New Forests Backed Fund Acquires Kimberley Cattle Portfolio

Canada’s Alberta Investment Management Corporation (AIMCo) and its Australian investment partner New Agriculture, announced an agreement to acquire the Kimberley Cattle Portfolio (Yougawalla Pastoral Co and Argyle Cattle Co).

The Kimberley Cattle Portfolio is a large-scale cattle breeding business that spans almost 3 million hectares in the Kimberley region of Western Australia. The portfolio consists of seven pastoral leases (1,828,692ha), and five sub-leases (924,325ha), as well as an agistment agreement over 153,475ha.

This agreement follows the successful conclusion of a public tender process and is subject to regulatory approvals. While the financial details of the transaction are confidential, Australian media reports claim the deal is in excess of A$300 million.  

New Agriculture is an agriculture investment manager headquartered in Australia, established to both manage Lawson Grains and to build a portfolio of agriculture assets globally, starting in Australia and New Zealand. New Agriculture is backed by New Forests, a global investment manager of nature-based real assets, which was formed in 2005.

AIMCo is one of Canada’s largest institutional investment managers, which invests globally on behalf of pension, endowment, and government funds in the Province of Alberta, Canada. AIMCo has invested in Australia for many years, firstly in forestry and most recently in agriculture through the acquisition of the mixed farming business, Lawson Grains in January 2022.

Bruce King, Director of New Agriculture said: “Kimberley Cattle Portfolio offers a key opportunity to manage for strong investment outcomes alongside leading sustainability objectives. With up to 25% 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.”

“Our intention is to apply the same level of rigour 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.”

Ben Hawkins, Executive Managing Director and head of Infrastructure & Renewables Resources at AIMCo said, “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.”