Proterra Investment Partners to sell Mackay portfolio Racecourse

Canegrowers are raising concerns over what new investors could mean for the industry if a mammoth 14,000ha property portfolio changes hands.

As a massive 14,000 hectare property portfolio part of a $400m sale hits the market, Mackay cane growers are raising concerns over what new investors could mean for the industry.

Proterra Investment Partners’ Racecourse portfolio — which spans 14,425ha across St Lawrence, Belbarra, Blue Mountain and Sunnyside — is one of three on the market for sale via expressions of interest.

Proterra Investment Partners, Mackay Sugar and Sarina cane farmer George Williams own Racecourse as a partnership operation.

It began as a 714ha cane farm and grew to become a major cane supplier to the Racecourse, Marian and Plane Creek mills.

Cane grower Kevin Borg on his cane farm. Picture: Lee Constable

Now, the portfolio is on the market as Proterra continues with its exit strategy from Australian land holdings, billing it as a strong return for investors.

Canegrowers Mackay chairman Kevin Borg was fearful of the consequences for local mills and growers if new investors decided to turn aside the current cane farms to other land use.

“The industry generally in Mackay has a problem of land going out of cane,” Mr Borg said.

In particular, Mr Borg noted the recent trend of converting cane farms into cattle farms as beef prices peak.

Mr Borg said mills needed to process a certain amount of cane to be viable and if some of Proterra’s cane properties were to follow this trend, it could mean mill closures affecting surrounding growers.

“It’s vital that it does stay in sugar,” Mr Borg said.

“To stay in cane.”

But Mr Borg said it wasn’t all doom and gloom and he was hopeful that new investors would stick with sugar.

“[Proterra] invested in the industry and had faith in the industry going forward,” he said.

“They’ve invested money to develop the land.”

The Proterra portfolio sale rides on the back of heightened global demand for Australian agricultural land, with the combined sale with Vaucluse (Tasmania) and One Tree (NSW) representing $400m in value.

It is a continuation of the US-based investment firm’s 10-year exit strategy after selling $360m worth of Victorian and South Australian farms late last year.

Proterra bought the Mackay region’s largest continuous sugarcane farm in October 2013 – the first acquisition – before adding cattle properties to the portfolio and converting them back to cane production.

More than 13,500ha of cattle and grazing land was acquired, with Proterra building its cane production potential through the land-use conversion.

Currently used for large-scale sugarcane and beef production, Racecourse spans three aggregations totalling 14,425ha in the Clairview and Mackay regions of Queensland. Picture: Contributed

“We’re very proud of what we have achieved with Racecourse,” Proterra managing director Becs Wilson said.

“We have employed sophisticated agronomic methods and best industry practice across the portfolio to become one of the largest private producers of sugarcane in Australia,” she said.

Located in Tasmania’s Midlands, Vaucluse is home to a historic 10-bedroom homestead set among 4448ha of cropping and grazing land. Picture: Contributed

“Additionally, the portfolio was one of the first in Australia to achieve a globally distinguished Bonsucro accreditation, which recognises enterprises operating to stringent sustainable sugarcane production practices.”

The Racecourse portfolio is Proterra’s only land holdings in the Mackay region.

Land, Agribusiness, Water and Development senior director Danny Thomas, overseeing the three portfolio sales, said Racecourse had “undergone significant investment in developing the land beyond grazing pastures”.

He said there was potential to develop the land for high-value permanent crops

“There is natural evolution in that region from sugarcane into macadamia production,” he said.

LAWD is also handling the sale of One Tree, an aggregation of 21 properties across Goondiwindi and Jandowae, and North Star in NSW, totalling 23,594ha.

It is also handling Vaucluse, two amalgamated neighbouring properties covering 4448ha in Tasmania.