One of Australia’s largest irrigated cotton enterprises for sale

AUSTRALIA, 21 March 2022 - One of Australia’s largest irrigated cotton enterprises with excellent water reliability, Worral Creek Aggregation, is for sale by Expression of Interest through JLL and Oxley Capital Partners.

On behalf of the Reardon family, JLL’s Directors – Agribusiness Clayton Smith, Chris Holgar and Geoff Warriner have been appointed to sell the Aggregation, in conjunction with Oxley Capital Partners as transaction advisors.

Representing the amalgam of seven properties between Talwood and Mungindi in the renowned Border Rivers region of Queensland, Worral Creek Aggregation covers 26,855 hectares with an accompanying portfolio of irrigation water totalling more than 65,900 megalitres of annual water entitlements.

JLL’s Clayton Smith said, “With over 70,000 megalitres of on-farm water storage, excellent water infrastructure and development with an extensive suite of plant and equipment, the Aggregation represents one of the most significant irrigated cotton enterprises to hit the market in recent years.

“Strategically located within the Border Rivers Region of Queensland, the Aggregation represents a once in a generational opportunity to acquire a multi-award winning, myBMP-certified irrigation enterprise of scale, quality, and reliability.

“The level of development that has been undertaken by the Reardon family makes Worral Creek Aggregation a truly standalone turn-key opportunity. The Aggregation’s geographical location coupled with extensive water harvesting, pump down and overland flow entitlements unique to the location of the Aggregation provides exceptionally high water reliability.

“The unique location of the Aggregation at the confluence of multiple major systems enables the efficient capture of water from various water sources fed by inflows throughout the vast Border Rivers catchment. On-farm storages and up-stream regulated dams are currently at capacity giving the new owner confidence in next year’s production,” said Mr Smith.

Interspersed by five watercourses including the Barwon and Weir Rivers, the Aggregation is considered one of the largest row cropping enterprises in the Border Rivers region. Approximately 7,510 hectares have been developed to bankless, siphon and spray irrigation underpinned by excellent water entitlements. The Aggregation is on track to produce more than 75,000 bales of cotton this season and has the reliability to consistently achieve this annually. Additionally, approximately 6,720 hectares of dryland enable the production of a diverse range of cereals and legumes.

Ben Craw, Managing Director of Oxley Capital Partners said, “Having produced average yields of up to 14.5 bales of cotton per hectare with the water reliability enabling more than 6,200 hectares to be planted on average, the Worral Creek Aggregation represents an institutional grade asset offering truly unique production scale and water reliability within the Australian irrigated cotton market.

“It’s worth noting that development across the Aggregation has been funded from its internal productivity and the water entitlements progressively acquired to now represent a water portfolio that would be difficult to recreate,” said Mr Craw.

Since acquiring Worral Creek in 1990, the Reardon family has strategically and progressively amalgamated a total of seven properties which now collectively form the aggregation. Each property is geographically unique, and development has and continues to focus on the four pillars of water capture, retention, efficiency, and ease of management.

The Aggregation is myBMP-certified, Australia’s cotton industry farm and environmental management program for growers which identifies best management practices and standards for Australian cotton production and was awarded Australian Cotton Farm of the Year (2015) and 2017 Meat Standards Australia (MSA) Excellence in Eating Quality Most Outstanding Beef Producer – Grainfed.

Worral Creek Aggregation is for sale by Expression of Interest on a going concern basis including a full suite of plant and equipment. The sale process will be conducted in two stages with stage one seeking non-binding offers by Thursday 12 May 2022 at 4:00pm AEST. A shortlist of preferred parties will be invited to participate in stage two which will result in best and final offers being submitted.