Leader of the pack

It’s the question that every rich watcher wants answered – who will finish 2009 as Australia’s richest person?

Back in the middle of the year, BRW’s Rich 200 had Anthony Pratt on top, just weeks after he took over the reigns of his family’s Visy paper and packing empire from his late father Richard Pratt.

But a lot’s changed since then. Rising sharemarkets and a takeover tussle have helped boost the value of James Packer’s pile, while Andrew Forrest’s wealth is again heading north and Harry Triguboff has seen property markets climb off the bottom.

And up in Queensland, mining magnate Clive Palmer has been working on a plan to trump them all.

Without any further ado, here is the top 10 of Australian wealth. As a starting point for these estimates, we’ve used the BRW Rich 200 valuations.

Clive Palmer: $6 billion

I’ve agonised over whether or not Queensland-based mining baron Clive Palmer has risen up to take the title as Australia’s richest person, but on the balance of probabilities it appears he is. Palmer has been forced to delay the much vaunted float of his mining investment company Resourcehouse unit early next year, but it seems the $3 billion raising (slated for the Hong Kong exchange) will go ahead. That deal will value Palmer’s stake at around $4 billion (apparently the cash will be pumped back into the expansion of the company). Still, for the moment is appears Resourcehouse is worth at least $6 billion. Palmer has other assets too that won’t go into the float, including the Yabulu nickel refinery that he bought earlier this year for $500 million. He’s also got property assets and the Gold Coast United soccer club. A $6 billion valuation is conservative.

Anthony Pratt: $4.7 billion

Pratt has kept a relatively low profile since taking over from his late father, with the news out of Visy limited to some management changes. However, the recovery in global markets should have helped boost the value of the Visy empire; shares in listed paper and packaging company Amcor are up 18%. Given Visy’s exposure to the US, a more conservative increase of 10% has been used, taking Pratt’s valuation from $4.3 billion to $4.7 billon. The Pratt valuation includes family assets, including the investment vehicle Thorney controlled by Pratt’s sister Heloise and her husband Alex Waislitz.

Frank Lowy: $4.4 billion

Westfield founder Frank Lowy is spending a lot of time travelling the world selling Australia’s bid to host the soccer World Cup, but back at home the share price of his shopping centre has been treading water. While the broader market is up 18%, shares in Westfield are up just 3%. However, the Lowy family does invest heavily in the market through its private investment vehicle, which means Lowy’s total wealth has likely ticked up from $4.2 billion.

Andrew Forrest: $4.2 billion

Perth mining magnate Andrew Forrest, founder of Fortescue Metals Group, is another wealthy entrepreneur who has seen his share price jump more than 50% since the halfway point of the year. The value of his stake has increased from $2.7 billion to $4.2 billion over that time, although that is still a long way from the $11 billon that Forrest was once valued at.

Gina Rinehart: $4.2 billion.

Australia’s richest woman was valued at $3.5 billion in mid-2009, but the impressive jumps in the fortunes of Clive Palmer and Andrew Forrest suggest a revaluation is necessary. The question is, by how much? Like Palmer, many of Rinehart’s assets are in the development stage; her major income-producing asset is a royalty from the Hope Downs mine, operated by Rio Tinto. Fortescue Metals Group shares are up more than 50% in the last six months, while Rio’s shares are up 40%. Even assuming a very conservative 20% increase, Rinehart’s fortune jumps to $4.2 billion.

James Packer: $3.8 billion

James Packer’s wealth plunged from $6.1 billion to just $3 billion in the middle of the year, but Kerry Stokes raid on Consolidated Media and the rebound in the share price of Challenger Financial Services have helped turn Packer’s year around. His share portfolio, based around Crown and Consolidated Media, is currently worth $3.7 billion. After a big asset sell-off, Packer has trimmed his private investments, which points to a valuation of around $3.8 billion.

John Gandel: $2.7 billion

No change in the wealth of shopping centre magnate John Gandel, who owns half of the Chadstone Shopping Centre and a stake in property trust CFS Retail Property Trust. The trust’s share price has been fairly static in the last six months, which gives a good guide to shopping centres assets.

David Hains: $2.4 billion

The fortune of the secretive Hains family is notoriously hard to value, given no one knows exactly where it is invested – the family says there is plenty of cash and a distinct international focus at its Portland House Group investment vehicle. Given this, the MSCI World Index provides a good rough guide to apply to the family’s wealth. It’s up 19%, taking their fortune from $2 billion to $2.4 billion.

Len Buckeridge: $2.3 billion

Perth building materials magnate Len Buckeridge was valued at $1.95 billion on this year’s Rich 200, a slight drop that reflected the state of the West Australian market and the building materials sector more generally. But a look at the share price of his big competitor Boral – up 35% since June 1 – highlights that the sector is on the rebound. Even applying a 20% increase would take Buckeridge’s fortune to $2.3 billion.