ASX-listed Rural Funds Group has made its first investment in Western Australia, striking a $22 million deal to purchase three cattle stations that will be leased to Wagyu beef producer Stone Axe Pastoral Company.
The Petro, High Hill and Willara cattle stations are located between 200 kilometres and 280km north of Perth.
They add to three east coast properties Rural Funds Group already leases to Stone Axe.
These include Victorian property Cobungra, which RFG bought in February for $35 million
RFG said the WA properties had the potential to improve carrying capacity through grazing area development and additional irrigation.
The proposed leasing deal is the latest expansion by Stone Axe, which has grown from its WA base to have a national presence.
In February this year, Stone Axe announced its acquisition and merger with Margaret River Premium Meat Exports.
Stone Axe took a controlling interest in the Margaret River business, while its founders, John McLeod and Geoff Pearson, became shareholders in Stone Axe.
Stone Axe is backed by Roc Partners, a Sydney-based investment group focussed on agriculture and private equity.
RFG also announced today the sale of its poultry farms, all located on the east coast, for $72 million.
That leaves it with 36 agricultural properties across Australia, diversified across almonds, cattle, vineyards, cotton and macadamias.
RFG is managed by Sydney-based Rural Funds Management, which has $1.2 billion of assets under management.
