Packhorse investments will remain Australian owned

“The impressive track record, environmental benefits and ability to buy value, cemented our decision to invest in the Packhorse Pastoral Company”
 

Stephen Byron MD – Capital Property Corporation, April 2021

Packhorse is excited to be presenting the investment community with the most compelling impact investment opportunity, to profitably support mother nature and help restore our soils for the benefit and wellbeing of future generations.

Key Investment Features

Pastoral Land supporting beef production

  • IRR Targets 8-10% pa*
  • Conservative gearing, fixed interest payment
  • Secure income through non correlated returns
*3-4% Cash Yield, 5-6% Capital Growth. Based on 10 year investment period. Excludes income derived from sale of ACCUs

Market & Opportunity

The soft economy presents the perfect environment for non-correlated, risk adjusted capital preservation investments.

Headwinds

30 years of global growth
2008
Global Financial Crisis
2019
2020
COVID Uncertainty

Tailwinds

Beef industry drivers

Australia’s per capita beef consumption continues to be one of the largest in the world at approximately 25kg in 2019, compared with a global average of 14.6kg. In 2019, Australia was the second largest beef exporter, after Brazil.

It has been extensively documented that demand for protein is likely to increase significantly as incomes throughout the world increase. This is likely to increase demand for beef from many developing countries and further improve Australia’s export prospects.

 

Source, Meat & Livestock Australia State of the Industry Report 2020

Australian red meat industry facts

  • $28.5 Billion in sales (2018-19)
  • $17.2 Billion in export receipts (2018-19)
  • $11.3 Billion in domestic sales (2018-19)
  • 80,000 businesses operating across the supply chain
  • 2.2 Million live head exported
  • 3 million tonnes of red meat produced in 2019
  • 405,000 people employed.

Source, MLA RedMeat 2030

Naturi Cows

Packhorse Investment Strategy

Investment Criteria

  • Australian grazing potential
  • Real estate backed
  • Livestock (beef cattle) focus
  • Scalable with water reliability
  • Development potential

Sourcing

  • Direct approach - off market
  • Industry relationships - off market
  • Intermediaries - on market

Investments

IRR Target 8-10%* *3-4% Cash Yield, 5-6% Capital Growth. Based on 10 year investment period. Excludes income derived from sale of ACCUs

Evaluation

  • Property valuation
  • Detailed DD - commercial & technical
  • Agronomy and soil report
  • Securing offtake agreement
  • Development planning
  • Securing debt facilities

Investment Decisions

  • Formal recommendations from Packhorse investment committee
  • Livestock (beef cattle) focus
  • Sign off by Packhorse Pastoral Company board
  • Risk audit

Investments we will NOT make