Mormon church adds to $450m-plus buying spree

Powerful American investors have added another NSW cropping farm to a growing portfolio which now exceeds 38,500ha. See the details.

Kentucky farms has been sold by ASX-listed Duxton Farms to Alkira Farms, a subsidiary of the Church of Jesus Christ of Latter Day Saints.

The agricultural arm of the Mormon church has further expanded its Australian farmland portfolio, amid a $450m spending spree.

ASX-listed Duxton Farms informed investors late on Thursday afternoon it had sold the majority of its Kentucky farms property to Alkira Farms Inc., a subsidiary of the Church of Jesus Christ of Latter Day Saints.

The Kentucky mixed cropping properties are located in the Wirrinya district, 30km southwest of Forbes, and were sold on a vacant possession basis for $38m.

The transaction includes 6020ha and 48 megalitres of stock and domestic water entitlements.

The remaining 423ha and 1463ML of Jemalong Irrigation General Security surface water are to be retained within the Duxton Farms portfolio.

Duxton Farms listed the Kentucky farms for sale in November last year.

The sale is the third significant recent transaction of note for the Mormon church into Australian agriculture, which has spent more than $450m for three cropping aggregations.

Last year the Utah-based religious group purchased the 26,885ha Worral Creek portfolio of southern Queensland irrigated and dryland farmland, in a landmark deal understood to be worth more than $350m.

The 400ha Roselyn portion of the Kentucky property that has functionally become part of nearby West Plains farm, was not offered for sale by Duxton Farms.

In February, the Mormon church also paid $68m for the 5694ha Calrossie Farm, formerly the North Star Aggregation, located 45km north of Moree in northern NSW.

The Mormon church now owns 38,599ha of Australian cropping farmland following the three transactions.

Duxton told investors the contract for sale has been successfully executed and settlement is due to occur in the next two weeks. LAWD Agribusiness senior director Danny Thomas handled the sale.

“The sale of Kentucky is a major milestone for Duxton Farms as the board continues to execute on its strategy of reorienting the focus of the company’s investment strategy away from dryland cropping and towards a diversified mix of new development opportunities in Australian agriculture to build significant value by elevating and stabilising the company’s earnings profile in the long-term,” Duxton Farms chairman Ed Peter said.

In April last year Duxton sold the 8432ha Timberscombe broadacre cropping aggregation to Altora Ag, the cropping subsidiary of huge Canadian pension fund PSP Investments, in a $70m transaction.

The deal was part of Duxton Farms’ plan to become less exposed in the central NSW region, instead redeploying capital into existing projects in the NT and Victoria.

These assets are a 1185ha pistachio development at Piambie in northern Victoria and a lease on the 141,000ha Mountain Valley Station in the NT.