Rural Funds buys Queensland cattle stations
Rural Funds Management is paying $68.8 million – some 20 per cent over expectation – for an aggregation of Queensland cattle stations 235 kilometres west of Rockhampton.
The four properties – Kaiuroo, which spreads 5889 hectares, Coreen (4528ha), Eskfield (3636ha) and Yambuk (13825ha) – were offered by New York based investment firm The Rohatyn Group.
The assets have carried up to c7400 head of cattle in recent years.
About 917ha is irrigated.
Another 1650ha is organic certified.
The aggregation includes 12,448 megalitres of water entitlements, which RFM, as manager for the ASX-listed Rural Funds Group which will hold it, intends to use to improve productivity, including expanding irrigated zones and pasture improvements to increase cattle carrying capacity.
Marketed collectively as Kaiuroo, the holding is about five kilometres from the 8280ha Cerberus cattle station, which the buyer acquired for $10m in 2018.
It is also about 85km north of Dingo (story continues below).
“The acquisitions are consistent with RFM’s strategy of acquiring assets with potential for productivity improvements, in agricultural sectors in which RFM has operating experience and Australia has a comparative advantage,” the group said of today’s purchase.
Settlement is scheduled in 24 months by which stage RFM is intending to find a leasee.
Elsewhere in the state, three weeks ago, RFM outlaid $63.1m for the Beerwah and Bauple macadamia orchards – all up covering 475ha – and shares in the Marquis Macadamias Ltd processing and marketing company.
It also purchased two Queensland cattle and cropping properties:
- Baamba Plains, which spreads 4130ha and set it back $32m, and
- The Pocket, covering 1917ha, and which cost $13.2m.
Elders’ Andrew Williams and Virgil Kelly represented TRG, founded by ex-JP Morgan executive Nicholas Rohatyn in 2002.
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