May 24, 2021
New Australian agri-business to raise funds for combining cattle production with carbon sequestration
Australian cattle property investment manager Packhorse has launched the Packhorse Pastoral Co, an agri-business aiming to raise $300 million in its initial move to combine cattle production with carbon sequestration on a massive scale.
The company has a five-year strategy to acquire $1.5 billion worth of cattle property stretching across a region in Australia from the west of Coffs Harbour in New South Wales to Bundaberg in Queensland.
Packhorse is also launching programmes to sequester carbon in the rejuvenated soil and generate lucrative carbon credits – a market predicted to be worth $8.25 billion by 2027, exhibiting a CAGR annual growth return of 19.2%.
The initial offer of shares in Packhorse Pastoral Co (Australia) Pty Ltd, restricted to "sophisticated investors", was the first step in raising the projected $1.5 billion over the next five years, the company said in a statement.
Packhorse chairman Tim Samway said the company is building the leading land custodianship, land restoration and beef supply chain business in the world.
"We are excited to present the investment community with the most compelling impact investment opportunity to profitably support Mother Nature and help restore our soils, while delivering an investment return uncorrelated to the returns from other asset classes. We fervently believe these two goals can be achieved in parallel," Samway said in a statement.
"Increasingly, we're seeing a demand from institutions and wholesale investors for responsible investment products. Packhorse's deep sector knowledge in agri-business operations and asset management along with its vast experience managing some of Australia's largest pastoral supply chains coupled with its fund-raising ability, makes us well-positioned to build scale and become a significant voice in the preservation of the Australian rural landscape.
"The exciting upside for our investors is our commitment to engage in large scale programmes to sequester carbon in the soils and generate carbon credits and sell them to those seeking to offset their carbon emissions."
- Property Central