An iconic farming property at Mingenew has been sold for more than $97 million to a corporate cropping investment business — one of the biggest rural sales in Western Australia's history.
Formerly owned by Stuart and Cherie Smart, Erregulla Plains, which spans more than 22,000 hectares in the Midwest region, has been acquired by Daybreak Cropping.
Known for its optimal soil health, high yield potential, reliable rainfall and enviable lime and fertiliser history, the farm went under the hammer for about $4,400 per hectare.
Daybreak was formed as a partnership in 2016 between Warakirri Asset Management and Canada's Public Sector Pension Investment Board.
Chief executive Will Heath said the business was pleased to have an asset of Erregulla's quality in its portfolio.
"Its scale, efficiencies, stage of development and proximity to the port of Geraldton make it a highly attractive asset," he said.
"In addition, it is our first asset in the northern Wheatbelt of WA, and therefore provides important diversification benefits for the business.
"We look forward to continuing the responsible stewardship of the asset and contributing positively to the Mingenew community."
International interest
CBRE Agribusiness regional director Danny Thomas said it was a national-asset-class property that many institutional and corporate investors would have looked at.
"It is of significant scale and very efficient," Mr Thomas said.
"It compares favourably with the divestment of the Nicoletti portfolio and other large deals done on deferred settlement terms in Esperance.
"It was well marketed, and Ray White, acting for the vendor, were able to bring the obvious buyer into the deal at a very high price, in my view."
Mr Thomas said there was a "strong and strengthening" appetite for WA's farming land.
"There is a significant volume of foreign capital seeking exposure to broad hectare cropping land, especially in WA," he said.
"Any vendor seeking to test the market for a substantial-sized portfolio will be well rewarded in the current market.
"The greatest quantum of capital is coming from North America, but there are active buyers from Europe, the Middle East and Asia as well."
Biggest sale for the Midwest
Mingenew Shire President Gary Cosgrove said it would be the biggest single sale Mingenew had seen.
"It is hard to know, because a lot of the other farms around here have usually been absorbed by existing farmers," he said.
"Some properties have been broken up into smaller lots, but as far as one big, large sale goes, this one is a long way in front of anything else."
Interest was shown from a consortium of local growers but were outbid by Daybreak, which Cr Cosgrove said could be a sign of the times.
"Corporates do tend to like large lumps of land, but this is probably the first instance I've seen a corporate buy one of the prime farms," he said.
"Usually they buy just off the top of the market, so this one is interesting."
However, Cr Cosgrove said the most crucial aspect was the corporate business becoming apart of the community fabric.
"We are not really sure what the impacts will be, we have to give them time," he said.
"I have already heard they have made a deal with one of our local agents for their chemicals, so if that is the case, that is very good.
"As long as they keep on working on keeping the business local, not much would change in that regard."
Losing a local
With Erregulla Plains passing through three generations, the Smart family played a strong role in agricultural innovation and the community make-up for decades.
"It is very sad to see them go, because Eric and Peter, in particular, and to a lesser degree Stuart, were very innovative, they led the industry in lots of areas.," Cr Cosgrove said.
"The Smart family have always been great supporters of the district.
"But change brings opportunity, and you never know the next mob of people could be extremely good for our community... we can only hope."
Stuart Smart was reached for comment but declined.
