THE business behind the country’s most prestigious Merino blood is for sale.
The privately-owned Australian Food and Agriculture company boasts a legendary portfolio of Merino studs - including Wanganella, Peppinella and Boonoke – plus swathes of premier cotton, cattle, prime lamb, wool and rice country.
“We started out very small 20 years ago and we got one property after another. Now it’s a magnificent portfolio,” said co-owner Colin Bell.
Mr Bell, of Bell Financial Group, owns the company with two family members Andrew and Lewis Bell, plus Alastair Provan, managing director of the group, and an “old friend” of the family, hedge fund manager Ray Dalio.
They’re asking for $330 million for their collection of 18 properties.
“We’re all getting on in age so we decided to initiate the sale rather than waiting for a trigger point,” he said.
They’re in no rush to sell and aren’t prepared to split the properties up.
Mr Bell said the diversity of the portfolio underpinned its value, saying the company had been profitable for 13 of the past 16 years.
It had been an emotional decision to sell.
“It’s a bit like selling my children. I’m so proud of the entire operation and how it’s running.”
The Deniliquin group of properties comprise the original FS Falkiner and Sons property aggregation. Trophy properties totaling nearly 123,000ha include “Boonoke”, “Warriston”, “Peppinella”, “Wanganella”, “Zara” and “Barratta”.
Another 57,000ha of properties are aggregated in the Hay region, including “Burrabogie”, “Mulberrygong”, “Kolora”, “North Cobran” and “Wahwoon”. At Coonamble they hold nearly 45,000ha in “Wingadee” and “Netherway”.
It’s a bit like selling my children.
- Colin Bell
The company is largely managing the sale process on its own.
Mr Bell said they had fielded more inquiry from international investors than Australians.
“The Canadian, American and European pension funds are all interested in agriculture as an asset class. We’ve had interest from two Australian funds, too.”
The company also owns approximately 54,693 megalitres of water licences in the Murrumbidgee and Murray irrigation areas.