Property profile: Natal Aggregation

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The property aggregation of Natal Downs, Longton and Narellan, referred to as Natal Aggregation, is the largest property of the Rural Funds Group (ASX: RFF) portfolio by size. Natal Aggregation encompasses an area of 390,600 hectares and has a carrying capacity of over 37,000 head of cattle. It is situated approximately 100km southwest of Charters Towers, a region suited for cattle breeding and backgrounding.

The aggregation was acquired in 2017 for $63 million under a sale and lease-back arrangement, with a 10-year lease to DA & JF Camm Pty Ltd (Camm), part of the Camm Agricultural Group (CAG), a family enterprise that has operated the property for more than 25 years. CAG is Queensland based and its integrated operating model spans the full beef cattle supply chain from breeding and backgrounding through to finishing. The group also holds cropping interests across Queensland, complementing its beef operations. Central to the business is one of Australia's longest-running feedlot operations, established by the Camm family in southern Queensland in 1972.

The purchase of Natal Aggregation built on RFF’s cattle assets acquired in 2016 and formed part of the strategy to acquire natural resource predominant assets with the potential for capital growth through productivity improvements.

Developments and lease

Since acquisition, RFF invested in developments and infrastructure to boost productivity, converting over 4,309 hectares of dryland cultivation into fodder and cash crops as well as installing more than 400 km of new fencing. The lease is structured to generate additional rent on capital expenditure, directly linking RFF's investment activity to rental income growth.

Water infrastructure development included the installation of 46 new water points from 2018 to 2023. An ongoing project for the installation of an additional 39 water points is currently underway, 10 are completed with the remainder to be installed by the year end. These new water points have unlocked underutilised dry-season areas on Longton and Narellan.

These developments have increased the property’s carrying capacity materially. To enable the lessee to utilise the increased carrying capacity of the properties, RFF provided a livestock lease facility of $5 million to the lessee as part of the acquisition.

Natal’s property value was $187.2 million as at 31 December 2025.

Environmental initiatives

In FY21, RFF funded the installation of 11 solar-powered water pumps. Solar-powered water pumps utilise power from solar panels, pumping water from nearby water sources such as a dam or bore.

These systems have replaced existing diesel-powered pumps, as well as being utilised in new installations. The pumps provide a direct reduction in emissions, not only through reduced diesel usage, but also in the reduction of the vast travel requirements for farm staff as regular refuelling of the pumps is no longer necessary.

History

Natal Downs, the core of the Natal aggregation, traces its origins to the early 1860s, when it was first taken up by Robert Kellett and partners as part of the wave of North Queensland pastoral expansion. The pastoral frontier in this region was driven by squatters seeking new grazing land, leading to the rapid establishment of large sheep and cattle stations across the Cape and Burdekin districts. Natal Downs initially operated as a sheep station before transitioning to beef cattle and in time became a local social hub, known for hosting picnic race meetings with the original dance hall still standing today.

William Chatfield purchased Natal Downs in 1865 and was quoted as saying that the success of Natal Downs during his tenure, was due to the work of the local Gudjal people, whose country includes the Cape River area. Chatfield spent time recording the language of the Gudjal people and his notes include vocabulary such as ‘boboro’ (tree), ‘goondi’ (flying fox) and ‘kom-mo’ (water), as well as place names like ‘Moonya moonya’, meaning ‘bats’, which was said to have been retained from an earlier tribe.¹