DomaCom creates new purchase strategy for Kidman
Crowdfunder DomaCom has teamed up with a business brokerage with more than 30 years' experience in a renewed effort to acquire the iconic Kidman Station
The new strategy entails DomaCom working with Lloyds Business Brokers and separating the buying of the land and the operating businesses.
DomaCom will continue to crowdfund the acquisition of the land and Lloyds will find a buyer for the operating businesses.
DomaCom chief executive Arthur Naoumidis said that based on the reported Chinese acquisition price of $370 million, it would value this fresh offer from DomaCom and Lloyds at $210 million for the land and $160 million for the operating businesses.
"When you consider we have $75 million from 5,500 investors pledged already, our target is now only $210 million, and as the Federal Government is clearly concerned about Kidman slipping into foreign ownership, then we firmly believe there is a realistic opportunity to buy this massive pastoral station locally," Mr Naoumidis said.
"At a price of $210 million, it would give investors a gross rent of 3.9 per cent in addition to capital growth, low volatility and the opportunity to keep an Australian agricultural icon in local hands."
Mr Naoumidis also said DomaCom has entered discussions with EY, which is handling the sale for the Kidman family, and has been given access to all the sale documents.
"This has been an important development because it means we can now go to potential investors armed with all the facts and figures about Kidman Station and its operating businesses," he said.
Lloyds' Victoria director Chris Butchers says they are bringing a fresh approach to the ownership of agricultural land and agribusiness in Australia – specifically, separate ownership of the land and the business which does not require Foreign Investment Review Board approval.
"On the business side we expect to see significant interest from equity funds and professional investors keen to capitalise on the growing worldwide demand for Australian beef," Mr Butchers said.
The Kidman Station property portfolio comprises Australia's largest private landholding, with 101,411 square kilometres of prime pastoral land across 12 properties, including outstations and supporting properties in breeding, feedlot and cropping as well as a head office property in North Adelaide. It is spread across Queensland, the Northern Territory, South Australia and Western Australia and is home to about 165,000 cattle.
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