September 3, 2020

By Lynda Kiernan, Global AgInvesting Media

A three-year old partnership between Australia’s Michael Gordon and well-known sheep breeders Will and George Grimwade has acquired the iconic Terrica sheep aggregation for an estimated A$14 million (US$9.5 million).

“We are seeking to build a balanced portfolio in terms of climatic diversity and spreading risk between sheep and goats,” said George Grimwade. “We haven’t pegged a particular growth target. We assess opportunities when they present themselves.”

Located in the southern Darling Downs, Terrica is one of the most historic pastoral properties in southeast Queensland. Originally settled in the mid-1800s by the McLeod family – pioneers in superfine wool production  – Terrica is made up of two separate properties: Terrica Station (7005 hectares/17,310 acres) and Currajong (8985 hectares/22,202 acres) for a combined total of 15,990 hectares/39,512 acres. 

While owned by the McLeod family, Terrica hosted many government leaders and members of the British Royal Family. In 1982, ownership changed hands when Rick and Louise Goodrich acquired Currajong, and later again in 2004, when the couple acquired Terrica Station.

That year (2004) the Goodrich’s broke a world record when they produced a bale of 11.9 micron ultra-fine wool worth $675,000 – the first such bale to ever break 12 microns.

Ownership changed hands again in 2014 when the Terrica aggregation shifted to LCP Terrica – an entity co-owned by William Lempriere and Stirling McGregor, the co-chair of corporate advisory and investment firm Lempriere Capital, and today has diversified to include beef cattle production.

The holding’s latest shift in ownership began in May of this year when Terrica was listed for sale with Nick Myer and Andrew Williams of Elders, which at the time had expectations to fetch A$500/DSE (dry sheep equivalent), or A$1126 per hectare, or A$18 million.  

“It is very rare for such an iconic asset to be offered for sale,” said Myer in May of this year when Terrica was listed.

“This impressive pastoral aggregation is steeped in history and the owners are to be commended for their continued capital investment to uphold the famous heritage and overall efficiencies.”

“Astute investors will immediately recognize the key features that the aggregation has to offer.”

The holding includes 60 dams with annual rainfall of 667 millimeters; spring-fed creeks; a reticulated trough system; a five-bedroom homestead; another six-bedroom homestead; a feedlot; four sheep yards, five and eight-stand shearing sheds; 109 kilometers of new fencing; two cattle yards; 355 tons of grain storage; staff accommodations and shedding. 

The sale price for Terrica, which breaks down to $875 per hectare, although lower than originally set expectations, is believed to be strong for the area, which recently saw the Barongarook station in the Southern Downs sell for $618 per hectare. 

Grimwade-Gordon Portfolio 

Terrica wasn’t the only recently settled acquisition for the Grimwade-Gordon partnership. The same week the trio also acquired the 19,381-hectare (47,891.5 acre) Cashmere West for A$12 million (US$8.8 million). 

Fully fenced, Cashmere West is a well-known breeding and growing asset able to background high volumes of cattle for feedlots and store markets. It also runs sheep and goats, with a current rating to run 2,000 head of cattle, 4,000 steers, or 25,000 sheep.

Together, Terrica and Cashmere West join a rapidly growing rural portfolio that is currently running approximately 700,000 DSE on nearly 200,000 hectares spread across Queensland and New South Wales.

In 2017 the partners bought the 105,000-hectare grazing property Noorama in southeast Queensland that is known for wool production, cattle breeding, backgrounding, and finishing with a carrying capacity of 80,000 DSE.

To complement this holding, the partners acquired Melrose, a multi-purpose irrigated grazing property last September. Totaling 1364 hectares (3370.5 acre), some of Melrose is certified organic and has a 1000 megaliter water storage dam, 1150 megaliter annual weir license, and a 1644 megaliter nominal volume flood harvesting license. Once a producer of broadacre crops, the property today produces fodder, finishes lambs, and backgrounds cattle.

Last year also saw the partners buy the Barrygowan aggregation, a 40,468-hectare (99,998.6 acre) fully fenced collection of three holdings: the 15,758-hectare (38,938 acre) Barrygowan, the 15,786-hectare (39,008 acre) Mintaka, and the 8,288-hectare (20,480 acre) Dunsandle.

The portfolio also includes Old Cobran in New South Wales, where George Grimwade has lived since 2014, and  which is used for breeding and trading sheep for export.

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.