The Gunn Agri Cattle Fund has bought the 18,338-hectare Goodar Station, a cattle property in Queensland.
Financial details were not disclosed, although Australian reports have suggested a price tag of A$20 million ($15.22 million; €13.51 million). Gunn Agri Partners held a first close on its Gunn Agri Cattle Fund earlier this year, which has a final target of A$300 million, in February. It did not disclose the amount raised.
The fund acquires and operates cattle production assets in Australia and is targeting properties in Queensland, though the mandate extends to northern New South Wales and the Northern Territory.
A mix of freehold and leasehold land, Goodar is the Gunn Agri Cattle Fund’s third property and has a capacity of 7,000 adult beast equivalents growing 7,000 weaner steers or heifers, according to the release.
Fodder farmland for growing and fattening cattle includes more than 3,000 hectares. It will be positioned to sell off cattle, possibly for both live and slaughtered, to both domestic and export markets.
“Goodar has been owned by the highly respected cattle family, the Munros, for 125 years and is [a] proven, highly productive asset,” said Gunn Agri Partners chairman Bill Gunn in the statement.
The property also has the Weir River running along the eastern boundary of the property and the Urangara Creek runs through the centre, according to an agent advert for the property. “The property is watered by six dams, four being equipped with windmills and troughs,” said a sales advert placed by Moree Real Estate.
Water rights have become increasingly important in Australia in recent years, and are invaluable for farmers wanting to grow premium fodder on their stations. Prices for water rights have been rising and are expected to remain high for the next year, Colliers rural property report for Australia confirmed earlier this month.
The fund has already bought more two properties in eastern Australia, including 36,000 hectares of aggregated land in the Maranoa region. It has been operating Maranoa since December 2015 through the fund’s sole operator, the Cunningham Cattle Company. The fund, which is also recruiting for operational roles on its stations, is thought to have paid A$11 million for the Maranoa portfolio.