Alberta Investment Management Corporation and New Agriculture purchase Kimberley Cattle Portfolio

A whopping WA cattle station portfolio, which spans 2.9 million hectares, has been sold to a familiar Canadian investment group.

The Canadian investors behind the Lawson Grains cropping empire have made their first foray into the northern Australian cattle industry after completing a mammoth acquisition.

Alberta Investment Management Corporation (AIMCo) and its investment partner New Agriculture, who own Lawson Grains, have purchased the Kimberley Cattle Portfolio (Yougawalla Pastoral Co and Argyle Cattle Co), which spans 2.9 million hectares, or the size of Belgium, in northern WA.

Hong Kong-based Australian citizens the Hui family, and their Archstone Investment Group, offered their massive portfolio for sale publicly in October this year as they exited the sector.

The portfolio comprises seven pastoral leases (1,828,692ha), and five subleases (924,325ha), as well as an agistment agreement over 153,475ha at stations near Halls Creek, Broome and Fitzroy Crossing, WA.

The portfolio operates as a single large-scale portfolio, running about 45,000 to 50,000 breeders.

Financial details of the transaction remain confidential, however, industry sources suggested the Kimberley Cattle Portfolio could be worth more than $250 million when it was listed for sale.

The transaction is subject to Foreign Investment Review Board approval and approval by the Western Australia Lands Department. Both of which are expected to be completed by the first half of 2024.

Across the Kimberley Cattle Portfolio, 45,000 to 50,000 breeders have been run.

AIMCo head of infrastructure and renewables resources executive managing director Ben Hawkins said the acquisition will provide diversity in their Australian investment strategy.

“The Kimberley Cattle Portfolio, AIMCo’s first investment in this sector, is an established and well-managed asset that provides important diversification in our client portfolios,” he said.

New Agriculture director Bruce King said they will target natural capital and sustainability improvements as part of their Kimberley Cattle Portfolio ownership.

“With up to 25 per cent of the solution to climate change expected to come from the land use sector, we have a responsibility to manage these landscapes for sustainability outcomes, and with our local communities in mind,” he said.

“New Agriculture will continue to focus on sustainability practices which allow for not only the protection and restoration of landscapes, but which also lead to the enhancement of natural capital over time.”

It is understood Haydn and Jane Sale will be retained as managers of the Kimberley Cattle Portfolio.

New Agriculture is an agriculture investment manager headquartered in Australia, established to both manage Lawson Grains and to build a portfolio of agriculture assets globally.

New Agriculture is backed by New Forests, a global investment manager of nature-based real assets, which was formed in 2005.

The Hui family, one of Hong Kong’s most powerful families, is led by multi-billionaire Hui Mang Mau.

The portfolio comprises 12 stations, five of which are subleased.

Led by Hui Mang Mau, the family purchased the first portions of the portfolio in 2017 when they bought the 356,000ha Yougawalla, 273,000ha Bulka and 214,000ha Margaret River stations from Harold Mitchell.

The sale was worth about $70 million and also included four additional subleased pastoral leases: 161,000ha Louisa Downs, 141,000ha Bohemia Downs, 80,000ha Carranya Station and 182,000ha Lamboo Station.

Shortly after, the group also purchased 395,000ha Moola Bulla and 260,000ha Mt Amhurst, both near Halls Creek, 206,000ha Beefwood Park near Fitzroy Crossing and 178,000ha Shamrock near Broome.

LAWD were appointed to handle the sale of the Kimberley Cattle Portfolio.

Alberta Investment Management Corporation (AIMCo) and New Agriculture have made several major acquisitions in Australia this year, paying at least $375 million combined for three properties, including the Kimberley Cattle Portfolio deal.

They paid $85 million to acquire the 13,496ha Jemalong Station, near Forbes NSW, while also paying almost $40 million to purchase the 2868ha Green Park Aggregation, located near Rand in the NSW Riverina, from the Macneil family.