This article is from the Australian Property Journal archive
A CONSORTIUM of local farming families have acquired the flagship Victorian Western District cropping and livestock holding Banongill Station for $80 million from US pension fund-backed agricultural fund manager Laguna Bay.
The transaction includes 8,200ha (20,000 acre) of prime mixed farming land, located 8km from Skipton and 45-minute drive from Ballarat.
The 30,000 head of sheep and significant plant and equipment assets will be sold separately. Laguna Bay negotiated the sale directly with the consortium, which is expected to settle post-harvest in Q1 2021. No regulatory approvals are required.
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 properties in Victoria.
The US pension fund backed agri manager acquired the station in September 2016 for $50 million from Ballarat property developer and former footballer Stewart Gull, who bought it off the Lempriere family for $20 million in 2006.
Laguna Bay founder and CEO Tim McGavin said he was delighted by the result and it is the first asset sale by the Laguna Bay Agricultural Fund 1 following the fund close in 2016.
He added that since acquiring the property it has converted significant area from grazing to cropping, improved existing cropping country along with substantial pasture and water infrastructure upgrades.
“This sale solidifies a significant return for our fund investors and reflects the resilience of the agricultural sector in contrast to the crippling impacts we are seeing 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 3,300ha (8,200 acre) Woorndoo cropping enterprise, 50km from Banongill,” McGavin said.
There is a significant amount of high quality plant and equipment which Elders Ballarat have been engaged to sell via clearance in early 2021. Farm general manager John Sheehan said he was excited to offer full lines of merino and cross bred ewes to the market in the 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,” he concluded.
