New $ 1.5 billion beef investment vehicle targets livestock production and carbon sequestration


CATTLE real estate investment manager Packhorse has launched Packhorse Pastoral Co, an agribusiness seeking to raise $ 300 million in its initial move to combine livestock production and large-scale carbon sequestration.

The Australian company has a five-year strategy to acquire $ 1.5 billion worth of beef properties spanning an area from west of Coffs Harbor in NSW north to Bundaberg in Queensland.

A benefit for investors, the company is also launching programs to sequester carbon in rejuvenated soil and generate lucrative carbon credits – a market expected to be worth $ 8.25 billion by 2027, showing a return to annual growth. CAGR of 19.2pc *.

The initial share offering of Packhorse Pastoral Co (Australia) Pty Ltd, reserved for “sophisticated investors”, was the first step in raising the $ 1.5 billion expected over the next five years, the company said. in a press release.

Putting nature and biodiversity at the forefront

A fundamental investment commitment from a family office and early interest from institutional investors had heightened the appeal of Packhorse’s point of difference: placing nature and biodiversity at the forefront of operations, while generating consistent returns and sustainable for investors.

Supported by the performance of Packhorse’s existing private investments under management, Packhorse Pastoral Co is targeting an IRR of 8-10pcpa ** including increasing current yield and capital appreciation.

President of Packhorse Tim samway claimed the company was building the world’s leading land conservation, land restoration and beef supply chain business.

Packhorse would acquire properties under strict criteria, allowing us to meet our environmental and financial obligations through our principles of regenerative agriculture, Samway said.

“We are delighted to present to the investment community the most compelling impact investing opportunity to profitably support Mother Nature and help restore our soils, while delivering an ROI uncorrelated to the returns of others.” asset classes. We firmly believe that these two goals can be achieved in parallel, ”he said in a statement.

Samway, who also chairs $ 10 billion equity fund manager Hyperion Asset Management, stressed the importance of “sustainable investing” in today’s market.

“We are increasingly seeing demand from institutions and wholesale investors for responsible investment products. Packhorse’s in-depth knowledge of the agri-food operations and asset management industry, as well as his extensive experience managing some of Australia’s largest pastoral supply chains, coupled with his fundraising ability, put us in a good position to build a ladder and become an important voice in the preservation of Australia’s rural landscape, ”he said.

“The exciting benefit for our investors is our commitment to engage in large-scale programs to sequester carbon in soils and generate carbon credits and sell them to those looking to offset their carbon emissions. “

Geoff murrell

Recruited seven months ago to lead Packhorse operations as CEO has been Geoff murrell, former Managing Director of Nordic Operations of Paraway Pastoral Co of Macquarie Bank.

“Globally, it is recognized that our ecosystems are in trouble and that current agricultural practices are detrimental to soil health,” said Murrell. “In fact, around 25% of the world’s total land area has been degraded, and we feel compelled to conserve our soils.

“Regenerative agricultural methods focus on achieving biodiversity above and below ground, coupled with animal impact to replenish and protect soils. “

“In addition, regenerative methods are successful in actively removing and storing greenhouse gases currently in the atmosphere. Carbon capture and storage will play a fundamental role in reducing our greenhouse gas emissions, ”said Murrell.

Packhorse was rapidly expanding his footprint across Australia, restoring what he described as “degraded land” and adopting regenerative farming methods to replenish and protect soils and recreate an ecosystem that will benefit generations to come.

The land currently under Packhorse’s management is located in the Roma district of Queensland and the initial capital raising of $ 300 million would secure a pipeline of agricultural assets located between Coffs Harbor and Bundaberg.

VSclick here to learn more about Packhorse

* Fortune Business Insights, August 2020.

** Target return of 3 to 4% of cash return plus 5 to 6% of capital growth. Based on a 10 year investment period.

Source: Packhorse Pastoral Co


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