Packhorse acquires trophy property, opens next raise - Packhorse

Packhorse acquires trophy property, opens next raise

Andrew McKean, Financial Standard, 3 May 2022

Packhorse has acquired a 10,000-hectare South East Queensland property, Moolan Downs Aggregation which has brought the company’s total assets under management to $104 million.

The latest addition to the real estate investment company’s portfolio comprised of four properties, Moolan Downs, Cressy, Allambee and Old Southwood. Three of these properties are Australian certified organic (ACO) and US national organic program certified for cattle.

Packhorse Investments managing director Geoff Murrell confirmed that the property was purchased off-market and proved an exceptional opportunity to implement Packhorse’s regenerative practices.

“We’ve purchased a magnificent turn-key operation at a great value with solid infrastructure and sixty existing paddocks allowing for rotational grazing,” Murrell said.

“We’re currently running 5000 backgrounding cattle for an offtake partner, with a target to increase carrying capacity to 8000 by 2027.”

He added: “Our partner Carbon Link, has identified more than 90% of the land as suitable for soil carbon sequestration projects, which could offer a significant potential carbon credit trading income upside for investors.”

Aside from the successful property acquisition, Packhorse has also officially opened its next offer to invest.

The company outlined a target capital raise of up to $47 million to fund the purchase of two outstanding properties in New South Wales and to expedite the regeneration of the landscape.

The two properties are in the Coonamble and Inverell regions and are completely aligned to Packhorse’s strict acquisition criteria.

Packhorse chair Tim Samway is enthusiastic about the upcoming capital raise and said in a time of political uncertainty, rising inflation, stock market volatility and a climate change crisis, wholesale and institutional investors were looking for the security afforded by real assets.

Samway added Packhorse’s environmentally focussed property play and its unique way of maximising returns would be very appealing.

“There has never been a more opportune time to offer investors an asset class that produces returns on so many levels while creating positive environmental impact at scale,” he said.

“ESG is at the top of the agenda, with investors seeking robust opportunities backed with data-driven evidence of landscape improvements and carbon capture.

“Our in-house head of ESG and principal scientist Dr Elaine Mitchell is working with industry peers and experts to ensure that we can deliver on all these criteria and we’re proud to be involved in the co-development of technology to speed up this process.”

Samway finished by stating: “All properties in Stage 1 of the company’s $300m acquisition pipeline are expected to be registered in soil carbon sequestration projects, presenting investors with exposure to Australian Carbon Credit Units.”

“Early investors will benefit greatly from the exploding capital growth we are seeing in rural ag-land.”

Packhorse is on track to accumulate two million hectares of land within five-10 years with the land acquisition target area spanning from Cloncurry in Queensland to the Victorian border.

The third round of funding is open from 3 May 2022 until 29 July 2022.