Almost $200m tipped for monster WA farm portfolio

Saudi Arabian and WA investors have joined forces to offer almost 78,000ha of farmland, where it is expected to be worth almost $200 million.

Almost 78,000ha of Western Australian wheatbelt farmland has hit the market more than four years after part of it was purchased by Middle Eastern investors.

Saudi Agricultural and Livestock Investment Company (SALIC) Australia and Perth-headquartered PenAgri Farms have announced they are selling their Merredin Farms Wheatbelt Portfolio, which spans a combined 77,954ha, about 380km east of Perth in the Merredin region.

Regarded as the largest corporate, freehold broadacre landholding in WA, the portfolio comprises 66,159ha of arable country suited to expansive cropping and livestock production.

It is understood the portfolio, which is being offered as a turnkey operation, could receive offers worth almost $200 million.

The portfolio comprises two distinct operating hubs operating as one aggregation including Warralakin (40,401ha) and Bodallin (37,553ha).

The two properties have been run under Merredin Farms management, cropping about 59,500ha of mostly wheat with some barley and canola.

SALIC Australia’s portion of the Merredin Farms Wheatbelt Portfolio was once part of the 210,000ha Baladjie Aggregation, sold by the Nicoletti family to SALIC in 2019.

The transaction included 76,000ha of freehold land and 134,000ha of leasehold country.

SALIC Australia chief executive and Merredin Farms general manager William England said the company planned to remain in Australian agriculture, offering Merredin Farms as it sought to reshape the focus of its portfolio.

A figure of almost $200 million is tipped for the almost 78,000ha Merredin Farms Wheatbelt Portfolio.

“The Merredin Farms Wheatbelt Portfolio presents a rare opportunity to take a substantial position in the Western Australian agricultural sector that continues to strengthen,” he said.

“The portfolio offers a turnkey corporate farming operation inclusive of world-class governance, HR, procurement and WHS systems all focused on growing wheat, canola and barley sustainably.”

Meanwhile, PenAgri owns a portfolio of farms, across six properties in the Merredin region of WA’s eastern wheatbelt, totalling more than 88,500 hectares.

It is understood PenAgri will also retain some of existing holdings in the region while selling a portion as part of the Merredin Farms Wheatbelt Portfolio.

PenAgri Farms managing director Greg Harvey said the offering was “globally significant”.

“Our team see this combined offering to be a spectacular agribusiness opportunity with huge upside for the new owners at settlement,” Mr Harvey said.

Colliers Agribusiness selling agents Rawdon Briggs and Duncan McCulloch are handling the sale and said potential carbon farming and renewable projects could be established at the aggregation.

“This is a significant grain production operation underpinned by dual avenues of growth, earnings and land appreciation,” Mr McCulloch, who is Colliers national director of agribusiness, said.

“The low-cost, high-volume business model is well supported by a quality management team, an operationally efficient hub and ideal Wheatbelt location close to numerous grain handling

terminals allowing efficient production and logistics.”