Corporate Agriculture Austalia

Case Studies

1. Western European investment Fund

  • Investment: over 35,000 hectares of grain producing farmland with wheat production as the primary commodity. The aggregation is located across multiple holdings in Western Australia.
  • Client: UK Investment Group
  • Investment Location: Lower rainfall regions of the Northern and North-Eastern Wheat-belt of Western Australia
  • Investment Summary: The first holding was purchased in late 2009. Subsequent purchases are continuing and have seen the aggregation expand to 35,000 hectares with an approximate asset value of AUD$16,000,000. This Group is now one of the largest land owners in Western Australia and a significant producer of wheat for the export market.

The focus of this investment is;

  • Lower value, low rainfall cropping land able to produce a high return on investment.
  • Under valued properties are sought where possible to reduce the average purchase value
  • Properties are acquired across multiple districts but a longer term aim is to aggregate the holdings into large production units
  • Upon purchase, essential infrastructure is immediately upgraded and where required soil amelioration is undertaken
  • High quality sustainable farm management practices are critical to reduce the risk from low rainfall farmland and to ensure maximum profitability. 

Corporate Agriculture Australia has sourced all of the farmland for this group. It is also responsible for the completion of physical and financial due diligence on the selected farmland and full purchase negotiations of all land acquired.

Full operational management of the farms was conducted for this investor for the past two seasons, with a total of 22,500ha being cropped on the investors behalf. Corporate Agriculture Australia fully operated the farms and their management under full Power of Attorney for the investor group. We were responsible for every task involved in the farms operations, from managing the cropping program, sourcing staff, marketing grain, to preparing the reconciled accounts.

2. Middle Eastern Sovereign Wealth Fund

  • Investment: High quality Western Australian farmland spread across three distinct geographic zones. Land for crop production with a focus on Barley.
  • Client: Middle Eastern Sovereign Wealth Fund.
  • Investment Location: Geographical spread in 3 aggregations in the Mid-West and South-West, and South Coast of Western Australia.
  • Investment Summary: The farmland was sourced by Corporate Agriculture Australia and purchase negotiations were concluded on the three aggregations (10 separate farm purchases) by December 2011, having taken only 5 months since the project inception. The three aggregations total >30,000 hectares; at a value of AUD$55,000,000.

The focus of the investment is;

  • Farmland located in reliable rainfall and reliable grain yield districts
  • Maximum production potentials at lowest possible land cost
  • Farms to be adjoining or in close proximity to enable large scale sub-aggregations
  • Soils suited to broad-acre cereal production, particularly barley

Corporate Agriculture Australia was retained to brief the client on the districts that would best fulfil the client brief, provide land sourcing services, and complete initial purchase negotiations of the land. Our company also completed full physical and analytical due-diligence on the properties and the aggregations. Ongoing advisory services for production will also be supplied.

3. Asian Investment and Asset Management Provider

  • Investment: Australian farmland in Medium to High rainfall regions
  • Client: Singaporean Investment and Asset Management Provider
  • Investment Location: Wheat-belt of Western Australia
  • Investment Summary: Investment into farmland located in a reliable medium to high rainfall zone in Western Australia. Purchased farmland is to operate on a long term lease basis.

Currently the total investment totals 8,725 hectares with further work for individual clients of the group underway. All purchased properties are leased to qualified lessees, to fulfill a predetermined return on investment criteria.

Corporate Agriculture Australia is responsible for sourcing and shortlisting suitable properties, assisting the client with final property selection, provision of detailed physical and financial due diligence, purchase negotiations for the property and sourcing, selecting and installing the lessees. CAA will also monitor and be in control and accountable for the ongoing lease management of the property.