Property

Around $180m expected for three key NSW Paraway assets

Property editor Linda Rowley, 15/05/2023

Cattle on Paraway’s Pier Pier Station

AROUND $180 million is anticipated for three New South Wales blue ribbon mixed grazing and farming assets that are being offloaded by Paraway Pastoral.

Spanning almost 41,000ha, the offering consists of Borambil Station near Condobolin, Pier Pier Station near Coonamble and Burmah near Graman.

LAWD director Danny Thomas has been appointed to sell the high-quality assets which have been listed as a whole or individually via an expression of interest process closing on June 28.

The agency said given their spread across climatic zones and lower correlation to climate risk, the acquisition of all three properties could be seen as an ‘effective portfolio opportunity.’

Paraway Pastoral said the decision to divest the properties follows a number of unsolicited offers to purchase in the past 12 months.

“This has created an opportunity, as part of the active management of our portfolio, to realise some of the capital growth for investors which will be reinvested to further develop its business and other properties,” the company said.

Paraway said the sale of the assets also supports its broader, ongoing strategy to continue to strategically manage and grow its agricultural business.

Pier Pier

Purchased by Paraway Pastoral in 2011, the 31,603ha Pier Pier is an aggregation of five mixed grazing and cropping enterprises.

Located near Coonamble, in the western plains region of New South Wales, Pier Pier Station comprises two non-contiguous properties – 20,338ha Pier Pier and 3567ha Dynong.

Extensively developed and suited to sheep production, Pier Pier is currently running a self-replacing merino flock using Pooginook bred rams. A portion is also joined to dorset rams to produce first cross terminal lambs. Paraway tried unsuccessfully to sell the property in 2016.

When the season permits, Pier Pier trades cattle for finishing to feedlot entry weights on fodder cropping country.

The open to lightly timbered country has heavy black to light red sandy soils with some areas better suited to fattening cattle and other areas to sheep.

Paraway has invested significantly in the operational infrastructure which includes a near new 10-stand shearing shed and associated yards, four outpost sheep yards, sheds and 560 tonnes of grain storage.

The current livestock enterprise runs a 10,000 Merino ewe flock, as well as 1200 trade cattle, with an overall capacity to carry 35,000DSE.

Stock water is delivered to each paddock across the holding through a combination of tanks, troughs and catchment dams, supported by a pressurised bore water system.

Around 5100ha of self-mulching black soils and red loam soils have been developed to dryland cropping for cereals, oilseeds and fodder, with the balance comprising productive native grass and trefoil pastures.

An agreement with the Biodiversity Conservation Trust is in place over portion of the property.

Borambil Station

The 14,442ha Borambil was one of Paraway’s earliest purchases in 2008.

Situated 8km south-east of Condobolin, in the Lachlan Valley of central western New South Wales, Borambil Station comprises five holdings comprising East Borambil, Ellerslie, Grassmere, Mooney Park and Borambil Park.

With an estimated carrying capacity of 40,000DSE, the aggregation offers sheep and lamb production, backgrounding cattle and dryland and irrigated production systems.

Some cropping is carried out, producing wheat, barley and lucerne, with further development underway for limited irrigated cotton production.

Borambil boasts a 16km frontage to the Lachlan River, as well as Wallamundry and Wallaroi Creeks. Two bores and extensive water licenses support the property’s irrigated cropping country.

Infrastructure includes a shearing shed and yards, outpost sheep yards, cattle yards, sheds, accommodation and 1720 tonnes of grain storage.

Angus heifers off Paraway’s Burmah Station, Inverell

Burmah Station

Comprising gently undulating hills, Burmah is located 10km from Graman and 30km north-east of Warialda on New South Wales’ north-west slopes.

Purchased in 2016, the 4187ha aggregation comprises four strategically acquired and developed properties operated as a single holding.

Burmah sits at an elevation of 550 metres and with a summer dominant average annual rainfall of 765mm is suited to cattle breeding and finishing in combination with crop and fodder production.

With a 40,000DSE carrying capacity, around 2103ha are used for grazing and 2773ha have been developed to dryland cropping, with the 580ha balance made up of timbered grazing and remnant timber.

Fit-for-purpose infrastructure includes two sets of livestock yards, a shearing shed and multiple sheds, as well as 410 tonnes of grain storage.

Water is supplied by seven bores and catchment dams.

 

 

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Comments

  1. Val Dyer, 18/05/2023

    Quick question. Are these sales, like many others, exempt from ATO Capital Gains and Stamp Duty Taxes due to the ‘trading’ exemptions available to companies which are officially traders?’

  2. Michael J. Vail, 15/05/2023

    Excellent !!








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