he sale to the Comet Downs Cattle Company represents a $1.1 million premium to the carrying book value and comes at a time when write-downs against cattle properties are coming fast as a result of the ill-fated live export ban.AACo managing director David Farley said the sale was a good result.
As revealed by The Australian Financial Review on Monday, private equity-owned Consolidated Pastoral emerged as the latest operator to slash the value of its properties, wiping $34 million, or 7.5 per cent, off its property portfolio.
Inclusive of a recent $40.8 million write-down by the listed AACo, the total hit to beef land property portfolios has topped $100 million in the past month.
The sale of AACo's Adelong, Marilla and Rhudanna properties within the Goonoo aggregation will see AACo lease back 7800 hectares of the total 19,404 ha sold.
The leaseback mostly covers cropping land and runs over a five-year period "at a commercial rate".
AACo will also sell 4000 steers at an average price of $1.62 per live-weight kilogram.
AACo advised the market that the sale was in line with its strategy to refocus assets and capital in northern Australia, where the company is building an abattoir in Darwin to supply the Asian region.
Subject to regulatory and financier approvals, completion of the sale is expected in June.
AACo has appointed Elders to auction its 420,000 ha Brighton Downs Station near Winton, also in central Queensland, seen as redundant in its supply chain. The sale on Wednesday will be a good gauge for the market.
