Packhorse Pastoral Company, the regenerative agriculture business chaired by Hyperion’s Tim Samway, is looking to raise a further $50 million, following its first raise of $65 million.
The firm said it had expansion plans with the imminent settlement of another two properties set to deliver growth opportunities and returns for investors.
Samway said the company had a team of experts in funds management, land regeneration and cattle management, who developed a process-driven method of creating wealth through optimising cattle station assets and deploying widespread rejuvenation of pastoral land.
“Rural agricultural land is fast emerging as a valuable stand-alone investment, providing competitive risk-adjusted returns and low correlation compared to traditional asset classes,” Samway said.
“Packhorse Pastoral Company delivers investors an opportunity to own a piece of Australian country that has a long history of strong capital gains, due to its finite nature and provision of sought-after quality grass fed beef.
“We know that food production will need to almost double in the next 30 years to feed the population and the global demand for sustainably sourced Australian grass-fed beef is increasing.
“These are critical drivers that underpin Packhorse’s mission to accumulate and regenerate agricultural land on a significant scale across Australia.”
Packhorse also had processes to improve soil and grassland quality to enable carbon to be more successfully sequestered in the rejuvenated land, and generated additional revenue by on-selling carbon credits.
“The carbon credit market grew 20% in 2020 to $272 billion so to play a part in this emerging market may well present investors with a significant financial upside,” Samway said.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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