HEWITT Cattle Australia, backed by one of Canada's largest pension funds, the Public Sector Pension Investment Board, has snapped up a major aggregation of cattle stations from gas company Australia Pacific LNG.
The purchase is the third major acquisition by Hewitt Cattle, whose pension fund backer invests money for the Canadian Public Service and the Royal Canadian Mounted Police.
The company will acquire three cattle properties north-east of Roma, Queensland - Strathblane, Wybara and Scotts Creek - to add to its existing Pony Hills property. The commercial terms of the deal have been kept secret but the three properties are likely to be able to run as many as 9000 head of cattle.
At current land valuations, between $2000 and $3000 per beast area, the transaction is likely to equate to about $20 million.
While the company refuses to comment on details, chief executive Mick Hewitt confirmed the deal with Australia Pacific LNG had been finalised.
"We know the properties we are acquiring well, and with the first-class infrastructure that APLNG has developed, they are a perfect fit for our existing and future operational plans," Mr Hewitt said.
He said an agreement had been struck over the future co-existence of the company's cattle operations and APLNG's CSG activities. Australia Pacific LNG is a $24.7 billion joint venture between Origin Energy, Conoco Phillips and Sinopec, which expects to be exporting gas by the end of the year.
"Through the ownership of Pony Hills, an adjoining property, our family has worked alongside the CSG industry for more than 15 years, and we are confident that our future agricultural operations and APLNG's activities can successfully co-exist," Mr Hewitt said.
The acquisition is in line with Hewitt Cattle Australia's expansion strategy, allowing the business to create a contiguous landholding in one of Queensland's most recognised beef-producing regions.
"We are looking to expand by buying suitable agricultural assets targeting beef cattle production, which complements our existing operations," Mr Hewitt said.
In April the company snapped up the Oakleigh and Stoodleigh properties north of Rockhampton, owned by pastoral legend Sir Graham McCamley, for about $13 million.
In July it went on to buy a 31,000-hectare beef cattle aggregation in the Moura district of Central Queensland. The Hewitt Cattle Company, based in Emerald, is made up of Mick Hewitt, his brother Ben and father, Colin. The company operates at several locations with more than 200,000 hectares of land and more than 30,000 head of cattle.
The pension fund, better known as PSP Investments, had $C112 billion ($114 billion) of assets under management as at March this year. The pension fund has received Foreign Investment Review Board approval for the purchase of the cattle stations.