Regenerative agri business looks to insto investors for second raise - Packhorse

Regenerative agri business looks to insto investors for second raise

14 September 2021by  Jassmyn Goh, Super Review

Packhorse Pastoral Company, the regenerative agriculture business chaired by Hyperion’s Tim Samway, is looking to raise a further $50 million, following its first raise of $65 million.

The firm said it had expansion plans with the imminent settlement of another two properties set to deliver growth opportunities and returns for investors.

Samway said the company had a team of experts in funds management, land regeneration and cattle management, who 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,” Samway said.

“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.”

Packhorse also had processes to improve soil and grassland quality to enable carbon to be more successfully sequestered in the rejuvenated land, and generated additional revenue by on-selling carbon credits.

“The carbon credit market grew 20% in 2020 to $272 billion so to play a part in this emerging market may well present investors with a significant financial upside,” Samway said.