US investor group withdraws from deal to purchase iconic NSW farmland aggregation

Parties are remaining tight-lipped following reports of the $780 million deal to sell some of the Riverina's most well-known properties.

In September 2023, Australian Food & Agriculture Co (AFA) advertised the sale of 13 farms, covering more than 225,405 hectares.

The sale consists of three major freehold title land aggregations within the Deniliquin, Hay and Coonamble districts including Boonoke, Burrabogie, Wanganella and Wingadee stations.

AFA agreed to terms last year with Agriculture and Natural Solutions Acquisition Corporation (ANSAC) with a sales price believed to be $780 million.

ANSAC is a group of investors, including Bert Glover, founder of the Australian and US-owned specialist agricultural investment and development firm Impact Ag Partners, which has offices in Armidale in NSW and Montana in the US.

In a document released to the US Securities and Exchange Commission on April 11, ANSAC announced the "termination" of the agreement by "mutual consent".

In its own company report, released in March, ANSAC made reference to issues plaguing the deal.

"The parties are currently discussing the best path forward for the business combination in light of the increasingly volatile equity market conditions, including potentially mutually terminating the business combination agreement," the report said.

The document also hinted at tariffs and trade barriers, and the potential of further deterioration of trade relations between Australia and the US, despite the Australian Government giving approval to the foreign sale in late 2024.

It is thought AFA will again seek a buyer for the aggregation as a whole, rather than consider listing properties for sale separately.