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PSP Investments bundles BFB, Daybreak Cropping

Grain Central, April 22, 2022

PSP Investment’s Daybreak Cropping earlier this year bought Yarrabee Park from goFARM for more than $60M. Photo: Elders Real Estate

THE Public Sector Pension Investment Board (PSP Investments) has today announced it has consolidated the management of its two majority-owned Australian broadacre cropping businesses, BFB and Daybreak Cropping.

Combined, the entities incorporate 41 farms across 10 aggregations in total in Queensland, New South Wales, Victoria and Western Australia.

The combining of BFB and Daybreak Cropping is expected to help drive operational efficiencies and even stronger growth through continuous improvements in on-farm practices, with a particular emphasis on sustainability.

The transition will occur over the coming months, and is not expected nor intended to impact farm-level employees.

“This important development is a natural evolution of our portfolio of broadacre farming assets,” PSP Investments senior managing director, real assets and global head of natural resources investments Marc Drouin said.

“The combination of the businesses will allow us to simplify operating structures and capture the benefits from operational scale while driving growth, performance and results.

“We would like to thank our operating partner, Warakirri Asset Management, for helping Daybreak Cropping to become a world-class sustainable farming operation.”

Warakirri Asset Management managing director Jim McKay said the company was “extremely proud” of its role in contributing to the establishment of a significant national portfolio of investment-grade broadacre cropping assets.

“We will work closely with PSP Investments and BFB to ensure a smooth transition of operations and we’re confident that our talented teams will continue to deliver great outcomes,” Mr McKay said.

Mr McKay said Warakirri Asset Management looked forward to continuing its longstanding partnership with PSP Investments on Aurora Dairies.”

PSP Investments is one of Canada’s largest pension-investment managers, with C$204.5 billion of net assets under management as of March 31, 2021.

It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and credit investments.

Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of Canada’s Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force.

Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong.

Source: PSP Investments

NOTE: PSP Investments also has a joint venture with the Robinson family of Moree in Australian Food and Fibre, the assets of which include leading NSW cotton-growing and ginning entity Auscott.

PSP is also the owner of assets including almond and walnut orchards previously owned by Webster Ltd, and a minority stakeholder in Kooba Ag, which was listed for sale last month.

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