Property

Carbon buyer purchases NT Conways Station for $14.5m bare

Property editor Linda Rowley, 18/10/2023

The 140,000ha Conways Station, 180km from Katherine, has sold to Sydney-based Wealthcheck for $14.5 million bare.

SAM Mitchell from Sydney-based Wealthcheck has added the picturesque Conways Station to his growing Northern Territory cattle property portfolio, paying $14.5 million bare in a joint venture with Viridios Capital.

Wealthcheck Funds Management is an investment and property manager that sources opportunities to invest in the Australian agricultural property sector.

Viridios is a global origination, corporate solutions and asset management business focused on the growing Voluntary Carbon Market (VCM) and compliance markets.

Mr Mitchell confirmed the sale, saying the latest acquisition is consistent with previous purchases and forms part of the company’s northern Australia strategy. It is understood the partnership will concentrate on carbon and running a sustainable cattle grazing operation.

According to the Emissions Reduction Fund register, Conways Station signed up to a savanna fire management carbon project in 2015, for which it was issued 34,796 Australian Carbon Credit Units. The project was revoked at the end of last month.

Located 180km from Katherine, the 139,200ha Conways Station last traded hands in 2017 when the Victorian-based Conway Country Corp paid $5.795m bare or $9m walk-in walk-out including 4500 head of cattle and a small amount of plant.

Situated in a 1000mm plus annual average rainfall region, the organic certified pastoral lease borders Arnhem Land and Kakadu National Park and features black soil plains, red tippera soils, escarpments, springs and rivers.

According to its website, Conways Station runs around 5000 head of cattle, including more than 3000 breeders, turning off around 1500 head a year.

It also has a large wild buffalo population that is professionally mustered and together with the cattle are sold to domestic and export markets.

Conways Station participates in the Carbon Farming Initiative, with proactive farming practices recognised under the CFI to reduce emissions.

When the property was sold six years ago, the carbon credit contract was believed to be capable of generating between $70,000 and $100,000 profit per annum, which at the time of sale, positively influenced the purchase price.

This week’s sale of Conways Station was an off-market transaction handled by LAWD agents Danny Thomas and Olivia Thompson.

Previous purchases

In September last year, Wealthcheck Funds Management made its first foray into the Northern Territory. It paid $175m for the extensive grazing properties Maryfield and Limbunya in partnership with Garry Edwards from the Brisbane-based AAM Investment Group.

The landmark walk-in walk-out deal included around 50,000 head of Brahman cattle.

The following May, Sam Mitchell paid $40m bare for Benmara Station, a large breeding property on the Barkly Tableland.
The 451,200ha feature open Barkly downs and open forest country and is situated east of Cresswell and Newcastle Waters, towards the Queensland border.

Well located to service both the northern live export market as well as processing works on the eastern seaboard, Benmara is estimated to run more than 20,000 head of cattle.

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Comments

  1. Peter E Hacon, 18/10/2023

    With 70 years involvement in the industry,I can see some heart ache down the track with these inexperience academics entering an industry they have no knowledge of – good luck.

    • Graham johns, 19/10/2023

      I 100% agree with you Peter but before it gets to that i see financial problems due to the heavily overinflated prices that they are paying for properties.

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