$250 million tipped for massive NSW-Queensland cropping portfolio

More than 23,500ha of farmland spanning 21 properties on the NSW-Qld border has hit the market in the largest rural property listing so far this year.

More than 23,500ha of cropping farmland spanning 21 properties on the NSW-Qld border has hit the market in the largest rural property listing so far this year.

Offers worth more than $250 million are expected for the One Tree Agriculture portfolio, owned by US-based private equity firm and prominent Australian agricultural investor, Proterra Investment Partners.

The One Tree Agriculture portfolio is back on the market more than two years after it was listed for sale by Proterra in March 2022, when they outlined their exit strategy from their Australian agriculture assets.

At the time the portfolio was offered alongside the 4448ha Vaucluse Estate in Tasmania and the 14,425ha Racecourse portfolios for sale, with the three assets valued at more than $400 million combined.

Proterra Investment Partners are selling their 23,594ha One Tree Agriculture portfolio on the NSW-Qld border.

Since then Proterra have sold the Vaucluse Estate, with the cropping and horticulture aggregation sold for more than $100 million to a subsidiary of New Zealand’s Spencer family, while retaining both the One Tree and Racecourse portfolios.

It is understood a US-based institution has already expressed interest in the One Tree Agriculture portfolio, as a whole, while North American and European investors alongside local cropping businesses seeking expansion, or syndications of local family farmers are expected to show interest in all or portions of the vast aggregation.

Proterra managing director Becs Willson said this season was shaping up as their largest season across the One Tree Agriculture portfolio with almost 17,000 hectares of established winter crops.

“This planting programme is supported by the considerable investment we made in building a silo complex capable of drying, blending and storing 32,000 tonnes of grain, which has allowed access to contracts with key strategic partners,” she said.

One Tree’s Umbercollie Aggregation has a substantial 32,000 tonne bulk grain silo complex, which also includes office with kitchen and amenities, control testing stand, and weighbridge with capacity for road train transport.

“The One Tree Agriculture portfolio brings to market a geographically spread, well developed scale operation where infrastructure investments have been focused in order to meet strategic customers requirements.”

Comprising a total of 23,594ha, the portfolio contains three hubs including the 9966ha Jandowae and 7934ha Umbercollie aggregations in southern Queensland near Goondiwindi and north to Jandowae, and a further 5694ha in northern NSW, home to the North Star aggregation.

About 90 per cent of the aggregation is considered arable on self-mulching black brigalow soils, primarily producing wheat, barley, chickpeas, fava beans, cotton and sorghum crops. The majority of the aggregation is dryland farming, apart from 585ha irrigated at the Jandowae aggregation.

One Tree’s North Star Aggregation grows cotton in the summer months.

The initial acquisition for the One Tree Agriculture portfolio was made in 2014, before expanding during the next five years.

In late 2021, Proterra notably split its Corinella Group of almost 50 farms, covering 22,500ha in Victoria and South Australia, among 27 different Australian purchasers for $360 million.

Headquartered in Minneapolis, Proterra launched in 2016, spun out of Black River Asset Management, a subsidiary of US agricultural giant Cargill.

LAWD senior director Danny Thomas and director Elizabeth Doyle are handling the sale of the One Tree Agriculture portfolio.