Sydney, 14 September 2021: Australian cattle property investment company Packhorse Pastoral Company (Australia) Limited has officially opened its highly anticipated second round of funding, seeking to raise $50m as it builds mass-scale regeneration of the Australian landscape.
The successful launch of Packhorse Pastoral Company earlier this year and subsequent first raise, saw the purchase of Stuart’s Creek, a 8,360-hectare property in Queensland, the first in a five-year plan to acquire $1bn worth of cattle property.
The wealth accumulation model is proven by Packhorse’s Investment Manager, following seven years of recurring positive financial and environmental outcomes in privately managed cattle property portfolios. Annual total returns achieved by the investment manager of 22.65%* have been delivered, linked to land appreciation and stable income streams from long term agistment agreements negotiated with major cattle companies and beef processors.
The company is ramping up its expansion with the planned purchase of another two properties, both well positioned to deliver solid growth opportunities and returns for investors.
Tim Samway, Packhorse Pastoral Company Chair said the powerhouse behind the company is a team of experts in funds management, land regeneration and cattle management, who have developed a process-driven method of creating wealth through optimising cattle station assets and deploying widespread rejuvenation of pastoral land.
“Rural agricultural land is fast emerging as a valuable stand-alone investment, providing competitive risk-adjusted returns and low correlation compared to traditional asset classes, explained Mr Samway. “Packhorse Pastoral Company delivers investors an opportunity to own a piece of Australian country that has a long history of strong capital gains, due to its finite nature and provision of sought-after quality grass fed beef.
“We know that food production will need to almost double in the next 30 years** to feed the population and the global demand for sustainably sourced Australian grass-fed beef is increasing. These are critical drivers that underpin Packhorse’s mission to accumulate and regenerate agricultural land on a significant scale across Australia”.
In addition, Packhorse is improving soil and grassland quality to enable carbon to be more successfully sequestered in the rejuvenated land.
“In August, Packhorse engaged market leader Carbon Link to provide a carbon baseline for its Stuart’s Creek property which it estimated could sequester up to 2,800 tonnes of carbon per annum across an estimated 4,000 hectares of land. The additional revenue generated by on-selling carbon credits, as organisations globally pledge net zero targets, was certainly an appealing aspect of the first fund raising with investors keen to be part of an investment deploying sizeable carbon capture programs across a growing portfolio of suitable land.
“The carbon credit market grew 20% in 2020 to $272bn*** so to play a part in this emerging market may well present investors with a significant financial upside,” adds Samway.
Geoff Murrell, CEO of Pastoral at Packhorse Investments Australia commented on the current record prices for agricultural land.
“Currently, we’re seeing an increase in land price because the opportunity in the sector is being noticed. There is considerable pressure in the market, but our focussed and disciplined off-market acquisition strategy gets us access to quality properties at good prices. Coupled with the added security that comes with our agistment revenue model that smooths the peaks and troughs, we deliver even in times of volatility,” said Murrell.
The second round of funding opens 13 September until 19 November 2021. The Information Memorandum can be accessed at https://packhorse.net.au/pastoral-fund/
Packhorse Pastoral Company (Australia) Limited 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. Packhorse Investments Australia Pty Limited is the investment and asset manager for the Packhorse Pastoral Company assets and operations.
Karen Keech, firstname.lastname@example.org, 0411 052 408
*Lifetime IRR of combined private investments before fees and taxation. Calculated from date of purchase of first property (August 2014) up to 30 March 2021. Past performance is not a reliable indicator of future performance.
*** Reuters Jan 2020
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. Applications to invest in the Company must be made on an application form attached to or accompanying the information memorandum for the offer. 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.