A large Northern Territory pastoral and farming asset has been put to market through an expressions of interest campaign by its Vietnamese owners, with price expectations above $40 million

In what was regarded as the first major Vietnamese investment into the northern Australian beef industry, Vermelha Station was sold in 2016 to An Avien Pastoral Holding and Agriculture for $18 million.

The company’s major shareholder was Pham Nhat Vu, chairman of media company An Vien Group. Mr Pham is the brother of Vietnamese billionaire Pham Nhat Vuong, head of conglomerate Vingroup. The property is held today by PNV Family Trust.

Located about 200km southeast of Katherine in the Sturt Plateau region, the 204,000ha Perpetual Pastoral Lease is being offered walk-in, walk-out, with around 15,000 Brahman based cattle. Vermalha is bordered by Maryfield to the south and Hodgson River to the east, with the Elsey Aboriginal Land Trust to the north.

Darwin Property Group has been appointed as the selling agent, with the first stage of the EOI process set to close on 30 September.

Vermelha’s current owners had overseen significant productivity gains during the group’s tenure, the marketing agents said.

Under their stewardship, the cattle herd had increased from 10,000 to 15,000 head, underscoring the station’s capacity to support and enhance livestock operations. This was achieved through significant upgrades to water supply to the 28 paddocks, satellite monitoring system and upgrades of existing infrastructure to support the capacity of Vermelha to circa 16,000 adult equivalents.

Irrigation, farming opportunities

While not currently being utilised, a 2956ML groundwater extraction license is included, along with a 3690ha clearing permit, which presents opportunities for further agricultural and farming development, making it an attractive proposition for investors and operators looking to expand or diversify their agricultural portfolio.

Vermelha has 23 bores, including a high-capacity irrigation bore capable of pumping 60 liters per second. This supports a 45ha centre pivot irrigator and an additional 60ha of cleared land, which offer potential for crop production or further expansion of the irrigated area.

With the Stuart Highway forming the western boundary, the property has good all-weather access by road.

Vermalha is well-equipped with robust infrastructure to support large-scale pastoral operations. The country is divided into 28 paddocks, supports six sets of steel yards and other cattle handling infrastructure. There is a total of 680km of three and four-barb fencing, securely boundary fenced and internal. Country is a mix of red and back soils, a combination of woodlands and savannah. Average annual rainfall is 860mm, with 1345mm falling over the past 12 months.

“Vermelha Station’s strategic location, robust infrastructure, and significant water and land resources present a compelling opportunity for investors and operators,” marketing agent Judy Truong from Darwin Property Group said.

“The combination of pastoral and farming capabilities provides a diversified income stream and mitigates risks associated with reliance on a single industry,” she said.

The existing infrastructure and development permits enhance the property’s attractiveness offering immediate operational capacity and future growth potential. The combination of extensive grazing land and irrigation capabilities positioned Vermalha as a versatile property with immense potential for agricultural development alongside traditional pastoral activities,” she said.

The Information memorandum for the property highlights carbon and farming opportunities, in addition to the cattle operations.

Following the first round of EOI expressions, shortlisted parties will be invited to conduct further due diligence, including site inspections and submit best and final offers.