Rural Funds Group buys beef farm Cobungra Station

ONE of Victoria’s most famous beef properties, Cobungra Station, has been sold.

Sold: Rural Funds Group has purchased Cobungra Station near Omeo for $35 million.

ONE of Victoria’s most famous beef properties, Cobungra Station, has sold for $35 million.

Rural Funds Management Limited, which manages Australian Securities Exchange-listed Rural Funds Group, advised the ASX yesterday it had contracted to acquire the 6486ha cattle property located at the base of Mt Hotham near Omeo.

The premium cattle breeding enterprise was listed for sale in February last year for just the third time in 100 years.

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COBUNGRA STATION IN EAST GIPPSLAND IS FOR SALE

It comprises 6486ha of freehold land and 24,512ha of alpine grazing country running Wagyu, Wagyu-cross, Angus and Hereford cattle with a carrying capacity of 4000 cows.

The property will be leased by Wagyu producer Stone Axe Pastoral, a venture between cattleman Matthew Walker and investment bank Moelis.

Stone Axe Pastoral leases two other properties from RFF and has entered a 10-year lease with a rent review after five years.

A statement from Rural Funds Management said Cobungra had “the potential for productivity enhancements with development capital expenditure attracting additional rent.

“The acquisition is consistent with RFF’s strategy to acquire assets which may benefit from productivity improvements, add to the frequency of rent reviews, are in sectors in which RFM has expertise and enhance diversification.”

RFF is a real estate investment trust, which has assets worth $836.7 million, according to its website.

It owns a diversified portfolio of Australian agricultural assets that are leased to experienced agricultural operators.

They include 7,600ha breeding and backgrounding cattle property Comanche, located in central Queensland, which it purchased last year for $15.7 million.

It also owns northern Queensland cattle properties Natal Downs, Longston Station and Narellan covering 390,660ha, which it purchased in 2017 for $53 million.

The purchase of Cobungra will be funded from RFF’s debt facility and is expected to settle in March 2019.