Proterra Investment Partners Lists Expansive One Tree Portfolio in Australia, Anticipates $250 Million Sale
Proterra Investment Partners has put its expansive 23,595-hectare One Tree portfolio on the market, with expectations of fetching more than $250 million. This significant agricultural portfolio consists of three major aggregations: the 7,934-hectare Umbercollie northwest of Goondiwindi, the 9,966-hectare Jandowae on the Northern Downs, and the 5,604-hectare North Star aggregation in northern New South Wales. The listing is managed by LAWD senior director Danny Thomas and director Elizabeth Doyle, with options to sell the portfolio as a whole, by individual aggregation, or by splitting into the 21 comprising properties.
Key Features of the One Tree Portfolio
- Prime Agricultural Land: Approximately 92% of the portfolio consists of highly fertile, self-mulching black brigalow arable soils, suitable for high-yielding crops like wheat, barley, chickpeas, canola, mungbeans, cotton, and sorghum.
- Diverse Water Resources: The Umbercollie and North Star aggregations are entirely dryland, whereas Jandowae includes 585 hectares of irrigated land.
- Substantial Crop Production: The portfolio’s capacity to produce large quantities of grain makes it attractive to a wide range of investors, including domestic and international institutional investors, corporate farming groups, and local farmers seeking expansion.
- Significant Infrastructure Investments: The One Tree portfolio features extensive infrastructure investments, including a 32,000-tonne grain silo complex for drying, blending, and storage, supporting strategic partnerships.
- Residential and Operational Facilities: Numerous dwellings and high-quality operational infrastructure add to the portfolio’s appeal, along with a combined grain-storage capacity of 48,500 tonnes.
Market and Investment Potential
According to LAWD’s Danny Thomas, opportunities for acquiring dryland cropping properties of this scale and strategic investment rarely come to market. The well-established crops and substantial infrastructure investments make this portfolio particularly appealing.
Proterra Investment Partners’ managing director Becs Willson emphasized the robust setup of the portfolio, especially following a productive summer. With nearly 17,000 hectares of established crops, the company anticipates its largest winter cropping season yet.
Historical Context and Previous Listings
The One Tree portfolio was initially listed in March 2022, alongside Proterra’s 14,425-hectare Racecourse sugarcane portfolio in Queensland’s Mackay region and the 4,448-hectare Vaucluse in Tasmania, with price expectations of $400 million. While the Vaucluse property sold for over $100 million, the Racecourse portfolio remains under Proterra’s ownership.
Proterra’s engagement with Australian agriculture began in 2009, with its initial acquisition for the One Tree portfolio occurring between 2014 and 2019. The company has since utilized the latest agricultural technologies and sustainable management practices.
Sale Process and Future Prospects
Expressions of interest for the One Tree portfolio close on August 14. Given the extensive investment and flexibility in the sales process, significant interest from diverse potential buyers is expected. Proterra’s prior sales, such as the Corinella Farms for over $360 million in 2021, indicate a strong track record in divesting large-scale agricultural assets.
The One Tree portfolio represents a unique opportunity for investors to acquire a substantial and well-developed agricultural asset in Australia, poised for continued productivity and growth.
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