Australians buy back the $60m farm from foreigners

Australian owned Archipelago Beef Trust has purchased two cattle stations for more than $60 million from Indonesia’s biggest importer of live cattle, Japfa.

The privately owned Archipelago Beef Trust acquired Riveren and Inverway Stations located in the Southern Victoria River District of the Northern Territory. The properties cover 550,000 hectares and are carrying about 40,000 head of Brahman cross cattle.
Cattle industry participants will be watching closely to see if the transaction will settle given Archipelago director Luke Butler is a former bankrupt who once attempted to takeover the Australian Agricultural Company.

Mr Butler confirmed the transaction on Thursday and said he looked forward to working with Japfa on trade.

“Riveren and Inverway Stations are a key strategic acquisition by Archipelago Beef targeting the continued delivery of healthy Australian bred and produced cattle into the growing Asian live cattle export market,” Mr Butler said.

The vendors Japfa Santori Australia, were represented by Colliers International director for rural and agribusiness Rawdon Briggs.

Japfa, a listed company on the Singapore Stock Exchange as well Indonesia, focuses it’s operations in Asia’s emerging markets including China, Vietnam, Myanmar and India. It was represented by Bruce Warren.

Japfa originally purchased the properties in 2013 from the Underwood family for about $35 million.

While a sale price was not disclosed it’s understood that it achieved about $60 million which is a significant uptlift on the original purchase price.

Major cattle companies have reported significant uplift in values this week with The North Australian Pastoral Company declaring a 13 per cent increase in land values and the Australian Agricultural Company reporting an $80 million rise, or 15.8 per cent increase, in the value of its 18 cattle stations.

http://www.afr.com/real-estate/australians-buy-back-the-60m-farm-from-foreigners-20160413-go5y07#ixzz4BLaWoBwR

One Comment Add yours

  1. Jeanette Gray says:

    I hope it goes through Australians should own our country, good on you for raising the capitalšŸ‘Most of us would too if we could.

    Like

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