Packhorse Pastoral puts three cattle stations on market following death of co-founder Tom Strachan

Groundbreaking cattle grazing and carbon sequestration investment company Packhorse Pastoral has put its three stations on the market in the wake of its co-founder’s death.

A groundbreaking agricultural “cattle and carbon” investment company has listed a portfolio of three stations for sale following the death of co-founder Tom Strachan.

Mr Strachan, who died in a light plane crash in August along with his 20-year-old son Noah and their pilot Garry Leihm, was behind Packhorse Pastoral Company (Australia), which once had ambitions to acquire a 2 million-hectare cattle grazing and carbon sequestration portfolio over eight years.

Backed by a number of high worth individuals, including Canberra richlister Terry Snow, the cattle stations spanning 27,124ha were strategically acquired by Packhorse over the past three years in line with Mr Strachan’s passion for regenerative agriculture.

The Packhorse portfolio comprises two Queensland properties – the 8344ha Stuart’s Creek Station in the Maranoa region and the 10,029ha Moolan Downs Station in the Western Downs region – and the 8371ha Ottley Station west of Inverell in northern NSW.

If sold today as a three-property portfolio the price tag could be in excess of $120m.

Packhorse chairman Tim Samway said Mr Strachan was an integral part of the fund and fundraising.

“He was also the cultural and spiritual heart of the business. Tom was a very powerful personality and he was living the business everyday, every minute,” Mr Samway said.

“So without his funding and without his passion I think we all came to the conclusion that Packhorse investment would struggle to provide the quality of service and particularly the fundraising that Packhorse Pastoral company really required.”

Tom Strachan, who died aged 49 in a light plane crash.

Mr Samway, who is also chairman of Hyperion Asset Management, said the directors looked at a number of alternatives but decided to embark on an expressions of interest campaign through CBRE Agribusiness.

He said there were a number of options available to the market.

“We want the best outcome for our shareholders. That could be with a new partner who could inject substantial new capital but equally the company would welcome interest from local landowners who may wish to acquire one property or a line of three outstanding properties and benefit from the economies of scale,” Mr Samway said.

“We’ve had a bit of feedback already that these properties will be keenly sought by local landholders and corporations but at this stage I can’t tell you where the chips will fall.”

The cleared and semi-cleared lands on all three properties are currently used for cattle grazing under a “grass motel” agistment agreement with one of Australia’s largest cattle producers.

Collectively, they have been rated to carry about 13,600 Animal Equivalents and are mostly used for growing-out cattle owned by the agistor, which are bred elsewhere but moved to these stations to capitalise on their suitability for cattle fattening.

Packhorse Pastoral Company has listed a portfolio of three cattle stations on the market.

In addition, all the cleared and semi-cleared grazing lands and all the naturally timbered lands are subscribed to profitable carbon sequestration projects, instigated by the Packhorse management team.

Each property features staff accommodation, cattle handling facilities, reticulated livestock watering systems, various shedding and grain storage facilities, excellent access and subdivisional fencing to optimise both grazing and soil carbon management efficiencies across the pastoral areas.

The properties are being offered through CBRE’s David Goodfellow and James Auty, with registered carbon baselines in place and strategies to maximise carbon sequestration and natural capital development over the next 25 years.

“This is a strategic portfolio of properties with very responsible and experienced management in place, which is designed to maximise the use of the expansive grasslands in a reliable rainfall area while capitalising on numerous opportunities for improved carbon sequestration,” Mr Goodfellow said.

“Packhorse is a recognised leader in carbon farming initiatives and the environmental initiatives at these stations are well ahead of industry norms, with clearly established carbon baselines and management practices.”

The properties are being offered through CBRE’s David Goodfellow and James Auty, with registered carbon baselines in place and strategies to maximise carbon sequestration and natural capital development over the next 25 years.

The currently registered projects are set to produce approximately 28,000 ACCUs (Australian Carbon Credit Units) per annum within five years. At current ACCU prices of $30 to $40, the continuation of these projects is expected to provide combined additional revenue of about $840,000 to $1.12m per annum to the successful buyer.

Mr Auty said a similar process was instigated for CBRE’s recent sale of the extensive Shenhua portfolio near Gunnedah, which was ultimately sold to a mixture of corporate farmers backed by financial institutions and local farmers looking to expand existing family operations.

“We are delighted that Packhorse is willing to give both the corporate and family farming sectors equal opportunity to purchase these assets,” he said.