Fairholme Aggregation sold to Lukas Asset Management’s Land und Fortwirtschaft fund

A pair of farms in the NSW Lachlan Valley, spanning 3786ha, have been snapped up by a foreign buyer.

A German-based family office has snapped up its second major Australian agricultural investment, understood to have purchased a two-farm aggregation spanning 3786ha near Condobolin in the NSW Lachlan Valley.

LAM LUF Overseas GMBH, a subsidiary of Lukas Asset Management’s Land und Fortwirtschaft fund, has purchased the Fairholme Aggregation, in a deal reportedly worth more than $30 million.

Last month it was revealed the Lukas Asset Management’s Land und Fortwirtschaft fund had purchased historic 3600ha Gilgal Station near Cootamundra NSW, after paying more than $53 million.

It is understood both the Gilgal and Fairholme properties will be run by agricultural asset managers SLM Partners and Impact Ag Partners, forming part of their joint venture, Agri Carbon Investments.

Irrigated cotton has been grown on the Fairholme aggregation.

The Agri Carbon Investments partnership aims to deliver returns by running commercial regenerative agriculture enterprises alongside carbon and biodiversity projects.

Comprising two landholdings, Fairholme and The Island, the aggregation was offered to the market in May this year.

The Fairholme portion (2538ha) was owned by a syndicate of local Condobolin farmers who purchased the property about six years ago.

Meanwhile, The Island (1428ha) was owned by central NSW grazier Sean Duggan, from Woodstock near Cowra.

Mr Duggan purchased the property about 10 years ago, and it is understood he was divesting The Island to focus on his other grazing properties.

The Fairholme portion was reportedly sold for about $19 million, while The Island fetched about $11 million.

The Fairholme portion has been run as a cattle-finishing enterprise using pastures and silage grown under irrigation as supplementary feed for 400 cows and 150 weaners.

The aggregation has run dryland cropping and livestock breeding and finishing in previous seasons, underpinned by significant water entitlements.

Upper Lachlan alluvial groundwater (3426ML), Lachlan River general security water (1172ML) and Lachlan River general security water (184ML) delivered via the Jemalong irrigation scheme were included in the offering.

Existing infrastructure included 700ML of on-farm water storage, centre pivot and linear move spray irrigation (830ha), flood and border check irrigation (387ha) with 2279ha capable of dryland arable cropping and 844ha identified as irrigation potential.

Founded in London in 2019, SLM Partners has more than $833 million ($US530 million) in assets under management across Australia, the US and Europe.

Meanwhile Impact Ag Partners has more than 200,000 hectares, or $600 million worth, under regenerative management across Australia and the US.

LAWD director Ian Robertson and senior director Danny Thomas handled the sale, but did not comment on the transaction due to confidentiality arrangements.