Canadians swoop on massive Riverina farms in $500m sale

More than 30,000ha of irrigated and dryland farmland and a huge water portfolio is now in the hands of a mammoth pension fund. See the details.

A mammoth Canadian pension fund has swooped on a swath of irrigated and dryland cropping farmland in the NSW Riverina, after buying out its co-investors in a massive deal.

Australian Food and Fibre, backed by majority investor Canada’s PSP Investments, has acquired total ownership of the 30,000ha Kooba aggregation, located near Griffith.

The Weekly Times understands Australian Food and Fibre, a joint venture between PSP Investments and the Robinson family from northern NSW, has bought out the Kooba aggregation’s owners including Australian investors Chris Corrigan and David Fitzsimons plus PSP Investments, in a deal reportedly worth $500m in total.

The Kooba aggregation, which comprises 30,000ha for cotton, crops and livestock plus about 1400ha for almonds, was previously part of Webster Limited, a formerly ASX-listed agricultural company established by Alexander Webster as a traditional pastoral company in 1831.

In February 2020, PSP Investments finalised an $850m takeover of Webster Limited, acquiring Australia’s fourth-oldest company with 340,000ha and 153,000ML of water.

Irrigated and dryland cropping farmland across 30,000ha has been sold to Australian Food and Fibre, backed by majority investor Canada’s PSP Investments.

The deal involved the Riverina property, Kooba, and other Hay district assets which were separated into another holding company, KoobaCo, where a 50.1 per cent stake was offered to then Webster chairman Chris Corrigan and fellow director David Fitzsimons.

At the time KoobaCo was valued at about $277m, with 81,288ML of Murray and Murrumbidgee River water entitlements transferred to the spin-off.

Australian Food and Fibre confirmed to The Weekly Times Kooba employees had been informed of the change of ownership.

Chris Corrigan, the former chairman of Webster Limited, has exited the Kooba aggregation, alongside co-investor David Fitzsimons. Picture: File (Hollie Adams).

“Australian Food and Fibre has reached an agreement to acquire Kooba from its existing shareholders. As employees have been informed, it is AFF’s intention to transfer Kooba’s almond and apiary operations to tree nut producer Stahmann Webster, while the cotton, cropping and livestock operations will remain with AFF,” an AFF spokesperson said.

“Kooba’s assets represent a natural fit with AFF and Stahmann Webster, giving both the cotton and almond operations the opportunity to continue to thrive under specialist ownership.”

The transaction has received FIRB approval.

In 2022 a separate part of the Kooba holdings, the Kooba Ag Hay Aggregation, totalling almost 20,000ha west of Hay plus a supplementary water entitlement of 17,000ML, was sold to the Paterson family, via JHW Paterson and Son for $63m.

Marc Drouin is the head of natural resources at PSP Investments.

The joint venture of Australian Food and Fibre was formed in 2017 and owns major assets including the former Auscott Limited cropping business spanning nearly 40,000ha in Central NSW, acquired for $500m in 2021.

PSP Investments members include the famed Royal Canadian Mounted Police staff, Canadian public service workers, and armed forces personnel.

The pension fund is regarded as the biggest investor in Australian agriculture with land and water assets nearing $8bn, owning subsidiaries such as cropping giant Altora Ag, Aurora Dairies and organic beef and sheep producers Hewitt.