Macquarie Pastoral Group acquires The Bulls Run
Macquarie Pastoral Group has acquired its second property, with the purchase of The Bulls Run on the Murrumbidgee River, near Wagga.
The property was bought by Paraway Pastoral Company, the operating entity of the Macquarie Pastoral Fund, from Milestone Investments on a walk in walk out basis.
According to Macquarie Pastoral Services, Bulls Run is an outstanding property that combines environmentally sensitive practices with cutting edge technology to produce premium product in each of its business areas.
The property is mainly a sheep property, with the capacity to carry both sheep and cattle, and includes dry-land and irrigated crops such as soya beans, lucerne, wheat, barley, canola and red clover.
According to Macquarie Pastoral Services, the purchase of this property provides them with the basis of Macquarie original intention to run both cattle and sheep with a limited amount of cropping activities. It follows on from the purchase in July of the renowned Riverina Merino Stud, Pooginook.
Having two such well known and successful breeding properties gave a strong indication to regional Australia, and national and international fund managers, that the Macquarie Pastoral Group was looking for quality properties that met its investment criteria.
Macquarie Pastoral Fund had attracted a great deal of interest from Australasian and international institutional investors with its aim to create a portfolio of land and livestock enterprises of such a scale and spread that it will be able to capitalise on the potential future growth in world demand, while leveraging some of Australia's natural competitive advantages.
According to Macquarie Pastoral Services, Australia has a strong competitive advantage in the production of red meat. Australia is the second large exporter of beef and lamb in the world, but on dollar value Australia is the large exporter of beef in the world.
Australia’s reputation for high quality meat means that Australia capture a premium price for its beef exports which explains the variance between being the second large exporter of beef on volume and on value.
By 2010 Asia is expected to import more beef (in volume) than Australia’s total production.
Macquarie Pastoral Fund will provide equity-like exposure to the operating business, because the underlying assets of the fund will be land and livestock. The Macquarie Pastoral Fund believes it will provide the security and capital growth potential normally associated with an investment in tangible assets.
According to Macquarie Pastoral Services, the livestock will be bred and fattened for sale both domestically and internationally generating a source of income returns that will have economies of scale. Wool production will be an important part of the business.
The wholesale Macquarie Pastoral Fund, which is expected to list in five to eight years, continues to accept institutional investments in the fund from both domestic and international fund managers and superannuation funds.
4-Sep-2007