Historic Gilgal Station sold to European family office

A 3600ha southern NSW property has changed hands for just the second time in its history after it was sold to a German investor.

The historic Gilgal Station has a homestead built about 1870.

The historic Gilgal Station has changed hands for just the third time in its 158 years, after it was sold to a European buyer.

It is understood the German arm of a European family office - a privately held company that manages investments and assets typically on behalf of a wealthy family - has acquired the 3605ha grazing property, 5km from Cootamundra in southern NSW.

Property records show the foreign company, LAM LUF Overseas GMBH, has purchased the station via newly formed Australian subsidiaries LAM LUF Australia and Gilgal Grazing.

LAM LUF Overseas GMBH has a listed address at Norderstedt near the city of Hamburg and is understood to be an agricultural and forestry investor via the private European family office.

Property records indicate the family office has paid at least $53.5 million to acquire Gilgal Station. It is understood the deal settled last month after gaining FIRB approval earlier this year.

The lucrative transaction is another illustration of Australia’s rural property values boom, with the value of Gilgal Station increasing by more than 78 per cent since is was last transacted in 2020 for a reported figure about $30 million.

When Gilgal Station was listed for sale in April it was marketed with an estimated 34,000-38,000 dry sheep equivalents carrying capacity.

Gilgal Station was listed for sale by one of Australia’s leading beef producers, Palgrove, in April this year, after ending their four-year tenure at the property.

At the time, Palgrove CEO Will Heath said the company had decided to sell Gilgal Station to focus on expanding its northern NSW and Queensland property portfolio.

Palgrove is a partnership between the NZ Superannuation Fund and winners of The Weekly Times Coles 2016 Farmer of the Year, David and Prue Bondfield, from Dalveen in southeast Queensland, after a deal was struck in 2017.

Gilgal Station will be run as a regenerative livestock enterprise after its recent sale.

Gilgal Station changed hands for the first time in 150 years when Palgrove purchased the property from the Ward family in February 2020, ending its five-generation tenure.

The station comprises Gilgal (1631ha), Winona (1633ha) and O’Connors (341ha) and has an estimated 34,000-38,000 dry sheep equivalents carrying capacity.

As part of the deal, agricultural asset managers SLM Partners and Impact Ag Partners will manage the property in tandem, where they will run a regenerative livestock enterprise.

Impact Ag Partners founder and managing director Bert Glover said they would act as an “operating partner” as part of the properties’ new ownership and management structure.

Founded in London in 2019, SLM Partners now has more than $833 million (US$530 million) in assets under management across Australia, USA and Europe.

Meanwhile Impact Ag Partners have more than 200,000 hectares, or $600 million worth, under regenerative management across Australia and the USA.

LAWD senior directors Col Medway and Danny Thomas handled the sale, but did not comment on the transaction due to confidentiality arrangements.