Hedge fund boss expands his $82m farm empire

The London-based expatriate hedge fund manager, Michael Hintze, has spent $5.7 million buying a southern NSW farm, taking his pastoral empire purchases to $82 million since 2007.

By InvestSMART · 1 Nov 2010

By InvestSMART ·
1 Nov 2010

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The London-based expatriate hedge fund manager, Michael Hintze, has spent $5.7 million buying a southern NSW farm, taking his pastoral empire purchases to $82 million since 2007.

Rippling Waters, a 1733-hectare grazing property at Jingellic, was bought last month, taking his holdings to about 30,000 hectares.

The Upper Murray property was sold by Willmott Forests, now in receivership. It bought the farm three years ago for $7.7 million from Veall Limited, the publicly listed Toorak investment company.

It was bought by Mr Hintze's private pastoral firm, MHPF Australian Holding Company, and will be used as a breeding base for cattle and crossbred lambs managed by Growth Farms Australia.

Mr Hintze's buying spree began when he spent $12.5 million for a Breadalbane property in July 2007. He spent another $818,000 last July on a neighbouring 350-hectare portion of the Goulburn district grazing property Little Wollogorang.

Lee Macarthur-Onslow, a descendent of the colonial pastoralist John Macarthur, outbid Mr Hintze last November on another portion of Little Wollogorang.

Mr Hintze's firm now owns grazing and mixed farming properties spread between Marshmead, near Walgett in northern NSW, and Armidale, Young, Boorowa and Goulburn.

But he is not likely to join the Australian Farm Journal's top 10 landholders, since other new players, Macquarie Group and the British private equity company Terra Firma Capital Partners, have between them spent $740 million buying vast chunks of northern Australia.

Mr Hintze's last big purchase was $14.6 million for a 4600-hectare Boorowa holding. The 7700-hectare grazing property Warrane, west of Armidale, was his priciest outlay, costing $22 million in late 2007.

Mr Hintze is the founder of CQS Capital Management, whose wealth has been estimated by Forbes magazine at $US1.2 billion. He has said he is not just looking for capital gain from the properties. He seeks solid returns on production.

"I'm not a farmer, but I do the numbers. It's got to make money."

The hedge fund chief, who spent 12 years at Goldman Sachs in roles such as head of European emerging markets, left Sydney in 1980 for Salomon Brothers in New York.

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Frequently Asked Questions about this Article…

Who is Michael Hintze and what is his connection to farm investments?

Michael Hintze is a London-based expatriate hedge fund manager and founder of CQS Capital Management (Forbes has estimated his wealth at about US$1.2 billion). He buys Australian grazing and mixed‑farming properties through his private pastoral vehicle, MHPF Australian Holding Company, aiming for solid production returns rather than simply capital gain.

What recent farm did Michael Hintze buy and how much did he pay?

Hintze recently paid $5.7 million for Rippling Waters, a 1,733‑hectare grazing property at Jingellic in southern New South Wales, bringing his pastoral purchases to about $82 million since 2007.

How much land and money has Michael Hintze invested in his pastoral empire?

Since 2007 Hintze has spent about $82 million on pastoral properties and now holds roughly 30,000 hectares across multiple NSW locations.

Which companies and managers are involved in Hintze’s farm holdings?

Hintze’s farms are owned by his MHPF Australian Holding Company and some properties are to be managed or used by Growth Farms Australia. Sellers mentioned in the article include Willmott Forests (which was in receivership) and Veall Limited. Other market players referenced include Macquarie Group and Terra Firma Capital Partners.

How will the Rippling Waters property be used under Hintze’s ownership?

Rippling Waters will be used as a breeding base for cattle and crossbred lambs, with those production activities managed by Growth Farms Australia.

Is Michael Hintze likely to be ranked among Australia’s biggest landholders?

The article suggests he is unlikely to join the Australian Farm Journal’s top 10 landholders, noting larger new players such as Macquarie Group and British private equity firm Terra Firma have together spent about $740 million buying large tracts in northern Australia.

What is Michael Hintze’s stated investment approach to farmland?

Hintze says he is not a farmer but ‘does the numbers’—he is not just seeking capital gains, instead looking for properties that deliver solid returns from production. In his words: “It’s got to make money.”

What notable past farm purchases has Hintze made?

Notable purchases cited include a Breadalbane property for $12.5 million in July 2007, a 7,700‑hectare grazing property called Warrane for $22 million in late 2007, a 4,600‑hectare Boorowa holding for $14.6 million, and a 350‑hectare portion of Little Wollogorang for $818,000 more recently.