Investors stand to benefit from environmental impact investment
MAY 2021: Australian cattle property investment manager Packhorse, has today launched the Packhorse Pastoral Company (Australia) Pty Ltd, a regenerative agri-business seeking to raise $300m to deploy mass-scale restoration of Australia’s rural land that will support the Australian beef industry. In a major upside for investors, the company is also launching sizeable programs to sequester carbon in the rejuvenated soil and generate lucrative carbon credits, a market predicted to be worth $8.25bn by 2027, exhibiting a CAGR annual growth return of 19.2%*.
This initial offer of shares in Packhorse Pastoral Company (Australia) Pty Ltd is the first step in raising $1.5bn over the next five years. Investment in the company is restricted to sophisticated investors.
A cornerstone investment commitment from a family office and early interest from institutional investors, reinforces the appeal of Packhorse’s point of difference to put nature and biodiversity at the forefront of the operations, while generating consistent and sustainable returns for investors.
Backed by the performance of Packhorse’s existing private investments under management, the Packhorse Pastoral Company is targeting an IRR of 8-10%pa** comprising a growing running yield and capital appreciation.
Packhorse Chairman, Tim Samway said the company is building the leading land custodian, land restoration and beef supply chain business in the world.
“We are extremely excited to present the investment community with the most compelling impact investment opportunity to profitably support mother nature and help restore our soils, while delivering an investment return uncorrelated to the returns from other asset classes,” said Mr Samway. “We fervently believe these two goals can be achieved in parallel.”
Mr Samway, who is also Chairman of $10bn equities fund manager Hyperion Asset Management, urged the importance of sustainable investments in today’s market.
“Increasingly we’re seeing a demand from institutions and wholesale investors for responsible investment products. Packhorse’s deep sector knowledge in agri-business operations and asset management along with its vast experience managing some of Australia’s largest pastoral supply chains coupled with its fund-raising ability, makes us well-positioned to build scale and become a significant voice in the preservation of the Australian rural landscape.”
“The exciting upside for our investors is our commitment to engage in large scale programs to sequester carbon in the soils and generate carbon credits and sell them to those seeking to offset their carbon emissions.”
Packhorse CEO Geoff Murrell, formerly General Manager of Macquarie Bank’s Paraway Pastoral Company Northern Operations, is very excited by the opportunity that Packhorse is prosecuting.
“Globally, there’s a recognition that our ecosystems are in trouble and that current farming practices are highly detrimental to soil health,” said Mr Murrell. “In fact, about 25%# of total global land area has been degraded and we feel a custodial obligation to restore our soils. Regenerative agricultural methods focus on achieving biodiversity above and below ground, coupled with animal impact to replenish and protect soils.
“Furthermore, the regenerative methods are successful in actively removing and storing greenhouse gases currently in the atmosphere. Capturing and storing carbon will play a fundamental role in reducing our greenhouse gas emissions.
“Packhorse is quickly expanding its footprint across Australia, restoring degraded land and adopting regenerative agricultural methods to replenish and protect soils and re-create an ecosystem that will benefit generations to come.”
Packhorse’s current land under management is located in the prime Roma belt district of Queensland and an initial capital raising of $300m will secure a pipeline of agricultural assets located between Coffs Harbour and Bundaberg.
Packhorse Pastoral Company (Australia) Pty Ltd is an Australian investment company managing agricultural assets using land restoration practices – leading the way through sustainable practices in protecting and improving agricultural land and contributing to solving global food security issues.
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*Fortune Business Insights, Aug 2020
**Target return of 3-4% Cash Yield plus 5-6% Capital Growth. Based on 10 year investment period.
Excludes income derived from sale of Australian Carbon Credit Units (ACCUs).
# Global Environment Facility [27/8/2019)
The information in this media statement is general information only and does not take into account the objectives, financial situation or needs of any particular person. An investment in Packhorse Pastoral Company (Australia) Pty Ltd (Company) is subject to risk and is restricted to sophisticated investors. Investment decisions should not be made upon the basis of past performance achieved by Packhorse. Past performance is not a reliable indicator of future performance. No person, company or entity makes any promise or representation or gives any guarantee as to the performance or success of the Company, the repayment of capital or any particular rate of income or capital return. To the extent permitted by law, the Company and its associates, and any of their directors, officers, employees, representatives and advisers are released from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage arising by negligence or default) in relation to any anything contained in, or omitted from, this document.