Billionaire Rinehart Puts Australian Beef Assets Up for Sale
(Bloomberg) -- Mining billionaire Gina Rinehart plans to sell a portfolio of seven cattle stations in Australia, looking to cash in on her investment in the properties amid strong global beef demand.
Hancock Agriculture, a unit of Rinehart’s broader Hancock Prospecting Pty Ltd. empire, and joint venture partner S. Kidman & Co. are marketing the portfolio through rural real estate specialist Elders, and expect strong demand from domestic and international investors.
“This represents a rare opportunity to acquire a strategically constructed portfolio of assets at scale during a period of unprecedented growth in demand for quality Australian protein,” Tom Russo, Elders’ general manager for real estate, said in a media release.
Market conditions are favorable for the sale: Australian cattle prices have surged to records as demand returns amid signs the global economy is recovering from the Covid-19 pandemic. However, the country faces a chronic supply shortage, with herd sizes near their lowest since the early 1990s.
The portfolio covers nearly 1.9 million hectares (4.7 million acres) of land across Western Australia and the Northern Territory, with the cattle herd currently numbering around 108,500, Hancock Agriculture said in the statement.
The company, which is Australia’s second-biggest beef producer, had undertaken extensive capital works to improve the properties and is now looking “to complete its investment cycle and focus on other areas of growth in its agricultural operations.”
Elders will begin marketing the portfolio in March, with offers for all or part of the portfolio for consideration.
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