Property

Property: ‘Red-hot’ demand delivers pre-auction contract for Qld’s Deepbank

Jon Condon, 20/07/2016
Diverse improved pastures on cleared country on Deepbank, near Mundubbera

Diverse improved pastures on cleared country on Deepbank, near Mundubbera

 

RECENT big rain across large tracts of grazing country in eastern Australia, combined with a cattle market at unprecedented levels has contributed to an exceptional sale result for Taroom-Mundubbera district grazing property Deepbank, sold prior to auction this week.

Agent Tom Warriner from CBRE Agribusiness confirmed to Beef Central this afternoon that the 4200ha improved brigalow and forest country breeding/fattening holding has sold to a local buyer – one of five pre-auction firm offers made before the scheduled auction that was due to take place today.

After a short, sharp marketing campaign that was only launched on Beef Central a month or so ago, Deepbank attracted more than 30 inquiries and 15 inspections. Significantly, all five interests that were prepared to ‘put their money on the table’ were established local beef producers, from within a 150km radius of the property.

There’s now growing optimism evident across Queensland and northern NSW that the epic 2014-15 drought has now lifted, and the past six weeks of unseasonal rain has heavily driven that.

The Deepbank transaction is one of the first grazing property examples where buyer confidence, already heavily fuelled by cattle price rises, has been further stoked by the surprising turnaround in seasonal fortunes brought on by the big rain event that started in June.

The other key driver behind the Deepbank sale outcome is the fact that grazing country in the immediate Mundubbera-Taroom area is incredibly tightly held, and rarely comes on the market in any quantity.

No buyers’ name or price has yet been disclosed, but Beef Central understands the contract, bare of stock, is for a figure approaching $4 million. If it’s accurate, it represents a beast area value of around $4300 – right up there, and perhaps better, than the best of the market for similar country back in the market heights around 2007.

Two features perhaps worked against the offering. The first was that it was offered bare of stock, which is considered a tough call when the restocker market is at current record highs. Agistment cattle currently on the property will stay there til settlement. The second was that it did not include a homestead – the original dwelling was kept in another portion of the original property asset not offered in today’s sale.

“The property market currently is absolutely red hot for this type of listing – sub-$5 million range, in a desirable area,” marketing agent Tom Warriner said.

150 year connection

Deepbank vendors, the McCord family, can trace their connections with the property back six generations, representing 150 years. The property is only being sold due to generational change.

Located in the heartland of some of Queensland’s premium cattle country, Deepbank is a mix of soil types, partly cleared and improved. It has an estimated carrying capacity of 900-950 adult equivalents.

The country was originally timbered with brigalow, box and ironbark, while improved pastures include buffel, creeping bluegrass, green panic, urochloa and Rhodes. Remnant areas timbered with narrow leaf ironbark and spotted gum offer opportunity for harvest as an additional source of income.

Major features include highly-secure stock water resources, including six bores – two of which are equipped with solar – six dams, three creek systems with associated watering holes, and an extensive reticulation system covering most of the land area.

There’s been a few other notable grazing property sales in the local district recently. Woolagorang vendors, the Szlotowski family, late last year bought Munboorie, via Mundubbera, and more recently, Lochabar sold back when conditions were still very dry.

 

CBRE’s Tom Warriner, Geoff Warriner and Chris Holgar handled the transaction.

 

 

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