Property

New partnership buys Talwood’s Worral Creek aggregation for circa $350m

Property editor Linda Rowley 30/08/2024

MELBOURNE-based Warakirri Asset Management and Alkira Farms, a subsidiary of US-based global agricultural investment company Farmland Reserve, have paid more than $350 million for one of Australia’s largest privately owned irrigation and dryland farming enterprises.

The new strategic partnership between Warakirri and Alkira Farms has secured southern Queensland’s 26,855ha Worral Creek Aggregation, including 65,900ML of water entitlements.

Worral Creek Aggregation will be managed by Solterra, a new cropping business led by Warakirri’s agricultural executive Adrian Goonan on behalf of Alkira.

“Worral Creek provides a turnkey large-scale enterprise, with exceptional irrigation infrastructure and water security via a large number of water entitlements and storages, making it an ideal foundation asset for Alkira’s investment in Australian agriculture.”

Mr Goonan said the portfolio will be managed in line with Warakirri’s established management system and holistic approach to sustainability.

“We prioritise the health and wellbeing of our people, sustainable management practices in line with global best practice, and strong environmental and natural-capital stewardship.”

Over the past 30 years, Warrakirri has built a strong presence in Australian broadacre cropping with a number of large acquisitions for different institutional clients. Under several ag-sector funds it holds large assets in fruit & nuts, wine and table grapes, row crops and water entitlements.

Warrakirri Cropping division is one of Australia’s largest grain growers, owning and operating a diversified portfolio of large-scale and productive cropping aggregations across the northern, southern and western grain production zones of Australia. The portfolio comprises of eleven aggregations totalling 150,000ha, with a balanced distribution across production zones.

Farmland Reserve chief executive officer Doug Rose said the company was pleased to be working with Warakirri, a respected leader in Australian agriculture, and was looking forward to a productive association with the firm in the years ahead.

After a lengthy due-diligence process, JLL Agribusiness director Clayton Smith confirmed the transaction had taken place but was unable to disclose the price paid.

However, when Worral Creek was listed in March 2022, industry experts suggested the institutional-grade irrigated cotton asset could achieve between $350M and $400M on a walk-in walk-out basis.

Worral Creek Aggregation

Meticulously developed over 30 years by well-known cotton growers and cattle producers Robert and Jennie Reardon, the 26,855ha Worral Creek Aggregation was offered with 65,900ML of water entitlements.

Comprising seven non-contiguous properties across four hubs between Talwood and Mungindi in the Border Rivers region of Qld, the operation is underpinned by first-class infrastructure, water security and reliability.

Around 7510ha is developed to bankless, siphon and spray irrigation designed to enable excellent water recycling and turnaround capacity.

An additional 6720ha of dryland farming grows a diverse range of cereals and legumes.

The subsidiary livestock enterprise supports 500 breeders plus progeny underpinned by a 999SCU accredited feedlot.

Along with Mr Smith, fellow JLL Agribusiness directors Chris Holgar and Geoff Warriner handled the sale, together with Oxley Capital Partners acting as transaction advisors.

During the marketing campaign, Mr Smith said the combination of water entitlements, storage and infrastructure made Worral Creek an attractive proposition.

“With more than 70,000ML of on-farm water storage, excellent water infrastructure and development with an extensive suite of plant and equipment, the aggregation represented one of the most significant irrigated cotton enterprises to hit the market in recent years.”

Worral Creek is located at the confluence of two major rivers and numerous creek systems, enabling the efficient capture of water fed by inflows throughout the vast Border Rivers catchment.

Consistently producing more than 75,000 bales of cotton a year, Oxley Capital Partners managing director Ben Craw said Worral Creek has historically produced average yields of up to 14.5 bales of cotton per hectare.

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