfolio returned intensive operations but only
With such scale, it could and we help them work out "Some European inves- manager Jon Harpley. a compound annual growth if it was low-risk.
hardly be described as bou- the best strategy for them, tors, for example, quite like rate of 9.5pc (net of fees) be- "Our philosophy is partly
tique but Mr Sackett said the the sectors, regions and what's a more passive expo- buy and operate the farm tween 2010 and 2020. around choosing sectors
service it offers institutional, so on." sure and that's a really good business directly, which typ- that Australia has historically
family office and high-net opportunity for Australian ically reaped higher returns Broadacre focus done well in, but also around
worth individuals was highly Passive vs active agriculture because some- of 3-6pc for operations and Unlike many investment choosing farms within sec-
personalised. Those factors dictate one provides capital to buy 5-10pc land appreciation. firms that have considerable tors that will do well," Mr
"We're probably different which of two broad strategic a farm, and then allows the Mr Sackett said the expo- holdings in tree crops and in- Sackett said.
to a lot of other managers in approaches the investment family farmer to take on a sure to operations and com- tensive agriculture, Growth "A sector might only have
that we have individual in- will take. lease, and maybe double the modity prices meant returns Farms assets are general- average performance but
vestors, who will say, 'I have The first is a low-risk, pas- size of their business without were more variable. On the ly broadacre. you can find a farm that will
X amount of money I want sive model where the inves- having to find all the capital," other hand, it offered more Of the roughly $500m do particularly well because
to invest into agriculture'," tor buys farmland and leases Mr Sackett said. opportunities for develop- assets under management, of the way it's set up or its
he said. the assets to other farmers. The second model was to ment, land use change, and $150m is in livestock, natural resource base."
Investment company says time to sell

HOLD onto your hats, an- and the Wimmera, with one folio or as individual farms. Agents say the portfolio is main properties. Navarre, Lake Batyo Catyo,
other record selling season property in South Australia. Many agents are tipping strategically located in the The Wimmera aggregation Donald and Naracoorte.
for Aussie farmland has been The South Australian another foreign corporate reliable and well regarded of 6959ha is over four main No official reason has
launched with a bang. properties, known as the will snap up the lot given the Western District and Wim- properties. been offered for the sale
As promised, one of the Glenroy Plains aggregation, optimism for Australian agri- mera regions of Victoria LAWD agents say the although several property
biggest land offerings has comprises a total land ar- culture. and the south-east region of properties offer outstanding experts say it is an opportune
opened the bidding with ea of 2212ha and is highly Almost all those Proterra South Australia. structural improvements time to cash in at a peak in
the Corinella Group of more developed to centre pivot farms have been bought up The farms are planted to including numerous homes, the market.
than 50 farms officially hit- irrigation (1244ha), a wine over the past five years at a oilseeds,cerealsandlegumes quality operational infra- Apricerecordof$23,582ha
ting the market on the first grape vineyard (46ha) and fraction of today's market as well as an intensive irriga- structure and substantial was reached for 179ha of
day of spring. dryland cropping/grazing prices, meaning a likely mas- tion enterprise developed to grain storages. farmland near Ararat earlier
US investment company land (855ha), supported by sive windfall for the invest- horticulture, viticulture, high Proterra Investment Part- in the year as property prices
Proterra Investment Partners 5778 megalitres of ground- ment group. yielding crops and livestock ners was launched in 2016 stunned everyone.
isoffloadingitsbigfarmport- water entitlements. The Corinella portfolio is grazing at Naracoorte. as an investment manager High grain prices, a run of
folio across 22,386 hectares All up price is about said to provide "an unprec- The Western District ag- focused on global food and good seasons and low inter-
of south-eastern Australia. $350 million but Mel- edented opportunity of four gregation covers 6437ha over agriculture and a private eq- est rates have combined into
The congregation of farms bourne-based selling agents highly productive aggrega- five main properties. uity fund. a heady mix for farm land,
are mostly grain growing op- LAWD said the portfolio is tions within four distinct The Greens Creek aggrega- Corinella Farms has prop- especially for neighbouring
erations in western Victoria being offered as a single port- climatic regions". tion of 6778ha is across five erties in Lake Bolac, Donald, farmers looking to expand.