The Upcoming Sale of Paraway Pastoral: A Significant Event in Australia’s Agricultural Sector

Australia’s agricultural landscape is on the brink of major change as one of its largest portfolios, Paraway Pastoral, prepares to enter the market. This move follows the announcement from Macquarie Asset Management, signaling the beginning of a significant transition in agricultural ownership.

About Paraway Pastoral

Paraway is recognized as one of the largest agricultural companies in Australia, managing extensive pastoral, cropping, and feedlot operations. Its footprint extends across various regions, from Queensland’s Gulf country to Western Victoria.

The Sale Strategy

According to sources familiar with the matter, Macquarie intends to sell Paraway as a single entity rather than separating its diverse properties. While previous sales, such as Stanbroke in 2004, often favored piecemeal sales, Paraway seems poised to attract buyers interested in the whole portfolio.

Market insiders suggest that Paraway could fetch over $2.5 billion, with significant interest already noted from international investors, hinting at a competitive bidding environment.

Real Estate Interest

Several categories of buyers have emerged, expressing keen interest in acquiring Paraway:

• Natural Capital Buyers: Interested in large tracts of land for environmental purposes and carbon credit acquisition.
• Traditional Corporate Buyers: Representing North America, Asia, and the Middle East, these buyers seek integrations with existing processing assets.
• Private Equity Groups: Looking to combine assets in the red meat supply chain for greater efficiency and scale.

The Portfolio’s Features

Over the past 18 years, Macquarie has built a comprehensive portfolio comprising 28 agricultural properties, capable of supporting over 250,000 cattle and 200,000 sheep. Paraway operates a diverse range of enterprises, including even:

• Beef breeding and growing.
• Grass backgrounding across Central and Southern NSW and Victoria.
• Dryland and irrigated cropping across 40,000ha and 3,400ha, respectively.

With a wide array of crops and livestock operations, Paraway plays a critical role in Australia’s agricultural ecosystem.

What Lies Ahead?

While the formal sale process is yet to begin, numerous institutional companies have already expressed interest. The ramifications of this sale could reshape Australia’s agricultural investment landscape significantly.

Related Story: Macquarie has recently initiated an $11.6 billion bid for logistics company Qube.