BIG SAUDI PURCHASE

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The Kingdom of Saudi Arabia is now a major owner of prime agricultural land in Australia after the approval of the sale of a large broad acre portfolio; a combination of grain and grazing land, in Western Australia to the Saudi company SALIC. The purchase equals 200,000 hectares (494210.acres) of Agricultural property in the Wheat Belt of WA, formerly owned by the Nicoletti family; W.A’s biggest grain grower. The property was sold for $60 Million after a review by The Australia Foreign Investment Review Board (FIRB) in April this year. Included in the sale are 76,575 hectares of freehold land, of which 62,768 are arable, plus 127,018 of leasehold land, of which 95,040 ha are arable, which is being assigned to the purchaser. The land is based on over 30 farms located in the Western Australia towns of Merredin, Bodallin, Moorine Rock, Westonia, Southern Cross, Mukinbudin, Bullfinch, Marvel Loch and Daisy Downs at Mullewa.The deal includes a flock of 40,000 Merino sheep and 25 dwellings.The whole farming aggregation portfolio is known as Baladjie Pty Ltd. This means that Saudi Arabia is now one of the largest owners of agricultural land in Australia, with probably the largest sale of broad acre land in Australia’s history and the first time Saudi Arabia has invested in Australia’s agriculture.

Since the sales, SALIC management have been in WA considering other properties and an abattoir, SALIC now owns a large combination of prime agricultural property in the heart of the wheat belt in Western Australia. SALIC is an acronym for the Saudi Agricultural and Livestock Investment Corporation. A company set up in 2009 by Royal decree as an agricultural investment company, based in Riyadh and controlled by the Saudi Arabian state owned Public Investment Fund. SALIC has been acquiring agricultural investments around the world and phasing out farm production at home due to limited fresh water supplies. Their investments span 17 countries worldwide. SALIC has recently also made sizeable land purchases in Canada and Ukraine and with Australia as a priority destination.

The sale was organised by CBRE Agribusiness’ Danny Thomas and Damian Bryce of map 19. News of the pending sale, which was published earlier in the week, prompted harsh

Criticisms from some Australian farmers who believe the landholdings should be retained by local owners. According to Nicoletti, advertisements inviting local bids were placed in Australian newspapers for a period of 30 days, in accordance with FIRB requirements. “Not a single bid from potential Australian buyers was received”, Nicoletti said. Mr Nicolletti (65) said he had “no concerns” about the sale despite pushback from locals.. “They are bringing in their expertise and will invest. These guys have got money and they’re going to do it much better than what I have done. It’s the most positive thing that could happen to the Wheat belt.” He has now exited farming and will concentrate on running his 6 John Deere dealerships in rural West Australia. SALIC’s head of production agriculture investments, William England, said that the local team will build on the legacy of John Nicoletti with plans to manage the livestock and grain production enterprise for the long term with a focus on sustainability, profitability,environmental responsibility and support for the local rural community