Macquarie Pastoral Group Acquires The Bulls Run

Media Release
Macquarie Pastoral Group Acquires The Bulls Run

3 September 2007 - Macquarie Pastoral Group today announced it has acquired its second property, with the purchase of The Bulls Run on the Murrumbidgee River, near Wagga.

The property was bought by Paraway Pastoral Company Limited, the operating entity of the Macquarie Pastoral Fund, from Milestone Investments Pty Ltd on a walk in walk out basis.

Macquarie Pastoral Services Limited Director, Tim Hornibrook, said The Bulls Run is an outstanding property that combines environmentally sensitive practices with cutting edge technology to produce premium product in each of its business areas.

The property is mainly a sheep property, with the capacity to carry both sheep and cattle, and includes dry-land and irrigated crops such as soya beans, lucerne, wheat, barley, canola and red clover.

“The purchase of this property now provides us with the basis of our original intention to run both cattle and sheep with a limited amount of cropping activities. It follows on from the purchase in July of the renowned Riverina Merino Stud, Pooginook,” Mr Hornibrook said.

Mr Hornibrook said that having two such well known and successful breeding properties gave a strong indication to regional Australia, and national and international fund managers, that the Macquarie Pastoral Group was looking for quality properties that met its investment criteria.

Mr Hornibrook said the Macquarie Pastoral Fund had attracted a great deal of interest from Australasian and international institutional investors with its aim to create a portfolio of land and livestock enterprises of such a scale and spread that it will be able to capitalise on the potential future growth in world demand, while leveraging some of Australia's natural competitive advantages.

“Australia has a strong competitive advantage in the production of red meat. Australia is the second largest exporter of beef and lamb in the world, but on dollar value we are the largest exporter of beef in the world,” Mr Hornibrook said.

“Australia’s reputation for high quality meat means we capture a premium price for our beef exports which explains the variance between being the second largest exporter of beef on volume and largest on value.

“By 2010 Asia is expected to import more beef (in volume) than Australia’s total production.”

Mr Hornibrook said the Macquarie Pastoral Fund will provide equity-like exposure to the operating business, because the underlying assets of the fund will be land and livestock. The Macquarie Pastoral Fund believes it will provide the security and capital growth potential normally associated with an investment in tangible assets.

“The livestock will be bred and fattened for sale both domestically and internationally - generating a source of income returns that will have economies of scale. Wool production will be an important part of the business,” he said.

Mr Hornibrook said the wholesale Macquarie Pastoral Fund, which is expected to list in five to eight years, continues to accept institutional investments in the fund from both domestic and international fund managers and superannuation funds.

ENDS

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