Investment provides "important diversification" for AIMCo, says exec
The Alberta Investment Management Corporation (AIMCo) and New Agriculture have acquired the Kimberley Cattle Portfolio, comprising Yougawalla Pastoral Co and Argyle Cattle Co. The acquisition, finalized after a public tender process, is currently pending regulatory approvals.
The Kimberley Cattle Portfolio, a cattle breeding enterprise spanning nearly 3 million hectares in Western Australia's Kimberley region, includes seven pastoral leases (1,828,692ha), five sub-leases (924,325ha), and an agistment agreement covering 153,475ha.
“The Kimberley Cattle Portfolio, AIMCo's first investment in this sector, is an established and well-managed asset that provides important diversification in our client portfolios. We are very pleased to continue our partnership with New Agriculture, which will contribute its deep asset management and sustainability expertise as we seek to achieve both positive investment returns and community impact,” says Ben Hawkins, executive managing director, head of infrastructure and renewable resources at AIMCo.
Haydn and Jane Sale will retain their roles as managers of the Kimberley Cattle Portfolio as part of the deal. The transaction awaits approval from the Foreign Investment Review Board in Australia and the Western Australia Lands Department, with completion expected in the first half of 2024.
“Kimberley Cattle Portfolio offers a key opportunity to manage for strong investment outcomes alongside leading sustainability objectives. With up to 25 percent of the solution to climate change expected to come from the land use sector, we have a responsibility to manage these landscapes for sustainability outcomes, and with our local communities in mind,” says Bruce King, director of New Agriculture.
AIMCo has previously invested in Australia’s forestry and agriculture sector, most recently through its acquisition of Lawson Grains in January 2022. New Agriculture, an Australian-based agricultural investment manager backed by global investment manager New Forests, manages Lawson Grains and is on a mission to build a global agriculture asset portfolio.
“Our intention is to apply the same level of rigor and commitment to sustainability that New Forests has in the forestry space to the agriculture sector. New Agriculture will continue to focus on sustainability practices which allow for not only the protection and restoration of landscapes, but which also lead to the enhancement of natural capital over time,” adds King.
AIMCo manages over CAN$158 billion in assets under management.
