WA’s largest grain portfolio hits market

Western Australia’s largest corporate-owned broadacre farm, Merredin Farms Wheatbelt Portfolio, has hit the market and expects to fetch close to $200 million.

The 77,954-hectare property, jointly owned by Perth agricultural fund PenAgri and the Saudi Agricultural and Livestock Investment Company (SALIC), is expected to attract global interest.

Colliers head of agribusiness Rawdon Briggs said the asset offered an opportunity to own a low cost, high volume grain operation.

PenAgri Farms managing director Greg Harvey said the property would provide a significant upside for the new owners at settlement.

“This is a globally significant landholding and agribusiness offering that we have decided to sell with our operational partners Merredin Farms,” he said.

Specialist WA agribusiness advisor Pendulum Capital is advising PenAgri Farms on the campaign.

SALIC Australia chief executive and Merredin Farms general manager William England said the portfolio presented a rare opportunity to take a substantial position in WA’s agricultural sector.

“The portfolio offers a turnkey corporate farming operation inclusive of world class governance, HR, Procurement and WHS systems all focused on growing wheat, canola and barley sustainably.”

He said the divestment of Merredin Farms Wheatbelt Portfolio formed part of SALIC’s reshape of its strategic focus on other agricultural value chains in the region.

SALIC is owned by the Saudi Arabian government, as a vehicle for ensuring food security in that country.

The expressions of interest campaign follows the recent sale of the Shooters Hill aggregation in the Great Southern for $35 million.

The 4,837ha property comprises four landholdings across Madgegup, Shooters Hill, Tin Hut and Block, and was sold in a transaction brokered by LAWD.

Last month, Canadian group AIMCo bought the Kimberly Cattle Portfolio for $300 million, in a deal also brokered by LAWD.