TRANSACTIONS & ADVISORY AUSTRALASIA CAPABILITY STATEMENT E: info@smithagriinternational.com.au W: smithagriinternational.com.au
TRANSACTIONS   ADVISORY AUSTRALASIA  CAPABILITY STATEMENT E  info smithagriinternational.com.au W  smithagriinternational....
“We specialise in Agricultural/Timberland Transactions and Advisory Services”
   We specialise in Agricultural Timberland Transactions and Advisory Services
SAI WHAT WE DO AGRIBUSINESS TRANSACTIONS • Licenced sales representation or buy side mandate. • Off-market asset aggregation strategies. • Property specific tailored marketing and promotion across market sectors. • Coordination of supportive due diligence and data room information (as required). • Preparation of website, e-brochure and information memorandum outlining property features. • Direction and implementation of targeted media advertising (press, internet, sector journals). • Promotion of property to the appropriate market place (domestic and/or international). • Adoption of off-market premarketing strategies where required. • Servicing and screening enquiries. • Property assessments and coordination of inspections. • Supply of periodic sales and marketing reports and enquiry analytics. AGRIBUSINESS ADVISORY SERVICES • Sale Asset Support - Rural lifestyle, Timberland, Agriculture, Mining, Energy. • Consulting Services - HBU identification, Timberland, Agriculture, Biofuel, Rural / Indigenous community engagement. • Strategic Advisory - Project development / implementation. • Property Management - Commercial Timberland / Plantation establishment, management, harvest and haulage. • Market interaction - Wood Supply Agreement development / implementation. • Capital Raising. • Sustainable Resource Security. smith agri international Page 3
SAI  WHAT WE DO AGRIBUSINESS TRANSACTIONS      Licenced sales representation or buy side mandate.      Off-market asset ag...
TIMBERLAND - THE DRIVING FORCES SAI CURRENT • Global institutional investment in forestry equates to an industry of approx. USD 100 billion. • Investment in real assets - Forestry, Agriculture and Infrastructure Real Estate is growing. • Timberland investment generates harvest income and long-term biological growth. • Natural inflation hedging and low volatility of returns is a feature of AUS and NZ. • Discount rates down: US 4-6%, from 6-8% (2012), AUS rates have declined as MIS assets have sold and market stabilised. • Low interest rate environment in many economies, falling yields in traditional asset classes, more sophisticated portfolio allocation policies, and the ever-increasing track record of returns underpinning sector. • Institutional ownership of forests set to expand through privatisation of government assets, exit of corporate owners, consolidation of private holdings, and establishment of new plantations. EMERGING • TIMOs seeking value-adding investment strategies to generate better returns. • REITs create value through increasing operating revenues by consolidating higher-quality portfolios, selling off non-core or less strategic assets, improving cash yields in the portfolio. • Diversified Institutional investment to Agriculture is gaining momentum, requires suitable investment size (land base) and cost structure, and includes opportunistic conversion of non-core plantation footprint to HBU. • Responsible Investment Community favour Environmentally and Socially Sustainable Assets. • More direct investment by Institutional investors by-passing TIMO’s, seeking to minimise transaction and management costs. • Demand for low-risk and income-producing assets increasing. smith agri international Page 5
TIMBERLAND - THE DRIVING FORCES  SAI  CURRENT       Global institutional investment in forestry equates to an industry of ...
SAI THE OPPORTUNITY There are approximately 2 million hectares of commercial timber plantation in each of Australia and New Zealand. New Zealand is almost entirely softwood, while Australia is evenly split between eucalyptus and pine. In New Zealand, about half of the plantation assets are in institutional ownership, while in Australia, the figure is now closer to 70%. • Government forestry assets (A Class) - Highly competitive for few remaining, existing TIMOs, Managers, Opportunistic investors, likely to drive price. • Consolidation of private forestry assets (B Class) - Opportunities to acquire typically well managed commercial timberlands (smaller asset sizes requires commitment to aggregation over time). • MIS plantation assets (C Class) - Transition to institutional ownership largely complete, secondary transaction (non-core opportunities likely). • Development of new plantations - Opportunities to acquire 2nd rotation lands (generally commercially harvested = productive sites, underpinned by established markets, wood supply agreements, good infrastructure and community support. • Private (harvestable) native hardwood forests - Sophisticated domestic / export markets increasingly trading higher grade timbers. Exporters, Historic Processing Industries increasingly taking a stake in future resource security. Employing significant numbers throughout the value-chain, particularly throughout regional Australia and New Zealand, the commercial forestry industry is considered mature. Page 6
SAI  THE OPPORTUNITY  There are approximately 2 million hectares of commercial timber plantation in each of Australia and ...
SAI AGRIBUSINESS SERVICES Smith Agri International provides Transaction and Advisory services to clients involved throughout the supply chain. Our extensive services include the following. PRE-FARM GATE • • • • • • • • • • • • • • • • • • POST-FARM GATE Forestry (commercial plantations) Timberland (commercial-conservation) Energy Rehabilitation Indigenous Community Engagement Farm Forestry Carbon Offsets Cropping (including Broadhectare Irrigation) Dairy Equine Grazing Rural Lifestyle Horticulture (including Market Gardens & Protected Cropping) Mixed Farming Piggeries Poultry Viticulture Water Entitlements • • • • • • • • • • • Timber Processing Mills Cogeneration Plants Pellet Plants Resource Security Stategy Aggregation of Resource Feedlots Livestock Selling Centres Milk Processing Nut Cracking, Hulling & Processing Facilities Sugar Mills Wineries RESOURCE / ENERGY • • • • • • • • • Negotiated Land Purchase Biomass resource identification Land Use Management Native Vegetation Offsets Renewable Energy & Carbon Sequestration Advice Highest & Best Use (HBU) Biodiversity Offsets Scoping Studies for Ancillary Infrastructure & Service Corridors (i.e. Land Acquisition Estimates) Tenement Negotiation & Acquisition smith agri international Page 7
SAI  AGRIBUSINESS SERVICES  Smith Agri International provides Transaction and Advisory services to clients involved throug...
PLAN TATION REGION PLANTATION REGIONS PLAN TATION REGION SS 11 Western Australi WESTERN AUSTRALIA Western Australi a a 22 Northern erritory NORTHERN TERRITORY Northern T T erritory 33 Mount Lofty Ranges and Kangaroo Island MOUNT LOFTY RANGES & KANGAROO Mount Lofty Ranges and Kangaroo IslandISLAND 44 G reenTrTr iangle GGREEN TRIANGLE reen iangle 55 Northern Queenslan d d NORTHERN QUEENSLAND Northern Queenslan 66 South East Queenslan d d SOUTH EAST QUEENSLAND South East Queenslan 77 Northern ablelands NORTHERN TABLELANDS Northern T T ablelands 88 North Coas NORTH COAST North Coas t t 99 Central blelands CENTRAL TABLELANDS Central TaTa blelands 10 10 Southern bleland SOUTHERN Ta blelands s Southern TaTABLELANDS 11 11 Murray Va y MURRAY VALLEY Murray Va llelle y 12 12 Central Victori CENTRAL VICTORIA Central Victori a a 13 13 Central Gippsland CENTRAL GIPPSLAND Central Gippsland 14 14 Bombala-East Gippsland BOMBALA-EAST GIPPSLAND Bombala-East Gippsland 15 15 TASMANIA TaTa smania smania Darwin Darwin an DARWIN Top En d &Top En Wyndham Wyndha m Victoria Dal Dalyy Broomee Broom Kimberley y Kimberle Port Hedland Po rt Hedland Pilbar a Pilbar Softwood Plantation s s SOFTWOOD PLANTATIONS Softwood Plantation Gascoyne e Gascoyn Hardwood Plantation s s HARDWOOD PLANTATIONS Hardwood Plantation Mid Westst We LEGEND CAPITAL CITY Capital City Geraldton n Geraldto EXPORT Export Goldfields -Esperance Esperance GOLDFIELDS WHEATBELT Wheatbel t CATTLE Cattle SHEEP Sheep PERTH Pe rth HORTICULTURE Horticulture CROPPING Cropping Kwinana a Kwinan 1 Adelai Reg 1 EQUINE Equine Esperanc e Esperance DAIRY Dair y Alban y Albany VITICULTURE Viticulture Planta t Plantationion Energ y/Bio Energy/Biofuelsfuels Carbo n Off Carbon Offset set Indige n s Indigenou ous Cons ervat Conservationion Paper and p Pa per and pulp ulp Struct u Structuralral Lands ca Landscape pe FORESTRY Forestr y AUSTRALIAN AGRICULTURE GUIDE smith agri international Page 8 Port Po rt
PLAN TATION REGION PLANTATION REGIONS PLAN TATION REGION SS 11  Western Australi WESTERN AUSTRALIA Western Australi a a  2...
LO CATOR MA LOCA O M AP LOCA TO R MA P OC ATO MAP CA A AT MA Pacif c Pa cific Pac fic Pacific O cea Oc ean Ocea n ea 2 S ou th- Ea So uth -E as South-East st th- E Arnhe m Arnhem Land Land d nd Rope r Roper Gul f Gulf 5 5 Cape Cape York York A ustr a Au strra lliia Australiliaa ust al us tr alia ustral India n Indian nd an O cea Oc ean Ocea n ea South East Asian Market N ew Ne w Z ea Ze alla nd Zea lan Zealaa n d Zealand Karumba Townsville Townsville Barkly Barkly Tableland s Tablelands Gulf Gulf N orthern Northern 5 5 Mack ay Mackay Tropic of Capricorn Tropic of Capricor n The Centr e The Centre Gladstone Central Coas Central Coast t Central We Central West st 6 6 Channe Channel l Country Country Brisbane BRISBANE Darlin Darling g Down Downs s South We South West st Northern Northern South Australi South Australia a Ya mb Yambaa 7 7 Far We Far West st NS NSWW ide gion Eyre and Yorke e Eyre and York Pe ninsul a Penninsula gio n Adelaid e ADELAIDE n Lincolne Central Central We st NS W West NSW 3 3 Po rt Adelaide Port 4 4 Murray Valley Va lley 11 Sydney SYDNEY AC 11 12 Newcastl e Newcastle 8 8 10 Riverina Riverina Riverlan Riverland d 9 9 Po rt Kembla Port Kembla 12 Ede n Eden 14 13 Portland Po rtland Geelong g Geelon Melbourne MELBOURNE Bell Ba y Bell Bay Burnie 15 TASMANIA Ta smania Wet temperate coast Wet tropical coast and tableland Wet/dry North Eastern tropics Triabunna a Tr iabunn Hobar t HOBART Subhumid, subtropical slopes and plains Temperate semiarid plains and arid interior Semi aridtropical and subtropical highlands Page 9 Wet/dry North West tropics Temperate seasonally dry slopes and plains Wet temperate highlands
LO CATOR MA LOCA O M AP LOCA TO R MA P OC ATO MAP CA A AT MA Pacif c Pa cific Pac fic Pacific O cea Oc ean Ocea n ea  2  S...
LO CATOR MA LOCA O M AP LOCA TO R MA P OC ATO MAP CA A AT MA PROVINCES OF NEW ZEALAND Northland 1 2 2 Pacif c Pa cific Pac fic Pacific O cea Oc ean Ocea n ea Auckland 3 Waikato 4 Arnhe Bay of Plenty m S ou th- Ea So uth -E as South-East st th- E Land 5 Darwin an d Gisborne Top En d 6 Hawkes Bay 7 Taranaki Ropefr Gul 8 Victoria Dal y 9 A ustraa Au straa lia Australiaia ustrali ust ra us tra s tr al tra India n Indian nd an 10 Tasman 11 Nelson 12 Marlborough 13 West Coast 14 Canterbury 15 N ew Ne w Z ea an Ze alla nd Zealand d Whangarei Karumba Wellington 5 Cape York Manawatu-Wanganui O cea Oc e n OceaEast ea South an Asian Market OtagoCentr e The 16 Barkly Tableland s Gulf Townsville Auckland N orthern 5 Tauranga Mack ay Southland Central We st Softwood Plantations Tropic of Capricor n Te lka-a-Maui North Island Central Coas t Gladstone Gisborne 6 LEGEND Channe l Country Export Northern Cattle South Australi Picton a Sheep Horticulture Eyre and Far We st NS W York e Central We st NS W Adelaid e Dairy Po rt Lincol n 9 Riverina Lyttelton Po rt Adelaide Te Waipounamu South Island 4 Murray Va lley Sydney 10 Po rt Kembla 11 12 Timaru Newcastl e 8 3 Riverlan d Viticulture Forestry Ya mb a Wellington 7 Cropping Pe ninsul a Adelaide Re gio n Equine Brisbane Darlin g Down s South We st Capital City Napier Ede n 14 13 Po rtland Melbourne Geelon g Port Chalmers Bluff Burnie Bell Ba y NEW ZEALAND AGRICULTURE GUIDE 15 Ta smania smith agri international Page 10 Tr iabunn a Hobar t
LO CATOR MA LOCA O M AP LOCA TO R MA P OC ATO MAP CA A AT MA  PROVINCES OF NEW ZEALAND Northland  1 2  2  Pacif c Pa cific...
SAI We built our business on client satisfaction which is our number one priority. We have delivered positive results for a range of clients across different agribusiness industries and countries. Our clients include: SAI SAI SAI SAI CS ENERGY VISY PAPER & PULP DEPT OF ABORIGINAL &TORRES STRAIT ISLANDER & MULTICULTURAL AFFAIRS (DATSIMA) GREEN CROW (US) NSW PREMIERS OFFICE / NSW TREASURY SANTOS ENERGY PEABODY ENERGY AUSTRALIA PPB ADVISORY STANWELL CORPORATION RMS RESOURCES MANAGEMENT SERVICE LLC MCGRATH NICOL ERGON ENERGY AUSTRALIAN BLUEGUM PLANTATIONS (ABP) SOUTHERN PLANTATION AGGREGATION JELFOR TREATED TIMBERS smith agri international Page 11
SAI We built our business on client satisfaction which is our number one priority. We have delivered positive results for ...
SAI MARKET DRIVERS As depicted in the maps on pages 6 to 8, Australia and New Zealand’s plantation estates are generally well disbursed geographically underpinned by purpose developed infrastructure, regional communities active throughout the value chain and sophisticated domestic and export focused wood supply agreements. Generally considered a low-risk investment environment with stable returns, Australia and New Zealand’s timberland estate is dominated by institutional investors. This is particularly the case when compared to parts of Europe, Latin America, Asia and Africa where investment requires significant returns well above mature markets to counter sovereign, market and physical risks. Page 12
SAI  MARKET DRIVERS  As depicted in the maps on pages 6 to 8, Australia and New Zealand   s plantation estates are general...
SAI MARKET DRIVERS cont. Over the coming years, institutional investment is expected to increase further as the remaining state government plantation assets are sold, as corporate timberland ownership diminishes and as mid-tier investors acquire smaller plantation assets. Driving the market in real assets are longer-term concerns about climate change, population growth, resource scarcity, and food security. Growing populations increase demand for housing, furniture, food, and fibre, all of which translate to greater demand for timber and Agricultural products. Per capita consumption of paper-based products in developing countries like China and India currently equate to <15% of the per capita consumption of developed nations, such as Australia and the USA. In Australia as much as 400,000 hectares, or around 40%, of the country’s hardwood plantations, are expected to be converted to various forms of highest and best agricultural use, rather than be re-established to timber plantations after harvest. China’s imports of logs have increased at a compound annual growth rate of 4.5%, while imports of lumber increased by an average of 21% annually. The main driver of softwood log consumption in China has been the growth in the real estate market, underpinned by population growth, rural to urban migration, and speculation in the property market. As US prices rise, alternative supply sources become more competitive, generating opportunities for previously marginal market sources like Australia, to increase supply. Page 13
SAI  MARKET DRIVERS cont.  Over the coming years, institutional investment is expected to increase further as the remainin...
SAI RISING BIO-ECONOMY The Australasian bioenergy sector is rising providing potential resource supply / optimisation opportunities. The logistics of supply including; location, distance to processing plants, sustainable yield are consistent to typical commercial markets, however, new opportunities will continue to emerge such as the use of material from native forests. Such resource availability is expected improve the economics of supply to these new markets and may lead to the establishment of for-purpose bio-crops in areas previously considered marginal for continued commercial plantation establishment. Page 14
SAI  RISING BIO-ECONOMY  The Australasian bioenergy sector is rising providing potential resource supply   optimisation op...
smith agri international PROFESSIONAL PROFILE David Smith Director Email: david.smith@smithagriinternational.com.au Web: www.smithagriinternational.com.au Mobile: +61 418 332 780 Smith Agri International has extensive agribusiness experience in North and South America, Europe, Asia and Australasia. The company has long-term industry links with current and emerging buyers and sellers which enable access to a wide range of agribusiness divestment opportunities trading either on- or off-market. Director David Smith has over 25 years of experience in rural property assessment, planning and transactions, with particular focus on the Forestry, Mining and Renewable Energy sectors. He has worked with key companies such as Rio Tinto, Willmott Forests, Virgin Forests, Ecofund Queensland and CBRE to unlock true asset value for divestment or investment. David is the architect of numerous large-scale forestry projects involving the establishment and management logistics of over 68,000,000 trees. He understands every aspect of the commercial value chain and has transacted the acquisition of over 300 properties throughout Australia equating to over 95,000 hectares (AUD$224 million) for the purpose of commercial plantation, industrial forest, biodiversity /carbon offset, dedicated biomass / biofuel and conservation. Smith Agri International has recently successfully transitioned significant agricultural landholdings from mining-sector ownership to Australian beef cattle managers. These transactions unlock true land asset value, allowing businesses to operate to their key market strengths, and deliver business sustainability for the benefit of all stakeholders. Smith Agri International maintains strong links with key industry associations, and regularly presents at Institutional Investor forums in Australia, New Zealand and North America. The company is also in constructive dialogue with all levels of government, with financial institutions and corporations, and with investor management, community and indigenous groups. CLIENTS ADVISED/INDUSTRY EXPERIENCE - CBRE - CS Energy - Visy Paper & Pulp - Department of Aboriginal and Torres Strait Islander and Multicultural Affairs (DATSIMA) - Green Crow (US) - NSW Premiers Office / NSW Treasury - Peabody Energy Australia - PPB Advisory - Santos Energy - Stanwell Corporation - McGrathNicol - RMS Resource Management Service, LLC - Ergon Energy - Australian Bluegum Plantations (ABP) - Southern Plantation Aggregation - Jelfor Treated Timbers RECENT SIGNIFICANT ASSIGNMENTS . AFPT & AFPT 2 Timberland Portfolio (part of Gunns, TAS, AU) . Peabody Energy - Cattle Station Aggregation divestment (QLD, AU) . Yarra Ranges Native Timberland Portfolio (VIC, AU) . Gippsland Plantation Aggregation (VIC, AU) PROFESSIONAL AFFILIATIONS / ACCREDITATIONS . Institute of Foresters of Australia (IFA) . Australian Institute of Management (AIM) . International Energy Association (IEA Task 40) . Guest Lecturer at Australian National University RELEVANT EDUCATION . Licensed Real Estate Agent (NSW / VIC / QLD / WA / TAS) . Licensed Stock and Station Agent (NSW) . Licensed Business Broker (NSW) . Advanced Diploma-Forestry, Melbourne University Page 15
smith agri international PROFESSIONAL PROFILE David Smith Director Email  david.smith smithagriinternational.com.au Web  w...
TRANSACTIONS & ADVISORY AUSTRALASIA SAI Contact: +61 418 332 780 E: info@smithagriinternational.com.au W: smithagriinternational.com.au
TRANSACTIONS   ADVISORY AUSTRALASIA  SAI Contact   61 418 332 780  E  info smithagriinternational.com.au W  smithagriinter...