A bare-of-stock price somewhere in the mid-$50 million range is anticipated for Victorian high-country grazing property Cobungra Station, which is being put to market by listed fund manager owners, Rural Funds Group after six years ownership.
Cobungra is one of the largest contiguous rural holdings in Victoria with a total area of 31,292ha, including almost 6500ha of a freehold land and an alpine lease (Agricultural Licence) area of 24,800ha.
Located in the Victorian Alps region at the foothills of Mt Hotham, 9km from the regional centre of Omeo and 11km from Hotham Airport, Cobungra is a showcase grazing holding which also supports a lavish homestead and lifestyle complex and grounds.
Rural Funds Group bought the property in 2019, paying $35 million bare, having transacted previously in 2001. The previous owner was Mark Suhr, well known in Wagyu industry circles, a high net-worth Melbourne businessman with connections to the software industry.
Since its purchase in 2019 by RFG, the property has been run under a long-term lease by prominent Wagyu supply chain, fund-owned Stone Axe Pastoral.
The holding has an estimated carrying capacity of 50,000 Dry Sheep Equivalents (DSEs). Its combined footprint of freehold and leased land underpins the property’s strong productivity and its capacity to support a premium Wagyu enterprise.
“Cobungra Station was purchased in March 2019 and was leased to Stone Axe Pastoral Co for a ten-year lease term, which is in place until February 2029 with options to extend,” RFM chief operating officer, Tim Sheridan said in a statement.
The timing of the sale appears designed to align with the lease terms, giving the new owners some breathing room to either extend the current lease arrangements, or run the holing themselves.
“The existing lease gives a potential buyer a stable income stream from the property for a minimum of over three years,” Mr Sheridan said.
Under RFG’s management through Rural Funds Management, said the property has benefitted from significant capital investment in pastures, infrastructure and water systems, driving operational efficiency and long-term resilience.
“A large portion of the capital development of Cobungra has been focused on improving the productivity of the grazing operation via improving pastures, fencing and livestock water,” Mr Sheridan said.
“Alongside these, infrastructure improvements such as roads and laneways and upgrades to cattle handling facilities, improve the functionality the property and the efficiency of the grazing operation.”
Livestock production and management is optimised through 66 paddocks and smaller holding pens, with a gravel lined laneway system providing internal access. This is complemented by extensive road frontages and multiple entry points, along with stockproof boundary.
More than 34pc of the freehold land is improved pastures, with soil types across the property predominantly comprising grey to brown clay loams over a granitic base, renowned for its high pH balance.
Water security is a feature, with several river sources and numerous groundwater bores. A gravity-fed delivery system via header tanks reticulates water to approximately 60 catchment dams and concrete troughs.
Other operational infrastructure includes a 500 head capacity under-cover, state-of the-art cattle yard complex, three large hay sheds, horse stables and a machinery shed.
Prestigious homestead standout feature
The previous owner, Mark Suhr, who ran Wagyu cattle on the property for 17 years under an arrangement with David Blackmore, built a spectacular homestead and complex in 2003. The architecturally designed five-bedroom homestead has been meticulously maintained and features expansive views across Cobungra Valley and surrounding rural land. Spanning 1200sq m, the homestead features five bathrooms, two powder rooms, lounge, formal dining room, large kitchen, games rooms and cellar as well as an internal courtyard with a large stone fireplace.
The large wraparound verandahs cover 330sq m and looks over the landscaped gardens designed by award-winning landscape architect Paul Bangay.
Additional accommodation on the property includes five dwellings currently used for staff accommodation.
LAWD senior director Danny Thomas said opportunities to acquire a property like this that delivers on every front are rare. He said he expected Cobungra to be highly appealing to a diverse pool of buyers in the mid-$50 million range.
“Cobungra offers an exceptional combination of location, scale, productivity, presentation, and a secure income through a premium Wagyu tenant, making it particularly compelling for high-net-worth investors, or other agriculture fund managers,” Mr Thomas said.
“Whether it’s purchased as a cornerstone agricultural investment or as a private rural base with income security, Cobungra is a truly exceptional opportunity that balances commercial performance with lifestyle amenity.”
Established in 1997, Cobungra’s vendor RFM manages $2 billion worth of agricultural assets in NSW, Qld, South Australia and Victoria, including $892m of assets in six investment funds for which RFM is the responsible entity. RFM’s largest fund under management, the Rural Funds Group (RFF), is an ASX-listed real estate investment trust.
RFG owns a wide range of agricultural assets that are leased back to original owners, including JBS Australia’s feedlot infreastructure and Camm Agricultural Group’s grazing assets.
Cobungra Station is being offered by Expressions of Interest closing Noon Thursday 4 December. Inquiries to LAWD Senior Director, Danny Thomas on +61 439 349 977 or LAWD director, Elizabeth Doyle +61 400 102 439.