Mormons pay more than $300 million for Qld cropping farms

An investment fund of the Mormon Church has purchased a 26,885ha southern Queensland cropping aggregation. See all the details.

Retiring cotton and cattle farmers Robert and Jennie Reardon have sold their Worral Creek Aggregation.

US investors have swooped on a 26,885ha portfolio of southern Queensland irrigated and dryland farmland, in a landmark deal understood to be worth more than $300 million.

Renowned and retiring cotton and cattle farmers Robert and Jennie Reardon have sold their Worral Creek Aggregation, an institutional grade portfolio located near Goondiwindi in the Border Rivers region of Queensland, including 65,900ML of water entitlements.

A subsidiary of US-based agricultural investor Farmland Reserve, Alkira Farms, has acquired the massive portfolio for an undisclosed sum believed to be worth $300-$350 million.

The Utah-based Farmland Reserve is backed by the Church of Jesus Christ of Latter Day Saints, alternatively known as the Mormon church, which has acquired farmland for almost a century, primarily in the US and Latin America.

Reportedly, Farmland Reserve holds a US farmland portfolio worth billions, spanning more than 350,000ha.

Ten years ago, AgReserves Australia Ltd, a farming corporation associated with the Church of Jesus Christ of the Latter-Day Saints, sold 47,000ha of NSW farmland including Kooba station, Bringagee, Benerembah and Booberoi.

The farmland was sold to Webster Limited before becoming part of Kooba Pty Ltd in the PSP spin-off.

Melbourne-based Warakirri Asset Management confirmed it had entered a new strategic relationship with Alkira Farms as part of the deal after representing Alkira Farms in the transaction.

The Worral Creek Aggregation, which produces cotton, crops and cattle, has been sold to Alkira Farms, a subsidiary of US-based agricultural investor Farmland Reserve.

Solterra, a new cropping business led by Warakirri’s agricultural executive Adrian Goonan will manage the Worral Creek Aggregation.

“We appreciate the significant trust Alkira has placed in us to manage their investment in Worral Creek,” Adrian Goonan.

“Worral Creek provides a turnkey large-scale enterprise, with exceptional irrigation infrastructure and water security via a large number of water entitlements and storages, making it an ideal foundation asset for Alkira’s investment in Australian agriculture.”

The transaction has received FIRB approval.

JLL Agribusiness senior directors Clayton Smith, Chris Holgar and Geoff Warriner handled the sale alongside Oxley Capital Partners managing director Ben Craw.

The Worral Creek Portfolio was listed for sale in March 2022, underpinned by 65,900ML of water entitlements.

The aggregation encompasses seven properties stretched between Talwood and Mungindi – making it one of Australia’s largest privately owned irrigated and dryland farming assets.

The Reardon family acquired Worral Creek more than 30 years ago in 1990, developing the portfolio during their tenure.

Worral Creek offered about 7510ha developed to backless, siphon and spray irrigation, 6720ha of dryland cropping used to grow cereals and legumes.

There is also a livestock enterprise that supports 500 breeders plus progeny, plus a 999SCU accredited feedlot.

When the aggregation was listed for sale Worral Creek reported average yields of up to 14.5 bales of cotton per hectare and was expected to produce more than 75,000 bales in the 2022 season.

Established in 1993, Warakirri Asset Management has Australian agricultural interests including Warakirri Cropping, which spans more than 155,000ha across 11 aggregations in NSW, Queensland, Victoria and Western Australia.

Warakirri also runs the Warakirri Diversified Agriculture Fund and Warakirri Farmland Fund.