More than $400 million is expected for the Worral Creek Aggregation in Queensland, which is tipped to account for over 10% of this year’s Australian cotton crop.
The Reardon family is bringing the 26,855 hectare aggregation in the Border Rivers region to the market as record crops and commodity prices attract more investors into the agricultural sector.
The aggregation is the amalgam of seven properties between Talwood and Mungindi and is offered on a turn-key basis, and with an accompanying portfolio of irrigation water totalling more than 65,900 megalitres of annual water entitlements. A full suite of plant and equipment is included.
Worral Creek Aggregation is for sale by expressions of interest through JLL’s Clayton Smith, Chris Holgar and Geoff Warriner in conjunction with Oxley Capital Partners as transaction advisors.
“With over 70,000 megalitres of on-farm water storage, excellent water infrastructure and development with an extensive suite of plant and equipment, the Aggregation represents one of the most significant irrigated cotton enterprises to hit the market in recent years,” Smith said.
“The Aggregation’s geographical location coupled with extensive water harvesting, pump down and overland flow entitlements unique to the location of the Aggregation provides exceptionally high water reliability.
“On-farm storages and up-stream regulated dams are currently at capacity giving the new owner confidence in next year’s production.”
The property is interspersed by five watercourses including the Barwon and Weir Rivers. Approximately 7,510 hectares have been developed to bankless, siphon and spray irrigation underpinned by excellent water entitlements. The Aggregation is on track to produce more than 75,000 bales of cotton this season, and according to the agents has the reliability to consistently achieve this annually.
About 6,720 hectares of dryland enable the production of cereals and legumes.
“Having produced average yields of up to 14.5 bales of cotton per hectare with the water reliability enabling more than 6,200 hectares to be planted on average, the Worral Creek Aggregation represents an institutional grade asset offering truly unique production scale and water reliability within the Australian irrigated cotton market,” Oxley Capital Partners managing director, Ben Craw said.
Since acquiring Worral Creek in 1990, the Reardon family has strategically and progressively amalgamated the seven properties that now collectively form the aggregation.
The sale process will be conducted in two stages with stage one seeking non-binding offers by 12th May.
Canada’s Public Sector Pension Investment Board and the Robinson Family’s Australian Food & Fibre last year acquired cotton producer Auscott for about $500 million.
Cotton trade patterns are not expected to impacted heavily by Russia’s invasion of Ukraine, but the sector remains prone to impacts stemming from factored in, and potentially stronger, price increases for fertiliser and energy. Higher inflation will also be weighed into market positions, according to Rabobank.
