Australian Billionaire To Sell Cattle Stations

Hancock Agriculture and S. Kidman & Co are seeking to sell seven cattle stations across Western Australia and the Northern Territory, along with a cattle herd of about 108,000 head. Australian mining billionaire Gina Rinehart owns the Hancock portfolio and is the major shareholder in S. Kidman & Co. Since 1992 she has been the Executive Chairman of Hancock Prospecting, a privately-owned mineral exploration and extraction company founded by her father, Lang Hancock. Rinehart topped the Australian Financial Review Rich List for 2020 with a personal wealth of $28.89 billion. Her wealth has been spurred by increasing demand for iron ore from China. The portfolio of cattle stations includes 1.9 million hectares (4.7 million acres), and will be marketed by real estate specialist Elders, and will consider offers for all or part of the portfolio. The portfolio also includes a strategically located feeding and export facility and farming operation. “This represents a rare opportunity to acquire a strategically constructed portfolio of assets at scale during a period of unprecedented growth in demand for quality Australian protein,” Tom Russo, Elders’ general manager for real estate, said in a press release. Market conditions are favorable for the sale as Australian cattle prices have surged to records as demand returns amid signs the global economy is recovering from the Covid-19 pandemic. However, the country faces a chronic supply shortage, with herd sizes near their lowest since the early 1990s. The company, which is Australia’s second-largest beef producer, had undertaken extensive capital works to improve the properties and is now looking “to complete its investment cycle and focus on other areas of growth in its agricultural operations.” LINK