Consolidated Pastoral Company (CPC) has announced the sale of a cluster of three neighbouring stations to investment group Clean Agriculture and International Tourism (CAIT).
The stations include Auvergne and Newry Stations which are located in the Victoria River region of the Northern Territory and Argyle Downs Station which is located in the East Kimberly region of Western Australia.
The geographically linked cluster of stations, which were predominantly used by CPC for breeding and growing cattle, span more than 740,000 hectares. The sale includes 52,000 head of branded cattle, as well as plant and equipment on the station and is subject to regulatory approval.
CPC chief executive Troy Setter said the divestment of this cluster of three stations “at a premium to net asset value reflected the quality of the stations and the investments that have been made in infrastructure in recent years”.
“Our station management and staff look forward to working with CAIT to continue to run the properties and manage the land,” Mr Setter said.
“The remainder of the CPC portfolio is high quality and large scale with over 3.9 million hectares of land across 12 cattle stations, with good geographic diversity as well as a valuable business in Indonesia.
“The business remains a compelling platform as a whole as well as attractive in parts, and the sale process continues for both of these options.
“CPC’s geographically diverse portfolio positions the business well in the current market. The business is benefiting from investments in fencing and watering holes as well as genetics, and our Indonesian supply chain provides a route to market in a large high growth market.
“The fundamentals of beef are underpinned by strong demand dynamics in Asia and around the globe.”
A CAIT spokesperson said CAIT’s vision was to continue to invest in the properties and diversify into high value cropping and other non-pastoral use business.
CPC was advised by Knight Frank and Goldman Sachs, and CAIT was advised by Arthur Winston Investment and Clayton Utz.
CPC is an Australian managed, majority foreign owned agrifood business. Following the sale of the cluster of three stations, CPC will own and operate a portfolio of 12 cattle stations with a carrying capacity of over 325,000 head of cattle across 3.9m hectares of land in Australia.
The company also holds a 90 per cent interest in a joint venture which owns and operates two feedlots in Indonesia.