Land Bank

The New Solution to Land Finance

Over the last half-decade, the Gulf’s grazing industry has undergone serious financial pressure, with crippling debt an increasing challenge to managing cattle stations.  Recent surveys have found debt levels to be from one-third to half the value of individual stations. (ranches)

During the boom years, banks offered very attractive loans, yet when times turned tough, they gained a reputation of hard masters … and a number of farms have been turned over to the receivers.  Families who had been on the land for 100 years, were evicted.

The live-export ban, caused by a government making erroneous decisions, followed by floods, fires and four years of drought, caused the debt loads, with interest compounding the debts.  Low cattle prices added fuel to the fire.

The Future – a White Paper and Insatiable Asian Appetites

Since then, the Commonwealth Government has launched its White Paper for the development of Northern Australia.  They want this region to be the doorway to Asia, in food and other goods.  (see News section).  To back the White Paper, they government is pouring billions of dollars into the region in infrastructure.

China is moving to a western diet in many cities, and beef is fast becoming a highly sought after commodity.  In fact, the retail price for beef in China is at extremely high prices!  The opportunity for export beef is huge!

The Gulf region is on the cusp of the biggest beef boom in history!

The Land Bank – the revolutionary solution

To solve the debt crisis, and allow graziers to rebuild their herds, capture the new markets and become highly profitable again, Gulf Gold is forming its Land Bank.  This is a revolutionary new solution to debt.  It strips the cattle station of its debt

Debt for Equity swap

In principle, the Land Bank buys debt.  It is a debt for equity swap.  It pays out the existing debt to the banks, sometimes adds working capital, (and management oversight) and releases the grazier to move ahead at speed.  In return, the Land Bank owns equity in the enterprise, at the equivalent of the debt value, measured against the valuation of the cattle station.  The Land Bank then shares in the future growth and profit of the station.  This means if the debt on a cattle station was $2 million AUD on a valuation of $6 million AUD, the Land Bank would own 1/3rd of that station.  The owner has eradicated the debt (and immense anxiety, compounding interest and harassment) and can then rebuild the operation into profit.  The Land Bank shares in that profit and over time, the owner can buy back his 1/3rd equity from the Land Bank.

  • Investors share in the cumulative profit of the Land Bank.

Consider becoming part of Australia’s newest solution to crippling debt, that is retarding the next biggest boom in the country’s history, by investing into Gulf Gold’s Land Bank.