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News release


Australia’s biggest cotton producer and one of the largest in the world announced for sale by Jones Lang LaSalle

Worldwide interest expected in multi-hundred million dollar sale of Cubbie Station.

BRISBANE, AUSTRALIA, Monday, August 17, 2009  - Australia’s biggest cotton producer, and one of the largest in the world, Cubbie Station in South West Queensland has been announced for sale with interest expected from all corners of the globe in the iconic Australian property.
Jones Lang LaSalle’s Managing Director Stephen Conry, who together with the company’s Director of Sales & Investments Geoff McIntyre will head the sale, said the Cubbie holding was one of Australia’s biggest agricultural assets. The latest valuation of the property (as at June 30, 2009) was in excess of $450million.
“Cubbie is a piece of Australian rural history, as a major world producer of high quality cotton and as one of the largest singular irrigation developments within Australia,” said Conry.
The sale will be conducted via an International Tender campaign.
Cubbie and two other smaller properties that will form the offering, have a total land area of 93,329 hectares. This includes 538,800megalites of storage infrastructure; 22,256 hectares developed to furrow irrigation, with the potential to further develop another 11,000 hectares over the next two to three years in a program which has been masterplanned, approved and is fully achievable within existing water entitlements and storage.
Chair of Cubbie Mr Keith De Lacy, said the intended farming model was to grow cotton and wheat on a rotational basis - 90% cotton with 10% wheat. “In a full production season the area under cultivation can yield up to 10 bales per hectare for cotton and 7.5 tonne per hectare of wheat, accounting for approximately 300,000 bales of cotton and approximately 22,500  tonnes of wheat,” he said.
De Lacy said Cubbie’s aggregation was a unique agricultural development, far more advanced than many other agribusinesses through the use of its gravity fed irrigation system.
“The group has the ability to harvest and store large volumes of water in different locations providing high reliability and access to water. The storage facilities are deep and are able to be consolidated as water levels fall to minimise evaporation,” he said.
“The offering for sale of the properties is a unique opportunity to take advantage of the well overdue cyclical upturn in the agricultural industry and to capitalise on one of Australia’s largest water allocation with an ongoing commodity forward selling program,” he said. 

With vast increases in the price of wheat and the demand for oil based seeds partly due to the ethanol and biofuel requirements within the Americas and in addition to increased cotton demand from China and India, world cotton stocks are under pressure with prices set to increase.
Jones Lang LaSalle’s Stephen Conry said Cubbie was well positioned to capitalise on these price variations and with increased wheat prices, the opportunity to rotate crop with cotton.
“This is a first class international rural investment featuring strategic and highly developed economies of scale, benefits from the gravity water system, water efficiency and an internationally high standard of capital development,” he said. 
De Lacy said following a successful sale of the properties, the Cubbie Group having reduced debt and recapitalised the business, looked forward to pursuing other opportunities in the agriculture space.
The Cubbie Group was established in 2005 when two of the biggest cotton growers in Queensland merged - the family-owned Cubbie Station at Dirranbandi, and Blache Cotton, about 160 km away near St George. The result became a unique master planned irrigation project, an economic and ecological model for sustainable development in inland Australia. Cubbie Group Ltd is recognised as best in practice and has a proven professional and corporate management model.
“Cubbie Station” and “The Anchorage” are the two main properties of the group, with “Aspen” being a smaller irrigation holding within the St George Irrigation Area.
The main property Cubbie Station, is strategically situated on the alluvial flood plain at the confluence of the Culgoa and Lower Balonne river systems in South Western Queensland. (Cubbie Station can be viewed on Google earth via coordinates 28, 29’,40.82” S 148 , 14’ 08.09” E) along with further information available on Cubbies web site
The International Tender closes on 30 September, 2009 through Jones Lang LaSalle’s Stephen Conry and Geoff McIntyre, contactable on +61 7 3231 1311.
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For media inquiries:
Keith De Lacy, Chair, Cubbie Group - +61 438 120 250
Paul Brimblecombe, Director, Cubbie - +61 418 777 968
John Grabbe, Director, Cubbie - +61 417 649 965
Kath Rose for Jones Lang LaSalle - +61 416 291 493