Property

Local farmer consortium outlays $80m for Victoria’s Banongill station

Beef Central, October 27, 2020

AGRICULTURAL fund manager, Laguna Bay has agreed to sell its flagship Victorian Western District cropping and livestock holding, Banongill Station, for a figure around $80 million to a consortium of local farming families.

The transaction includes 8200ha (20,000ac) of prime mixed farming land, located 10km from Skipton and 45 minutes from Ballarat, while 30,000 head of sheep and significant plant and equipment assets will be sold separately.

Laguna Bay Agricultural Fund is an Australian investment vehicle set up in 2016, with the US-based Washington State Investment Board as the main investor. The board manages the superannuation funds of Washington public servants.

Laguna Bay in 2016 outlaid about $48 million on Banongill (then 6880ha) plus an adjoining property to take the aggregation to 8200ha. That sale included livestock, plant an equipment, crops and inventory.

It is the first asset sale by the Laguna Bay Agricultural Fund 1 following the Fund’s close in 2016. Since acquiring the property, Laguna Bay has converted significant area from grazing to cropping, improved existing cropping country along with substantial pasture and water infrastructure upgrades.

Established in 1853, the Banongill Station homestead was originally an outpost of Borriyalook station, and owned by pastoralist and philanthropist Francis Ormond, founder of Ormond College. Together with its traditional bluestone construction and National Trust gardens it is widely considered one of the best in class, flagship homesteads in Victoria.

Agriculture’s resilience

Laguna Bay founder and chief executive Tim McGavin said the sale solidified a significant return for the fund’s investors and reflected the resilience of the agricultural sector in contrast to the crippling impacts being seen (from COVID) in other sectors of the economy.

“We look forward to a smooth transition to the Australian buyer group and to continuing our contribution to the local community through the retention of our 3300ha Woorndoo cropping enterprise, 50km from Banongill,” Mr McGavin said.

There is a significant amount of high quality plant and equipment which Elders Ballarat has been engaged to sell via clearance in early 2021. Full lines of Merino and crossbred ewes will also be offered to the market in coming months.

“The quality of the ewes has been exceptional over the past two years and given the current demand for restocking we are expecting strong sale results,” farm general manager John Sheehan said.

Laguna Bay negotiated the sale directly with the buyer consortium, which is expected to settle post-harvest in Q1 2021. No regulatory approvals are required.

 

About Laguna Bay

Laguna Bay was founded in 2010 and is an institutional agricultural investment specialist with a proven ability to originate, execute, manage and exit large-scale agricultural transactions across multiple sectors. Laguna Bay does this by leveraging its wide agricultural operating knowledge, extensive industry relationships and deep understanding of the agricultural supply chain. The firm focusses on transforming mis-priced or underinvested agricultural assets, typically in categories where Australia has a competitive advantage, into high performing, institutional grade operations in an ESG responsible manner. Laguna has invested in some of Australia’s largest producers of dairy, wine, almonds and olive oil.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HAVE YOUR SAY

Your email address will not be published. Required fields are marked *

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.

Comments

  1. Hopefully you are right Barry, and it’s not a smoke and mirrors act.

  2. Good. Fantastic if Aussies….but…Which are this consortium of local families?.. Who is this Australian buyer group?…Hopefully this isn’t another Reinhardt styles obfuscation of getting around foreign investment regulation of overseas transactions made to look ‘local’

  3. Barry Tilbrook, October 28, 2020

    I.m relieved to know that the property is going back to Australian owners and not to a Chinese buyer

  4. Kath Taylot, October 28, 2020

    How do I contact the appropriate person to discuss employment? Cheers Kath

Get Property news headlines emailed to you -
FREE!